Agency

A licensee who represents a buyer while receiving compensation from the seller without disclosure is:

AEntitled to compensation from any available source
BIn violation of Tennessee license law — all compensation arrangements must be disclosed✓ Correct
CEngaging in standard subagency practice
DPermitted as long as the compensation is under 3%

Explanation

Tennessee requires full disclosure of all compensation arrangements. Receiving compensation from the seller while representing the buyer — without disclosure and consent — violates fiduciary duties and Tennessee license law.

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