Affiliate broker Jordan works for Smoky Mountain Realty. Jordan is the buyer's agent for client Amy. The seller of the property Amy wants to purchase is represented by a different agent at a completely separate brokerage. Jordan's broker-in-charge suggests that Jordan act as a dual agent to simplify the transaction. Both Amy and the seller sign written dual agency consent forms. Which of the following statements is correct under Tennessee law?
Correct Answer
B) Dual agency cannot arise in this situation because the seller is represented by a completely separate brokerage
Dual agency in Tennessee arises when the same licensee or the same firm represents both the buyer and the seller. In this scenario, the seller is represented by an entirely separate brokerage, so Jordan representing only the buyer does not create dual agency. There is no conflict requiring dual agency consent because Jordan's firm has no relationship with the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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