Final answer:
The Tennessee exclusive buyer designated agency agreement outlines the compensation terms for the buyer's agent, which could include various arrangements, commonly with the seller paying the fees out of the sale proceeds.
Step-by-step explanation:
The Tennessee exclusive buyer designated agency agreement typically specifies the terms under which the buyer's agent will work on behalf of the buyer, including how the agent will be compensated.
The agreement might state that the buyer pays all agent fees, the seller pays all agent fees, the fees are split between buyer and seller, or the fees are negotiated separately. In many cases within residential real estate transactions, it is customary for the seller to pay the commission for both the selling and buying agents out of the proceeds of the sale, but this can vary and should be clearly defined in any exclusive buyer designated agency agreement.