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Practice Of Real EstateLicense LawHARD

Howard is a licensed Tennessee broker who holds the Broker-in-Charge designation at his firm, Volunteer Realty. Howard completes all required CE hours for his own license renewal but fails to ensure that one of his affiliate brokers, Sandra, completes her CE before her renewal deadline. Sandra's license expires. A TREC investigation reveals that Howard was aware Sandra had not completed her CE but took no corrective action. Which of the following most accurately describes Howard's potential liability under Tennessee license law?

Correct Answer

A) Howard may face disciplinary action by TREC for failing to fulfill his supervisory duties as Broker-in-Charge

Under Tennessee license law and TREC rules, a Broker-in-Charge has affirmative supervisory duties over the affiliate brokers sponsored by the firm. These duties include ensuring that sponsored licensees maintain active, valid licenses. When Howard was aware that Sandra had not completed her CE and failed to take corrective action, he breached his supervisory responsibilities as BIC. TREC may impose disciplinary action against Howard for this failure, which could include fines, suspension, or other sanctions, even though Sandra's CE obligation was ultimately her own responsibility.

Answer Options
A
Howard may face disciplinary action by TREC for failing to fulfill his supervisory duties as Broker-in-Charge
B
Howard has no liability because each licensee is solely responsible for their own CE completion and renewal
C
Howard's liability is limited to a written warning because Sandra's license expiration is an administrative matter, not a substantive violation
D
Howard is automatically required to surrender his BIC designation but retains his broker license without further penalty

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Related Topics & Key Terms

Key Terms:

broker_in_chargesupervisory_dutiesdisciplinary_actionlicense_renewal

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