Disclaimer: This article provides general information and does not constitute legal advice.
Detailed Answer
When two or more owners decide to sell jointly owned real estate in Tennessee, coordinating the selection of a real estate agent is key to a smooth transaction. Follow these steps:
- Schedule a Joint Meeting. Set a time for all co-owners to discuss sale goals, desired timeline, price expectations and marketing strategies. Document each owner’s priorities.
- Define Selection Criteria. Agree on must-have qualifications for your agent. Common criteria include local market expertise, track record of similar sales, commission structure and communication style.
- Research and Interview Candidates. Use referrals, online reviews and the Tennessee Real Estate Commission’s website (TREC) to find licensed brokers. Interview at least three agents together and ask for sample marketing plans and recent sale data.
- Compare Proposals. Review each candidate’s listing agreement terms, including commission rates and duration. Look for flexibility in commission split among co-owners if contributions differ.
- Memorialize Your Choice. Once you select an agent, record the decision in a signed co-owner broker selection agreement. Include the chosen broker’s name, commission rate, listing period and any special instructions.
- Execute the Listing Agreement. All co-owners must sign the official listing agreement with the broker. Under the Tennessee Real Estate Broker License Act (Tenn. Code Ann. §62-13-201), only licensed brokers can represent sellers.
- Handle Disputes Promptly. If co-owners reach an impasse, consider mediation or arbitration. As a last resort, Tennessee law permits a partition action under Tenn. Code Ann. §29-28-101 et seq. A court-ordered partition can force a sale and divide proceeds by ownership interest.
Helpful Hints
- Record every meeting in writing to prevent misunderstandings.
- Ask prospective agents for references from co-owners in similar situations.
- Confirm the broker carries errors and omissions insurance.
- Discuss how marketing costs (photos, staging) will be shared.
- Review state license status on the TREC website before signing any agreement.
- Consult a real estate attorney if you anticipate disagreements on proceeds distribution.