Tennessee Realtor State Practice Exam

Which type of complaint is outside of the Tennessee Real Estate Commission's jurisdiction?

1. Disputes over commission between brokers

2. Unethical behavior of a licensee

3. Violations of advertising laws

4. Inaccurate disclosures

The correct answer is: Disputes over commission between brokers

The correct response highlights that disputes over commission between brokers fall outside the Tennessee Real Estate Commission's jurisdiction. This is because the Commission is primarily focused on regulating the conduct of real estate licensees and ensuring compliance with the state's real estate laws. Commission disputes are typically contractual matters that arise between brokers, stemming from the terms of their agreements which are not under the direct oversight of the Commission. Instead, these disputes are usually resolved through negotiation, mediation, or legal means rather than through regulatory intervention. On the other hand, unethical behavior of a licensee, violations of advertising laws, and inaccurate disclosures pertain directly to the actions and compliance of licensed real estate professionals. These issues fall squarely within the scope of the Commission's regulatory authority, as they relate to protecting the integrity of the real estate profession and ensuring fair practices. The Commission can investigate these matters and take necessary disciplinary actions against licensees as needed, unlike the private nature of commission disputes among brokers.