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Practice Of Real EstateLicense LawMEDIUM

Sandra holds a Tennessee Broker license and operates a real estate office with five Affiliate Brokers working for her. During a TREC audit, the investigator notes that Sandra has never applied for a Broker-in-Charge designation. Which of the following best describes the legal consequence of this situation?

Correct Answer

D) Sandra is in violation because supervising Affiliate Brokers requires a separate Broker-in-Charge designation.

Under Tennessee law and TREC rules, a Broker license alone does not authorize a licensee to supervise Affiliate Brokers or operate a real estate firm. A separate Broker-in-Charge (BIC) designation must be obtained from TREC. Sandra's failure to obtain this designation while supervising five Affiliate Brokers constitutes a violation of Tennessee license law.

Answer Options
A
Sandra is in compliance because she only needs the BIC designation if she supervises more than ten licensees.
B
Sandra is in compliance because a Broker license automatically grants Broker-in-Charge authority.
C
Sandra is in violation because she must hold a Principal Broker license to supervise others in Tennessee.
D
Sandra is in violation because supervising Affiliate Brokers requires a separate Broker-in-Charge designation.

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Related Topics & Key Terms

Key Terms:

broker_in_chargesupervisionlicense_violationtrec_enforcement

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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