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Practice Of Real EstateState SpecificHARD

James, a licensed affiliate broker in Tennessee, sells timeshare units at a resort in Murfreesboro. He is not affiliated with any real estate brokerage firm; instead, he works directly for the resort as an employee. The resort's HR director tells James that because he is a W-2 employee of the resort, he does not need to be affiliated with a brokerage to sell timeshare units. Under Tennessee law, which statement is most accurate?

Correct Answer

B) James must be affiliated with a licensed Tennessee real estate brokerage to sell timeshare interests, even as a resort employee, unless a specific statutory exemption applies

Under Tennessee's real estate licensing framework, Tenn. Code Ann. § 62-13-101 et seq., an affiliate broker must be affiliated with and supervised by a licensed broker or brokerage firm. The Tennessee Timeshare Act requires timeshare salespersons to hold a real estate license, and the standard licensing rules — including the affiliation requirement — apply to those licensees. Employment status as a W-2 worker for the resort does not create an exemption from the broker affiliation requirement unless a specific statutory exemption exists under Tennessee law.

Answer Options
A
The HR director is correct; W-2 employees of a timeshare developer are exempt from the broker affiliation requirement under the Tennessee Timeshare Act
B
James must be affiliated with a licensed Tennessee real estate brokerage to sell timeshare interests, even as a resort employee, unless a specific statutory exemption applies
C
James may sell timeshare units as a resort employee but must register directly with TREC as an independent timeshare salesperson rather than through a brokerage
D
James only needs brokerage affiliation if he earns commissions; W-2 salaried timeshare employees are exempt from the affiliation requirement

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Related Topics & Key Terms

Key Terms:

timeshareaffiliate_brokerbrokerage_affiliationlicensing_requirementemployment_status

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

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.

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