During our consultation, we will cover the duties owed by a Real Estate Licensee in Tennessee to all buyers & sellers AND the additional duties owed to a client after a representation agreement is in place.
Here are some terms that explain representation from the Tennessee Association of REALTORS.
AN EXPLANATION OF TERMS
Facilitator/Transaction Broker (not an agent for either party). The Licensee is not working as an agent for either party in this consumer’s prospective transaction. A Facilitator may advise either or both of the parties to a transaction but cannot be considered a representative or advocate of either party.
Agent for the Seller. The Licensee’s company is working as an agent for the property seller and owes primary loyalty to the seller. Even if the Licensee is working with a prospective buyer to locate property for sale, rent, or lease, the Licensee and his/her company are legally bound to work in the best interests of any property owners whose property is shown to this prospective buyer. An agency relationship of this type cannot, by law, be established without a written agency agreement.
Agent for the Buyer. The Licensee’s company is working as an agent for the prospective buyer, owes primary loyalty to the buyer, and will work as an advocate for the best interests of the buyer. An agency relationship of this type cannot, by law, be established without a written buyer agency agreement.
Disclosed Dual Agent (for both parties). Refers to a situation in which the Licensee has agreements to provide services as an agent to more than one party in a specific transaction and in which the interests of such parties are adverse. This agency status may only be employed upon full disclosure to each party and with each party’s informed consent.
Designated Agent for the Seller. The individual Licensee that has been assigned by his/her Managing Broker and is working as an agent for the Seller or property owner in this consumer’s prospective transaction to the exclusion of all other licensees in his/her company. Even if someone else in the Licensee’s company represents a possible buyer for this Seller’s property, the Designated Agent for the Seller will continue to work as an advocate for the best interest of the Seller or property owner. An agency relationship of this type cannot, by law, be established without a written agency agreement.
Adverse Facts. “Adverse Facts” means conditions or occurrences generally recognized by competent licensees that have a negative impact on the value of the real estate, significantly reduce the structural integrity of improvements to real property or present a significant health risk to occupants of the property.
Confidentiality. By law, every licensee is obligated to protect some information as confidential. This includes any information revealed by a consumer which may be helpful to the other party IF it was revealed by the consumer BEFORE the Licensee disclosed an agency relationship with that other party. AFTER the Licensee discloses that he/she has an agency relationship with another party, any such information which the consumer THEN reveals must be passed on by the Licensee to that other party.