Tennessee License Law

A Tennessee real estate licensee who misappropriates client funds may face, in addition to TREC disciplinary action:

AOnly a civil lawsuit by the client
BCriminal charges for theft, embezzlement, or conversion of client funds✓ Correct
COnly a TREC-imposed fine
DA warning letter from the Tennessee Attorney General

Explanation

Misappropriation of client funds (taking money belonging to clients for personal use) is theft or embezzlement under Tennessee criminal law, in addition to being a serious violation of license law. Criminal prosecution can result in imprisonment in addition to license revocation.

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