Tennessee real estate commission rules

Incorrect: Five thousand dollars overstates the cap fivefold.

Correct: Rule 1260-02-.32(1) sets a civil penalty of $0 to $1,000 for each separate violation, and each day of a continuing violation can count separately.

Incorrect: Totals can grow only because each violation, or each day, counts separately; the per-violation maximum stays $1,000.

Incorrect: Two and a half times the cap; TREC's rule tops out at $1,000 per violation.

Incorrect: Eight hours is half the requirement, and ethics alone does not satisfy the Core Course.

Incorrect: Twenty-four hours of electives still misses the mandatory Core Course.

Correct: TREC renewal requires 16 hours of continuing education each two-year cycle, 6 of them in the TREC Core Course.

Incorrect: Property management is not a mandated topic, and 12 hours falls short of 16.

Incorrect: Misconduct stays reviewable after closing; complaints are limited by a statute of limitations, not by the closing date.

Incorrect: TREC can impose civil penalties payable to the state, but it cannot award damages to a buyer or seller.

Incorrect: Affiliate brokers are licensees too, and most rules in chapter 1260-02 apply to them directly.

Correct: TREC disciplines licensees under T.C.A. Title 62, Chapter 13; money disputes go to the courts, and Rule 1260-02-.02(8) keeps it out of commission and debt disputes.

Incorrect: Contested case hearings are generally open, and final orders become public record.

Incorrect: A licensee may bring counsel but is not required to.

Correct: TREC disciplinary hearings are contested cases under the Uniform Administrative Procedures Act, Title 4, Chapter 5, heard with an administrative law judge.

Incorrect: These are civil administrative proceedings; the outcome is license discipline or civil penalties, not a criminal sentence.

Incorrect: Five is the length of a member's term in years, not the number of members.

Correct: T.C.A. § 62-13-201 creates a nine-member commission appointed by the governor, three from each grand division.

Incorrect: Twelve overstates the board; the statute fixes nine seats.

Incorrect: Three is the number of members from each grand division; with three divisions, that makes nine.

Incorrect: TREC adopts rules through the state rulemaking process; no separate act of the legislature is needed for each rule.

Incorrect: A state agency cannot override federal law; the federal Fair Housing Act applies in Tennessee regardless of TREC rules.

Incorrect: TREC's rules govern licensed activity generally, commercial work included.

Correct: T.C.A. § 62-13-203 lets TREC adopt rules to carry out the license law; it is cited as authority under every rule in chapter 1260-02.

Incorrect: Only a criminal court can jail someone; TREC is an administrative licensing board.

Incorrect: Damages are a court remedy; TREC disciplines the license and can fine, but it does not award damages to consumers.

Correct: T.C.A. § 62-13-312 lets TREC refuse, suspend or revoke a license, and Rule 1260-02-.32 adds civil penalties.

Incorrect: No provision lets TREC order a firm sold; its tools act on licenses and penalties.

Incorrect: The state constitution does not create TREC; the General Assembly did, by statute.

Incorrect: FHA rules govern insured mortgages, not who may hold a Tennessee license.

Incorrect: Private association bylaws bind members, not the state; they give TREC no authority.

Correct: TREC exists under the Tennessee Real Estate Broker License Act of 1973, T.C.A. Title 62, Chapter 13.

Incorrect: Home inspectors are licensed by a separate state program, not by TREC.

Incorrect: Owners selling their own property need no license, so TREC has no jurisdiction over them.

Incorrect: Attorneys handling closings are regulated as lawyers, not by TREC.

Correct: TREC licenses and disciplines brokers and affiliate brokers under T.C.A. Title 62, Chapter 13.

Incorrect: Lending is done by private lenders and housing agencies, never by TREC.

Incorrect: Marketing property is what licensees do; the Commission regulates them.

Correct: TREC's job is consumer protection through licensing, education and discipline of brokers and affiliate brokers.

Incorrect: Zoning belongs to local governments and planning commissions.

Incorrect: Approval covers classroom and online delivery alike.

Correct: Prelicense and continuing education count only when taken from Commission-approved courses and providers (T.C.A. § 62-13-303 and TREC education rules).

Incorrect: TREC does not set tuition; schools price their own courses.

Incorrect: Courses count toward licensing or renewal only after TREC approval.

Incorrect: Insurance policies are not recorded in land records.

Incorrect: A principal broker must confirm affiliates are covered, but approval does not make a deficient policy compliant.

Incorrect: Coverage must reach all licensed activities, so a residential-only policy falls short.

Correct: Rule 1260-01-.15(4) says an independent policy must, at a minimum, be issued on the same terms as the TREC group policy, including limits, deductible, exemptions and term.

Correct: Rule 1260-02-.07 bars any broker or affiliate broker from accepting a listing based on a net price, one that excludes the customary commission and expenses.

Incorrect: The rule covers every listing; there is no property-type exception.

Incorrect: Disclosure after the fact does not cure a net price; it is still prohibited.

Incorrect: Putting a net listing in writing does not save it; the rule bans the arrangement itself.

Correct: Rule 1260-01-.21(3) says a license expired more than one year cannot be reinstated; the person reapplies, meets current education requirements and passes all required exams.

Incorrect: The $50 penalty per 30-day period applies to renewal within 60 days of expiration under Rule 1260-01-.21(2)(a).

Incorrect: A reinstatement order with penalties is the route for licenses expired more than 60 days but within one year; this one is past that.

Incorrect: Continuing education renews a current license; after a year's lapse it cannot revive the old one.

Incorrect: $200 would be four periods, far more than 45 days covers.

Incorrect: $150 would be three periods; 45 days spans two.

Incorrect: $175 adds the $75 renewal fee to the penalty; the penalty alone is $100.

Correct: Rule 1260-01-.21(2)(a) charges $50 for each 30-day period or portion since expiration; 45 days covers two periods.