Agency
A Tennessee licensee representing a seller discovers that the seller committed fraud in a previous real estate transaction. The licensee should:
AImmediately share this with any prospective buyers
BConsider whether the information is relevant to the current transaction and consult the principal broker✓ Correct
CWithdraw from the listing without informing anyone
DFile a formal complaint with the FBI
Explanation
A licensee must navigate carefully — past unrelated fraud is generally not a property material fact requiring disclosure to buyers. The licensee should consult their principal broker and possibly legal counsel about their obligations, particularly if the prior fraud is relevant to the current transaction.
Related Tennessee Agency Questions
- In Tennessee, which of the following would terminate an agency relationship?
- Under Tennessee law, when a buyer and seller in a transaction are both represented by different licensees from the same brokerage, and the principal broker does NOT intervene, this situation is most accurately described as:
- An agency relationship is generally terminated by all of the following EXCEPT:
- In Tennessee, a buyer's representation agreement creates a:
- Tennessee's agency disclosure law requires the use of a form that is:
- A Tennessee affiliate broker's authority to bind the principal broker in contracts is called:
- In a Tennessee transaction where one licensee in a firm represents the buyer and another represents the seller, this is called:
- In Tennessee, the term 'principal' in an agency relationship refers to:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →