Tennessee License Enforcement

Question 1

TREC’s or the court’s decision that someone must give back up to three times any illegal commission received to whoever paid it.

Answer 1

Treble damages

Question 2

what an accused is charged with for practicing real estate without a license.

Answer 2

Class B misdemeanor

Question 3

TREC’s required insurance, similar to malpractice insurance, which must be obtained by all active licensees in Tennessee.

Answer 3

Errors and omissions insurance

Question 4

an account maintained by TREC to provide funds for education purposes and to protect the general public by having a fund available to pay judgments against licensees who cannot pay the judgment themselves.

Answer 4

Education and Recovery Account

Question 5

TREC could levy disciplinary action against a licensee for

Answer 5

misrepresentation

Question 6

For TREC to revoke a license, the necessary vote is

Answer 6

a majority vote

Question 7

Should a broker’s license be downgraded by TREC from broker to affiliate broker, the first thing the affiliated licensees should do is

Answer 7

cease transacting real estate

Question 8

How much notice must be given to TREC if a licensee is convicted of a crime?

Answer 8

60 days from the conviction date

Question 9

Of the violations under license law that could result in disciplinary action against a broker, one is

Answer 9

failing to exercise adequate supervision over the affiliated licensees.

Question 10

The maximum civil penalty that TREC may impose on unlicensed persons per violation per day is

Answer 10

$1000

Question 11

If the E&O company must pay out a monetary award, the out-of-pocket deductible of the defended licensee is

Answer 11

$1000

Question 12

TREC will NOT hold a hearing if the allegation is

Answer 12

a commission dispute between brokers of different firms.

Question 13

Should the consumer feel that the amount paid by the E&O company is insufficient and the licensee has no money, the consumer may be able to receive additional compensation from

Answer 13

education and recovery account

Question 14

To appeal a conclusion by TREC as a result of a hearing, a licensee can rely on what state act?

Answer 14

Tennessee Administrative Procedures Act

Question 15

For a person who was been issued a firm license,

Answer 15

E&O coverage is not required

Question 16

Either party may request a continuance of the hearing date

Answer 16

if the request is received before the scheduled hearing date.

Question 17

Should a licensee’s license be revoked by the court, TREC has the authority to reissue the license with a consenting vote of at LEAST

Answer 17

six

Question 18

Should TREC conclude that a formal hearing is appropriate, the time and place for the hearing is selected by

Answer 18

trec

Question 19

If one’s license is revoked, and money was paid to the consumer from the Education and Recovery Account, TREC may require that before the licensee can apply for a new license, the licensee must

Answer 19

reimburse the account money paid out plus interest.

Question 20

Once a licensee is notified of an allegation of inappropriate activity, the licensee must respond to TREC with an answer to the allegation within

Answer 20

10 days

Question 21

If TREC determines there is no reason to conduct a hearing resulting from an allegation against a licensee,

Answer 21

a letter is sent to each party and the case is closed.