Tennessee Code Annotated

Tenn. Code Ann. § 62-13-404 (2026)

Duty owed to licensee's client

✓ current as of May 2026

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Any licensee who acts as an agent in a transaction regulated by this chapter owes to the licensee's client in that transaction the following duties, to:

(1) Obey all lawful instructions of the client when the instructions are within the scope of the agency agreement between licensee and licensee's client;

(2) Be loyal to the interests of the client. A licensee must place the interests of the client before all others in negotiation of a transaction and in other activities, except where the loyalty duty would violate licensee's duties to a customer under § 62-13-402 or a licensee's duties to another client in a dual agency; and

(3)
- (A) Unless the following duties are specifically and individually waived, in writing by a client, a licensee shall assist the client by:
  - (i) Scheduling all property showings on behalf of the client;
  - (ii) Receiving all offers and counter offers and forwarding them promptly to the client;
  - (iii) Answering any questions that the client may have in negotiation of a successful purchase agreement within the scope of the licensee's expertise; and
  - (iv) Advising the client as to whatever forms, procedures and steps are needed after execution of the purchase agreement for a successful closing of the transaction;
- (B) Upon waiver of any of the duties in subdivision (3)(A), a consumer shall be advised in writing by the consumer's agent that the consumer may not expect or seek assistance from any other licensees in the transaction for the performance of the duties in subdivision (3)(A).

Acts 1995, ch. 246, § 6; 1996, ch. 772, § 7; 2006, ch. 738, § 2.

Notes of Decisions

Cited in 6 cases, 2006–2018 · leading case: Gregory White v. Jack Miller (Tenn. Ct. App. 2017).

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Gregory White v. Jack Miller (Tenn. Ct. App. 2017). · cites it 12× “Breach of Fiduciary Duty & Tenn. Code Ann § 62-13-404 Plaintiffs alleged in the complaint that the Defendants breached their fiduciary duty and violated Tennessee Code Annotated section 62-13-404.”

Gregory White v. Jack Miller (Tenn. Ct. App. 2018). · cites it 6× “Miller acted as an undisclosed agent for the Nguyens without [Seller’s] consent, violated the duties set forth at Tennessee Code Annotated section 62-13-404, breached his fiduciary duty to [her], and -2- violated the Tennessee Consumer Protection Act.”

Gary Weaver v. Thomas R. McCarter (Tenn. Ct. App. 2006). · cites it 10× “Tenn. Code Ann. § 62-13-404 (1997). This Court has long recognized that real estate agents owe a duty of loyalty to their clients “and may not prejudice the interests of his [clients] to favor himself or others.”

Reid R. Crumpton v. Patricia G. Grissom (Tenn. Ct. App. 2013). · cites it 4× “§ 62-13-406 quoted above, we note that Tenn. Code Ann. § 62-13-403 sets out duties that brokers owe to all parties in a real estate transaction, and Tenn.”

Ann Taylor Realtors, Inc. v. John N. Sporup (Tenn. Ct. App. 2010). · cites it 2× “Tenn. Code Ann. § 62-13-404 (2009). Lender, through its agent, entered into an exclusive listing agreement with Mr.”

This Is the Second Appeal of this Breach of Contract Case in Gary Weaver v. Thomas (Tenn. Ct. App. 2007). · cites it 2× “The Plaintiffs further asserted that Defendant Perdue was also negligent per se because he violated section 62-13-404 of the Brokers Act, which provides for duties of reasonable care and loyalty between real estate brokers and their clients; and that Defendant Perdue was further…”

— Tenn. Code Ann. § 62-13-404(2) — 1 case

Gregory White v. Jack Miller (Tenn. Ct. App. 2018). “Miller acted as an undisclosed agent for the Nguyens without [Seller’s] consent, violated the duties set forth at Tennessee Code Annotated section 62-13-404, breached his fiduciary duty to [her], and -2- violated the Tennessee Consumer Protection Act.”

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