Unit 25 Operating a Real Estate Business in TN

Salaries and other business operating expenses are normally paid from the A) business operating account. B) escrow account. C) petty cash fund. D) trustee account.

A) business operating account. *These are normal business operating expenses and are paid from the business operating account, NOT the escrow account. (25:4)

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 A) one year. B) 180 days. C) three months. D) six months.

A) one year. *HUD will acceot complaints of alleged discriminatory acts against fair housing for a period of one year from the date of the act. (25:5)

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 A) 50. B) 90. C) 100. D) 20.

B) 90. *At least 90% of the units in an age 55 or older community must be occupied by at least one person 55 years of age or older. (25:5) Age restriction Nation Wide=80% Tennessee=90%

Under normal conditions, earnest money is deposited into the escrow account within three days of A) the offer. B) binding agreement. C) loan application. D) closing.

B) binding agreement. *Unless agreed to otherwise by buyer and seller, earnest money must be deposited into the escrow account within 3 business days of the binding agreement date. (25:4)

Should a broker refuse to allow TREC's representatives to inspect the escrow account, TREC may elect to A) reschedule at a more convenient time for the broker. B) downgrade or suspend the broker's license. C) consult the REALTOR ® association attorneys for legal advice. D) cancel the inspection.

B) 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 (25:4)

When advertising property on a licensee's real estate Web site, the advertiser must include firm name and firm phone number on A) the main page of the Web site. B) each page of the Web site. C) the summary page of the Web site. D) none of the pages since firm name and firm phone number are not required in internet advertisements.

B) each page of the Web site. *TREC requires that each page of a Web site contain firm name and firm phone number (25:3)

It is possible for a real estate firm to NOT have an escrow account if the firm A) receives earnest money only. B) never expects to accept trust money. C) receives security deposits only. D) attempts to commingle but not convert funds.

B) 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. (25.4)

If an affiliate broker places an advertisement on the internet, the person ultimately responsible for the ad is the A) the Web master who designed the Web site. B) the broker. C) the personal assistant who wrote the ad. D) affiliate broker who placed the ad.

B) the broker. *The broker is ultimately responsible for all advertising done by affiliate licensees. (25:3)

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) an unwanted property. B) an undesirable property. C) a stigmatized property. D) a bad property.

C) a stigmatized property. *TREC'S opinion regarding disclosure of a knowledge of any stigmatized property is the same as its policy on disclosure of knowledge of the residence of a convicted sex offender. *You are not required by law to disclose any information that is of this nature.

Request for interpleader may be filed at A) circuit or chancery courts only. B) the county clerk's office. C) any court of competent jurisdiction. D) the office of the register of deeds.

C) any court of competent jurisdiction. *Most Davidson county interpleader requests are filed in General Sessions Court, but interpleader fillings are not limited to General Session Courts only. (25:4)

A TREC representative may show up to inspect a broker's escrow account records A) during normal daytime business hours. B) anytime after a formal notice has been given to the broker. C) anytime, without advance notice. D) with a two-week written notice to the broker.

C) anytime, without advance notice. *A TREC representative may show up to all reasonable hours without advance notice to inspect the escrow records. (Think IRS of Real Estate -25:4)

The lettering on the sign identifying the office as a real estate business A) must be in all capital letters. B) must be at least three inches tall. C) no longer has a requirement for the size of the lettering. D) must be of the same font as the lettering on the broker's license.

C) no longer has a requirement for the size of the lettering. *TREC use to require that the lettering on the sign be at least three inches high, but removed that requirement several years ago.

A summary of a listing that contains no more than five selection criteria describing the property is a A) condensed listing. B) fingernail. C) thumbnail. D) summary statement.

C) 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. (25:3)

Laws that prohibit monopolies and prohibit restraint of trade are referred to as A) No Restraint of Trade Laws. B) Vicious and Vice Laws. C) Antimonopoly Laws. D) Antitrust Laws.

D) Antitrust Laws. *These laws are both federal and state laws that prohibit monopolies and restraint of trade (25:5) **Antitrust Laws=Prohibit monopolies and restraint of trade

The federal law that requires convicted sex offenders to register where they live is A) Sex Offender Law. B) Convicted Sex Law. C) Federal Sex Offender Registry Law. D) Megan's Law.

D) Megan's Law. *The law requires that convoked sex offenders register where they live. Tennesseans best source of this information is the TN Bureau of Investigation Website (25:5)

The type of license issued by TREC that one must have in order to operate a real estate office is A) a business license. B) an affiliate broker license. C) a timeshare license. D) a broker license.

D) a broker license. *TREC issues the broker's license. Some states or countries may also require a business license as well, but it is not issued by TREC. (25:2)

A physical location is deemed to be a branch office if the broker A) has a mail drop there where offers may be placed. B) holds open houses there. C) has office furniture there. D) advertises the office for the purpose of attracting the public.

D) 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. (25:2)

Federal Fair Housing has seven protected categories. Tennessee has added an additional protected category of A) sexual orientation. B) marital status. C) age. D) creed.

D) 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. (25:5)