Tennessee Real Estate Practice Exam

Can a principal broker serve in a part-time capacity if they do not have salespeople?

1. True

2. False

3. Only if approved by the commission

4. Only for limited hours

The correct answer is: True

A principal broker can indeed serve in a part-time capacity even if they do not have salespeople. In Tennessee, the regulations governing real estate brokers do not specify that a principal broker must operate on a full-time basis, especially when there are no salespeople employed under them. Being a principal broker entails managing a brokerage, overseeing transactions, and ensuring compliance with laws and regulations, but it does not necessitate full-time involvement unless that is the broker's preference or their business model requires it. This flexibility allows principal brokers the option to manage their own schedule, making it practical for those who may wish to pursue other interests or commitments outside of their real estate practice. However, it is essential for brokers to be accessible to clients and maintain the standards of professionalism expected in the industry. The other options imply restrictions or conditions that do not apply under current Tennessee real estate laws, which affirm the broker's autonomy in determining their work schedule and responsibilities.