Affiliate Broker Chen works for Broker-in-Charge Kim at ABC Realty in Memphis. Chen decides to independently advertise properties under his own name without including ABC Realty's name in the advertisement. Under Tennessee license law, which of the following best describes the regulatory consequence of this advertising practice?
Correct Answer
A) This violates Tennessee license law because all advertising by an affiliate broker must include the supervising firm's name.
Under Tenn. Code Ann. § 62-13-101 et seq. and TREC's advertising rules, an affiliate broker may not advertise independently without including the name of the supervising broker or firm. All advertising by an affiliate broker must clearly identify the brokerage firm under which the affiliate broker is licensed. Advertising under only one's own name — without the firm's name — is a violation of Tennessee license law and TREC regulations, regardless of the medium used.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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