TENNESSEE AFFILIATE BROKER PRELICENSE EXAM WITH 100% CORRECT ANSWERS

The State Regulator of real estate licensees The Tennessee Real Estate Commission Enacts rules addressing professional conduct, conducts hearings concerning violations of the Act, imposes penalties, and administers a Real Estate Recovery Fund to protect the public The Tennessee Real Estate Commission The Commission Is a judicial body. The attorney general defends the members in court. The Commission May make whatever rules it needs to enforce the Licensing Act. The Commission May refuse, suspend, revoke or downgrade a license. Consumer Has two years from the date of an alleged violation to file a complaint, or longer depending on the statute of limitations, or the results of a criminal prosecution Commission A licensee must notify them within sixty days of conviction for any offense in the License Act. After sixty days, the license is revoked unless the licensee requests a hearing in writing. Commission Administers the Real Estate recovery fund Real Estate Recovery Fund Must maintain a balance of 500k at all times Real Estate Recovery Fund A fund established in some states from real estate license revenues to cover claims of aggrieved parties who have suffered monetary damage through the actions of a real estate licensee. Types of Licenses broker, affiliate broker, time-share salesperson, acquisition agent Each office and branch office must have: a firm license a principal broker an escrow account, unless waived Requirements for license character-- education-- high school diploma, ninety hours of prelicense education for affiliate; 120 additional hours for broker age-- 18 residence-- 45 days in state experience-- for broker, 36 months of active affiliate license if licensed after May 12, 1988, or 24 months if licensed before that date examination-- pass with 70% for affiliate, 75% for broker application and fees-- $100 for original license; $80 to renew Needed to maintain license: Errors and Omissions insurance proper display of license in principal broker's main place of business compliance with requirements to identify firm and engagement in real estate business in signage-- affiliates do not have to display sign Inactive Status May not engage in acts requiring licensure; still subject to continuing education requirements for renewal; must pay renewal fee; converts to retired status when education is fulfilled Retired License May not engage in acts requiring licensure; only allowed if continuing education requirements have been met; must pay renewal fee to avoid expiration Expired License All licenses expire two years from date of issue unless renewed; may be reinstated without examination within 60 days of expiration by proving compliance with prerequisites and paying fees and penalties Suspended or Revoked by Commission for violation of the Licensing Act or fraudulent conduct; by court if a party obtains a judgment or decree against the licensee; a broker's license may not be revoked for actions of an affiliate License renewal education for affiliate, 16 classroom hours every two years; for broker-- 120 classroom hours within first 3 years, then 16 hours every two years there after Principal Broker The broker who manages the offices and is responsible for supervising the activities of the licensed and unlicensed staff. Advertising Must be directly supervised by the broker, list the firm name and phone number, and indicate that it is a firm in the real estate business Gifts and prizes may be offered to promote sales, if: they are sponsored by the firm there is written disclosure of fair market value, time and place of delivery and any requirements that must be satisfied they do not offer cash to any unlicensed person Discriminatory advertising in Tennessee: attempts to deny goods or services because of race, color, creed, religion, sex, or national origin Discriminatory advertising in Tennessee: is a violation of the Tennessee Human Rights Act as well as license law Prohibited advertising includes: Substantial and willful misrepresentation. Making false promises. Misleading or untruthful statements. Improper use of trade and association names. Statute of Frauds requires a contract to be in writing if: it involves $500 or more it is a real estate lease with a term over one year Brokers responsible at all times for earnest money and deposits received by them or affiliates, no matter who actually holds the funds Commingling of funds mixing broker's funds with escrow funds Conversion -- using escrow funds for the broker's own purposes The essence of the agency relationship is trust, confidence, and mutual good faith Agent owes client: obedience, loyalty, assistance, advice Agent owes all parties: skill and care, disclosure of adverse facts, confidentiality, honesty and good faith, accounting, no self-dealing without consent and disclosure Licensee's verbal disclosure of relationship to unrepresented buyer or seller-- before providing any services; confirm in writing before executing a listing agreement or preparing or presenting an offer and obtain a written receipt Buyer remedies for misrepresentation sue for damages terminate purchase contract before closing pursue other legal remedies Consumer Protection Act deceptive practices, a Class B misdemeanor Consumer Protection Act misrepresenting, disparaging, advertising with no intent to deliver, false or misleading statements of fact, causing confusion about salesperson's or agent's authority, deceptive or false advertising, discriminating against a disabled person Illegal interference with agency relationship- trying to get a client of another licensee to terminate the agency contract Real Estate License Act willful misrepresentation, false promises, unauthorized use of trade names, failing to account for funds of others, failing to preserve transaction records for 3 years, undisclosed and non-consenting dual agency, using a contract form that doesn't specify termination date, inducing a person to break a contract for the licensee's advantage, licensee accepting a commission from anyone but the broker, being convicted of any kind of fraudulent financial behavior, discriminating, failing to supervise affiliates, giving or receiving an undisclosed payment, failing to disclose self-interest in a transaction, practicing law without a license, violating the Time-Share Act or the Licensing Law in any way Time-share programs periodic use of time-share intervals occurring annually over more than one year Vacation clubs recurring right to use accommodations in more than one site according to mandatory reservation system