Tennessee Realtor State Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The correct answer highlights the important aspect of accountability in the real estate profession, particularly in the context of the relationship between an affiliate broker and their principal broker. In Tennessee and many other jurisdictions, the principal broker holds a significant responsibility for the actions of their affiliated brokers. This means that if an affiliate broker engages in actions that are unethical or violate real estate laws, the principal broker can be held liable, adding an extra layer of responsibility to their role.

This relationship is meant to ensure oversight and support, as the principal broker typically provides guidance, training, and supervision to help affiliate brokers navigate the complexities of real estate transactions. It reinforces the idea that the principal broker is not just a figurehead but actively involved in maintaining the standards and practices of their brokerage.

Understanding this relationship is crucial for everyone working in the field, as it fosters a culture of accountability and professionalism within the industry.