Tennessee law permits dual agency with written informed consent from both parties. When a Tennessee licensee is operating as a disclosed dual agent with proper written consent, all of the following duties are modified or limited EXCEPT which one?
Correct Answer
D) The duty to disclose material facts about the property to both parties
The duty to disclose material facts about the property is NOT modified or limited in a dual agency relationship. Under Tenn. Code Ann. § 62-13-401 et seq., a dual agent must still disclose all material facts about the property to both parties — this duty is non-waivable even with dual agency consent. What is limited in dual agency is the agent's ability to fully advocate for each party's negotiating position, provide full loyalty, and maintain confidentiality of each party's negotiating strategy against the other.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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