Q: Our firm is looking to move offices into a co-op building where there are several businesses. There is no outside sign or advertising on this building, only in the lobby. Is it okay for a real estate firm to be located in an office like this?
A: We have included the pertinent Tennessee laws and rules below. Based on your circumstances, you may need to contact the Tennessee Real Estate Commission (TREC) at 615-741-2273 and explain to them the setup. The law says that signage requirements may be waived in cases of certain unusual geographical circumstances.
As set forth in Tenn. Code Ann. § 62-13-309:
(a) (1) (A) Each office shall have a real estate firm license, a principal broker, and a fixed location with adequate facilities for affiliated licensees, located to conform with zoning laws and ordinances.
(B) Each branch location shall comply with the requirements of subdivision (a)(1)(A).
(2) The license of a broker and of each affiliate broker under contract to such broker shall be prominently displayed in the broker’s principal place of business.
(3) Within ten (10) days after any change of location of such office, all licensees registered at that office shall notify the commission in writing of their new business address, and shall pay the fee established in § 62-13-308.
(b) (1) Each licensed broker shall maintain a sign on the outside of the broker’s office of such size and content as local ordinances and the commission shall prescribe, which shall clearly state that the broker is engaged in the real estate business.
(2) In making an application for a license or for a change of location, the licensee shall verify, in writing, that the licensee’s office confirms with zoning laws and ordinances.
(3) The maintenance of the broker’s office in the broker’s home shall not relieve the broker from the requirement of having a sign outside of such house as required herein.
(4) Affiliate brokers are not required to display signs at the office of their brokers.
(c) The requirements of subsections (a) and (b) may be waived in cases of certain unusual geographical circumstances.
(d) (1) If the applicant for a broker’s license maintains more than one (1) place of business within the state, the applicant shall apply for and obtain an additional firm license for each such branch office;
(2) Every such application shall state the location of such branch office and the name of the person in charge of it; and
(3) Each branch office shall be under the direction and supervision of a broker licensed at that address.
(e) No more than one (1) license shall be issued to any broker or affiliate broker to be in effect at one (1) time.
(f) Upon original application for a firm license and each renewal thereof, the firm shall provide proof of the establishment of the firm’s escrow account satisfactory to the commission.
In addition, TREC Rule 1260-2-.03 OFFICES states:
(1) Signs. Each licensed real estate firm shall conspicuously display on the outside of the firm’s place of business a sign which contains the name of the real estate firm as registered with the Commission.