Tennessee License Law
Under Tennessee license law, a licensee who refers a client to another service provider (attorney, mortgage broker, inspector) and receives a fee must:
AKeep the fee confidential to avoid conflicts
BDisclose the referral fee and obtain informed consent from the client✓ Correct
CDonate the fee to the Tennessee Real Estate Education Fund
DReport the referral fee to TREC annually
Explanation
Tennessee requires disclosure of any referral fee or compensation a licensee receives from third-party service providers. The client must be informed so they can make unbiased decisions about using the referred service provider.
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Key Terms to Know
State-Specific Concepts
TREC RegulationLicense Law
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