Question 93

A licensee can represent both the buyer and the seller when both parties have consented in writing to the agreement.

This situation arises in real estate transactions where dual agency is permissible, provided that there is clear, informed consent from both the buyer and seller, documented in writing.

A) This is never allowed in Tennessee.

This option is incorrect because, while dual agency has specific regulations, it is not outright prohibited in Tennessee. Instead, the state allows it under certain conditions, particularly with written consent from both parties involved in the transaction.

B) When the agent is acting as a facilitator.

This choice misrepresents the role of a facilitator. A facilitator does not represent either party in a transaction; rather, they assist in the process without advocating for one side. Therefore, this option does not support the concept of a licensee representing both parties.

C) Only when the party who first hired the licensee agrees.

This option is misleading because it suggests that only the first party's consent is sufficient for dual agency. In reality, both the buyer and seller must agree for a licensee to represent them simultaneously, making this option incomplete and incorrect.

D) When both parties have consented in writing to the agreement.

This option accurately captures the requirement for dual agency in Tennessee. It emphasizes the necessity of obtaining written consent from both the buyer and seller, which is crucial for ensuring transparency and protecting the interests of all parties involved.

Conclusion

The correct answer is option D because it reflects the legal requirement for dual agency in Tennessee, emphasizing the importance of written consent from both parties. Options A, B, and C fail to recognize this essential aspect of dual representation, reinforcing why D is the only accurate choice in this context.