Tennessee License Law

Under Tennessee license law, a broker may NOT pay a commission to an unlicensed person. This rule exists to:

AEnsure only licensed brokers earn commissions
BProtect the public by ensuring that real estate activities are performed by qualified, regulated professionals✓ Correct
CIncrease commission income for licensed brokers
DReduce competition in the real estate market

Explanation

The licensing requirement and the prohibition on paying commissions to unlicensed persons serve to protect the public by ensuring that persons who perform real estate services are qualified, trained, and subject to professional regulation.

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