Question 35

An affiliate broker must disclose in all advertising that the property is for sale by an owner/agent.

To comply with Tennessee Real Estate Commission Regulations, the affiliate broker must clearly state in all advertising that the property is being sold by an owner who is also an agent. This ensures transparency and informs potential buyers of the seller's dual role.

A) list the property with his firm.

Listing the property with his firm is not a requirement for an affiliate broker selling "For Sale by Owner." The broker can choose to sell the property independently without listing it through their brokerage, as long as they follow the regulations regarding disclosure.

B) disclose in all advertising that the property is for sale by an owner/agent.

This is the correct option, as it aligns with the regulations set forth by the Tennessee Real Estate Commission. Proper disclosure is essential to inform potential buyers that the seller is both the owner and an agent, which is a critical aspect of ethical real estate practices.

C) offer a sales commission or fee to cooperating brokers.

Offering a commission to cooperating brokers is not mandatory for an affiliate broker selling their own property. While some sellers may choose to incentivize brokers, it is not a regulatory requirement and does not impact the legality of the sale.

D) have an active license.

While having an active license is necessary for an affiliate broker to practice real estate, it is not specific to the act of selling a property "For Sale by Owner." The focus of the question is on the requirements for advertising and disclosure, rather than licensing status.

Conclusion

The requirement to disclose that the property is for sale by an owner/agent is crucial for transparency in real estate transactions. This regulation helps maintain ethical standards and protects consumers by providing them with all necessary information. Other options, while relevant to real estate practices, do not directly address the requirement in question.