Department of Commerce and Insurance
TENNESSEE REAL ESTATE
An Official Publication of the Tennessee Real Estate Commission
VOLUME: 13 SPRING 2004 NUMBER: 2
Situations to Avoid Dur- Commission Approves In This Issue:
ing License Renewal Distance Learning Disciplinary Action P. 3
All affiliate broker licenses, Format for TREC
CORE COURSE Providers P. 5
Frequently Asked Questions P. 5
broker licenses, principal broker CORE 03/04 Course
licenses, and firm licenses expire Candidates for Broker Licenses P. 6
December 31, 2004 and all The Tennessee Real Estate TREC Seminar Schedule P. 7
requirements for renewing these Commission at its February 2004 UpdatedCommissioner
Contact Information P. 8
licenses must be completed on meeting voted to add distance
or before November 1, 2004. learning formats to the previously
Over the years, the Commission approved classroom only presen- Topics to be discussed in-
has noted some simple mistakes tation for the TREC CORE 03/04 clude Commission updates con-
have made the renewal process Course. The distance learning cerning licensure, education and
difficult and cumbersome and formats currently approved for discipline and risk management.
have delayed the issuing of other continuing education There will be ample time for ques-
renewed licenses. Listed below courses include Paper and Pen- tions from attendees.
are several of the more common cil Courses (correspondence), The seminar will provide 2
mistakes which cause these Disk Based and Internet presen- hours of TREC approved Con-
delays. tations. The list of schools offer- tinuing Education for all individu-
COMBINING MORE ing the TREC CORE 03/04 als who attend 100% of the semi-
THAN ONE RENEWAL Course are listed on page 5 of nar. To receive this credit the
APPLICATION AND FEE IN ONE this edition of the News-Journal. licensee must provide his/her li-
ENVELOPE: The automated An asterisk preceding the cense number on the date of the
process for collecting the fees school's name indicates both seminar attended. Reservations
and initiating the renewal process classroom and distance learning are not required.
was designed to scan one courses are available.
renewal application then one
check in order to properly credit ERRATUM
the money to a licensee’s file.
TREC to Provide CE
Multiple applications and multiple Seminars Across the In the Winter 2004 edition of
checks in one envelope or multiple the TREC News-Journal,
applications and one check to
State in May and June Commissioner Bob Clement
cover all applications in one The Tennessee Real Estate was incorrectly named as
envelope can cause delays and Commission along with Rice In- Frank Clement under the
significantly slow the license surance Services Company, LLC picture which appeared on
renewal process. Renewal will provide continuing education the front page. This error is
applications are mailed seminars at eleven sites across sincerely regretted by the
individually to each licensee along the state in May and June of 2004. TREC editorial staff.
with a return envelope to be used The sites, dates, and times of the
seminars are listed on page 6 of
Continued on Page 2, Column 1 this News-Journal.
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 2
Continued from page 1
by that licensee. That envelope is Renewal applications contain application and fees are received
addressed so that it will be coded information that is scanned the Commission’s computer
delivered to the site where the and pertinent to only one licensee. scans the licensee’s file to
first step of the renewal process If you were to: (1) make a copy of determine if other required
begins. Renewal applications another licensee’s application; (2) information has been received. If
sent to other addresses will result erase or white out their name and the computer can verify that
in processing delay. license number; (3) replace their required education has been
COMBINING RENEWAL information with yours; and (4) completed, there is proof of E&O
APPLICATION WITH ANOTHER send that application along with Insurance beyond January 1,
APPLICATION(S) IN THE SAME your check for the renewal fee, 2005 and both the affiliate
ENVELOPE: The renewal there is a good chance that fee licensee’s firm and principal
process is separate from the other will not be credited to your license broker have renewed their
licensing processes (such as but to the licensee for whom the licenses, the computer
name changes, transfers, change original renewal application was automatically renews the affiliate
of firm address, etc.) and different printed. broker’s license and generates a
applications should be sent to EVEN ONE LICENSING new wall license which is printed
TREC under separate cover. REQUIREMENT NOT and mailed to the affiliate broker.
Combining a non-renewal COMPLETED: The Tennessee If any one of these requirements
application and non-renewal real estate law requires all (education, E&O insurance,
payment in the same envelope documentation and fees renewal of principal broker and/
with the renewal application and required to renew a real estate or firm) has not been met, the
its fee will result in the delay of license must be delivered to the affiliate broker’s license cannot
both processes. Commission no later than 60 days be renewed. Post broker
INCOMPLETE OR prior to the expiration of the education for both brokers and
INACCURATE RENEWAL license. All licenses expire principal brokers is not discussed
APPLICATION/FEE: Unsigned December 31, 2004, therefore, in this article, since it is not directly
renewal applications, unsigned all documentation (renewal form, associated with license renewal.
checks, checks written for the fees, education and proof of E&O However, a principal broker’s
incorrect amount and checks Insurance) must be in the license will not be renewed if s/he
without renewal applications or Commission’s administrative does not have E&O Insurance as
renewal applications without office or postmarked (not described below. A frim license
checks will also slow or halt the metered) by November 1, 2004. cannot be renewed unless the
renewal process. The While some affiliate brokers are principal broker has renewed. A
Commission makes every effort not required to complete broker (who is not principal broker)
to contact licensees who submit continuing education to renew cannot have his/her license
incomplete/inaccurate renewal their licenses (those originally renewed if s/he does not have
applications/fees but sometimes licensed prior to July 1, 1980 have E&O Insurance as described
it is difficult to reach busy no continuing education below or if the principal broker or
licensees. requirements), the majority of firm where affiliated has not
LOST RENEWAL current affiliate broker licensees renewed.
MATERIALS: Renewal must have completed the TREC ERRORS and
applications are mailed to the firm CORE 03/04 course for 4 hours OMISSIONS INSURANCE: If the
of record for those licensees who and 12 additional hours of renewing licensee uses the state
hold an active real estate license education electives. The schools contracted vendor’s E&O
and to the home address of record which provide the education must Insurance, that policy must be
for those licensees who hold an send education completion renewed to cover 2005-2006 on
inactive or retired license. In the information directly to TREC. That or prior to November 1, 2004.
event that you misplace the education completion information That vendor will provide TREC
renewal application, please is then added to each licensee’s renewed policy information which
contact TREC for another one. licensure file. When the renewal Continued on Page 4, Column 3
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 3
JANUARY 2004 and failure to notify TREC of a
MARSHA A. BARR change in business location.
ARROWHEAD REALTY Lic. No. AF284097
CORP. Maryville, TN PARKSIDE REALTY
Lic. No. FM245795 Ms. Barr agreed to pay a civil ADVISORS, INC.
Nashville, TN penalty of $250.00 for failing FM256449
Principal Broker Lois Elliott within a reasonable time to Nashville, TN
agreed to pay a civil penalty of complete the administrative Principal Broker Cason
$250.00 after a TREC inspection measures necessary in order to Dickinson agreed to pay a civil
revealed failure to timely deposit transfer her license. penalty of $250.00 after a TREC
earnest money. inspection revealed failure to
GERALD P. SAKURA document agency disclosure in a
JUDY SPILLER Lic. No. BR278160 real estate transaction.
PROPERTY Nashville, TN
MANAGEMENT Mr. Sakura agreed to pay a civil CENTURY 21
Unlicensed penalty of $250.00 for failing HENDERSHOT
La Follette, TN within a reasonable time to REALTY
Judy Spiller agreed to pay a civil complete the administrative Lic. No. FM244950
penalty of $1,685.00 for engaging measures necessary in order to Madisonville, TN
in vacation lodging activities inactivate his license. Principal Broker Thomas K.
requiring a license without being Hendershot agreed to pay a civil
properly licensed to do so. Ms. DEERFIELD RESORT penalty of $250.00 after a TREC
Spiller has since applied for and RENTALS, LLC inspection revealed failure to
been granted a Vacation Lodging Unlicensed document default to facilitator
Services license (No. 133). La Follette, TN status.
Georgia L. Sergent consented to
CENTURY 21 pay a civil penalty of $10,000.00 PHYLLIS P. OWENS
PROPERTY PLACE for engaging in vacation lodging Lic. No. AF282328
Lic. No. FM235468 activities requiring a license Arlington, TN
Covington, TN without being properly licensed Ms. Owens agreed to pay a civil
Principal Broker Kaye Smith to do so. Ms. Sergent has since penalty of $250.00 for failure to
agreed to pay a civil penalty of applied for and been issued a timely complete the administrative
$500.00 after a TREC inspection Vacation Lodging Services measures necessary to transfer
revealed failure to document license (No. 128). her license.
agency status in three of the five
files reviewed. FEBRUARY 2004 HUGH WHALEY
PHILLIP B. POYNOR PROVIDENCE Lic. No. FM246993
Lic. No. AF287238 VENTURES, LLC Jefferson City, TN
Brentwood, TN Lic. No. FM256739 Principal Broker Hugh Whaley
Mr. Poynor agreed to pay a civil Goodletttsville, TN agreed to pay a civil penalty of
penalty of $250.00 for failing Principal Broker Brock A. Rust $250.00 after a TREC inspection
within a reasonable time to agreed to pay a civil penalty of revealed failure to display
complete the administrative $250.00 after a TREC inspection signage.
measures necessary in order to revealed failure to display signage
transfer his license.
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 4
Continued from Page 2
ROCKY TOP REALTY, Principal Broker Dennis Moore can be downloaded to the
INC. agreed to pay a civil penalty of Commission’s computer system
Lic. No. FM257573 $500.00 after a TREC inspection and update licensees’ files. The
Jefferson City, TN revealed failure to identify himself licensee who uses the TREC
Principal Broker Hugh Whaley as a real estate agent and failure contract vendor completes the
agreed to pay a civil penalty of to maintain accurate records of renewal form for that vendor, pays
$250.00 after a TREC inspection deposit and withdrawals of the renewal fee directly to that
revealed failure to properly earnest money in the same vendor and the vendor then
document agency disclosure in transaction where Mr. Moore was directly provides TREC with the
two real estate transactions which a seller of property. E&O update. However, if the
were reviewed. licensee is covered by a different
MARCH 2004 vendor – selects Alternative
VALLEY REAL ESTATE Coverage – the licensee must
CO. THE FRISBY COMPANY provide TREC with insurance
Lic. No. FM5031 Lic. No. FM228962 renewal information on the TREC
Andersonville, TN Memphis, TN form “Alternative Equivalent E&O
Principal Broker Conley Sharp Insurance Coverage” which must
agreed to pay a civil penalty of Principal Broker Howard Frisby be completed and signed by an
$750.00 after a TREC inspection agreed to pay a civil penalty of authorized representative of the
revealed failure to timely notify $250.00 after a TREC inspection insuring company each time the
TREC of a change in business revealed failure to timely notify policy is renewed. Because
location and failure to keep TREC of a change in the business alternative policies do not have
adequate records of earnest location. the same expiration date of the
money deposits and state contracted policy, each
disbursements. STAR POINT RESORT licensee with alternative coverage
Unlicensed must monitor their expiration date
NASHVILLE REAL Byrdstown, TN and provide TREC with the
ESTATE EXCHANGE renewal forms which will indicate
Lic. No. FM249761 Nathan Copeland consented to continuous coverage.
Hermitage, TN pay a civil penalty of $1,100.00 As described earlier, the
Principal Broker Jeffrey Smith for engaging in vacation lodging absence or inaccuracy of one
agreed to pay a civil penalty of activities requiring a license requirement for license renewal
$500.00 after a TREC inspection without being properly licensed can delay or halt the renewal
revealed failure to timely deposit to do so. Mr. Copeland has since process. While not all of the
earnest money. applied for and been issued a requirements can be monitored
Vacation Lodging Services for completion at the TREC
WILLIAM J. HIGDON license (No. 129). website, you can determine what
Lic. No. AF282661 education completion information
Collierville, TN WADE HORTON TREC has received, the expiration
Mr. Higdon agreed to pay a civil REALTY, INC. date of the firm where affiliated
penalty of $250.00 for failure Lic. No. 235591 and the expiration date of that
within a reasonable time to Nashville, TN firm’s principal broker.
complete the administrative We hope this information
measures necessary in order to Principal Broker H. Wade Horton assists you with the upcoming
transfer his license. agreed to pay a civil penalty of license renewal process. It is
$250.00 after a TREC inspection anticipated the license renewal
VOLUNTEER REALTY revealed failure to maintain an applications will be mailed in early
CO. escrow account. September 2004.
Lic. No. FM244638
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 5
A lawyer has contacted
CORE COURSE 03/04 PROVIDERS (as of 03-04-04) me and wants to make a refer-
ral and receive a referral fee
Ray Bouder School of Real Estate 901-362-3222 from my firm. Can I pay him a
Career Institute 615-765-7470 referral fee?
Center for Continuing Education & Consulting 615-860-4357 A lawyer can only receive a
Chattanooga Assn. REALTORS 423-698-8001 referral fee or participate in the
Clarksville Association of REALTORS 931-552-3567 commission if he/she is properly
Clarksville Real Estate Education School 931-245-1515 licensed as a real estate broker
*D&D School of Real Estate 800-282-9375 or affiliate and the compensation
Dyer Co. Assn. REALTORS 731-288-2700
is paid to him by the firm where he
Excel Real Estate School 423-626-5821
Gibson Co. Board of REALTORS 731-855-2888
Great Smoky Mountain Board REALTORS 685-453-1248 I am an active licensee af-
Greater Nashville Assn. REALTORS 615-254-7516 filiated with a real estate firm.
Knoxville Area Assn. REALTORS 865-584-8647 A friend of mine has a house
Memphis Area Assn. REALTORS 901-818-2421 for rent. My firm does not do
Memphis West TN Prof. School 901-366-1536 rental management. I want to
Nashville School of Real Estate 615-329-1366 handle the property for my
Northeast TN Association of REALTORS 423-323-3191 friend. Can I manage the prop-
Performance Concepts, Inc. 901-276-3600 erty since I am licensed?
Professional School of Real Estate 800-609-1222 No, you can only engage in
Reelfoot Regional Assn. REALTORS 731-885-8797
activities that require a license
Regional Education Forum 615-771-6845
through the firm where you are
River Counties Assn. REALTORS 423-476-5912
Robertson County Assn. REALTORS 615-384-0816 affiliated. Rental management
Southern Middle Tennessee and leasing of real property are
Board of REALTORS 931-381-5556 activities that require a license.
Success Real Estate School 901-360-0854 You could only manage the prop-
Tennessee Assn. REALTORS 800-252-6012 erty as an agent of the firm where
Tennessee Auctioneers Assn. 888-717-6699 you are affiliated. Your firm would
Tennessee Valley Association REALTORS 731-642-6623 manage property through a man-
TRECS 865-693-4992 agement agreement with the
TREES 800-572-8733 owner.
*Schools preceded by "*" offer both classroom and
What information must
distance learning TREC CORE 03/04 Courses.
appear in all advertising?
Rule 1260-2-.12 ADVER-
TISING, provides the minimum
Frequently Asked Questions information that must appear in
The 2003 edition of the Official Manual of the Tennessee Real all advertising. The Firm Name
Estate Commission contains a list of frequently asked questions and and Firm Phone Number must
their answers based on statutes, rules, fees and policies. Beginning appear in all advertising.
with this edition of the News-Journal, some FAQs will be stated along
Attention Principal Brokers:
with their answers. FAQs can also be viewed on TREC's website.
How can I obtain needed forms? The TREC Audit Section has developed
The TREC website is an excellent source of information and an information packet for new principal
brokers. Licensees who have reviewed
TREC forms are available by contacting the TREC office during the packet determined there is
regular business hours (8:00 AM to 4:30 PM Central Time). Many information which established
forms can be faxed or e-mailed to you. Listing, contract, association principal brokers might want to have
available. If you are interested in
or federal forms are not available. Please see TREC contact obtaining a packet, please contact the
inforamtion on Page 8. TREC administrative office.
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 6
Candidates for Broker Licenses, Please Note:
Licensees who receive their initial broker license on or after January 1, 2005 will be required to
complete Continuing Education after they have completed their 120 hours of Post Broker Education.
Brokers licensed before that date have no education obligations after they have completed their
required post broker education.
Please note the following examples for individuals receiving their broker license (1) before
January 1, 2005 and (2) after January 1, 2005.
Date Initial Broker Deadline for Completion Continuing Education
License Awarded of Post Broker Education Required
(1) September 2, 2004 September 2, 2007 None Needed
(2) January 12, 2005 January 12, 2008 Beginning in licensing
period 2009-2010 to renew
license for 2011-2012 and
each following licensing
Please note: Any “grandfather” status is relinquished if a license expires and the individual must
retest and reapply for licensure or if the licensee changes the license from affiliate to broker or
broker to affiliate.
TREC Seminar Schedule for May and June 2004
City Date Time Place
Columbia May 17 10:00 AM to Noon 304 River Road
Franklin May 17 2:00 PM to 4:00 PM 840 Cresent Centre Dr., #120
Murfreesboro May 18 10:00 AM to Noon 311 Butler Dr.
Cookeville May 19 11:00 AM to 1:00 PM 970 S. Jefferson Ave.
Chattanooga May 20 1:00 PM to 3:00 PM 3501 Amnicola Hwy.
May 21 9:00 AM to 11:00 AM
Memphis May 25 9:00 AM to 11:00 AM 6393 Poplar
May 25 1:00 PM to 3:00 PM
Martin June 8 1:00 PM to 3:00 PM Boling Center, UT Martin
Wayne Fisher Drive
Jackson June 9 10:00 AM to Noon 40 Old Hickory Cove
Nashville June 10 9:00 AM to 11:00 AM 4540 Trousdale Drive
June 10 1:00 PM to 3:00 PM
Johnson City June 16 10:00 AM to Noon 101 W. Springsbrook Dr.
Knoxville June 17 9:00 AM to 11:00 AM 609 Weisgarber Road
June 17 1:00 PM to 3:00 PM
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 7
Updated Commissioner Contact Information
Name Phone Fax E-Mail
Frances Almany, Chairperson 615-824-8100 615-824-8472 email@example.com
Almany Realtors, Inc.
273 W. Main St.
Hendersonville, TN 37075
Ted Koehner, Vice Chairperson 276-466-9392 423-764-4639 firstname.lastname@example.org
1916 Euclid Avenue
Bristol, VA 24201
JoNelda W. Blalock 865-777-1508 865-777-3993 email@example.com
10824 West Land Dr.
Knoxville, TN 37922
Bob Clement 615-963-3443 615-329-9465 firstname.lastname@example.org
Bob Clement Consulting
2525 West End. Ave., Ste. 1100
Nashville, TN 37203
Bobbi Gillis 901-759-7000 901-578-7721 email@example.com
Faxon Gillis Homes, Inc. Ext. 103
825 Timber Creek
Cordova, TN 38018
Adren S. Greene 423-581-9300 423-587-0444 firstname.lastname@example.org
Coldwell Banker Realty House
P O Box 1895
Morristown, TN 37816
Charles Haynes 615-452-7500 615-230-8781 email@example.com
335 Nashville Pike
Gallatin, TN 37066
Isaac W. Northern, Jr. 901-526-7155 901-526-7171 firstname.lastname@example.org
62 Union Ave.
Memphis, TN 38103
Betty L. Smith 901-761-3500 901-682-9884 email@example.com
East Memphis Realty
4941 William Arnold Rd.
Memphis, TN 38117
TENNESSEE REAL ESTATE NEWS-JOURNAL SPRING 2004 PAGE 8
Tennessee Real Estate Presorted Standard
Commission U. S. Postage
500 James Robertson Parkway, Suite 180 Paid
Nashville, TN 37243-1151 Nashville, TN
Permit # 1446
Department of Commerce and Insurance The deadline for paying the TREC Contact Information:
Tennessee Real Estate Phone: (615) 741-2273 or 1-800-342-4031
News-Journal renewal fee, completing web: state.tn.us/commerce/boards/trec
is published quarterly by the E-Mail: firstname.lastname@example.org
Tennessee Real Estate Commission
continuing education and Fax: 615-741-0313
Members of the Commission: obtaining E&O Insurance is Personnel & Areas of Responsibility
FRANCES ALMANY, Chairperson 11-1-04 . All Tennessee Real Licensing Section:
Estate Commission Licenses Hester Curtis
TED KOEHNER, Vice Chairperson
Expire December 31, 2004. Gil Dyer
License Renewal Applications Rachel Fowler
Knoxville will be mailed this fall to the Conell House
BOB CLEMENT TREC mailing address of Karen Patton
Nashville Donna Swanson
record. Please make sure your Support Section:
BOBBI S. GILLIS Bill Capps
Memphis mailing address is current Paula VanBuren
with the Commission. Linda Wolfert
"The Tennessee Department of Commerce Sue Kerley
and Insurance is committed to principles of Administrative Section:
equal opportunity, equal access, and Judy Elmore
ISAAC W. NORTHERN, Jr. affirmative action." Contract the EEO Bruce Lynn
Memphis Coordinator or ADA Coordinator Sharon Peebles
(615) 741-1328, for TDD 615-741-6276 Marsha Willis-McCarthy
BETTY L. SMITH
TENNESSEE DEPARTMENT OF COMMERCE Kathy Riggs
Editor-in-Chief: BRUCE E. LYNN,
AND INSURANCE AUTHORIZATION NO.
Executive Director 335101, Revised 05/04. This public document was Errors & Omissions Insurance
promulgated for 38,000 copies per issue,at a cost of Contractor for 2003 - 2004:
Editor: KATHY M. RIGGS, PH.D., 13.9 cents per copy, paid by the Real Estate Rice Insurance Services Company, LLC
Education Director Education and RecoveryFund. Phone: 1-888-248-2444