Kevin holds a Tennessee broker license but has NOT obtained the Broker-in-Charge (BIC) designation. He opens a real estate office and begins supervising two affiliate brokers, collecting commissions through his own firm. A complaint is filed with TREC. Which of the following most accurately describes Kevin's violation under Tennessee law?
Correct Answer
A) Kevin has violated Tennessee law because the BIC designation is required to supervise affiliate brokers and operate a real estate firm
Under Tenn. Code Ann. § 62-13-303 and TREC rules, a broker must obtain the separate Broker-in-Charge (BIC) designation before supervising affiliate brokers or operating a real estate firm. Simply holding a broker license is not sufficient. Kevin's operation of a firm and supervision of affiliate brokers without the BIC designation is a violation of Tennessee license law, exposing him to disciplinary action by TREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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