Tennessee Real Estate Practice Exam

What type of powers does TREC have to enable them to conduct hearings and investigations?

1. Regulatory Powers

2. Judicial Powers

3. Administrative Powers

4. Executive Powers

The correct answer is: Judicial Powers

The correct answer is judicial powers, as TREC (Tennessee Real Estate Commission) has the authority to conduct hearings and investigations related to real estate practices in the state. These powers enable TREC to hold formal hearings where they can determine if there has been a violation of real estate laws or regulations. When TREC exercises judicial powers, they act much like a court, weighing evidence, hearing testimony, and making determinations based on the credibility of the information presented. This process is essential for maintaining the integrity of real estate practices and ensuring that licensees comply with professional standards. Judicial powers also empower TREC to enforce consequences, such as issuing fines or suspending licenses for individuals found to be in violation of regulations. In contrast, regulatory powers typically refer to the authority to create and implement rules and guidelines, while administrative powers involve the management of day-to-day operations within the organization. Executive powers generally pertain to the enforcement of laws and regulations by governmental bodies but do not specifically cover the hearing and investigation processes that TREC undertakes.