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An affiliate broker in Tennessee is advising a client who owns rental properties in both Shelby County (population over 900,000) and a neighboring rural county with a population of 42,000. The client asks whether the same rules apply to both sets of properties. Which of the following is the most accurate advice the affiliate broker can provide?

Correct Answer

B) The Act applies only to the Shelby County properties because that county exceeds the 75,000-population threshold; the rural county properties are not subject to the Act.

Under Tenn. Code Ann. § 66-28-101, the Tennessee Uniform Residential Landlord and Tenant Act applies on a county-by-county basis determined solely by population. Shelby County, with a population exceeding 900,000, clearly meets the 75,000-resident threshold, so the Act governs those properties. The neighboring rural county with 42,000 residents does not meet the threshold, so the Act does not apply there. The client must comply with the Act's full requirements—including habitability standards, security deposit limits, and disclosure obligations—for the Shelby County properties, while the rural county properties are governed by general contract law.

Answer Options
A
The Tennessee Landlord-Tenant Act applies to both sets of properties because the client is a single landlord operating under one ownership entity.
B
The Act applies only to the Shelby County properties because that county exceeds the 75,000-population threshold; the rural county properties are not subject to the Act.
C
The Act applies to both sets of properties because all residential rental properties in Tennessee are covered regardless of county population.
D
The Act applies to neither set of properties because the client owns properties in multiple counties, which creates a commercial landlord classification.

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Related Topics & Key Terms

Key Terms:

landlord_tenant_actapplicabilitymulti_countyshelby_countyaffiliate_broker_advice

Related Concepts

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.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

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