Tennessee Realtor State Practice Exam

What type of agency representation does Andrea have if she has not signed a buyer representation agreement?

1. Exclusive buyer representation

2. No agency

3. Implied agency

4. Limited agency

The correct answer is: No agency

Andrea's situation, having not signed a buyer representation agreement, indicates that she does not have an established formal agency relationship with a real estate professional. In real estate, agency representation is defined by agreements that outline the nature of the relationship and the responsibilities of both parties. Without a signed buyer representation agreement, there is no legal or formal obligation for the agent to act on Andrea's behalf, nor for her to be considered a client. Instead, she is likely treated as a customer or a non-represented party in transactions, which is characterized as "No agency." In contrast to other options, exclusive buyer representation requires a signed agreement, while implied agency suggests a mutual understanding that has not been formally documented. Limited agency, also known as dual agency, involves an agent representing both the buyer and seller, which again presupposes a prior agreement. Therefore, Andrea's lack of a signed agreement leads to the conclusion that there is "No agency" representation in her case.