Tennessee Realtor State Practice Exam

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Prepare for the Tennessee Realtor State Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Ensure your success!

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Which statement is true about the professional relationship between an affiliate broker and their principal broker?

The affiliate broker is responsible for their own actions.
The principal broker is responsible for the affiliate broker's actions.
The affiliate broker can act independently without supervision.
The principal broker can terminate the affiliate broker at any time without cause.

The correct answer is: The principal broker is responsible for the affiliate broker's actions.

The correct answer highlights the important aspect of accountability in the real estate profession, particularly in the context of the relationship between an affiliate broker and their principal broker. In Tennessee and many other jurisdictions, the principal broker holds a significant responsibility for the actions of their affiliated brokers. This means that if an affiliate broker engages in actions that are unethical or violate real estate laws, the principal broker can be held liable, adding an extra layer of responsibility to their role. This relationship is meant to ensure oversight and support, as the principal broker typically provides guidance, training, and supervision to help affiliate brokers navigate the complexities of real estate transactions. It reinforces the idea that the principal broker is not just a figurehead but actively involved in maintaining the standards and practices of their brokerage. Understanding this relationship is crucial for everyone working in the field, as it fosters a culture of accountability and professionalism within the industry.