RULES OF CONDUCT CHAPTER 1260-02
(Rule 1260-02-.09, continued)
April, 2021 (Revised) 6
(14) Interest-bearing escrow or trustee accounts are neither required nor prohibited by the
Commission. If utilized, however, the following provisions shall be observed:
(a) At the time of contract execution, the licensee shall disclose to the payor that his or her
deposit will be placed in an interest-bearing escrow or trustee account, and the
licensee and the payor shall execute a written agreement indicating the manner of
disposition of any interest earned;
(b) As a depositor of the trust money, the licensee does not own the trust money or
interest earned thereon until properly disbursed to the licensee; and
(c) The licensee shall keep a detailed and accurate accounting of the precise sum of the
interest earned for each separate deposit.
Authority: T.C.A. §§ 62-13-203 and 62-13-321. Administrative History: Original rule certified June 7,
1974. Repealed and refiled March 3, 1980; effective April 27, 1980. Amendment filed September 30,
1980; effective December 15, 1980. Amendment filed January 21, 1983; effective February 22, 1983.
Amendment filed April 17, 1985; effective May 17, 1985. Amendment filed March 16, 2010; effective
June 14, 2010. Amendment filed July 20, 2015; effective October 18, 2015.
1260-02-.10 CLOSING STATEMENTS. If a broker acts as closing agent he shall provide copies of the
closing documents to each customer or client.
Authority: T.C.A. § 62-1311. Administrative History: Original rule certified June 7, 1974. Repealed
and refiled March 3, 1980; effective April 27, 1980. Amendment filed October 1, 1998; effective
December 15, 1998.
1260-02-.11 PERSONAL INTEREST.
(1) No broker or affiliate broker shall, either directly or indirectly through a third party, purchase
for himself or attempt to purchase or acquire any interest in or option to purchase property
listed with him or with his company, or property regarding which he or his company has been
approached by the owner to act as broker, without first making a full disclosure of his true
position to the owner of the property or to any prospective purchaser for which he has acted
for as a client or customer. After acquiring any such personal interest, either directly or
indirectly, the broker or affiliate broker shall make a full disclosure of his true position to
prospective purchasers who tender offers to buy the property.
(2) All licensees shall identify themselves as a licensee when buying or selling property for
themselves.
Authority: T.C.A. § 62-1311. Administrative History: Original rule certified June 7, 1974. Repealed
and refiled March 3, 1980; effective April 27, 1980. Amendment filed October 1, 1998; effective December
15, 1998.
1260-02-.12 ADVERTISING.
(1) All advertising, regardless of its nature and the medium in which it appears, which promotes
either a licensee or the sale or lease of real property, shall conform to the requirements of
this rule. The term “advertising,” for purposes of this rule, in addition to traditional print, radio,
and television advertising, also includes, but is not limited to, sources of communication
available to the public such as signs, flyers, letterheads, e-mail signatures, websites, social
media communications, and video or audio recordings transmitted through internet or
broadcast streaming. Advertising does not include promotional materials that advertise a
licensee such as hats, pens, notepads, t-shirts, name tags, business cards, and the
sponsorship of charitable and community events.