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Practice Of Real EstateLicense LawHARD

Michelle holds a Tennessee Affiliate Broker license affiliated with Broker Tom's firm. Without informing Tom, Michelle begins negotiating a commercial lease transaction on her own and plans to collect a fee directly from the landlord. Which TWO violations is Michelle most likely committing under Tennessee license law?

Correct Answer

B) Performing licensed activities outside her supervising Broker's knowledge and accepting compensation from a party other than her Broker

Under Tenn. Code Ann. § 62-13-302 and § 62-13-312, an Affiliate Broker must perform all licensed activities under the supervision and direction of their sponsoring Broker, and may only receive compensation through that Broker. Negotiating a transaction independently and accepting a fee directly from the landlord violates both the supervision requirement and the compensation-through-broker rule, which are two of the most fundamental obligations of an Affiliate Broker in Tennessee.

Answer Options
A
Operating without a Broker-in-Charge designation and accepting compensation from a non-licensed party
B
Performing licensed activities outside her supervising Broker's knowledge and accepting compensation from a party other than her Broker
C
Practicing commercial real estate without a separate commercial endorsement and failing to disclose her license status
D
Violating the Tennessee Human Rights Act and failing to use the TREC Agency Disclosure form

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Related Topics & Key Terms

Key Terms:

affiliate_brokersupervisioncompensationlicense_violation

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