Tennessee Realtor State Practice Exam

Aside from a firm real estate license and principal broker, what do real estate firms in Tennessee need to operate legally?

1. A physical office space

2. A minimum number of agents

3. Technology equipment

4. A website

The correct answer is: A physical office space

To operate legally in Tennessee, real estate firms are required to have a physical office space. This requirement ensures that firms have a designated location where they can conduct business, meet with clients, and comply with state regulations. A physical office adds a level of professionalism and accountability, as it provides a stable environment for the brokers and agents to facilitate transactions and maintain records. Other factors, such as technology equipment or a website, while beneficial for conducting business effectively in the modern real estate market, are not legally mandated for the firm’s operation. Similarly, there is no specific minimum number of agents required for a firm to maintain an active license, as long as the principal broker and the necessary licensing requirements are met. Thus, having a physical office space stands out as a key legal requirement for real estate firms in Tennessee.