Tennessee License Law
Under Tennessee license law, a real estate licensee who pays an unlicensed person a fee for referring a client is:
APermitted as long as the fee is under $500
BViolating the license law that prohibits compensation to unlicensed persons for performing licensed activities✓ Correct
CPermitted if the referral is for a commercial property
DPermitted with written consent from both parties
Explanation
Tennessee prohibits paying compensation to unlicensed persons for performing acts that require a license — including finding or referring buyers or sellers. Paying referral fees to unlicensed individuals violates the Tennessee Real Estate Broker License Act.
Related Tennessee Tennessee License Law Questions
- In Tennessee, an affiliate broker must work under:
- A Tennessee licensee who practices real estate under a team name must ensure that:
- Which agency regulates real estate licenses in Tennessee?
- How many members serve on the Tennessee Real Estate Commission?
- A Tennessee principal broker is responsible for:
- A Tennessee principal broker who opens a new branch office must:
- A Tennessee real estate licensee who misappropriates client funds may face, in addition to TREC disciplinary action:
- In Tennessee, the TREC Education and Recovery Account maximum payment to any one claimant is:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →