Affiliate broker Marcus is showing a Memphis home to buyer client Rachel when Rachel reveals that she would pay up to $320,000 for the property, even though she plans to offer $295,000. Marcus is also the listing agent for this property. If Marcus proceeds as a dual agent without obtaining written consent from both parties, which of the following best describes the primary violation under Tennessee law?
Correct Answer
B) Marcus has violated Tennessee's dual agency consent requirement by acting as a dual agent without written authorization from both parties
Under Tenn. Code Ann. § 62-13-401 et seq., a licensee may not act as a dual agent without first obtaining written informed consent from both the buyer and the seller. Marcus is representing both Rachel and the seller without that required written consent, which is a direct violation of Tennessee's agency law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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.
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