Kevin, a Tennessee broker-in-charge, failed to adequately supervise an affiliate broker in his firm who mishandled client escrow funds. Under Tennessee license law, which of the following statements is most accurate regarding Kevin's potential liability?
Correct Answer
B) Kevin may face disciplinary action by TREC for failure to properly supervise the affiliate broker.
Under Tennessee license law and TREC rules, a broker-in-charge has a statutory duty to supervise affiliate brokers operating under their license. Failure to exercise adequate supervision is itself a ground for disciplinary action by TREC against the broker-in-charge, even if the BIC did not directly participate in the misconduct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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