Tennessee affiliate broker Kevin has been working with buyer client Sandra for six weeks. Sandra finds a home she loves that is listed by Kevin's firm. Kevin's broker-in-charge, without consulting Kevin, decides to designate Kevin as Sandra's agent and designate colleague affiliate broker Fiona as the seller's agent. The seller has not yet signed any designated agency consent form. Which of the following is the most accurate statement about this situation?
Correct Answer
B) The designated agency arrangement is not yet valid because the seller has not provided written consent to the arrangement
Under Tenn. Code Ann. § 62-13-401 et seq., designated agency requires that both the buyer and the seller be informed of and consent to the arrangement. The seller's written consent is a necessary component of a valid designated agency relationship. Until the seller signs the appropriate consent form, the arrangement is not complete.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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