Tennessee Realtor State Practice Exam

What's true about a licensee's seat on the local park commission's board of trustees?

1. The seat can be held without disclosure

2. It must be disclosed if the organization buys or sells property through the licensee's brokerage

3. It is not necessary to disclose if the seat is unpaid

4. Licensees are prohibited from holding such positions

The correct answer is: It must be disclosed if the organization buys or sells property through the licensee's brokerage

A licensee's position on the local park commission's board of trustees requires disclosure if the organization engages in real estate transactions through the licensee's brokerage. This requirement is grounded in the principles of transparency and ethics within real estate practices. When a licensee has a relationship with an organization involved in buying or selling property, it is essential for all parties involved to be aware of potential conflicts of interest. This disclosure helps to maintain the integrity of the transactions and ensures that clients are making informed decisions without any hidden influences. The need for disclosure is especially pertinent in real estate since transactions often involve significant financial investments and can impact a wide array of stakeholders. By informing clients of their connection to the park commission, a licensee upholds ethical standards and fosters trust in their professional dealings. This practice aligns with occupational regulations designed to protect consumers and promote fair dealings in the real estate industry.