Agency
Under Tennessee license law, a licensee acting as a facilitator (transaction broker) for both parties owes:
AFull fiduciary duties to both parties
BThe duty of honest and fair dealing and disclosure of known material defects, but not full fiduciary duties to either party✓ Correct
CFiduciary duties only to the seller as the listing party
DNo duties to either party since no agency relationship exists
Explanation
A transaction broker/facilitator in Tennessee has limited duties to both parties: honest dealing, disclosure of known material defects, presenting offers, accounting for funds, and using reasonable skill and care. Full fiduciary duties (loyalty, confidentiality, obedience) are owed only to clients in an agency relationship.
Related Tennessee Agency Questions
- In Tennessee, material facts that a licensee must disclose include all of the following EXCEPT:
- In Tennessee, a broker's duty to a seller under a listing agreement includes all of the following EXCEPT:
- The Tennessee Agency Disclosure document must be provided to a prospective buyer or seller:
- In Tennessee, a broker who represents a buyer is said to be working with the seller as a:
- In Tennessee, a seller's broker who shows a buyer properties listed by other firms (as a cooperating broker) represents:
- A Tennessee listing agent who is also a licensed property manager may manage a property they helped the seller list only if:
- In Tennessee, a 'seller's agent' may ethically share which of the following information about the seller with the buyer?
- In Tennessee, an agent's duty of 'obedience' to the client means the agent must:
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