Agency
In Tennessee, an affiliated licensee who acts as a dual agent without written consent from both parties faces:
AOnly civil liability to the harmed party
BTREC disciplinary action and potential license revocation✓ Correct
CNo consequences as long as no harm resulted
DA fine of $100 from TREC
Explanation
Undisclosed dual agency is illegal in Tennessee. TREC may impose significant disciplinary sanctions including suspension or revocation of the license.
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Key Terms to Know
Agency
A 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.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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.
State-Specific Concepts
TREC Regulation
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