Tennessee Realtor State Practice Exam

In Tennessee real estate, which entity is primarily responsible for overseeing brokers and their affiliates?

1. The Department of Commerce and Insurance

2. The local city council

3. The Board of Realtors

4. The National Association of Realtors

The correct answer is: The Department of Commerce and Insurance

In Tennessee real estate, the primary oversight of brokers and their affiliates falls under the jurisdiction of the Department of Commerce and Insurance. This state agency is responsible for enforcing real estate laws and regulations, ensuring that real estate professionals operate in a manner that is compliant with the state’s legal framework. This includes licensing brokers, overseeing their activities, and providing oversight to maintain the standards of practice in the industry. The Department of Commerce and Insurance also handles complaints against real estate agents and brokers, administers real estate license examinations, and ensures that all real estate transactions adhere to the rules set forth by state law. Thus, it plays a critical role in the regulation, administration, and enforcement of real estate practices in Tennessee. The other options listed, such as local city councils, the Board of Realtors, and the National Association of Realtors, have different roles. Local city councils focus on municipal governance and local ordinances rather than overseeing real estate practices. The Board of Realtors is a professional trade association that supports the interests of its members but does not have regulatory authority over licensing or compliance matters. Meanwhile, the National Association of Realtors is a larger national organization that provides advocacy, resources, and support to its members but does not directly oversee individual state practices or brokers.