Tennessee agency law, facilitator first

Correct: T.C.A. § 66-32-114 extends the cancellation window to fifteen days when the buyer signed without an on-site inspection.

Incorrect: Ten days is the period for a buyer who inspected the project on site before signing.

Incorrect: Sixty days is far beyond either statutory window.

Incorrect: Thirty days is how long the developer has to refund payments after a cancellation.

Incorrect: A deed transfers title at closing; it is not a pre-contract disclosure.

Correct: The Tennessee Time-Share Act (T.C.A. § 66-32-112 and related sections) requires the developer to give each purchaser a public offering statement before the contract is signed.

Incorrect: Fees are one item the statement covers; a schedule alone does not meet the requirement.

Incorrect: Association documents may be summarized inside the offering statement, but the Act names the public offering statement itself.

Correct: T.C.A. § 62-13-401: no agency relationship exists without a written bilateral agreement; until then the licensee is a facilitator.

Incorrect: Meeting a buyer at an open house leaves the licensee a facilitator toward that buyer.

Incorrect: Showing homes is a service a facilitator can provide; it does not make the licensee the buyer's agent.

Incorrect: Marketing a property creates no agency by itself; Tennessee abolished implied agency in 1996.

Incorrect: The firm keeps its contract rights to the listing (§ 62-13-406(b)), but that does not make the managing broker the seller's agent.

Correct: T.C.A. § 62-13-406(a) says the managing broker is not a dual agent when each designated agent represents only one party, and § 62-13-406(c) bars imputing knowledge between them.

Incorrect: Nothing in the appointment makes the managing broker the buyer's agent; each party's agent is its designated licensee.

Incorrect: Some states treat the broker as a dual agent here; Tennessee's statute says the opposite.

Correct: T.C.A. § 62-13-403(4) requires every licensee, facilitators included, to serve each party with honesty and good faith.

Incorrect: The opposite is true: § 62-13-403(2) requires disclosing adverse facts the licensee actually knows to every party.

Incorrect: Loyalty is a duty to a client under § 62-13-404; a facilitator has no client.

Incorrect: Licensees may not practice law, and § 62-13-405(a) says they need not advise outside their license.

Incorrect: Spoken notice is not consent, and the statute requires consent in writing first.

Incorrect: The law does not force a choice; with both clients' written consent, dual agency is lawful.

Incorrect: A managing broker cannot consent for the clients; the clients themselves must sign.

Correct: T.C.A. § 62-13-102 allows dual agency only with the prior written, informed consent of all the licensee's clients in the transaction.

Incorrect: The developer gets the money only after the cancellation period passes and it swears no cancellation was received.

Incorrect: Mixing a purchaser's refundable money with operating funds is what the escrow rule prevents.

Incorrect: A refund happens only if the purchaser cancels; otherwise the escrowed money goes to the developer.

Correct: T.C.A. § 66-32-113 requires all funds received during the cancellation period to go into escrow, released only after the period expires.

Incorrect: The later inaccuracy is not itself a violation, but the same section still requires disclosing the material change by closing.

Incorrect: The duty is affirmative; it does not wait for the buyer's question.

Correct: T.C.A. § 66-5-205 requires the owner, at or before closing, to disclose any material change in the property's physical condition since the disclosure was delivered.

Incorrect: Relying on the buyer to discover a known change does not satisfy the statute.

Correct: T.C.A. § 66-5-207 says no cause of action arises against an owner or licensee for not disclosing that a property was the site of a homicide, felony or suicide; a licensee who is asked still may not lie.

Incorrect: Tennessee has no stigma disclosure form; the residential disclosure covers physical condition.

Incorrect: Nothing in Tennessee law requires describing the crime; § 66-5-207 shields nondisclosure.

Incorrect: Even a bare mention is not required; the statute removes the duty.

Incorrect: An affiliate broker may sell time-shares, but that license is not limited to them; it covers all brokerage.

Incorrect: Tennessee has no license by that name.

Correct: TREC issues a separate time-share salesperson license, and Rule 1260-01-.04(5) limits its holder to time-share transactions through a firm affiliated with a registered project.

Incorrect: Selling time-share intervals is licensed activity in Tennessee.

Incorrect: Equal treatment without advocacy describes a facilitator, not a designated agent.

Incorrect: A designated agent is an advocate; non-advocacy is the facilitator's role.

Correct: T.C.A. § 62-13-404(2) requires an agent to be loyal and to place the client's interests before all others in negotiations.

Incorrect: The firm earns the fee, but loyalty runs to the client.

Incorrect: Passing her ceiling to the seller breaks the confidentiality duty every licensee owes all parties.

Incorrect: A direct question from the seller does not lift the duty; only her authorization or a legal requirement does.

Incorrect: Using her information against her violates both confidentiality and the good-faith duty in § 62-13-403(4).

Correct: T.C.A. § 62-13-403(3) requires confidentiality of information a party reasonably expects to be kept private, except what the party authorizes or the law requires.

Incorrect: There is no showing-based clock; disclosure comes before services, written confirmation before the offer.

Incorrect: By closing the offer has long been written; the deadline is the offer's preparation.

Correct: T.C.A. § 62-13-405(b) requires written confirmation with an unrepresented buyer before an offer to purchase is prepared, after an oral disclosure before any services.

Incorrect: Written confirmation is mandatory, and the licensee must also obtain a signed receipt.

Incorrect: Nothing is filed with TREC; the disclosure is made to the people she deals with.

Correct: Rule 1260-02-.11(2) requires every licensee to identify as a licensee when buying or selling property for themselves.

Incorrect: The rule asks for disclosure to the other party, not permission from the principal broker.

Incorrect: No TREC rule requires listing a licensee's own property with the firm; the duty is to disclose license status.

Incorrect: Closing is far past the deadline, and role changes must also be reported right away.

Incorrect: The duty is affirmative; it does not depend on a question.

Correct: T.C.A. § 62-13-405(d) requires a licensee to disclose its role, including any agency, immediately upon initial contact with another licensee in the same prospective transaction.

Incorrect: Waiting for the offer is too late; the statute says immediately on first contact.