Tennessee requires agency disclosure:
Question & Answer
Review the question and all answer choices
At closing only
Answer A is incorrect because requiring disclosure only at closing would mean the entire process of property searching, offer negotiation, and contract execution would occur without the consumer understanding the agent's legal loyalty — a fundamental consumer protection failure.
At the first substantive contact or communication
Only if requested
Answer C is incorrect because Tennessee law imposes an affirmative, proactive duty on the licensee to make agency disclosure — it is not a passive obligation that only arises when a client happens to ask about it.
Never
Answer D is incorrect because Tennessee absolutely mandates agency disclosure; 'never' would represent a complete absence of consumer protection requirements, which is contrary to the entire purpose of the Tennessee Real Estate Broker License Act.
Why is this correct?
Answer B is correct because Tennessee law and TREC regulations require agency disclosure at the first substantive contact or communication with a prospective client, which is defined as the point when meaningful real estate information or guidance begins to be exchanged. This standard ensures that consumers understand the agent's representative role before any information they share or receive could affect their negotiating position or decision-making.
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