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Practice Of Real EstateLicense LawHARD

Angela holds an active Tennessee affiliate broker license sponsored by Broker Chen. Angela decides to leave Broker Chen's firm and join a new firm managed by Broker Davis. Angela submits the required transfer paperwork to TREC but continues to show properties and write offers under Broker Chen's name for five additional days while the transfer is pending, because she wants to service her existing clients. Which of the following best describes the legal consequence of Angela's actions during those five days?

Correct Answer

D) Angela engaged in unauthorized practice because an affiliate broker may only practice under the broker who currently sponsors her license

Under Tenn. Code Ann. § 62-13-302, an affiliate broker may only engage in licensed real estate activities under the direct supervision of and affiliated with the broker who currently sponsors their license. Once Angela submitted transfer paperwork, she was in the process of terminating her affiliation with Broker Chen. Continuing to practice under Broker Chen's name without his active sponsorship — or under Broker Davis before the transfer is processed — constitutes unauthorized practice, regardless of her license status.

Answer Options
A
Angela's actions are permissible because she had a valid Tennessee affiliate broker license throughout the five-day period
B
Angela's actions are permissible as long as Broker Davis verbally authorized her to begin working before the transfer was processed
C
Angela's actions are permissible because TREC's transfer processing period creates an implied authorization to continue working
D
Angela engaged in unauthorized practice because an affiliate broker may only practice under the broker who currently sponsors her license

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Related Topics & Key Terms

Key Terms:

affiliate_brokersponsoring_brokertransfer_of_affiliationunauthorized_practice

Related Concepts

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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