Tennessee Realtor State Practice Exam

What type of violation occurs when a REALTOR® uses the designation after their NAR membership has expired?

1. Unauthorized use of trademark

2. Untruthful advertising

3. Misrepresentation

4. Fraudulent conduct

The correct answer is: Untruthful advertising

In this scenario, the most accurate characterization of the violation involves the unauthorized use of the REALTOR® designation after the National Association of Realtors (NAR) membership has expired. When an individual continues to use the designation despite not maintaining their membership status, it misleads the public regarding their current standing in the professional community. The title "REALTOR®" is a protected term that signifies membership in NAR and adherence to its ethical standards. While untruthful advertising refers specifically to making false claims in marketing materials, the key issue here centers around the misuse of the designation, which is more aptly categorized under the unauthorized use of a trademark. The REALTOR® designation is a trademark of the NAR, and using it without proper authorization undermines the integrity of the designation itself. Therefore, the violation primarily involves misrepresenting one's professional affiliation by continuing to display the REALTOR® title when membership has lapsed.