Affiliate broker Dana represents seller Kim in the sale of a Knoxville condo. Dana's colleague at the same firm, affiliate broker Paul, has been working with buyer Greg. Greg wants to make an offer on Kim's condo. The broker-in-charge, without assigning separate designated agents, decides that the firm itself will represent both Kim and Greg. Both Kim and Greg sign a written dual agency consent form. Which statement about this arrangement is correct under Tennessee law?
Correct Answer
D) This arrangement constitutes firm-level dual agency and is permissible with written consent from both parties
Tennessee law allows firm-level dual agency, where the brokerage firm represents both buyer and seller in the same transaction. When both parties provide written informed consent, this arrangement is permissible under Tenn. Code Ann. § 62-13-401 et seq. The firm acts as dual agent even though different affiliate brokers may handle the day-to-day work.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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