Under the Tennessee Real Estate Broker License Act of 1973, all of the following actions may result in disciplinary action by TREC EXCEPT:
Correct Answer
C) Referring a buyer client to a home inspector and disclosing the referral relationship in writing
Referring a client to a home inspector while disclosing the referral relationship in writing is NOT a basis for disciplinary action. Proper written disclosure of referral relationships or affiliated business arrangements is the legally compliant approach. Tennessee law and TREC rules permit such referrals when properly disclosed, so this action does not constitute a violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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