A real estate licensee in Tennessee has her license placed on inactive status. While her license is inactive, a neighbor asks her to help sell his home and offers to pay her a commission. Under Tennessee license law, which of the following best describes what she may legally do?
Correct Answer
A) She may not perform any act requiring a real estate license or accept any compensation while her license is inactive.
Under Tenn. Code Ann. § 62-13-101 et seq., a licensee with an inactive license may not perform any act that requires a real estate license, including listing, selling, negotiating, or accepting compensation for real estate services. An inactive license means the licensee is not authorized to engage in any licensed real estate activity. The fact that the transaction involves a neighbor does not create an exception to this rule.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
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