Tennessee affiliate broker Devon places an online ad that reads: 'For Sale by Owner — 3BR/2BA home in Memphis. Call Devon at 901-555-0123.' Devon is actually the listing agent, not the owner of the property. Under Tennessee real estate advertising rules, this advertisement is:
Correct Answer
B) A violation because it falsely implies the property is being sold without a real estate agent
Tennessee TREC advertising rules prohibit misleading or deceptive advertising. Labeling a property 'For Sale by Owner' (FSBO) when it is actually listed with a licensed real estate agent falsely implies that no agent is involved, which deceives consumers. This type of advertising violates TREC's prohibition against misrepresentation and deceptive advertising practices under Tenn. Code Ann. § 62-13-312 and TREC rules.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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