Tennessee Realtor State Practice Exam

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A default to facilitator policy aims to avoid which situation?

Conflicts of interest
Dual agency
Unauthorized disclosures
Commingling of funds

The correct answer is: Dual agency

A default to facilitator policy is designed to specifically address the concerns associated with dual agency. In real estate, dual agency occurs when a single agent represents both the buyer and the seller in a transaction, which can create potential conflicts in loyalty and hinder impartiality. By adopting a facilitator role, the policy helps ensure that the agent does not take on conflicting responsibilities that could affect their ability to serve either party's interests fairly. This neutral position allows the facilitator to assist both parties in the transaction without being bound to advocate for one side over the other, thereby minimizing the risks and complications that come with dual representation in real estate dealings.