REAL ESTATE TN STATE EXAM WITH CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST 2026-2027 ALREADY
GRADED A+
TREC can hold as many meetings as it deems necessary throughout the year, but it must have a minimum of three meetings. Where must these
meetings take place? ✔️One in each, West, middle, east division
Gideon is planning to run a full-page ad in the Knoxville newspaper to promote his open house in two weeks. He'll be offering a free overnight
stay at a local resort to the winner of the door prize. Which of the following is a true statement? ✔️Gideon's ad must clearly state the value and
all qualifications and accurate specifications of the prize.
A principal broker in Tennessee is required to ______ for all transactions in which affiliated licensees participate. ✔️Review and approve
transactional documents and agreements
How many members of TREC are licensed real estate brokers or affiliate brokers in Tennessee? ✔️7
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
Mike is applying for an affiliate broker 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.
Deborah, a sponsoring broker, is required to display the licenses of ________. ✔️All affiliate brokers, both independent contractors and
employees
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
Which of these must Tennessee licensees disclose relative to specific real estate transactions handled by their brokerages? ✔️Immediate family
relationships
Which violation is likely to result in license revocation? ✔️Criminal actions
Ted and Tanya, Tennessee buyers, are represented by Brooke Sales. They want to make an offer on a home and give Brooke a check for $5,000
for earnest money. The check is post-dated for a week. Ted explains, "We have the money, but I need to shuffle a few things around before this
check is good." Can Ted and Tanya do this? ✔️No. Earnest money needs to be able to be deposited immediately, so a post-dated check won't
work.
Which of the following statements is true regarding the termination date of a listing agreement or sales contract in Tennessee? ✔️A definite
termination date must be included.
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
Which of the following would you need to disclose about a listed property? ✔️Your stepfather is the property owner.
Elana is marketing a new listing. What must she obtain before posting a for sale sign in the seller's yard? ✔️The seller's written permission
A default to facilitator policy is an attempt to avoid what? ✔️Dual agency
Dual agency ✔️real estate scenario where a real estate agent represents both the buyer and seller on the same transaction. Rather than split the
commission between buyer agent and listing agent — as a transaction normally would — dual agency gives the entire sum to one agent.
As a security precaution, which of the following should Tennessee licensees do? ✔️Limit the amount of personal information they post.
What must all agreements and contracts have per the Tennessee Real Estate Commission? ✔️Termination date
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? ✔️From his own broker
Addison didn't make an on-site inspection of the timeshare project prior to signing the contract. She's now signed the contract but a little voice
inside her head is telling her to get out while the getting is good. In Tennessee, how many days does Addison have to cancel the contract? ✔️15
days
To become a designated agent in Tennessee, licensees must be ______. ✔️Appointed by the managing broker
, The commission uses an official seal, which is used to certify and authenticate ______. ✔️Records
A Tennessee broker discloses to a potential buyer that she's not only the listing agent, but also the owner of the property the buyer's interested
in. She makes this disclosure of personal interest because ______. ✔️It's required under Tennessee law
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
Which of the following statements is true about affiliating with a broker? ✔️All of the client engagement agreements you sign are done in the
name of your principal broker.
Maggie, a broker in Tennessee, collected an earnest money check at 6 p.m., after the bank closed. She attempted to deposit it via the ATM into
her principal broker's trust account but she couldn't remember the PIN so she deposited it into her personal checking account. What is Maggie
guilty of? ✔️Commingling
Real estate licensees may offer gifts or prizes to buyers, sellers, or lessees under certain conditions. What is one of those conditions? ✔️The
market value of the gift is disclosed.
All funds entrusted to a Tennessee licensee on behalf of another party in the practice of real estate are by definition _____ ✔️Trust funds
The ______ enforces federal fair housing laws at the state level in Tennessee. ✔️Tennessee Human Rights Commission
TREC can't be held legally responsible for damages if a consumer sues the commission. This gives TREC immunity from _____ ✔️Civil liability
Brokerage firms that engage in activities that require them to accept the funds of others are required by law to keep accurate records of all
funds deposited in escrow/trustee accounts. At a minimum, what information must the records contain in addition to who provided the funds
and the date the funds were deposited? ✔️The date the funds were withdrawn and who received the funds
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
Which of these Tennessee licensees could be seen as committing a real estate violation? ✔️Mandy didn't disclose to potential buyers that she
was showing her own listing, or that she represents the sellers.
Which of the following statements about brokers in Tennessee and the disbursement of escrow funds is true? ✔️Brokers can disburse escrow
funds when a transaction closes successfully.
Misrepresentation is grounds for discipline if it is ______. ✔️Willful
If someone complains to TREC about a licensee, how many days does the licensee have to respond after receiving a copy of the complaint? ✔️10
days
April and Wayne are the buyer and seller of a condo in Nashville, respectively. April is represented by Steve. Wayne is represented by Wanda.
Name the principal(s) in this transaction. ✔️April and Wayne
Trinity is seriously thinking about buying a timeshare in Tennessee. She's done her research and knows that the timeshare market has a
reputation for attracting scam artists. Trinity finds comfort in knowing that her state protects timeshare owners' and buyers' interests through
the ______. ✔️Time-Share Act of 1981
In which of these situations would you be acting like a facilitator? ✔️Your cousin wants to buy a house that's being offered as a For Sale by
Owner. At her request, you explain the right format for an offer and provide the names of some real estate attorneys who could review
paperwork and handle the closing.
Alan wants to obtain a Tennessee broker license. Which requirement must he meet? ✔️He must at least 18 years old.
Determine which of these is an example of commingling in Tennessee. ✔️Cynthia deposited her client's earnest money check into the firm's
operating account.
Being a retail property manager includes being responsible for ______. ✔️Establishing some leases as percentage leases, where a base rent per
square foot is augmented by a percentage share in the tenant's gross
Jerrold reviews the floor plan of the Knoxville house he's going to sell. It's 3,800 square feet. In his advertising, he bumps that number up to
4,000 square feet to better justify its asking price. What has Jerrold done? ✔️Intentional misrepresentation
GRADED A+
TREC can hold as many meetings as it deems necessary throughout the year, but it must have a minimum of three meetings. Where must these
meetings take place? ✔️One in each, West, middle, east division
Gideon is planning to run a full-page ad in the Knoxville newspaper to promote his open house in two weeks. He'll be offering a free overnight
stay at a local resort to the winner of the door prize. Which of the following is a true statement? ✔️Gideon's ad must clearly state the value and
all qualifications and accurate specifications of the prize.
A principal broker in Tennessee is required to ______ for all transactions in which affiliated licensees participate. ✔️Review and approve
transactional documents and agreements
How many members of TREC are licensed real estate brokers or affiliate brokers in Tennessee? ✔️7
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
Mike is applying for an affiliate broker 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.
Deborah, a sponsoring broker, is required to display the licenses of ________. ✔️All affiliate brokers, both independent contractors and
employees
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
Which of these must Tennessee licensees disclose relative to specific real estate transactions handled by their brokerages? ✔️Immediate family
relationships
Which violation is likely to result in license revocation? ✔️Criminal actions
Ted and Tanya, Tennessee buyers, are represented by Brooke Sales. They want to make an offer on a home and give Brooke a check for $5,000
for earnest money. The check is post-dated for a week. Ted explains, "We have the money, but I need to shuffle a few things around before this
check is good." Can Ted and Tanya do this? ✔️No. Earnest money needs to be able to be deposited immediately, so a post-dated check won't
work.
Which of the following statements is true regarding the termination date of a listing agreement or sales contract in Tennessee? ✔️A definite
termination date must be included.
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
Which of the following would you need to disclose about a listed property? ✔️Your stepfather is the property owner.
Elana is marketing a new listing. What must she obtain before posting a for sale sign in the seller's yard? ✔️The seller's written permission
A default to facilitator policy is an attempt to avoid what? ✔️Dual agency
Dual agency ✔️real estate scenario where a real estate agent represents both the buyer and seller on the same transaction. Rather than split the
commission between buyer agent and listing agent — as a transaction normally would — dual agency gives the entire sum to one agent.
As a security precaution, which of the following should Tennessee licensees do? ✔️Limit the amount of personal information they post.
What must all agreements and contracts have per the Tennessee Real Estate Commission? ✔️Termination date
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? ✔️From his own broker
Addison didn't make an on-site inspection of the timeshare project prior to signing the contract. She's now signed the contract but a little voice
inside her head is telling her to get out while the getting is good. In Tennessee, how many days does Addison have to cancel the contract? ✔️15
days
To become a designated agent in Tennessee, licensees must be ______. ✔️Appointed by the managing broker
, The commission uses an official seal, which is used to certify and authenticate ______. ✔️Records
A Tennessee broker discloses to a potential buyer that she's not only the listing agent, but also the owner of the property the buyer's interested
in. She makes this disclosure of personal interest because ______. ✔️It's required under Tennessee law
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
Which of the following statements is true about affiliating with a broker? ✔️All of the client engagement agreements you sign are done in the
name of your principal broker.
Maggie, a broker in Tennessee, collected an earnest money check at 6 p.m., after the bank closed. She attempted to deposit it via the ATM into
her principal broker's trust account but she couldn't remember the PIN so she deposited it into her personal checking account. What is Maggie
guilty of? ✔️Commingling
Real estate licensees may offer gifts or prizes to buyers, sellers, or lessees under certain conditions. What is one of those conditions? ✔️The
market value of the gift is disclosed.
All funds entrusted to a Tennessee licensee on behalf of another party in the practice of real estate are by definition _____ ✔️Trust funds
The ______ enforces federal fair housing laws at the state level in Tennessee. ✔️Tennessee Human Rights Commission
TREC can't be held legally responsible for damages if a consumer sues the commission. This gives TREC immunity from _____ ✔️Civil liability
Brokerage firms that engage in activities that require them to accept the funds of others are required by law to keep accurate records of all
funds deposited in escrow/trustee accounts. At a minimum, what information must the records contain in addition to who provided the funds
and the date the funds were deposited? ✔️The date the funds were withdrawn and who received the funds
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
Which of these Tennessee licensees could be seen as committing a real estate violation? ✔️Mandy didn't disclose to potential buyers that she
was showing her own listing, or that she represents the sellers.
Which of the following statements about brokers in Tennessee and the disbursement of escrow funds is true? ✔️Brokers can disburse escrow
funds when a transaction closes successfully.
Misrepresentation is grounds for discipline if it is ______. ✔️Willful
If someone complains to TREC about a licensee, how many days does the licensee have to respond after receiving a copy of the complaint? ✔️10
days
April and Wayne are the buyer and seller of a condo in Nashville, respectively. April is represented by Steve. Wayne is represented by Wanda.
Name the principal(s) in this transaction. ✔️April and Wayne
Trinity is seriously thinking about buying a timeshare in Tennessee. She's done her research and knows that the timeshare market has a
reputation for attracting scam artists. Trinity finds comfort in knowing that her state protects timeshare owners' and buyers' interests through
the ______. ✔️Time-Share Act of 1981
In which of these situations would you be acting like a facilitator? ✔️Your cousin wants to buy a house that's being offered as a For Sale by
Owner. At her request, you explain the right format for an offer and provide the names of some real estate attorneys who could review
paperwork and handle the closing.
Alan wants to obtain a Tennessee broker license. Which requirement must he meet? ✔️He must at least 18 years old.
Determine which of these is an example of commingling in Tennessee. ✔️Cynthia deposited her client's earnest money check into the firm's
operating account.
Being a retail property manager includes being responsible for ______. ✔️Establishing some leases as percentage leases, where a base rent per
square foot is augmented by a percentage share in the tenant's gross
Jerrold reviews the floor plan of the Knoxville house he's going to sell. It's 3,800 square feet. In his advertising, he bumps that number up to
4,000 square feet to better justify its asking price. What has Jerrold done? ✔️Intentional misrepresentation
