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TREC Rule Changes, Real Estate Commission 08/01/2013

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TREC Rule Changes

Pursuant to Tenn. Code Ann. § 4-3-1306(d), you are receiving this notice because you have elected to receive notification by e-mail of certain changes or potential changes to the law applicable to your profession. The Tennessee Real Estate Commission (“the Commission”) adopted new rules which became effective in 2013.

Specifically, the following rules became effective on March 3, 2013:

Rule 1260-01-.12 Fees was amended by adding a new subsection (6) providing for the deposit of a ten dollar ($10.00) fee into the real estate education and recovery account whenever an individual applies for a broker, affiliate broker, or time-share salesperson license.

Rule 1260-02-.32 Civil Penalties was amended to establish a uniform maximum penalty of one thousand dollars ($1,000.00) for the violation of any listed statute within the rule. In addition, the amended rule provides for a civil penalty range for a violation of any Commission rule or order.

Rule 1260-02-.38 Death or Extended Absence of Principal Broker is a new rule providing time frames within which a firm must provide notification of the death, resignation, termination, incapacity, or extended absence of its principal broker. Further, the rule provides guidelines for the temporary operation of the firm without a principal broker until a new principal broker is placed.

The following rules became effective on June 2, 2013:

Chapter 1260-07 Vacation Lodging Services

Rule 1260-07-.01 Scope is a new rule which states that all new rules in Chapter 1260-07 only apply to persons performing vacation lodging services and vacation lodging service firms.

Rule 1260-07-.02 Designated Agent Qualifications is a new rule which outlines the requirements for an applicant who wishes to obtain a designated agent license for a vacation lodging service firm.

Rule 1260-07-.03 Designated Agent Responsibilities is a new rule outlining the responsibilities of a designated agent of a vacation lodging service firm.

Rule 1260-07-.04 Civil Penalties is a new rule which sets forth the civil penalty ranges for violations of the various subsections of T.C.A. § 62-13-104 and any Commission rule or order by any person who is required to have a vacation lodging service license and/or a designated agent license. It also provides factors which the Commission may consider in imposing a civil penalty.

Rule 1260-07-.05 Vacation Lodging Services Instructor Qualifications is a new rule which outlines the qualifications for any individual wishing to obtain certification as a vacation lodging services instructor.

Rule 1260-07-.06 Fees is a new rule which outlines the fee schedule for all vacation lodging service licensees and designated agents.

In addition, the Commission has recently adopted a number of policies which may impact you as a holder of a license with the Commission as follows:

Commission Policy Statement Number 2013-CPS-001 addresses firm transfer requests which are completed online. This policy addresses the Commission’s recognition of the firm transfer of an affiliated licensee as having been completed at the time of the online transfer request and printing of the transfer confirmation only if the principal broker receiving the affiliated licensee has verified that the affiliated licensee has an active Tennessee license and current errors and omissions insurance prior to submitting the online transfer request and a completed and signed TREC 1 form is submitted to the Commission within five (5) business days from the online transfer request date.

Commission Policy Statement Number 2013-CPS-002 addresses reinstatement of an expired license for licenses which have been expired for more than sixty (60) days. The policy addresses the issue of an expired license due to health issues or medical problems. Additionally, the policy addresses the requirements for reinstatement of a license which has expired due to the licensee’s failure to comply with prerequisites for licensure for a period up to one (1) year. Finally, the policy addresses the requirements for a licensee seeking reinstatement of a license which has been expired for more than one (1) year.

Commission Policy Statement Number 2013-CPS-003 specifies that the Commission will accept payment of a penalty fee in the maximum amount allowable by statute for a licensee whose license has been suspended as a result of that licensee’s failure to maintain errors and omissions insurance pursuant to the new requirements of T.C.A. § 62-13-112 (as amended by Public Chapter 84) and who wishes to reinstate the suspended license pursuant to the terms of that statute.

Dept. of Commerce & Insurance | 500 James Robertson Pkwy | Nashville, TN 37243-0565
(615) 741-2241
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