Marcus, a Broker-in-Charge at a Tennessee real estate firm, is explaining to his affiliate brokers which parties and conditions are involved when a valid listing agreement is created in Tennessee. Which of the following is NOT a requirement for a listing agreement to be enforceable under Tennessee real estate law?
Correct Answer
D) The agreement must be approved and co-signed by TREC before it takes effect
TREC (Tennessee Real Estate Commission) does not review, approve, or co-sign individual listing agreements before they take effect. TREC's role is to license and regulate real estate professionals and to establish rules governing practice, but it does not act as a party to or pre-approver of private listing contracts between brokers and sellers. Requiring TREC co-signature is not a provision found anywhere in Tenn. Code Ann. § 62-13-101 et seq. or in TREC's administrative rules.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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.
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