Key Takeaways
- The Tennessee Real Estate Commission (TREC) was established in 1951 to regulate real estate licensees under the Tennessee Real Estate Broker License Act of 1973
- TREC consists of nine members appointed by the Governor: seven licensed brokers/affiliate brokers and two public members
- TREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- The Executive Director is appointed by the Commission and must pass the broker exam
- Tennessee requires 90 hours of pre-license education for affiliate broker (salesperson) applicants
Tennessee Real Estate Commission (TREC)
The Tennessee Real Estate Commission (TREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Tennessee under the Tennessee Real Estate Broker License Act of 1973.
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TREC History and Authority
TREC was created in 1951 to administer real estate license law in Tennessee. Originally covering only nine counties with populations of 50,000 or more, TREC expanded its jurisdiction until 1963 when it acquired responsibility for real estate operations throughout the entire state.
Commission Members
TREC consists of nine members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers/affiliate brokers | 7 | Licensed for at least 5 years, Tennessee resident |
| Public members | 2 | No interest in real estate |
Additional Requirements:
- At least one member must be age 60 or older
- At least one member must be a member of a racial minority group
- Members serve five-year terms
- No member may succeed themselves for more than one full term
Key TREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of escrow accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Recovery Account | Administer the Real Estate Education and Recovery Account |
Executive Director
The Commission appoints an Executive Director with the Commissioner of Personnel's approval:
| Requirement | Details |
|---|---|
| Qualifications | Must pass broker exam |
| Term | 4 years |
| Reappointment | Eligible for reappointment |
| Role | Handles day-to-day operations |
Tennessee Real Estate Broker License Act of 1973
The Tennessee Real Estate Broker License Act of 1973 is the primary statute governing real estate licensing in Tennessee. Key provisions include:
- Who must be licensed - Definitions of broker and affiliate broker activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Escrow fund handling - Requirements for client funds
TREC Administrative Rules
TREC adopts administrative rules (Chapter 1260) that implement the License Act. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Escrow account requirements
- Agency disclosure procedures
Exam Tip: The Tennessee Real Estate Broker License Act of 1973 and TREC Rules (Chapter 1260) are the primary sources of Tennessee real estate law.
Real Estate Education and Recovery Account
The Tennessee Real Estate Education and Recovery Account provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| Maximum per transaction | $15,000 |
| Minimum fund balance | $500,000 |
| Additional assessment | Up to $30 per licensee if fund falls below minimum |
| Filing requirements | Must obtain court judgment first |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to TREC for payment from Recovery Account
- TREC pays from fund (if eligible, up to $15,000)
Key Point: The Recovery Account covers the maximum of $15,000 per transaction, regardless of the number of aggrieved persons or parcels involved.
TREC Contact Information
| Resource | Information |
|---|---|
| Website | tn.gov/commerce/regboards/trec |
| Main Office | 500 James Robertson Parkway, Suite 180, Nashville, TN 37243 |
| TREC.info@tn.gov | |
| Online System | CORE (online licensing portal) |
How many members serve on the Tennessee Real Estate Commission?
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When was the Tennessee Real Estate Commission established?