1. (1) A licensee may offer a gift, prize, or other valuable consideration as an inducement to the purchase, listing, or lease of real estate only if the offer is made:

   1. (a) Under the sponsorship and with the approval of the firm with whom the licensee is affiliated; and

   2. (b) In writing, signed by the licensee, with disclosure of all pertinent details, including but not limited to:

      1. 1. Accurate specifications of the gift, prize, or other valuable consideration offered;
      2. 2. Fair market value;
      3. 3. The time and place of delivery; and
      4. 4. Any requirements which must be satisfied by the prospective purchaser or lessor.

2. (2) A licensee shall not give or pay cash rebates, cash gifts, gift cards, cash prizes, or any similar cash-based incentive in conjunction with any real estate transaction, except for the following circumstances:

   1. (a) A licensee may offer a gift card at an open house for other real estate licensees;
   2. (b) A licensee may offer a gift card as a closing gift; and
   3. (c) The gift cards in subparagraph (b) may not be used in any advertisement to induce business in conjunction with a real estate transaction.

Authority: T.C.A. §§ 62-13-203 and 62-13-302. Administrative History: New rule filed September 16, 1987; effective October 31, 1987. Amendment filed October 1, 1998; effective December 15, 1998. Amendment filed December 3, 2007; effective February 16, 2008. Amendments filed June 25, 2025; effective September 23, 2025.