Buyer client Rosa is working with Tennessee affiliate broker James. At their first meeting, before discussing any specific properties, James provides Rosa with the TREC-approved Agency Disclosure form explaining that his firm may represent sellers of properties Rosa might want to purchase. Rosa refuses to sign the form. How should James proceed under Tennessee law?
Correct Answer
D) James may note Rosa's refusal and continue working with her, as the obligation is to provide the form, not to obtain a signature
Under Tenn. Code Ann. § 62-13-401 et seq., the Tennessee licensee's primary obligation is to provide the TREC-approved Agency Disclosure form at first substantive contact. While obtaining an acknowledgment signature is the preferred practice, a client's refusal to sign does not prevent the licensee from proceeding. James should document Rosa's refusal and may continue to work with her.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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