Real Estate Agency Law Basics: Do the Tennessee Real Estate Agency statues apply to commercial transactions? Part VI of VI
Yes The Tennessee statues that govern agency laws and representation by real estate agents does apply, for the most part, to commercial transactions. For example, the duties owed to all parties in 62-13-403 and the duties owed to the licensee’s client in 62-13-404 apply in commercial transactions.
But there is one big exception for commercial transactions. 62-13-405 (e) states
Real estate transactions involving the transfer or lease of commercial properties, the transfer of property by public auction, the transfer of residential properties of more than four (4) units, or the lease or rental of residential properties shall not be subject to the disclosure requirements of 62-13-403, 62-13-404 and this section. (Acts 1995, ch. 246, & 7; 1996 ch. 772, 8-11).
The exception is that the written and verbal disclosure requirements of 62-13-403 and 62-13-404, and 62-13-405 do not apply to commercial deals.