Sandra is a Tennessee affiliate broker who accepted a commission check directly from a buyer without routing it through her supervising broker. Under Tennessee license law, this action is best classified as which type of violation?
Correct Answer
B) A violation that could result in license suspension or revocation by TREC
Under Tenn. Code Ann. § 62-13-302 and § 62-13-312, an affiliate broker may only receive compensation through their supervising broker. Accepting compensation directly from a party to a transaction is a statutory violation of the Tennessee Real Estate Broker License Act and constitutes grounds for TREC to suspend or revoke the license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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