AGENCY & DISCLOSURE — CHEAT SHEET

TN AGENCY RELATIONSHIPS

Fiduciary Duties (OLD CAR):

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FOUR AGENCY TYPES (TN-Specific)

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CUSTOMER (NON-CLIENT) DUTIES

Even if not your client, owe:

• Honesty (no fraud/misrepresentation)

• Fair dealing

• Material facts disclosure

• Proper fund accounting

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DISCLOSURE TRIGGERS & TIMING

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RPCD (Residential Property Condition Disclosure)

REQUIRED FOR:

• 1–4 unit residential property

• Even "as is" sales (does NOT waive disclosure)

• Seller's known material defects must be disclosed

EXEMPTIONS:

• Court-ordered sales

• Transfers to heirs

• Between co-owners

• Commercial property

KEY RULE: Seller cannot hide known defects behind "as is" clause.

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LEAD PAINT DISCLOSURE (Federal)

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FAIR HOUSING (Federal + TN)

7 Protected Classes: Race • Color • National Origin • Religion • Sex • Disability • Familial Status

Prohibited Acts:

• Steering (guiding buyers to/away by class)

• Redlining (denying service by area)

• Blockbusting (panic solicitation)

• Discriminatory advertising

• Discriminatory terms/conditions

Enforcement:

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Reasonable Accommodation: Required for disabled persons (e.g., service animal, modified unit).

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QUICK DECISION TREE

`` Do you represent both buyer & seller? ├─ YES: Need written consent (Consensual Dual OR Designated Dual) │ ├─ Same firm, 2 agents? → Designated Dual (full fiduciary each) │ └─ One agent both? → Consensual Dual (NO price advice) └─ NO: Single agency (Seller OR Buyer) → Full OLD CAR duties

Is it 1–4 unit residential sale? ├─ YES: RPCD required (even "as is") └─ NO: No mandatory RPCD

Pre-1978 home? ├─ YES: Lead disclosure required (federal) └─ NO: Not applicable ``

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HIGH-YIELD FORMULAS

• TN Deed Tax = (Sale Price ÷ 100) × 0.37

• TN Mortgage Tax = (Loan ÷ 100) × 0.115

• Recovery Account Max = $15,000/transaction | $30,000/licensee | $500K minimum balance

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EASILY-CONFUSED PAIRS

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Duty	Definition
Obedience	Follow client instructions (lawful)
Loyalty	Client interest above all
Disclosure	All material facts
Confidentiality	Don't reveal client secrets (post-termination too)
Accounting	Proper money handling
Reasonable Care	Competent, diligent service
Type	Parties	Written Doc	Key Rule	Fiduciary?
Seller Agency	1 agent + seller	Listing Agmt	Agent ⇄ seller only	YES
Buyer Agency	1 agent + buyer	Buyer Rep Agmt	Agent ⇄ buyer only	YES
Designated Dual	2 agents from SAME firm	Dual Disclosure	Each agent has FULL fiduciary to their client; cannot advise on price	YES/YES
Consensual Dual	1 agent + both parties	Dual Consent Form	Cannot advise on price/terms; limited fiduciary	LIMITED
Transaction Broker	Agent + parties	Disclosure	Ministerial acts only (schedule, doc prep); NO fiduciary	NO
Trigger	Timing	Notes
First substantive contact	Before discussion of price/terms/motivation	Verbal or written
Written representation	Before signing listing or buyer rep agreement	Disclose agency type
Dual agency	Before acting for both parties	Written consent required
Item	Rule
Applies to	Pre-1978 residential (1–4 units)
Timing	Before purchase contract
Inspection window	10 days (buyer may extend)
Failure to disclose	HUD penalty: up to $16,000 per violation
Agency	Deadline	Role
HUD	1 year	Federal; investigates complaints
THRC	Varies	State Human Rights Commission
Private civil	2 years	Damages + attorney fees
Pair	Difference
Designated vs. Consensual Dual	Designated = 2 agents, one per client; Consensual = 1 agent, both clients
Fiduciary vs. Customer	Fiduciary = client, full OLD CAR; Customer = non-client, limited duties
"As Is" vs. Disclosure Waiver	"As Is" does NOT eliminate RPCD or known defect disclosure obligation
THRC vs. HUD	THRC = state fair housing; HUD = federal (1-year filing limit)

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⚠️ TEST TRAPS

One agent + two clients ≠ always permitted. Consensual dual requires written consent; cannot advise on price.

"As is" sale ≠ no disclosure. Seller still must disclose known material defects.

Oral agency disclosure is valid if substantive contact occurs; written preferred.

Earnest money deposit in TN: 3 business days (not contract contingency).

Transaction broker has NO fiduciary duty—only ministerial acts.