Tennessee broker-in-charge Linda supervises six affiliate brokers at Summit Real Estate. One of her affiliate brokers, Kevin, places an unauthorized advertisement on Craigslist that violates TREC advertising rules — it omits the firm name and makes false claims about a property. Kevin acted without Linda's knowledge. Under Tennessee law, which of the following is most accurate regarding Linda's potential liability?
Correct Answer
B) Linda may face disciplinary action because broker-in-charges have supervisory responsibility for their affiliate brokers' advertising
Tennessee law places supervisory responsibility on broker-in-charges for the activities of the affiliate brokers they supervise, including advertising compliance. Under Tenn. Code Ann. § 62-13-312 and TREC rules, a BIC is expected to establish systems and oversight to ensure affiliate brokers comply with advertising regulations. Even without direct knowledge of Kevin's ad, Linda may face disciplinary action for failure to adequately supervise. TREC evaluates whether the BIC maintained reasonable oversight procedures.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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