TREC investigates complaints and may discipline licensees for violations of the license law and rules.
Disciplinary actions include reprimand, license suspension, and license revocation.
TREC may assess civil penalties and require additional education as part of discipline.
Tennessee maintains an Education and Recovery Fund (a recovery/guaranty fund) funded by licensee fees.
The Recovery Fund can reimburse consumers for actual losses from a licensee's fraud, misrepresentation, or related wrongdoing when a court judgment cannot be collected.
Recovery is subject to statutory per-claim and per-licensee maximum limits set by the Commission.
A licensee whose actions trigger a Recovery Fund payment can have the license revoked until the fund is repaid.
Practicing real estate without a license is prohibited and can lead to penalties.
Is Tennessee License Discipline, Penalties & Recovery Fund on the real estate exam?
Yes. State License Law is a scored domain on the Tennessee real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Tennessee test this differently?
Tennessee applies its own license law on top of the national portion. This page covers the Tennessee rules specifically, which is what the state section of your exam tests.