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Commission adopts rule language to implement new laws; enforcement docket yields warnings, fines and a revocation
Summary
The commission approved rule language to implement statutes on vacation lodging agents, military licensing recognition and expanded post‑licensure grounds for revocation; the legal docket produced multiple letters of warning, civil penalties (including $1,000 fines and ordered education) and one license revocation.
The Tennessee Real Estate Commission voted unanimously to approve staff‑draft rule language to begin formal rulemaking that implements recent legislative changes and to accept a broad legal and consent report that included multiple enforcement actions.
Legislative changes staff summarized at the June meeting include:
- Vacation lodging services: Public chapter 1095 removes the separate designated‑agent licensing requirement for affiliate brokers working in vacation lodging services. The statutory change removes the extra application step while leaving supervision responsibility with the principal broker.
- Military Families Licensing Recognition Act: Public chapter 955 expands portability and processing accommodations for active‑duty service members and their spouses; staff noted the commission already processes military applications but will adopt new procedures to comply with the statute.
- Post‑licensure conduct and office requirements: Public chapter 1039 removes a zoning‑letter requirement for firm applications, extends the timeline for broker post‑licensing education from three to four years, and expands grounds for revocation to include violent crimes occurring after licensure.
Staff proposed a package of rule edits to align TRE rules with the new statutes and to clarify procedures for reinstatement, designated agents and vacation lodging services. Commissioners voted to forward the rule package for internal and governor’s‑office review and to schedule a rule‑making hearing in the fall.
On enforcement, the commission accepted council’s legal and consent docket (cases 1–152, including addendum items renumbered 150–152) with multiple pulled matters decided individually. Notable outcomes from the meeting’s legal docket include:
- Several licensees received civil penalties and referral to education: for example, one affiliate broker (case 28) was assessed a $1,000 civil penalty and ordered to complete the TRACE core course within 30 days (no CE credit), and another matter involving failure to supervise (case 41) resulted in a $1,000 civil penalty plus required completion of the residential core course within 30 days.
- The commission revoked a license where a respondent had ceased responding to staff and the record showed multiple outstanding complaints (case 63).
- Multiple matters were closed and flagged or dismissed when staff found no evidence of ongoing practice or when respondents corrected the underlying issue (advertising edits, website removals). Several respondents received letters of warning rather than penalties when staff determined mistakes were not willful.
Counsel and commissioners repeatedly emphasized broker supervisory obligations: brokers are responsible for maintaining current license rosters and ensuring affiliates’ licenses remain active; repeated failures to supervise can lead to fines and mandatory remedial education.
The commission concluded the docket and adjourned. Staff will circulate rule‑making materials and, where sanctions include education, verify course completion as required by the motions recorded in the meeting.
