Agency
In Tennessee, a real estate agent may ethically receive compensation from both the buyer and the seller in the same transaction if:
ABoth parties are informed and give written consent✓ Correct
BThe amounts are equal
CThe transaction involves commercial property
DTREC pre-approves the compensation arrangement
Explanation
Receiving compensation from both parties in a transaction — a form of dual agency compensation — is permissible in Tennessee if both parties are fully informed and give written consent to the arrangement.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
State-Specific Concepts
TREC Regulation
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