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Marcus, a Tennessee affiliate broker, was recently convicted of a felony involving fraud. Under the Tennessee Real Estate Broker License Act, which of the following best describes TREC's authority in this situation?

Correct Answer

D) TREC may suspend or revoke Marcus's license based on the felony conviction.

Under Tenn. Code Ann. § 62-13-312, TREC has explicit authority to suspend or revoke a license when a licensee has been convicted of a felony, regardless of whether the crime was directly related to a real estate transaction. A conviction involving fraud is a recognized ground for disciplinary action.

Answer Options
A
TREC must wait until Marcus serves his sentence before taking any disciplinary action.
B
TREC has no authority to act until a civil lawsuit is filed against Marcus.
C
TREC may only issue a written warning because no real estate transaction was involved.
D
TREC may suspend or revoke Marcus's license based on the felony conviction.

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Related Topics & Key Terms

Key Terms:

disciplinary_actionsfelony_convictiontrec_authorityaffiliate_broker

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

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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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