Tennessee commission revokes real estate firm's license amid multiple complaints

The Tennessee Real Estate Commission (TREC) made a significant decision during its November Board Meeting on November 13, 2024, by revoking the firm license of a local real estate franchise. The motion to revoke was passed with a vote of 7 to 1, with Commissioner Gaughan expressing concerns about the lack of information supporting the revocation. However, the majority felt compelled to act due to previous complaints against the firm.

The firm in question operates multiple franchises within Tennessee, but the revocation specifically targets one branch. This decision raises questions about the future of the four licensees associated with the revoked firm, who will need to transfer to other firms to continue their practice. The commission clarified that if these licensees cannot obtain the necessary signatures from the revoked firm to transfer, they can submit an affidavit of release to facilitate the process.

Commissioners discussed the broader implications of the revocation, highlighting concerns about the firm's business practices and the potential impact on consumers. The commission noted a recent influx of complaints regarding real estate practices in Tennessee, particularly related to timeshares, which prompted regulatory changes in the past. This context underscores the commission's commitment to improving consumer protection in the real estate sector.

In addition to the firm license revocation, the commission unanimously voted to open a complaint against the principal broker of the revoked firm for failure to act with reasonable skill and care. This complaint will follow the standard procedure, allowing the broker to respond before any further action is taken.

The meeting concluded with a sense of urgency regarding the need for ongoing oversight of real estate practices in Tennessee, as the commission aims to ensure that consumers are protected from potentially harmful business practices. The next steps will involve monitoring the situation and addressing any further complaints that may arise.