Agency

In Tennessee, a buyer's agency agreement is important because it:

AAllows the buyer to purchase any property without paying a commission
BEstablishes the agent's fiduciary duties to the buyer and the compensation arrangement✓ Correct
CBinds the seller to negotiate with the buyer
DEliminates the need for a separate purchase agreement

Explanation

A buyer's agency agreement creates an agency relationship between the buyer and the agent, establishing the agent's fiduciary duties, the scope of services, and how the agent will be compensated.

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