Unit 25 Quiz Questions

Tennessee is more restrictive with the senior exemption for age 55 and older communities. Federal law offers the exemption with 80 percent occupancy; Tennessee offers the exemption with an occupancy percentage of

90%

The type of license issued by TREC that one must have in order to operate a real estate office is

A BROKER LICENSE. TREC issues the broker's license. Some states or counties may also require a business license as well, but it is not issued by TREC. (Ref: Topic 25.2)

A property where a felony has been committed, or is in close proximity to where a convicted sex offender lives, or is considered to be haunted is referred to as

A STIGMATIZED PROPERTY. TREC'S opinion regarding disclosure of knowledge of any stigmatized property is the same as its policy on disclosure of knowledge of the residence of a convicted sex offender. (Ref: Topic 25.5)

A physical location is deemed to be a branch office if the broker

ADVERTISES THE OFFICE FOR THE PURPOSE OF ATTRACTING THE PUBLIC. Such an advertisement would indicate to the public that the physical location is a real estate office, so it must be identified as such. (Ref: Topic 25.2)

Laws that prohibit monopolies and prohibit restraint of trade are referred to as

ANTITRUST LAWS. These laws are both federal and state laws that prohibit monopolies and restraint of trade. (Ref: Topic 25.5)

Request for interpleader may be filed at

ANY COURT OF COMPETENT JURISDICTION. Most Davidson county interpleader requests are filed in General Sessions Court, but interpleader filings are not limited to General Sessions Courts only. (Ref: Topic 25.4)

A TREC representative may show up to inspect a broker's escrow account records

ANYTIME, WITHOUT ADVANCE NOTICE. A TREC representative may show up at all reasonable hours without advance notice to inspect the escrow records. (Ref: Topic 25.4)

Under normal conditions, earnest money is deposited into the escrow account within three days of

BINDING AGREEMENT. Unless agreed to otherwise by buyer and seller, earnest money must be deposited into the escrow account within three business days of binding agreement date. (Ref: Topic 25.4)

Salaries and other business operating expenses are normally paid from the

BUSINESS OPERATING ACCOUNT. These are normal business operating expenses and are paid from the business operating account, not the escrow account. (Ref: Topic 25.4)

Federal Fair Housing has seven protected categories. Tennessee has added an additional protected category of

CREED. The difference between religion and creed is that religion is an organized form of worship; creed is how one chooses to believe or not believe. (Ref: Topic 25.5)

Should a broker refuse to allow TREC's representatives to inspect the escrow account, TREC may elect to

DOWNGRADE OR SUSPEND THE BROKER'S LICENSE. It is a direct violation of TREC rules to refuse an escrow account inspection. Doing so may cause TREC to downgrade or suspend the broker's license. (Ref: Topic 25.4)

When advertising property on a licensee's real estate Web site, the advertiser must include firm name and firm phone number on

EACH PAGE OF THE WEB SITE. TREC requires that each page of a Web site contain firm name and firm phone number. (Ref: Topic 25.3)

In Tennessee, a blind ad is acceptable as long as it is approved by the broker.

FALSE. A blind ad is never acceptable in Tennessee and it is illegal.

Another name for the escrow account is the trustor account.

FALSE. Another name for the escrow account is trustee account.

In Tennessee, it is illegal to accept a post dated check for earnest money.

FALSE. It is discouraged, but not illegal, and may be accepted as long as the fact is so communicated to the seller before the acceptance of the offer and is so stated in the offer to purchase.

The broker must display a sign inside the office identifying the business as a real estate office.

FALSE. The broker must display a sign outside the office, not inside.

As long as the firm name and firm phone number are listed on the main page of a real estate Web site, TREC advertising requirements have been satisfied.

FALSE. The firm name and firm phone number must be on each page of a real estate Web site.

The federal law that requires convicted sex offenders to register where they live is

MEGAN'S LAW. The law requires that convicted sex offenders register where they live. Tennesseans best source for this information is the Tennessee Bureau of Investigation Web site. (Ref: Topic 25.5)

It is possible for a real estate firm to NOT have an escrow account if the firm

NEVER EXPECTS TO ACCEPT TRUST MONEY. If a real estate firm does not accept earnest money or security deposits on rentals, or any other type of money in trust, the firm is not required to have an escrow account. (Ref: Topic 25.4)

The lettering on the sign identifying the office as a real estate business

NO LONGER HAS A REQUIREMENT FOR THE SIZE OF THE LETTERING. TREC used to require that the lettering on the sign be at least three inches high, but removed that requirement several years ago. (Ref: Topic 25.2)

Complaints of fair housing discrimination must be filed with the Human Rights Commission within 180 days of the alleged discriminatory act. Complaints must be filed with HUD within

ONE YEAR. HUD will accept complaints of alleged discriminatory acts against fair housing for a period of one year from the date of the act. (Ref: Topic 25.5)

If an affiliate broker places an advertisement on the internet, the person ultimately responsible for the ad is the

THE BROKER. The broker is ultimately responsible for all advertising done by affiliated licensees. (Ref: Topic 25.3)

A summary of a listing that contains no more than five selection criteria describing the property is a

THUMBNAIL. Licensees following TREC advertising rules may advertise another firm's listings without disclosing the listing firm's information as long as there is no more than five selection criteria used, for instance, a thumbnail. (Ref: Topic 25.3)

A corporation, association, or partnership may be granted a real estate firm license.

TRUE. A corporation, association, or partnership may be granted a real estate firm license. The person in charge, however, must have a real estate broker's license.

A fair housing complaint must be filed with the Tennessee Human Rights Commission within 180 days of the alleged discriminatory act.

TRUE. Filing time periods are 180 days with the state Human Rights Commission, one year with HUD, and two years for private court action.

Tennessee's protected categories mirror the federal protected categories with the inclusion of creed as an additional protected category.

TRUE. With the inclusion of creed as a protected category, Tennessee has eight protected categories under fair housing: race, color, religion, sex, handicap, familial status, national origin, and creed.