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Tennessee allows which type of agency relationship where one licensee represents both parties?

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Question & Answer

Review the question and all answer choices

A

Disclosed dual agency with written consent

Correct Answer
B

Undisclosed dual agency

Undisclosed dual agency is prohibited in Tennessee because it violates disclosure requirements and prevents clients from making informed decisions about representation.

C

Dual agency is prohibited

Dual agency is not prohibited in Tennessee; it's specifically allowed with proper disclosure and written consent, making this option factually incorrect.

D

Only transaction brokerage

While transaction brokerage is permitted in Tennessee, the question specifically asks about dual agency, which is a distinct form of agency relationship with different requirements.

Why is this correct?

A is correct because Tennessee specifically allows disclosed dual agency but requires written informed consent from both parties. This requirement protects consumers by ensuring transparency while permitting the practice under controlled conditions.

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