Tennessee Realtor State Practice Exam

Under what condition does a broker retain responsibility after a licensee's change of affiliate?

1. When the licensee is still under contract

2. When the licensee operates independently

3. There are no responsibilities retained

4. When the licensee is on probation

The correct answer is: There are no responsibilities retained

In the context of real estate brokerage, a broker typically delegates certain responsibilities and oversight to their affiliated licensees. However, when a licensee changes their affiliation to a different broker, the original broker's responsibilities generally cease, meaning they are no longer legally accountable for the actions of that licensee. This reflects a fundamental principle of agency in real estate: once an affiliate switches to another broker, the former broker is not liable for any further conduct or dealings of that licensee. Prior agreements and obligations tie the broker to the licensee only as long as that licensee is affiliated with them. Once the change of affiliation is official, the broker's responsibility is typically relinquished, thus affirming that they retain no responsibilities regarding the licensee's future actions. In this scenario, the other considerations—such as whether the licensee is still under contract, operating independently, or is on probation—do not alter that principal rule about responsibility upon a change of affiliation. Each of these situations primarily concerns the licensee's qualifications or contractual status rather than the broker's accountability after the affiliation change.