Chapter 1 Flashcards
Overview of Tennessee Laws
The Tennessee Real Estate laws and regulations are contained primarily in two documents:
The Tennessee Real Estate Broker License Act of 1973 (Title 62, Chapter 13), which regulates the real estate brokerage profession in Tennessee.
The Rules of the Tennessee Real Estate Commission (Rules 1260), which assist the Commission in carrying out its duties.
Other laws relevant to real estate licensees include:
Uniform Landlord and Tenant Act (Title 66, Chapter 28), regulating residential leases
Horizontal Property Act (Title 66, Chapter 7), regulating condominiums
Notice of Completion Statute (Title 66, Chapter 11-143), regarding liens
Tennessee Lead-Based Paint Certification Act of 1997 (Title 68, Chapter 131, Part 4), regulating lead-based paint disclosure
Hazardous Waste Management Act of 1983 (Title 68, Chapter 212, Part 2), regulating liabilities for pollution
Tennessee Consumer Protection Act of 1977 (Title 47, Chapter 18, Part 1), regulating fair trade practices
Tennessee Anti-Trust Law (Title 47, Chapter 25, Trade Practices), regulating fair trade practices
The License Act and the Commission Rules are the primary focus of this course. The other laws are discussed briefly in terms of how they affect real estate practices.
Overview of the License Act
Overview of the License Act
The Tennessee Real Estate Broker License Act of 1973 (Title 62, Chapter 13) regulates the real estate brokerage profession in Tennessee. It consists of six parts:
General Provisions Real Estate Commission Qualifications and Licensing Representation by Real Estate Agents Commercial Real Estate Brokers Agency Contracts and Referral Fees
The overall purpose of the License Act is to protect the public from irresponsible or unscrupulous persons dealing in real estate.
This law establishes the Tennessee Real Estate Commission and provides the basis for the licensing and regulation of the real estate profession.
Overview of the Commission Rules
Overview of the Commission Rules
The License Act empowers the Real Estate Commission to make whatever rules and regulations are necessary to carry out its duties. These rules are part of the law. Though the License Act may only be modified by the state legislature, the rules may be modified by the Commission.
Rules of the Tennessee Real Estate Commission (Rule 1260) consist of the following parts:
Licensing Rules of Conduct Rental Location Agents Rules of Procedure for Hearing Contested Cases Educational Requirements Time-share Programs
The Commission also issues policy statements from time to time, which become part of the rules. Policy statements presented on the Commission’s web site include such specific topics as:
Lapsed Errors and Omissions Insurance Expired License Reinstatement Principal Brokers Employed Outside Real Estate Profession Who Engage Affiliates Vacation Lodging Service Escrow Accounts Interest Bearing Escrow Accounts Vacation Lodging Services Internet Advertising Duplicate or Confusingly Similar Names Credit for Post License Education Taken in Another Jurisdiction Prior to Licensure in Tennessee Payment of Commissions Receiving Fees or Rebates from Home Inspectors by Real Estate Licensees Commissions Earned by Affiliate Brokers
Contents of the Commission’s Official Manual
The Commission’s Official Manual, available on the Commission web site, Contains the License Act and the Rules. In addition, it includes these laws with which licensees should be familiar:
Conveyances of Property (Title 66, Chapter 5)
Part 2 of this law, “Residential Property Disclosures,” covers the kinds of disclosures that real estate licensees are required to make concerning the sale, exchange, or lease with option to buy of a residential property. It describes liabilities, remedies, and exemptions, as well as prescribing a residential property disclosure form that lists what must be disclosed.
Time-share Programs and Vacation Clubs (Title 66, Chapter 32)
This law regulates the sale and promotion of several types of "special" properties. It includes three parts:
Time-share Programs ("The Tennessee Time-Share Act of 1983")
Vacation Clubs ("The Tennessee Vacation Club Act of 1995")
Membership Camping ("The Membership Camping Act")
Human Rights (Title 4, Chapter 21) The act includes parts covering:
The Human Rights Act exists to ensure that the various federal civil rights laws are carried out in Tennessee and, more specifically for the real estate profession, that discriminatory practices in housing be prevented.
The act includes parts covering: General Provisions Human Rights Commission Discrimination in Public Housing Discrimination in Housing and Finance
