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If an unlicensed assistant conducts a property showing, what could happen to the principal broker?

  1. They may face criminal charges

  2. They may be sanctioned

  3. They will receive a warning

  4. They will not be affected

The correct answer is: They may be sanctioned

When an unlicensed assistant conducts a property showing, it can lead to sanctions against the principal broker. In Tennessee, real estate laws require that only licensed individuals can conduct certain activities related to real estate transactions, including property showings. If an unlicensed person engages in such activities, it places the principal broker at risk of disciplinary action by the Tennessee Real Estate Commission. Sanctions can vary and may include fines, suspension, or revocation of the broker's license, depending on the severity of the violation. The intent behind these regulations is to ensure that all individuals conducting real estate activities are properly trained and licensed, thereby providing a level of protection for consumers and maintaining professional standards in the real estate industry. Other choices do not accurately reflect the potential consequences; simply receiving a warning or not being affected does not align with the accountability placed on brokers for the actions of those they employ, especially when it comes to compliance with licensing laws.