In vitro, catalyzes the formation of R-linalool from geranyl diphosphate (GPP). Can also accept farnesyl diphosphate (FPP) as substrate to produce trans-nerolidol. (2E)-geranyl diphosphate + H2O = (R)-linalool + diphosphate (2E,6E)-farnesyl diphosphate + H2O = (6E)-nerolidol + diphosphate Binds 3 Mg(2+) ions per subunit. Homodimer. The Asp-Asp-Xaa-Xaa-Asp (DDXXD) and Asn-Xaa-Xaa-Xaa-Ser-Xaa-Xaa-Xaa-Asp (NSD) motifs are important for the catalytic activity, presumably through binding to Mg(2+). Belongs to the terpene synthase family.