Agency
When a Tennessee licensee represents a client in a short sale (where the sale price is less than the mortgage balance), the licensee has a duty to:
AGuarantee the lender will approve the short sale
BAdvise the client to seek legal and/or tax counsel about the implications✓ Correct
CNegotiate directly with the lender on behalf of the client
DFile the short sale application with TREC for approval
Explanation
Short sales have significant legal and tax implications (potential deficiency judgment, forgiven debt as taxable income). A Tennessee licensee should advise their client to seek legal and/or tax counsel. The licensee facilitates the transaction but should not provide legal or tax advice.
Related Tennessee Agency Questions
- In Tennessee, a broker who has been 'ratified' as an agent means the principal has:
- The Tennessee Real Estate Commission's regulations on advertising require that a licensee who uses social media for real estate advertising must:
- In Tennessee, an agent who 'puffs' a property by saying 'This is the best neighborhood in Knoxville!' is making a statement that is:
- A Tennessee buyer's agent who helps a buyer write a very competitive offer, including escalation clauses and waived contingencies, is exercising the duty of:
- In Tennessee, the term 'principal' in an agency relationship refers to:
- In Tennessee, a buyer's agency agreement is important because it:
- In Tennessee, an agent's duty of 'obedience' to the client means the agent must:
- In Tennessee, 'subagency' means that the cooperating broker:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →