1260-06-.13 Request for Exemption +11Tennessee · Real Estate · English

A developer wishing to avoid registering a time-share program involving out-of-state property may request an exemption based on the T.C.A. § 66-32-102(7) 'no-offering' provision, submitting required supporting documents.

• ✓Exemption request based on T.C.A. § 66-32-102(7), the 'no-offering' provision
• ✓Applies to time-share programs involving property located outside Tennessee
• ✓Request must be accompanied by the public offering statement for the project
• ✓Request must include a letter of certificate of registration from the jurisdiction where the property is located

No materials may be used for advertising or promoting any course designed to meet T.C.A. § 62-13-303 requirements without advance Commission approval. Any statements or claims in such materials must be factually supported.

• ✓Advertising/promotional materials for qualifying courses require advance Commission approval
• ✓All statements and claims in promotional materials must be factually supported

Developers must maintain specified records for at least four years and make them available to the Commission upon reasonable request. These records cover personnel, sales, and agent agreements.

• ✓Records must be maintained for at least four (4) years
• ✓Must keep names, addresses, and employment/termination dates of all persons (including acquisition and sales agents) employed for Tennessee time-share sales
• ✓Must keep copies of sales contracts and documentation of disposition of all purchase money received
• ✓Must keep copies of agreements with managing agents and with exchange agents
• ✓All records must be made available to the Commission or its authorized representatives upon reasonable request

A licensee preparing an offer to buy must provide in the offer and make the buyer aware that, for a fee, a septic system inspection letter is available through the Tennessee Department of Environment and Conservation, Division of Ground Water Protection.

• ✓Must include in the offer that a septic system inspection letter is available for a fee
• ✓The letter is available through the TN Dept. of Environment and Conservation, Division of Ground Water Protection

Credit for real estate education required under T.C.A. § 62-13-303 will not be awarded where a course's content duplicates or repeats content for which credit was previously received. This rule is limited to duplication within the same renewal period.

• ✓No credit is awarded for course content that duplicates or repeats previously credited content
• ✓The prohibition on duplication is limited to duplication within the same renewal period

The Commission must be notified within ten (10) days of a principal broker's death, resignation, termination, or incapacity, and within a reasonable time of an unexplained extended absence. At notification, a plan addressing continuation of operations without a principal broker must be submitted.

• ✓Notify the Commission within 10 days of a principal broker's death, resignation, termination, or incapacity
• ✓Notify within a reasonable time of an unexplained extended absence
• ✓Submit a plan addressing continuation of operations without a principal broker at notification

The Commission may permit a firm to operate without a principal broker for up to thirty (30) days from the triggering event. The executive director may grant a 30-day extension if the firm demonstrates compliance and need, requiring a new principal broker by the 61st day. Failure to comply may result in disciplinary action or firm closure.

• ✓Firm may operate up to 30 days without a principal broker at the Commission's discretion
• ✓Executive director may grant a 30-day extension; new principal broker required by the 61st day
• ✓Failure to comply may result in civil penalty or closure of the firm

Before a course is reviewed for approval, non-refundable fees must be paid on an hourly credit schedule: $10 for courses not exceeding 8 hours, $25 for 9 to 30 hours, and $50 for courses exceeding 30 hours. An additional $25 fee is paid for each course instructor.

• ✓Fees are $10 (up to 8 hours), $25 (9–30 hours), and $50 (over 30 hours)
• ✓An additional $25 fee is required for each course instructor
• ✓All course application fees are non-refundable

Commissions earned by an affiliated licensee while working under a principal broker can still be paid after the licensee transfers to a new broker, retires, is in broker release status, allows the license to expire, or dies.

• ✓Earned commissions may still be paid after the licensee transfers, retires, is in release status, expires, or dies
• ✓The commission must have been earned while working under the principal broker

The Commission approves courses on a two-year review cycle ending December 31st of the second year. Each course approval remains effective until the end of the review cycle regardless of when approved. Providers must resubmit courses for approval at least 120 days before the applicable expiration date; failure may result in non-approval.

• ✓Courses are approved on a two-year review cycle ending December 31st of the second year
• ✓Each course approval remains effective until the end of the review cycle regardless of approval date
• ✓Providers must resubmit courses at least 120 days prior to the expiration date

Per T.C.A. § 62-13-312(b)(6), licensees must preserve records relating to any real estate transaction for three (3) years following its consummation. Electronic recordkeeping is allowed if documents are readily accessible in an organized format within 24 hours of a Commission inspection request, and the principal broker maintains a retention schedule safeguarding security, authenticity, and accessibility.

• ✓Transaction records must be preserved for 3 years following consummation
• ✓Electronic documents must be readily accessible within 24 hours of a Commission inspection request
• ✓Principal broker must develop a retention schedule safeguarding security, authenticity, accuracy, and accessibility

'Distance education' is used interchangeably with 'correspondence courses' and includes education through media where teacher and student are separated by distance or time. Approved distance education courses must be completed within one year of enrollment for CE to be granted. An 'asynchronous course' is offered at no specific time (teacher and student separated by time and distance); a 'synchronous course' is offered in real time (separated only by distance).

• ✓Approved distance education courses must be completed within one (1) year of enrollment date for CE credit
• ✓An asynchronous course separates teacher and student by both time and distance
• ✓A synchronous course is offered in real time, separating teacher and student only by distance

For synchronous courses, instructors must email the course date, start time, and link to the Commission's Director of Education at least five business days before each scheduled date, and must ensure students comply with guidelines including proctor selection (minimum one proctor per course). Students must have working audio, video, and a stable internet connection and attend 100% of the course for CE credit.

• ✓Instructors must email course date, time, and link at least five (5) business days before each scheduled date
• ✓At minimum, one (1) proctor is required per course
• ✓Students must attend 100% of the course for continuing education credit

Any distance education course providing more than eight hours of CE must include a final examination executed prior to submission for credit. Approval is automatically withdrawn if the certifying body's certification is discontinued for any reason. Any distance/correspondence version of the basic principles course for affiliate broker applicants must include at least one student interaction with a Commission-approved instructor for every five hours of credit.

• ✓Courses over eight (8) hours of CE require a final examination executed before submission for credit
• ✓Approval is automatically withdrawn if the certifying body discontinues certification
• ✓Distance basic principles courses require at least one instructor interaction for every five (5) hours of credit

A distance education course using computer-based or online materials may be submitted for approval if certified by ARELLO or another certifying body at the Commission's discretion as to technology, support, interactivity, and course design. The certification requirement does not apply to synchronous courses but does apply to asynchronous courses.

• ✓Computer/online courses require certification by ARELLO or another approved certifying body
• ✓Certification addresses technology, technology support, interactivity, and course design
• ✓Certification is required for asynchronous courses but not for synchronous courses

Students must log in or check in a minimum of ten minutes prior to the noticed start time. Proctors or instructors must verify each student's identity with a state or federal issued photo identification prior to the noticed start time.

• ✓Students must log in/check in at least ten (10) minutes prior to the noticed start time
• ✓Proctors/instructors must verify each student's identity with state or federal photo ID before start time

During the course, students must remain visible on live camera at all times (no still photos/icons), keep cameras stable and unmoved, refrain from non-course-related work, not leave the camera (notifying the proctor privately in emergencies), and not share a room with other students without prior written permission from the provider. Providers must retain a recording of the streamed course for four years, and the Commission may reasonably waive guidelines when practicality requires.

• ✓Students must be visible on live camera at all times; still photos or icons are not permitted
• ✓Students may not share a room with other students without prior written permission from the provider
• ✓Providers must maintain a recording of the streamed course for four (4) years

Licensees holding out as a team, group, or similar entity within a firm must all be affiliated with the same licensed firm and cannot establish a physical location separate from the firm's location of record. They may not receive compensation from anyone other than their principal broker for acts under T.C.A. Title 62, Chapter 13.

• ✓Team/group members must be affiliated with the same licensed firm
• ✓Cannot establish a physical location separate from the firm's location of record
• ✓Cannot receive compensation from anyone other than their principal broker for licensed acts

The principal broker cannot delegate supervisory responsibilities to a team, group, or similar entity and remains ultimately responsible for oversight of all licensees. Teams cannot represent themselves as separate entities from the firm and cannot designate members as designated firm agents.

• ✓Principal broker cannot delegate supervisory responsibilities and remains ultimately responsible for oversight
• ✓Teams/groups cannot represent themselves as a separate entity from the licensed firm
• ✓Teams/groups cannot designate members as designated firm agents — that is the principal broker's responsibility