Tennessee Real Estate Broker Exam — All Questions
4 questions
Which body licenses and disciplines real estate brokers in Tennessee?
- a.The Tennessee Association of Realtors
- b.The Tennessee Secretary of State
- c.The Tennessee Real Estate Commission (TREC) within the Department of Commerce and Insurance✓
- d.The Tennessee Attorney General's real estate division
Real estate licensing in Tennessee is governed by the Tennessee Real Estate Broker License Act of 1973 (T.C.A. Title 62, Chapter 13) and administered by the Tennessee Real Estate Commission (TREC) within the Department of Commerce and Insurance. TREC issues, renews, and disciplines broker and affiliate-broker licenses. A trade association such as the Tennessee Association of Realtors is a private membership group with no licensing authority.
In Tennessee, the licensee who is responsible for a real estate firm and for supervising its affiliated licensees is the:
- a.Principal broker✓
- b.Affiliate broker
- c.Managing salesperson
- d.Closing attorney
Every Tennessee firm must have a principal broker who is accountable for the firm and for supervising its affiliate brokers and other licensees. The principal broker oversees advertising, recordkeeping, and escrow handling. An affiliate broker is the entry-level licensee who must work under the principal broker and cannot operate independently.
A Tennessee affiliate broker who wishes to advance to the broker license generally must:
- a.Simply pay a higher renewal fee
- b.Have qualifying experience and complete additional education, including a 30-hour Office/Broker Management course, and be fingerprinted✓
- c.Hold a law degree
- d.Wait ten years without any coursework
Tennessee's broker tier sits above the entry affiliate-broker license. To advance, a candidate must have qualifying active experience and complete the required education, which includes a 30-hour Office/Broker Management course, and submit to fingerprinting for a background check. This reflects the broker's added responsibility for supervision and trust-fund handling.
Under Tennessee license law, an affiliate broker may lawfully accept a commission:
- a.Directly from the buyer at closing
- b.Directly from the seller in cash
- c.From any licensee involved in the deal
- d.Only through the principal broker of the firm the affiliate broker works for✓
An affiliate broker performs licensed activity only for and in the name of the firm's principal broker, and compensation must flow through that firm. An affiliate broker may not accept a commission or other compensation directly from a buyer or seller. Paying or accepting commissions outside the principal-broker relationship is a license-law violation.