Tennessee Realtor State Practice Exam

What must licensees do to become a designated agent in Tennessee?

1. Take an additional exam

2. Be appointed by the managing broker

3. Complete a mentorship program

4. Apply through a state board

The correct answer is: Be appointed by the managing broker

To become a designated agent in Tennessee, a licensee must be appointed by the managing broker. This appointment is a crucial step because it establishes the relationship between the licensee and the brokerage, allowing the designated agent to represent the interests of a specific client while still being part of a larger brokerage. This structure is designed to maintain clear representation and avoid conflicts of interest within the brokerage, especially in transactions involving multiple clients. The role of a managing broker is pivotal in this process as they have the authority to choose which agents within their firm are designated to represent clients. This responsibility includes ensuring that the designated agent is adequately trained and capable of managing the client's needs effectively. While there are requirements for obtaining a real estate license, such as passing an exam, those are not specific to becoming a designated agent. Similarly, mentorship programs or applications through a state board are not prerequisites for designation but pertain to overall professional development and licensing processes.