TN Real Estate Exam Questions and Answers 100% Pass

TN Real Estate Exam Questions and Answers 100% Pass a broker or affiliate broker may perform all of the following in preparation for the closing EXCEPT coordinate inspections and deliver documents and escrow monies to the appropriate attorney a broker decides he wants to conduct the closing on a all-cash sales of a property between his clients, the seller, and the buyer, his customer. with these parties, the broker may conduct the closing an aggrieved person is awarded a judgment against a real estate licensee for violation of the Tennessee Real Estate Broker Act of 1973. Regarding the real estate education and recovery account, the aggrieved party has the right to receive up to $50K from the real estate education and recovery account for the full judgment amount plus court costs and attorney's fees the purpose of the Tennessee Real Estate Education and Recovery Account is provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee violating the license law or committing other illegal acts related to a real estate transaction the maximum liability of the Tennessee Real Estate Education and Recovery Account for any single transaction, regardless of the number of persons aggrieved or parcels of real estate involved in such transaction, shall not exceed $15K a real estate licensee ( broker, affiliate broker, or time share salesperson) is found financially liable in four law suits involving several different transactions. The court orders payment from the Real Estate Education and Recovery Account for the judgments. What is the maximum that can be paid to the consumers of behalf of the broker affiliate broker, or time share salesperson for these judgments $30K whenever the commission is required to satisfy a claim against a licensee with money from the real estate education and recovery account, they may revoke the licensee's license. In the event that this happens, the licensee must repay the full amount plus interest to the account if his or her license is to be reinstated. what is the minimum balance of the Tennessee Real Estate Education and Recovery Account $500,000 after proper investigation or upon a court order to the commission, payment is made from the real estate education and recovery account due to the improper activities of a license. what happens when the payment is made? the licensee's license may be suspended or revoked, at the discretion of the commission a broker of a firm has errors and omissions insurance for herself. Is E&O insurance also required on the firm? no, the firm is not required to have insurance, only the licensees an affiliate renewed his license and E&O insurance two months late and paid the required penalty fees. he is now being sued for an event that happened during the last licensing period. He was insured when the event occurred and is insured as the lawsuit is being filed against him. Is the affiliate covered by insurance for this event? no, his insurance will not cover the claim against him a licensed broker has decided to put her license in temporary retirement. is the broker required to continue to carry E&O insurance no, licensees, who have their licenses in temporary retirement are not required to carry E&O insurance the commission was unable to obtain E&O insurance for all licensees who chose to participate in the insurance program. in this situation the requirement for these licensees to have insurance is void until such time that is is available broker Z's client, the purchaser, is suing Broker Z for misstating the square footage of the home that was purchased. Broker Z's errors and omissions insurance company wants to settle the claim without going to court and Broker Z refuses the company's request, insisting the claim is excessive. Which of the following is true? the company will represent Broker Z, but is only required to pay a claim up to the amount that they were willing to settle for out of court. any amount over that will be at broker Z's expense when listing a property, a listing agent observed water pooling under the conventional foundation of the building during a rainstorm. three days later, the water dried up an did not return. there has been no rainfall since that date. in the showing and sale of the property, all of the following statements are true EXCEPT that the listing agent has no duty to inform a buyer, buyer's agent, or facilitator showing the property about the water settlement under the building if it has dried up and does not appear to have caused any damage a buyer wants to see a house listed by XYZ Realty. Affiliate Broker K of XYZ Realty greets the buyer and offers to show the property for sale for his broker. in this situation, affiliate Broker K may show property to the buyer and treat him as a customer K, an affiliate broker of XYZ Realty, meets a customer who inquires about K's listing. The buyer told K that he was willing to pay full price for the property and then asked if K would represent him. K then advised him that she was the seller's agent and would show him the property, but would only treat him as a customer. After looking at the property, the buyer requested that she write up the offer for less than the listed price. Which of the following is correct? K may not tell her seller that the buyer was willing to pay full price the prospective buyer asked affiliate broker K if she would be his agent to assist and advise him in the purchase of a residence. What action should K take to establish a buyer agency with this prospective buyer? K must first execute a bilateral agency agreement with the buyer to establish the buyer agency relationship new affiliate broker J just received his Tennessee license and posted it on the broker's office wall. The broker explained the commission split that J would make and told him he was now an agent of the company. No written agreements were signed between the broker and affiliate broker J. During the next 2 weeks J gave 6 listing presentations to sellers and obtained four listings for the company. As a result of J's outstanding performance how many new listings does the company now have? Zero regarding the agency status of a "facilitator" a facilitator represents neither the buyer nor the seller. There has been no creation of agency status a broker's real estate company only represents buyers and does not list property for sale. The broker requires that all agents within the company only work with buyers who will sign a buyer agency agreement. They further agree in the contract to never default to another status or request a change in their relationship with the buyer. What form of agency does this establish? single agency as a buyer's agent a real estate broker verbally tells the buyer that the broker will be his agent. the broker then shows the buyer a property listed with another firm and writes and offer that is accepted. later, the buyer pays a commission to the broker. tho did the broker represent? no one the broker in XYZ Realty has obtained and agency listing for the company to sell a dental office. a customer called about the property and wants to look at it. the brokers tells the customer that since he has no written agency agreement with the customer, he will show it as a facilitator. prior to preparing the offer, the broker has the customer acknowledge his facilitator status in writing and gives the customer a copy of the written disclosure statement, in this scenario, the broker misrepresented himself after a sales call, a buyer came to the office. the broker gave the prospect the state-required pamphlet explaining the duties owed to to a customer and a client. the broker never offered to serve as the buyer's agent. the broker sold the buyer, P, a property that was listed through the broker's firm. prior to showing the property that was listed through the broker disclosed his seller's agency status and the buyer signed the disclosure form prior to the reparation of the offer. a month after the buyer purchased the property, he complained to the commission that the broker should have offered to represent him. what penalty may the commission levy against the broker for this actions? the broker did nothing wrong and the complaint is frivolous within the same real estate firm. 2 different affiliate brokers obtained agency contracts for their company. one agency agreement was with a landlord to lease office space. the other agency agreement was with a tenant to find office space. all of the following are ways to show the landlord client's the office space to the tenant client EXCEPT obtain written permission from both clients to serve as both a landlord agent and a tenant agent Tennessee law requires all of the following forms of ownership EXCEPT community property rights which of the following life estates are recognized in Tennessee conventional life estates who determines the rate of the transfer tax legislature property tax due dates vary in every city and county in the state a seller was unaware that his agent misrepresented the seller's property to the buyer. the buyer suffered damages as a result of this misrepresentation. which of the following is correct? the seller is not liable for the misrepresentation of his agent unless the seller knew or had reasons to know of misrepresentation what is the redemption time after a property has been sold at a trust deed foreclosure none under TN law, may a company take a listing as a transactional broker instead of serving as the seller's agent? yes, the company may serve as a transactional broker throughout the listing period upon obtaining a listing, a broker or licensed salesperson is obligated to use their best efforts to sale the property error and omissions insurance expires December 31st of each even number calendar year and must be renewed by Nov 1st of the following year A sales contract is signed and copies are given to all parties May 1st. No date for payment of the commission was stated in the sales agreement. Closing takes place June10th and the deed of trust is recorded June 15th by a closing attorney. When was the commission earned by the broker? May 1st In TN, who is responsible, prior to closing, for calculating the prorations between the buyer and seller, searching the title and preparing the deed. Closing attorney Working for a broker who is under a retired license could have this result Suspension or revocation to practice real estate The complete legal description of the property being sold Is not required to appear in a written listing agreement One- which must be proven upon initial firm license application an upon each renewal of license thereafter How many trust or escrow accounts must a broker maintain Tennessee Real Estate Commission- TREC In Tennessee, they real estate license law is administered by the Make and enforce the rules by which all real estate licensees must abide TREC has the authority to Five How many years is a commissioners term of appointment Nine How many members serve on the Tennessee real estate commission Seven members must be brokers and/or affiliate brokers How many of the nine commissioners are either licensed brokers or affiliate brokers Once each month for up to three days per month How often does TREC meet From what grand divisions are the non-licensee members of the commission selected How many escrow accounts must a broker maintain One