Agency
In Tennessee, a licensee who provides property management services without a written management agreement may be:
AOperating legally since oral agreements are valid
BCreating ambiguity about the scope and terms of services, risking disputes and potential license violations✓ Correct
CExempt from licensure requirements
DActing in accordance with TREC best practices
Explanation
While oral property management agreements may have some validity, they create significant ambiguity. A written agreement is strongly recommended (and may be required by best practices or contract law) to clearly define services, compensation, and responsibilities.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
State-Specific Concepts
TREC Regulation
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