James is a licensed Tennessee Broker-in-Charge who has been operating his firm for five years. TREC conducts an audit and finds that James has been allowing an Affiliate Broker whose license expired six months ago to continue showing properties and writing offers. Which of the following best describes the potential consequences for James?
Correct Answer
D) James may face disciplinary action by TREC for failing to supervise and ensure that only properly licensed individuals perform real estate activities under his firm.
Under Tenn. Code Ann. § 62-13-312 and TREC rules, a Broker-in-Charge has an affirmative duty to supervise all licensees operating under their firm and to ensure that only properly licensed individuals perform real estate activities. Allowing an individual with an expired license to continue performing licensed activities is a supervisory failure that can result in TREC disciplinary action against the BIC, including license suspension or revocation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
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