Tennessee Realtor State Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

When a buyer requests information about listings, a principal broker is responsible for maintaining ethical standards and transparency in the real estate transaction. By disclosing to the buyer that they are not represented, the principal broker helps clarify the relationship and ensures that the buyer understands their status. This disclosure is vital as it protects both the broker's and the buyer's interests, facilitating an open dialogue about representation options.

Furthermore, this approach aligns with the principles of agency law, which emphasizes the importance of clearly defining who the broker represents in a transaction. By acknowledging the buyer's lack of representation, the broker can also steer the buyer toward making informed decisions, potentially leading them to seek out representation if needed. This not only protects the buyer's rights but also upholds the broker's ethical obligations within the industry.