Tennessee Real Estate Commission Overview
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Questions and Answers

What enables the agency to pass specific regulations and rules to support the administration of the license law?

  • Judicial Powers
  • Mission of the Tennessee Real Estate Commission
  • Administrative Powers
  • Regulatory Powers (correct)

    • What is the mission of the Tennessee Real Estate Commission?

  • Protect the public (correct)
  • Administer property taxes
  • Regulate commission fees
  • Promote real estate sales

    • How many members does TREC consist of?

    9

    Who appoints members of TREC?

    <p>Governor</p> Signup and view all the answers

    How many years are the TREC member terms?

    <p>5</p> Signup and view all the answers

    Who chooses the TREC chair, vice chair, and executive director?

    <p>The commission</p> Signup and view all the answers

    What is required to become an Affiliate Broker?

    <p>High school diploma, completion of 60 classroom hours + 30 credits</p> Signup and view all the answers

    What is the minimum balance that the real estate commission needs to keep in the education and recovery account?

    <p>$500,000</p> Signup and view all the answers

    How often does the commission meet?

    <p>Once a month for 2 to 3 days</p> Signup and view all the answers

    What is the license renewal fee for an Affiliate Broker?

    <p>$80</p> Signup and view all the answers

    What is the PSI exam fee?

    <p>$43</p> Signup and view all the answers

    With timeshares, if a sales presentation is required to qualify it must be stated.

    <p>True</p> Signup and view all the answers

    Terms of a real estate sales contract forms must have an end date.

    <p>True</p> Signup and view all the answers

    Are net listings legal in Tennessee?

    <p>False</p> Signup and view all the answers

    The commission will hear complaints for all of the following except:

    <p>E&amp;O insurance</p> Signup and view all the answers

    What penalties can a licensee face for failing to furnish a copy of any listing, sales, lease or other contract to all parties involved after signing?

    <p>License revocation or penalties</p> Signup and view all the answers

    What is required from an affiliate broker to get their broker's license?

    <p>3 years of holding an active real estate license</p> Signup and view all the answers

    How long is the affiliate license good for?

    <p>2 years</p> Signup and view all the answers

    How many hours of continuing education does an affiliate broker need every two years?

    <p>16 hours</p> Signup and view all the answers

    A licensee cannot live more than 50 miles from the firm office.

    <p>True</p> Signup and view all the answers

    The commission is there to protect?

    <p>Consumers</p> Signup and view all the answers

    Whenever any licensee pleads guilty or is convicted of a crime they must notify the commission within how many days?

    <p>60 days</p> Signup and view all the answers

    Study Notes

    Regulatory and Judicial Powers

    • Regulatory Powers allow the agency to create regulations and rules for the administration of license law.
    • Judicial Powers enable the agency to conduct hearings and investigate licensee activities, ruling on suspensions or revocations.

    Administrative Powers and Mission

    • Administrative Powers allow the establishment of staff organization, record-keeping, and facilities necessary for the licensing process.
    • The mission of the Tennessee Real Estate Commission (TREC) is to protect the public.

    TREC Composition and Functions

    • TREC consists of 9 members.
    • Members are appointed by the Governor and serve 5-year terms.
    • The commission selects its chair, vice chair, and executive director.

    Licensing and Qualifications

    • Affiliate Brokers require a high school diploma, 60 classroom hours, and 30 credits.
    • Brokers must have a high school diploma, 120 classroom hours, and 90 credits.
    • Time Share Salespersons need a high school diploma and 30 classroom hours; they only take the state part of PSI exam.

    Contracts and Agreements

    • A contract is an agreement between two or more parties in a "meeting of the minds" to perform or refrain from performing specific actions.
    • Exclusive Listing Agreement is a legally enforceable contract between a broker and a client, allowing the broker to act as the exclusive agent.

    Escrow Practices

    • Commingling is the mixing of escrow funds with non-escrow funds.
    • Conversion refers to using escrow funds for improper purposes.

    Consumer Protection

    • The Consumer Protection Act classifies any unfair or deceptive trade actions as a Class B Misdemeanor.

    Time Shares and Cancellation Policies

    • Time Share Estates denote ownership or leasehold in property with multiple owners for specified time intervals.
    • Cancellation of a timeshare contract must occur within 10 days if the property was viewed in person, or within 15 days if not viewed.

    Fees and Financial Regulations

    • The education and recovery account maintains a minimum balance of $500,000.
    • The application fee for an affiliate broker license is $100.

    Commission Meetings and Renewals

    • TREC meets monthly for up to 3 days.
    • The renewal fee for an affiliate broker is $80.

    Assistant Roles and Restrictions

    • Unlicensed assistants may perform limited functions such as opening doors and assembling closing documents but cannot show properties or accept commissions.

    Cool Down Periods and License Restrictions

    • Unlicensed practice in real estate is considered a misdemeanor, and licensees must regain commissions received from non-brokers plus treble damages.

    Commission Composition and Roles

    • The commission consists of residents in good moral character. Two members had no previous real estate experience prior to their appointments.

    Licensing Procedures and Requirements

    • An affiliate broker license is valid for two years, requiring 16 hours of continuing education every two years.
    • A sworn statement by a broker is needed for a new license applicant.

    Conduct and Regulations

    • Licensees must inform the commission within 60 days of any criminal convictions.
    • Real estate sales contract forms must have a definitive termination date.

    Eligibility for Commissions

    • Commissions can only be paid to licensed individuals.
    • Affiliate brokers must provide trust money to their broker immediately upon receipt.

    Establishing Ethics

    • Licensees should exclude themselves from discussions on commission with competitors to maintain ethical conduct.
    • Violations may incur penalties between $50 and $1,000 per incident.

    Advertising Regulations

    • All advertisements must prominently display the firm’s name and contact number, both on print and on every webpage of a website.

    Final Notes

    • Any licensee seeking to switch firms must submit a completed transfer form promptly, and requests for release from a firm should be granted immediately.

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    Description

    This quiz covers the functions, powers, and composition of the Tennessee Real Estate Commission (TREC). It explores regulatory and judicial powers, administrative responsibilities, and licensing qualifications for real estate professionals. Test your knowledge about TREC and its mission to protect the public.

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