TREC is conducting an audit of Broker-in-Charge Patricia's trust account records. The audit reveals that Patricia has been keeping records of all trust account transactions, but the records are incomplete and lack required documentation for several transactions. Under Tennessee law, which of the following best describes Patricia's obligation regarding trust account record-keeping?
Correct Answer
D) Patricia must maintain complete and accurate trust account records for a minimum of three years and make them available to TREC upon request.
Under Tenn. Code Ann. § 62-13-101 et seq. and TREC's administrative rules, a Broker-in-Charge is required to maintain complete and accurate trust account records for a minimum of three years. These records must be made available to TREC upon request during audits or investigations. Incomplete records — as found in Patricia's case — constitute a violation of Tennessee license law and TREC regulations.
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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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