Tennessee Realtor State Practice Exam

What is the primary purpose of the Tennessee Real Estate Commission?

1. To regulate real estate transactions only

2. To ensure fair business practices

3. To train new real estate agents

4. To promote real estate investments

The correct answer is: To ensure fair business practices

The primary purpose of the Tennessee Real Estate Commission is to ensure fair business practices in the real estate industry. This involves enforcing laws and regulations that govern real estate transactions, protecting the public interest, and maintaining professional standards among licensees. By promoting fairness, the commission aims to foster an ethical environment in which all parties can engage in real estate activities, thereby enhancing trust in the marketplace. The focus on fairness also involves overseeing the licensing of real estate professionals, ensuring they comply with state laws and are properly educated on industry standards. Although the regulation of real estate transactions is part of this purpose, it encompasses a broader mandate to maintain an equitable and transparent environment for all real estate activities. Training new real estate agents is a function that may occur through educational programs, but it is not the commission's primary objective. Promoting real estate investments is not a direct goal of the commission; rather, it focuses on creating a stable and fair framework where investments can occur responsibly.