Tennessee Realtor State Practice Exam

Who must a sponsoring broker display the licenses of?

1. All licensed brokers in the state

2. All affiliate brokers, both independent contractors and employees

3. Only the employee brokers

4. Only novice affiliate brokers

The correct answer is: All affiliate brokers, both independent contractors and employees

The correct choice is that a sponsoring broker must display the licenses of all affiliate brokers, both independent contractors and employees. This requirement is rooted in the regulatory obligations that ensure transparency and accountability within the real estate industry. By displaying the licenses of all affiliate brokers, the sponsoring broker provides an assurance to clients and the general public that the individuals they are working with are properly licensed and have met the necessary qualifications to practice real estate in Tennessee. This practice not only promotes trust in the profession but also helps to maintain the integrity of the real estate market by ensuring that all practicing brokers are readily identifiable and their credentials can be verified. Furthermore, it highlights the responsibility of the sponsoring broker to oversee the activities of their affiliate brokers, thereby enhancing professional standards within the brokerage. The other options do not comply with the legal requirements for displaying licenses in a comprehensive manner. Displaying only employee brokers or novice affiliate brokers would not provide the complete picture necessary for upholding industry standards, leaving out important members of the brokerage team who also represent the firm. Additionally, displaying licenses of all licensed brokers in the state or only employee brokers does not align with the specific legal mandates aimed at fostering accountability within individual brokerages.