Tennessee Real Estate Exam Practice Question
A principal broker dies suddenly. What is the immediate effect on the currently-licensed affiliate brokers in that office?
Correct Answer: A
Rationale: When a principal broker dies, affiliate brokers must act quickly to maintain their licenses. Option A is accurate; within 10 days, they must affiliate with a new principal broker or retire their licenses, ensuring compliance with state regulations.
Option B is incorrect as there is no provision for a 30-day temporary license in this scenario; the immediate need for a principal broker supersedes any temporary measures.
Option C is misleading; the death of the principal broker directly impacts the status of affiliate brokers, necessitating action.
Option D is also wrong; while brokers may face changes to their status, they do not automatically receive refunds or transition to inactive status without proper procedures.
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