Tennessee Realtor State Practice Exam

What is TREC's role as a judicial body?

1. To evaluate real estate prices

2. To approve new broker licenses

3. To hear facts and impose penalties for violations

4. To set industry standards

The correct answer is: To hear facts and impose penalties for violations

TREC, or the Tennessee Real Estate Commission, functions as a regulatory authority in the Tennessee real estate sector and serves the important role of hearing facts related to violations of real estate laws and regulations. When complaints are filed against real estate agents or brokers, TREC conducts hearings to evaluate the evidence, facts, and circumstances surrounding these cases. Upon reviewing the details, the commission has the authority to impose penalties, which may include fines, suspensions, or revocation of licenses. This judicial capacity is vital for maintaining the integrity of the real estate profession and ensuring that practitioners adhere to the established laws and ethical standards in Tennessee. In contrast, evaluating real estate prices is typically the function of market analysts or appraisers rather than a regulatory body. Approving new broker licenses is an administrative task, while setting industry standards is usually a collaborative effort involving multiple stakeholders in the field, not solely the responsibility of TREC. Thus, the role of TREC as a judicial body primarily revolves around ensuring compliance and administering justice regarding real estate practices.