Tennessee Realtor State Practice Exam

TREC must operate in accordance with which legislative act?

1. The Fair Housing Act

2. The Uniform Administrative Procedures Act

3. The Real Estate Settlement Procedures Act

4. The Tennessee Consumer Protection Act

The correct answer is: The Uniform Administrative Procedures Act

The correct choice is the Uniform Administrative Procedures Act. TREC, or the Tennessee Real Estate Commission, is required to operate under the guidelines established by this legislative act. The act provides standards for administrative procedures that ensure fairness, transparency, and accountability in the decision-making processes of administrative agencies within the state. By adhering to the Uniform Administrative Procedures Act, TREC ensures that its rules and regulations are developed and promulgated in a manner that is consistent, fair, and adheres to due process requirements. This promotes trust and integrity in the real estate profession by allowing for public participation and input in the regulatory process, as well as providing a framework for appealing decisions made by the commission. In contrast, while the Fair Housing Act focuses on preventing discrimination in housing, the Real Estate Settlement Procedures Act governs the disclosure of costs in real estate transactions, and the Tennessee Consumer Protection Act addresses unfair or deceptive business practices. Each of these acts serves specific purposes, but they do not dictate the operational procedures for TREC itself like the Uniform Administrative Procedures Act does.