Tennessee Agency and Disclosure Issues: Facilitators vs. Dual Agency

Agency and Disclosure Issues is 6 of the 40 state questions, and within it, the distinction between Facilitators and Dual Agency is one of the most commonly confused topics on the Tennessee exam.

The core distinction

Facilitator: A licensee who assists a party (buyer or seller) in a transaction without representing them as a fiduciary agent. A facilitator doesn't owe the full duties of agency — loyalty, obedience, full disclosure — but still owes basic honesty and fair dealing.

Dual Agency: A licensee (or the licensee's firm) represents both the buyer and seller in the same transaction, with informed consent from both parties and specific disclosure obligations about the reduced duties this creates.

Other topics inside Agency and Disclosure Issues

• General Agency Duties and Creation of Agency Relationship — how agency actually forms
• Disclosure of Agency Relationships — what and when must be disclosed
• Disclosure of Material Facts and Misrepresentation
• Disclosure of Agent's Interest — self-dealing disclosure
• Handling of Offers — proper procedures
• Designated Agents — a specific brokerage-level agency structure

Sample exam questions

Q: A Tennessee licensee assists a buyer with a transaction but does not enter into a representation agreement and does not owe fiduciary duties. What is this relationship called?

A: A Facilitator relationship.

Q: A Tennessee brokerage represents both the buyer and seller in the same transaction through the same licensee, with informed consent from both parties. What agency structure is this?

A: Dual Agency.

Q: A Tennessee licensee has a personal financial interest in a property they're showing to a client. What must be disclosed?

A: The agent's interest, under Disclosure of Agent's Interest.

Why this matters for your career

Misrepresenting whether you're acting as a Facilitator or an agent with fiduciary duties is exactly the kind of confusion that generates real consumer complaints in Tennessee. The exam tests this distinction directly because getting it wrong in practice has real legal consequences.