IF IT IS YOUR INTENTION TO WORK WITH BUYER CUSTOMERS AND NOT REPRESENT ANYONE:

You will be working with the BUYER CUSTOMER as a FACILITATOR/TRANSACTION BROKER.

Upon initial contact with the BUYER CUSTOMER, according to TCA 62-13-405, you must verbally disclose to the BUYER CUSTOMER your status as a FACILITATOR/TRANSACTION BROKER before any real estate services are provided.

"Mr. CUSTOMER I wish to work with you as a NON-AGENT, FACILITATOR/TRANSACTION BROKER."

As a NON-AGENT, FACILITATOR/TRANSACTION BROKER, I do not represent you, however, I will owe to you and everyone involved with us in any real estate transactions or activities the following seven duties under Tennessee Law" (TCA 62-13-403):

· I will use professional skill and care in providing services.

· I must disclose to everyone any adverse facts, conditions or occurrences that have a negative impact on the value of the property, anything that reduces the structural integrity of the property, anything that presents a significant health risk to any one who would occupy the property.

· I will maintain the confidentially of all information you give me other than anything that I must disclose under the Law.

· I will provide services to you and to everyone with honesty and good faith.

· I will provide timely and accurate information by request on market conditions related to a transaction.

· My Company and I will account for any and all earnest money deposits and other property received from you or anyone else involved in a transaction.

· I will not engage in self-dealing. I will not have any conflicts of interest. I will not represent a family member or other entity in which I have an interest without prior disclosure to you. If I recommend to you the use of another business in which I have an interest or from whom I may receive a referral fee, I will give you proper disclosure.

· I may give you advise concerning a real estate transaction or real estate activities.

"Mr. BUYER CUSTOMER, I can give you advice and assist you by providing information, locating properties, completing an Offer to Purchase, presenting your Offers to Purchase to Seller's and/or their Agents."

"Mr. BUYER CUSTOMER, I am require by Law (TCA 62-13-405) to have you sign a DISCLOSURE FORM stating that I have given you all of this information. I would like to have this Disclosure Form signed before providing you with any real estate services. If you choose not to sign it at this time, I am required by Tennessee Law to have the Disclosure Form signed by you prior to preparing an offer to purchase for you.

[ NOTICE - THERE IS NO STANDARD OR OFFICIAL FORM REQUIRED BY TENNESSEE LAW. THE LAW REQUIRES ONLY THAT YOU HAVE WRITTEN DISCLOSURE. USE WHATEVER FORM YOUR BROKER REQUIRES. USING A FORM WHICH LISTS THE REQUIRED DUTIES OWED TO THE CUSTOMER AND ALL PARTIES WOULD GIVE THE AGENT ADDITIONAL PROTECTION IN COURT. ]

WORKING AS A FACILITATOR / TRANSACTION BROKER:

Tennessee Law (TCA 62-13-401.) states that until such time as an agent enters into a specific written agency agreement to establish an agency relationship with one or more parties to a real estate transaction, an agency relationship shall not be assumed, implied or created. Unless you have a specific bilateral written agreement to become someone's agent, you by Tennessee Law are a NON-AGENT, FACILITATOR/TRANSACTION BROKER. As a NON-AGENT, FACILITATOR/TRANSACTION BROKER, never refer to a CUSTOMER as a "Client".

INFORMATION YOU MUST DISCLOSE TO YOUR CUSTOMER AND ALL OTHER PARTIES IN A TRANSACTION:

· Other Agency relationships. Those real estate companies and agents you do not cooperate with or who do not cooperate with you.

· Company Polices, Company Policy and Procedures for changing Agency Relationships. How you will handle IN-HOUSE Transactions.

· Sources of financing and Sources of compensation.

WORKING WITH OTHER REAL ESTATE LICENSEES AS A FACILITATOR/

TRANSACTION BROKER:

Under Tennessee Law (TCA 62-13-405) upon initial contact with any other Licensee representing a Seller involved in a transaction with you, you must disclose your FACILITATOR/ TRANSACTION BROKER status. This is a VERBAL Disclosure, the Law does not required it to be in writing. Licensees representing Sellers must verbally disclose to you their agency status at initial contact. If at anytime, any Licensee's status changes during involvement in a transaction with you, that Licensee must immediately tell you of the change. Likewise, if at anytime, you change your status from a FACILITATOR/ TRANSACTION BROKER during involvement in a transaction with another Licensee, you must immediately tell them of the change. Written Disclosure of your change is only required between you and your CUSTOMER. Written Disclosure of any Licensee working with you in a transaction, is only required between that Licensee and the person with whom they are working (seller). Under the Law, you are only responsible for a written disclosure disclosing YOUR OWN agency relationship in a transaction, not the status of any other Licensee in the transaction.

THERE IS NO REQUIREMENT NOR PROVISION IN THE LAW FOR Licensees or Real Estate Companies to pass back and forth at the time of negotiating an Offer to Purchase, a Disclosure Form to be signed by all Licensees and parties involved.

While some Licensees and Companies may DESIRE a written disclosure from everyone involved in a transaction, this DESIRE is not a requirement and cannot impede the negotiation or completion of a transaction.

THERE IS A REQUIREMENT IN THE REALTORS® CODE OF ETHICS FOR "REALTORS®, acting as agents of, or in another relationship with, buyers or tenants, shall disclose that relationship to the seller/landlord's agent or broker at first contact and shall provide written confirmation of that disclosure to the seller/landlord's agent or broker not later than execution of a purchase agreement or lease." ( Article 16 - Standard of Practice 16-10 )

WHEN SHOULD YOU CHANGE FROM A FACILITATOR / TRANSACTION BROKER TO A BUYER'S AGENT?

When the BUYER CUSTOMER you are working with requests you to be his AGENT or when he responds to your request for you to represent him. Everyone has the right to have representation (an attorney or a real estate agent) at anytime they choose. If the BUYER CUSTOMER you have been working with decides he wants representation, you must either become his BUYER'S AGENT by contract, or if it is your position to work only as a FACILITATOR/TRANSACTION BROKER, then you must advise the Buyer CUSTOMER to seek representation elsewhere and let him go.

REMEMBER - A SIGNED AGENCY DISCLOSURE FORM IS NOT, BY LAW, AN AGENCY CONTRACT. TO REPRESENT A BUYER, YOU MUST HAVE A WRITTEN BILATERAL CONTRACT.

DO NOT TELL A CUSTOMER THAT YOU CAN DO JUST AS GOOD OF A JOB FOR HIM WORKING AS A FACILITATOR/TRANSACTION BROKER AS A BUYER'S OR SELLER'S AGENT - YOU CANNOT! YOU CANNOT OFFER HIM THE TWO SPECIFIC CLIENT DUTIES OF LOYALTY AND OBEDIENCE WORKING AS A FACILITATOR/TRANSACTION BROKER.

REMEMBER - WHENEVER YOU CHANGE YOUR WORKING STATUS IN A TRANSACTION, YOU MUST DISCLOSE TO EVERYONE INVOLVED OF YOUR CHANGE. YOU MUST HAVE A WRITTEN DISCLOSURE OF THE CHANGE ONLY WITH THE PERSON YOU ARE PROVIDING SERVICES..

WORKING AS A FACILITATOR / TRANSACTION BROKER WITH SELLERS NOT REPRESENTED BY ANOTHER AGENT:

When you approach a SELLER NOT REPRESENTED BY ANOTHER AGENT (FSBO) concerning a property which your BUYER CUSTOMER has expressed an interest, you must disclose to that Seller at first contact your status as a FACILITATOR/TRANSACTION BROKER ( TCA 62-13-405 ) since the Seller is not represented by another Licensee. You would inform the Seller about Agency and of the seven duties that Tennessee Law requires you to give to him as well as to your BUYER CUSTOMER.

If the Seller will sign a Disclosure Form at first contact indicating that he understands that your status as a FACILITATOR/ TRANSACTION BROKER, have him do so. If he refuses to sign a Disclosure Form at first contact, inform him that the Law (TCA 62-13-405) requires that you have a Written Disclosure Form signed by him prior to presenting to him an Offer to Purchase from your BUYER CUSTOMER.

WORKING AS A FACILITATOR / TRANSACTION BROKER FOR IN-HOUSE TRANSACTIONS:

If your Office has a Policy of practicing DESIGNATED AGENCY and another agent in your office represents a SELLER CLIENT, you may work with your BUYER CUSTOMER as a FACILICATOR/ TRANSACTION BROKER for "IN-HOUSE" transactions. For DESIGNATED AGENCY, the law states that the DESIGNATED AGENT represents his CLIENT "to the EXCLUSION OF ALL OTHER LICENSEES" in the office.

YOU CANNOT WORK AS A FACILITATOR/TRANSACTION BROKER WITH A BUYER CUSTOMER AND AS A SELLER'S AGENT FOR A SELLER CLIENT IN THE SAME TRANSACTION.

YOU CANNOT WORK AS A FACILITATOR/ TRANSACTION BROKER FOR A SELLER/CUSTOMER AND AS A BUYER'S AGENT OF A BUYER CLIENT IN THE SAME TRANSACTION.

YOU CAN WEAR ONLY ONE "AGENCY HAT" AT A TIME IN THE SAME TRANSACTION.

RESPONSIBILITY OF FACILITATOR / TRANSACTION BROKER TO INVESTIGATE

AS A FACILITATOR/TRANSACTION BROKER YOU MUST MAKE YOUR CUSTOMERS AND ANY OTHER PARTY YOU ARE WORKING WITH AWARE THAT YOUR DUTIES DO NOT INCLUDE A DUTY TO:

· Conduct an independent inspection of the property for the benefit of a Buyer Customer.

· Independently verify the accuracy or completeness of statements made by sellers to Buyer Customers or buyers to Seller Customers.

· Independently verify the accuracy or completeness of statements made by independent inspectors.

· Conduct an independent investigation of Buyer's financial condition.

· Verify the accuracy or completeness of any statements made a Customer.

If you agree to provide any of these duties during a transaction, you should include them in your Disclosure Form.