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Practice Of Real EstateLicense LawMEDIUM

Patricia holds a Tennessee Affiliate Broker license that is currently on inactive status. A potential buyer contacts her directly and asks her to help find a home. Patricia shows the buyer three properties and verbally agrees to represent her. Which statement correctly describes Patricia's situation?

Correct Answer

B) Patricia is acting in violation of Tennessee law because inactive licensees may not perform licensed activities.

Under Tenn. Code Ann. § 62-13-301 and TREC rules, an inactive licensee may not perform any activity that requires a real estate license, including showing properties or entering into representation agreements. Performing licensed activities on an inactive license is a violation of Tennessee license law and may result in disciplinary action.

Answer Options
A
Patricia may assist the buyer informally as long as she does not accept a commission.
B
Patricia is acting in violation of Tennessee law because inactive licensees may not perform licensed activities.
C
Patricia may assist the buyer because her license is still technically valid, just not affiliated with a broker.
D
Patricia may assist the buyer if she immediately reactivates her license before the transaction closes.

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Related Topics & Key Terms

Key Terms:

inactive_licenselicense_statuslicense_violationaffiliate_broker

Related Concepts

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

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.

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