Question 15

Dual agency is permissible in Tennessee when both parties have consented in writing to the agreement.

In Tennessee, dual agency is allowed only if there is written consent from both parties involved in the transaction, ensuring transparency and agreement on the agent's role.

A) Never allowed in Tennessee

This option is incorrect because dual agency is permissible in Tennessee under specific conditions. The assertion that it is never allowed does not reflect the legal framework governing agency relationships in the state.

B) When the agent is acting as a facilitator

While an agent may act as a facilitator in certain transactions, this does not equate to dual agency. This option misrepresents the conditions under which dual agency can occur, as facilitation does not involve representing both parties simultaneously.

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

This option is misleading because it only considers the consent of one party, failing to recognize that both parties must provide written consent for dual agency to be lawful in Tennessee. Therefore, it does not capture the complete requirement for dual agency.

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

This statement is accurate, as it aligns with Tennessee's laws on dual agency. Written consent from both parties is essential to ensure that they are aware of and agree to the dual representation by the agent.

Conclusion

The correct answer is option D, as it clearly states the legal requirement for dual agency in Tennessee—written consent from both parties involved. The other options either misinterpret the legal framework or fail to address the necessity of mutual consent, which is crucial for lawful dual agency practices in the state.