Tennessee Real Estate Practice Exam

What consequence does a broker face for failing to renew their license within the required timeframe?

1. Automatic fine

2. Loss of the license

3. Prohibition from practicing for a year

4. Mandatory training course

The correct answer is: Loss of the license

When a broker fails to renew their license within the required timeframe, they face the consequence of losing their license. In Tennessee, real estate licenses must be renewed periodically, and if a broker does not complete the renewal process on time, the license becomes inactive. This inactivity means the broker is not authorized to conduct any real estate transactions until the license is renewed. The process to regain an active status can involve additional steps, such as fulfilling any educational requirements and possibly paying a reinstatement fee. This underscores the importance of adhering to renewal deadlines in maintaining licensure and the ability to practice lawfully in the real estate industry. While there may be fines or additional training required in certain circumstances, the immediate and significant outcome of failing to renew is the loss of the license, which directly affects the broker's ability to operate in the field.