Tennessee State Exam Practice

A Tennessee license expired more than 120 days but less than one year due to failure to comply will be subject to an additional penalty fee of ______ .

$100 per 30 day period

Applicants for a Tennessee real estate license must submit a special form if they've been convicted of theft of money, services, or property in the past ______ years.

10

Derek made an on-site inspection of the timeshare project prior to signing the contract. He signed the contract, but is having second thoughts. In Tennessee, how many days does Derek have to cancel the contract?

10 days. The contract is voidable by the buyer until receipt of the public offering statement, and for 10 days after signing the contract if the buyer made an on-site inspection of the timeshare project prior to signing.

In Tennessee, what's the pre-licensing education requirement for BROKERS?

120 hours

How many hours of continuing education must you complete to renew your license for another two years?

16 hours

How old must you be in Tennessee to qualify as a timeshare salesperson?

18+

William has been issued his first affiliate broker's license in Tennessee. How long is the license valid?

2 years

Brokerage documents that the Tennessee Real Estate Commission requests must be produced within ______ of the request.

24 hours

Jada, who hadn't made an on-site inspection of the timeshare project prior to signing the contract, rescinded her timeshare contract during the allowable 15-day time period. How many days from the day of rescission and notice of cancellation does the seller have to refund any payments Jada made?

30

How many days after being convicted of a license law offense will the Tennessee Real Estate Commission revoke a licensee's license?

60 days

In Tennessee, how many hours of approved real estate courses are required BEFORE taking the real estate affiliate broker exam?

60 hours

In Tennessee, what's the pre-licensing education requirement for affiliate brokers?

90 hours

Who's entitled to reimbursement from the Real Estate Education and Recovery Account?

A member of the public who's been granted a judgment against a licensee

What is a trustee in real estate?

A neutral third-party who holds the legal title to a property until the borrower pays off the loan in full

In addition to a firm real estate license and a principal broker, what else must real estate firms have to meet Tennessee firm license requirements?

A physical location and facility that can adequately accommodate affiliated licensees

Who may legally receive direct compensation from clients for real estate activities in Tennessee?

A real estate broker only

Which of the following is required on any Tennessee real estate advertising? A) Business name and office phone number B) Personal contact information C) Personal photo D) Sales volume

A) Business name and office phone number

Which of the following is true about complainants in the TREC complaint process? A) They may be licensees or consumers. B) They must be brokers. C) They must be licensed. D) They must not be licensed.

A) They may be licensees or consumers.

Which of the following items is included on both the commercial and residential purchase and sale agreements? A) Amount of earnest money B) Appraisal contingency C) Financing contingency D) Property condition disclosures

A) amount of earnest money

Deborah, a sponsoring broker, is required to display the licenses of ________.

All affiliate brokers, both independent contractors and employees.

What happens when a broker signs a change of affiliate form for a licensee?

All supervisory responsibility for that licensee ceases.

Renita's license has been expired for more than one year. What must she do to reinstate it?

Apply for a brand new license.

If a Tennessee affiliate broker wants to offer a prize to clients, what must the principal broker do?

Approve the prize.

In what way(s) do Tennessee consumers compensate brokers for their services?

As a flat fee, fee for service, and/or percentage of sale

Edward, a Tennessee principal broker, is going through transaction and contract files from one year ago. Which of the following statements is NOT true? A) Edward is legally required to keep most of the documents generated as part of a real estate transaction. B) Edward's affiliate brokers are ultimately responsible for ensuring they comply with TREC's document-handling rules. C) Keeping his paperwork organized is essential and helps manage risk. D) TREC may require Edward to make all of his books, accounts, and records available to a TREC auditor.

B) Edward's affiliate brokers are ultimately responsible for ensuring they comply with TREC's document-handling rules.

Ted is an affiliate broker in Tennessee. Which of the following statements about Ted's E&O coverage is true? A) As an affiliate broker, Ted isn't required to carry E&O. B) Ted can obtain his E&O independently. C) Ted must obtain additional E&O through his firm. D) Ted must obtain his E&O from the real estate commission.

B) Ted can obtain his E&O independently.

Which of the following statements is true regarding timeshare estates in Tennessee? A) Timeshare estates are illegal. B) Timeshare estates can be sold or passed down to heirs. C) Timeshare estates cannot be passed down to heirs. D) Timeshare estates cannot be sold.

B) Timeshare estates can be sold or passed down to heirs.

Which Tennessee real estate license requires that applicants have real estate experience?

Broker

Dolly is a real estate salesperson. She placed an advertisement online that includes her name, the firm's number, city and state where her brokerage is located, and the county where her brokerage is licensed. What element did she leave off that must be included?

Brokerage name

Which of the following statements about brokers in Tennessee and the disbursement of escrow funds is true? A) Brokers can disburse escrow funds when a transaction closes successfully. B) Brokers can't disburse the funds when a transaction completes unless they get written permission. C) Brokers can't release funds unless the real estate transaction is successful. D) Brokers must wait for court authorization before releasing any escrow funds.

Brokers can disburse escrow funds when a transaction closes successfully.

Which of the following statements about Tennessee brokers and license law violations is true? A) Brokers can have their license suspended or revoked because of any unlawful act or violation committed by one of their affiliated brokers. B) Brokers convicted of a violation will have their license automatically revoked within 30 days. C) If a broker has committed a violation, the broker's license can be downgraded to affiliate broker status. D) There are no broker-specific violations.

C) If a broker has committed a violation, the broker's license can be downgraded to affiliate broker status.

Which of these must Tennessee licensees disclose relative to specific real estate transactions handled by their brokerages? A) Any family relationships B) Expected commission C) Immediate family relationships Other affiliate broker involvement

C) Immediate family relationships

As a property manager for several residential landlords in Tennessee, Tomas must provide critical reports to each of the property owners for whom he works. Which of the following information points needs to be updated and issued monthly? A) Days late for tenant rental payments B) Fair market value of each property C) Income and expenses for each property D) Number of vacation days taken by property employees

C) Income and expenses for each property

Cass is an affiliate broker. His principal broker is Paula. Which of the following is a true statement about the professional relationship between Cass and Paula? A) Cass isn't allowed to work with clients alone during the period of his affiliation; Paula must accompany him to all closings. B) Cass is required to share part of the commission that clients pay him with Paula. C) Paula is responsible for Cass's actions as a real estate agent. D) Paula must agree to supervise Cass for a three-year period.

C) Paula is responsible for Cass's actions as a real estate agent.

A real estate licensee is assisting a buyer client with the purchase of a retail strip mall. What's the appropriate Tennessee Association of REALTORS® (TAR) form for this licensee to use?

CF 401 Commercial Purchase and Sales Agreement

The members of TREC select a/n ______ and ______ of the commission.

Chairperson, Vice Chairperson

TREC can't be held legally responsible for damages if a consumer sues the commission. This gives TREC immunity from ______.

Civil liability

Ondine, a principal broker in Tennessee, has a legal responsibility to review all of the following documents for accuracy and in a timely manner EXCEPT for which one? A) Consumer reports B) Counter-offers C) Listing agreements D) Purchase offers

Consumer reports

Which of the following is a true statement about transactional recordkeeping requirements in Tennessee? A) Electronic recordkeeping isn't allowed. B) Hard copies must be kept for three years, electronic records for two years. C) Hard copy recordkeeping is preferred. D) Licensees must produce records within 24 hours of a TREC request.

D) Licensees must produce records within 24 hours of a TREC request.

An office property manager has responsibility for which area? A) Determining and collecting assessments for capital expenditures and maintenance B) Negotiating residential leases C) Planning the construction of large projects, such as shopping centers, apartment buildings, and industrial parks D) Thinking about how much build out or change to the design, floor plan, and power requirements a tenant will require

D) Thinking about how much build out or change to the design, floor plan, and power requirements a tenant will require

What kind of agency relationship enables two licensees in the same Tennessee brokerage to work with two parties in a transaction?

Designated Agency

A default to facilitator policy is an attempt to avoid what?

Dual Agency

What is E & O coverage?

Errors and omissions insurance is a type of malpractice insurance coverage for real estate professionals to avoid coming out of pocket for these costs. It pays claims that come about due to error, omission, or negligence related to an agent's duties.

What's the name for someone providing general assistance to a buyer and/or seller, but not serving as a legal representative?

Facilitator

What's the term length for a member of the Tennessee Real Estate Commission?

Five years

Mallory and Guinevere are partnering up to form a team within their Rolling Hills real estate firm. Which of the following would be an appropriate name for their team? G&M Rolling Hills Company G&M Rolling Hills Partners G&M Rolling Hills Real Estate Partners G&M Rolling Hills Realty

G&M Rolling Hills Partners

Samantha is an affiliate broker working for Pigeon Forge Best Realty. While she's affiliated with the firm, all her listings and buyer representation agreements are done in _______ .

Her broker's name

What responsibility does a broker have when a licensee wants to change brokerages?

Immediately sign TREC's Transfer, Release and Change of Status Form to release the licensee.

In a commercial purchase and sale agreement, the ____________ paragraph describes the buyer's due diligence period.

Inspection

Jen, a TREC commissioner who is a broker, has been disheartened to see brokerage fees fall over the years. She would like to see the industry set a standard brokerage fee of no less than 5%. As a member of TREC, Jen can ______.

Lose her license for even suggesting a standard fee

Retaining paper and electronic records of transactional documents for the time period prescribed by your regulating authority helps to ______. Elevate risk Eliminate risk Increase risk Manage risk

Manage Risk

Margarita's seller client, Ralph, is completing the Tennessee residential property condition disclosure form. Which of the following duties does margarita have to her client with regard to completing the form?

Margarita should inform Ralph of his duty to disclose material facts about the property.

Gary is the listing agent for the Turners, who are downsizing. An affiliate broker at his firm, Randa, has a trade-up buyer who seems like a perfect fit for the Turners' house. Both the Turners and Randa's buyer have signed designated agency agreements with Gary and Randa respectively. If the in-house transaction proceeds, who will be the dual agent?

No one; no ONE agent is representing both the buyer and seller clients. It does not matter if the buyer and seller agents are from the same firm, as long as they are not the same person.

How often can real estate firms receive an escrow waiver?

Once each license renewal period

Which of the following is true relative to a licensee holding escrow or trust money? A) Affiliate brokers must maintain separate escrow accounts and may not commingle funds. B) Any of the firm's bank accounts may be used, as long as the firm documents the deposit. C) Licensees may use a personal account if they maintain a ledger to track business transactions. D) Principal brokers must maintain separate escrow accounts and they may not commingle funds.

Principal (NOT AFFILIATE) brokers must maintain separate escrow accounts and they may not commingle funds.

What can a facilitator do for a customer?

Process paperwork

The protected classes under Tennessee's fair housing law are ______. (Hint: there are 8)

Race, color, religion, national origin, creed, sex, familial status, and disability

Ralph is a broker whose license was suspended when one of his affiliated brokers committed a violation. This is mostly likely because ______.

Ralph either knew about the violation or is guilty of failure to supervise

Margot is pursuing her Tennessee real estate salesperson license, but only her grandmother calls her Margot. She'd instead like to advertise and be licensed under her nickname, Peggy. How she can do this?

She must include her nickname on her salesperson license application in order to advertise using her nickname.

Jordan, a Tennessee principal broker, receives an earnest money check from her client. How long does she have to deposit the money into an escrow account?

She should deposit the money immediately upon the acceptance of an offer.

TREC must operate in accordance with what act?

The Uniform Administrative Procedures Act

Toni is applying for a timeshare salesperson license. What type of written examination requirement does this type of license have?

The applicant must pass the national and state exams with a score of 70% or greater.

What is a trustor in real estate?

The borrower under a deed of trust

Whose responsibility is it to ensure that a prospective buyer receives a copy of the Tennessee Residential Property Condition Disclosure prior to the buyer making a written offer to the seller?

The buyer's agent

What needs to happen before a Tennessee licensee can legally offer gifts or prizes for the inducement of real estate sales or purchases?

The licensee must obtain the principal broker's approval.

What is a net listing?

The seller specifies a price desired for the property and agrees to pay the broker any amount received that's more than that price. In other words, a seller says "I'll sell my property for a MINIMUM of X amount." The agent's commission then becomes the difference between X amount and the larger sum that the property sold for.

Escrow or trust records in Tennessee must include all of the following EXCEPT for which information? -Date the funds were deposited -Date the funds were withdrawn -The name of the depositor -The seller's driver's license number

The seller's driver's license number

Two members of the Tennessee Real Estate Commission, Barb and Jeff, represent the public at large. Besides not being real estate licensees, what else do we know about Barb and Jeff?

They don't live in the same part of the state

Woody wanted to work for the new broker in town, so he filed the paperwork necessary to affiliate with a new broker. What will happen to his three listings and two buyer clients?

They remain with Woody's original broker, unless the broker agrees to other arrangements in writing.

Why should Tennessee licensees avoid describing a property as "secluded" when marketing through a social network?

Thieves may see this as an opportunity to enter the house unseen.

In Tennessee, how long must electronic real estate forms be kept with the broker?

Three years

Ellen and Isaac have a timeshare near the Smoky Mountains. They'll be able to use it for two weeks every September, for the next eight years. What type of timeshare is this? Fee simple timeshare Periodic estate Timeshare estate Timeshare use

Timeshare use

What type of agency agreement creates a relationship between a buyer and a broker, including all of the broker's affiliates?

Traditional buyer agency

What type of complaint is NOT under the Tennessee Real Estate Commission's jurisdiction? A) A licensee prepared two sales contracts with different prices for the buyer and lender. B) An unlicensed person acted as an agent in a real estate transaction. C) A principal broker mismanaged a trust account. D) Two brokers involved in a transaction don't agree on the final commission paid to them.

Two brokers involved in a transaction don't agree on the final commission paid to them.

Tamara is assisting a buyer who's making an offer on her client's listing. Tamara and the buyer develop a good rapport, and in her desire to be helpful, Tamara offers the buyer advice about how to structure her offer. What does Tamara risk being charged with?

Undisclosed dual agency

The Tennessee Real Estate Broker License Act of 1973 protects consumers against real estate licensees who ______.

Use lies, misrepresentations, fraud, or other deceptive practices or acts to advertise or sell real estate

What should a Tennessee broker do when receiving a post-dated check as earnest money?

Verify it's not provided in the offer, and advise the buyer that postdated checks are not an acceptable for payment of trust money.

What are the requirements for advertising real estate in Tennessee?

You must make it clear you are a real estate agent; Your managing broker's information must also be included; The firm's name and phone number must be placed in the ad (you can include yours as well); Everything must be honest and nothing can be misleading or deceptive.

What does it mean to affiliate with a broker?

You will work as the agent of a broker who is responsible for your actions and required to supervise you.

What is creed?

any system, doctrine, or formula of religious belief, as of a denomination

What is the Tennessee Real Estate Commission specifically prohibited from regulating?

brokerage fees

The terms of the _______ determine who receives the earnest money.

contract

Tennessee buyers may provide assurance they won't back out of the sale by offering to deposit ______ money that will be kept in escrow until the conditions are met at closing.

earnest

Donnie is the buyer's agent for a transaction in which May (from a different brokerage) listed her seller client George's property. From whom will Donnie receive his compensation?

his own broker

A license that's expired for more than ____ can't be reinstated.

one year

For residential property managers dealing with prospective tenants in Tennessee, their responsibilities include checking ______.

references

Tennessee licensee Doug wants to advertise another broker's listing. Whose permission must he have to do this?

the property owner's

All funds entrusted to a Tennessee licensee on behalf of another party in the practice of real estate are by definition __________.

trust funds