Sarah is a newly licensed real estate professional in Tennessee who wants to take a listing on a residential property. Under Tennessee law, which license designation must Sarah hold in order to enter into a listing agreement on behalf of a brokerage?
Correct Answer
A) Affiliate Broker, working under a licensed Broker
Under the Tennessee Real Estate Broker License Act of 1973 (Tenn. Code Ann. § 62-13-101 et seq.), Tennessee's entry-level license is called an 'Affiliate Broker,' not a salesperson or any other designation. An Affiliate Broker must work under a licensed Broker and may take listings on behalf of the brokerage. Tennessee uses a three-tier system: Affiliate Broker, Broker, and Broker-in-Charge (BIC). The listing agreement itself is between the client and the brokerage, but an Affiliate Broker is authorized to procure and execute it under broker supervision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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