Agency

A Tennessee licensee who represents a buyer submitting an offer on a property listed by the same firm must disclose to the buyer that:

AThe buyer's confidential information may not be fully protected in an in-house transaction✓ Correct
BThe seller will automatically receive a higher commission
CThe buyer must use the firm's preferred lender
DTREC will supervise the transaction directly

Explanation

In an in-house transaction (both parties represented by the same firm), there is an inherent conflict of interest. Tennessee requires disclosure and consent from both parties. The buyer must understand the limitations on their agent's ability to maintain full confidentiality and undivided loyalty.

Related Tennessee Agency Questions

Practice More Tennessee Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Tennessee Quiz →