Part V of a Multi-part Tip on the New Law Limiting Real Estate Licensee Liability
The second part of the amendment to T.C.A. section 66-5-208 serves as a great review of the other disclosure obligations you have as a real estate licensee, and reads:
Nothing in this subsection shall be construed to exempt or excuse a real estate licensee from making any of the disclosures required by 66-5-206, 62-13-403 or 62-13-405, nor shall it be construed to remove, limit or otherwise affect any remedy provided by law for such a failure to disclose.
Last week we reviewed the disclosure required by 66-5-206. This week we review the licensee disclosure requirements under T.C.A. 62-13-403 which states:
62-13-403. Duty owed to all parties. A licensee who provides real estate services in a real estate transaction shall owe all parties to such transaction the following duties, except as provided otherwise by 62-13-405, in addition to other duties specifically set forth in this chapter or the rules of the commission:
(1) Diligently exercise reasonable skill and care in providing services to all parties to the transaction;
(2) Disclose to each party to the transaction any adverse facts of which licensee has actual notice or knowledge;
(3) Maintain for each party to a transaction the confidentiality of any information obtained by a licensee prior to disclosure to all parties of a written agency or subagency agreement entered into by the licensee to represent either or both of the parties in a transaction. This duty of confidentiality extends to any information which the party would reasonably expect to be held in confidence, except for information which the party has authorized for disclosure, information required to be disclosed under this part, and information otherwise required to be disclosed pursuant to this chapter. This duty survives both the subsequent establishment of an agency relationship and the closing of the transaction;
(4) Provide services to each party to the transaction with honesty and good faith;
(5) Disclose to each party to the transaction timely and accurate information regarding market conditions that might affect such transaction only when such information is available through public records and when such information is requested by a party.
(6) Timely account for trust fund deposits and all other property received from any party to the transaction; and
(7)(A) Not engage in self-dealing nor act on behalf of licensee’s immediate family, or on behalf of any other individual, organization or business entity in which the licensee has a personal interest without prior disclosure of such interest and the timely written consent of all parties to the transaction; and
(B) Not recommend to any party to the transaction the use of services of another individual, organization or business entity in which the licensee has an interest or from whom the licensee may receive a referral fee or other compensation for the referral, other than referrals of other licensees to provide real estate services under the Tennessee Real Estate Broker License Act of 1973, without timely disclosing to the party who receives the referral, the licensee’s interest in such referral or the fact that a referral fee may be received.