Broker-in-charge Elaine operates a large Franklin real estate firm. She has established a written company policy stating that all in-house transactions will automatically be handled as designated agency arrangements without requiring individual client consent forms, relying solely on the policy disclosure in the firm's initial marketing materials. A buyer and seller both received the marketing materials but did not sign any designated agency consent form. Is Elaine's policy compliant with Tennessee law?
Correct Answer
D) No, because Tennessee law requires individualized written disclosure and consent using the TREC-approved form for each transaction
Tennessee law under Tenn. Code Ann. § 62-13-401 et seq. requires that the TREC-approved Agency Disclosure form be provided to and acknowledged by each client at first substantive contact in each individual transaction. A blanket policy disclosed only in marketing materials does not satisfy this transaction-specific, individualized disclosure and consent requirement. Each client must receive and acknowledge the TREC form.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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