Tennessee Real Estate Practice Exam

What does TREC's regulatory powers enable them to do?

1. Pass new tax laws

2. Conduct real estate market analyses

3. Pass specific regulations and rules

4. Oversee educational institutions

The correct answer is: Pass specific regulations and rules

TREC, or the Tennessee Real Estate Commission, has regulatory powers that specifically empower the organization to pass specific regulations and rules concerning the practice of real estate in Tennessee. This authority allows TREC to set guidelines that ensure the adherence to state laws, establish standards for real estate practice, and protect the public interest by regulating the behavior of real estate professionals. By enacting regulations and rules, TREC can address issues such as licensing requirements, ethical practices, and other operational standards that real estate agents and brokers must follow. In contrast, passing new tax laws falls outside TREC's jurisdiction, as taxation is typically governed by state or federal legislative bodies. Conducting real estate market analyses is more of a research function that does not fall under regulatory powers but rather might be performed by market analysts or economists. Overseeing educational institutions is usually within the purview of state education authorities, not TREC, although TREC does have a role in ensuring that real estate education meets certain standards as part of licensing compliance.