Agency
In Tennessee, a real estate agent who recommends a home inspector who pays them a referral fee without disclosing this arrangement is:
AActing in the buyer's best interest
BViolating their duty of loyalty and disclosure, and potentially violating RESPA✓ Correct
CParticipating in a legal referral network
DExempt since home inspections are not real estate services
Explanation
An undisclosed referral fee from a home inspector creates a conflict of interest that violates the agent's duty of loyalty and disclosure to their client. RESPA also prohibits fee-sharing arrangements for referrals of settlement services.
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