Tennessee Realtor State Practice Exam

What might a Tennessee licensee inadvertently do if treating a customer as a client?

1. Provide exclusive services to the client

2. Breaching duty to the actual client

3. Compromise the contract details

4. Stray from professional ethics

The correct answer is: Breaching duty to the actual client

When a Tennessee licensee treats a customer as a client, they may unintentionally breach their duty to the actual client. In real estate practice, the licensee has a fiduciary responsibility to their client, which includes acting in their best interests and maintaining loyalty. If a customer receives the same treatment and services as a client without a formal agreement establishing that relationship, the licensee may confuse the roles and responsibilities. By offering client-level service to a customer, the licensee risks neglecting the needs and expectations of the actual client, potentially leading to conflicts of interest and a failure to fulfill their fiduciary duties. This could result in legal implications or damage to the client relationship. Recognizing the distinction between clients and customers is crucial to maintaining professional integrity and ensuring that all parties involved are properly supported according to their designated roles.