Question 18

An affiliate broker MUST obtain the approval of the Tennessee Real Estate Commission.

In order to offer any gift or prize as an inducement to list a condominium, it is mandatory for the affiliate broker to secure approval from the Tennessee Real Estate Commission.

A) his or her team leader.

This option is incorrect as the approval from a team leader does not meet the legal requirements set forth for offering inducements in real estate transactions. Team leaders may have internal policies, but they do not have the authority to approve such actions in accordance with state regulations.

B) his or her firm.

While obtaining approval from the firm may be a good practice, it is not sufficient on its own. The firm does not have the regulatory authority that the Tennessee Real Estate Commission possesses, making this option incorrect in the context of legal compliance for inducements.

C) the homeowners' association (HOA).

Approval from the homeowners' association is not required for offering gifts or prizes to list a condominium. The HOA may have rules regarding property management and conduct, but they do not govern the legality of inducements related to real estate listings, rendering this option incorrect.

D) the Tennessee Real Estate Commission.

This option is correct because the Tennessee Real Estate Commission is the governing body that regulates real estate practices in the state, including the provision of gifts or prizes as inducements. Approval from this commission ensures compliance with state laws regarding real estate transactions.

Conclusion

The requirement for approval from the Tennessee Real Estate Commission underscores the importance of adhering to legal standards in real estate practices. The other options, while potentially relevant in different contexts, do not fulfill the specific legal requirement necessary for offering inducements, making Option D the only correct answer.