Tennessee Realtor State Practice Exam

What might happen to a TREC commissioner who suggests a standard brokerage fee?

1. Receive a warning

2. Lose their license

3. Be suspended temporarily

4. Be fined

The correct answer is: Lose their license

A TREC commissioner who suggests a standard brokerage fee would face serious consequences because it could be perceived as an attempt to establish or influence a uniform fee structure, which is against the principles of fair competition. The real estate market is governed by laws that aim to prevent price-fixing and encourage competition among brokers. When a commissioner, who is supposed to maintain neutrality and fairness, suggests a standard fee, it undermines these regulations and could lead to actions that adversely affect the market. Losing their license is a severe outcome that aligns with the regulatory framework designed to maintain integrity and trust in the real estate profession. Such a suggestion could not only violate ethical guidelines but also breach state and federal antitrust laws, which are in place to protect consumers and ensure that brokers set their rates based on market conditions and competitive factors. This makes the outcome of losing their license a fitting response in this scenario.