60-Hour Tennessee Basic Principles of Real Estate Pre-Licensing Course

TREC (Tennessee REal Estate Commission

The commission responsible for regulating and licensing real estate professional in Tennesee

Market

A specified setting in which good or services are bought and sold.

Escrow

A neutral repository for client trust funds.

MLS (multiple listing service)

An online system where brokers share info on listed properties and invite other brokers to cooperate in their sale.

Listing Agreement

A legally binding contract between the seller and real estate licensee that gives the licensee authority to market and list the property.

Agent

One who acts on behalf of another in business

CMA (comparative market analysis)

An estimate of a property’s market value based on recent comparable sales for similar properties.

Fiduciary

A person in whom another’s trust and confidence is placed.

Supply

The amount of an item available at a given time for a given price

Demand

How many of a particular item consumers are willing and able to buy at a given time for a given price.

Real Property

Real estate as well as the interests, benefits, and rights automatically included with real estate ownership.

RESPA (real estate settlement and procedures act

A federal law that bans real estate professionals from accepting kickbacks, gifts, or anything of value in exchange for referring business to a settlement.

Economic Characteristics of Land

scarcity, improvements, permanence of investment, and location of area preference.

What is your farm area?

A targeted area or market demographic in which you plan to cultivate your business.

How many members make up the Tennessee Real Estate Commission (TREC)?

9 Members

• 6 are licensed real estate brokers.

• 3 are members of the general public.

What is the authority behind Tennessee license law, and what is the law formally known as?

• Authority: The Tennessee Real Estate Commission (TREC).

• Law Name: The Tennessee Real Estate Broker License Act of 1973.

How many members make up TREC, and who appoints them?

Nine members, all of whom are appointed by the governor.

Who is employed by TREC to manage operations and hire support staff?

A full-time, salaried executive director.

What powers does TREC hold regarding real estate licenses?

The power to issue, deny, revoke, and suspend licenses.

How long is the term for a TREC member?

Five years.

What legal protection do TREC members and employees have if a licensee files a lawsuit against the commission?

Immunity from civil liability (they cannot be held responsible for legal damages).

Why is TREC considered a judicial body?

Because it has the power to accept complaints, hold hearings, hear facts, draw conclusions, and impose penalties for license law violations.

What happens if a TREC member sets brokerage fees and licensees carry out that decision in the field?

That member and all licensed members of the commission will lose their licenses. (TREC is strictly prohibited from setting brokerage fees).

How is the Real Estate Education and Recovery account funded, and what is the maximum payout for a single transaction?

• Funding: Paid by new licensees via a licensing fee.

• Max Payout: $15,000 per single transaction.