Tennessee broker-in-charge Carol discovers that one of her affiliate brokers, Tom, has been practicing real estate in Georgia without a Georgia license while also working under Carol's Tennessee firm. Carol takes no action and does not report Tom's out-of-state unlicensed activity to TREC. Six months later, TREC investigates Tom and also questions Carol's conduct. Which of the following best describes Carol's potential exposure under Tennessee license law?
Correct Answer
D) Carol may face disciplinary action for failure to supervise Tom and for potential failure to report known misconduct, both of which are duties of a Tennessee broker-in-charge.
A Tennessee broker-in-charge has a statutory duty to supervise affiliate brokers under their license and to ensure compliance with applicable laws. Under TREC rules and Tenn. Code Ann. § 62-13-312, a BIC who becomes aware of a licensee's misconduct — including unlicensed practice in another jurisdiction — and takes no action may be found to have failed in their supervisory duty. Additionally, TREC expects BICs to take appropriate corrective action when they discover violations. Carol's inaction after discovering Tom's unlicensed Georgia activity exposes her to potential disciplinary action for supervisory failure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
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?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
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?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
- → Which Wyoming rule applies when an out-of-state salesperson applies for Wyoming licensure?
- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
- → Which Wyoming rule applies when the Commission acts on license issuance and discipline?
- → In Wyoming real estate practice, a written sworn complaint or Commission motion starts a disciplinary matter. What should the licensee remember?
- → A Wyoming licensee is reviewing a first-time salesperson applicant asks which prelicense courses are required. What is the best answer?
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