TN Timeshare Salesperson 1010 Exam
Question 1. What is the primary characteristic that distinguishes real
property from personal property?
A) It is movable
B) It is immovable and permanently attached to land
C) It can be easily transported
D) It is intangible
Answer: B
Explanation: Real property refers to land and anything permanently
attached to it, such as buildings, making it immovable. Personal
property is movable and not permanently attached.
Question 2. Which form of ownership provides the greatest degree of
ownership rights?
A) Leasehold estate
B) Fee simple estate
C) Life estate
D) Tenancy at will
Answer: B
, TN Timeshare Salesperson 1010 Exam
Explanation: Fee simple estate offers the highest ownership rights,
including indefinite duration and the ability to transfer or will the
property.
Question 3. In a deed, what is the purpose of recording?
A) To make the transfer of ownership public and protect the owner's
rights
B) To create a legal contract between buyer and seller
C) To establish property taxes
D) To transfer possession only
Answer: A
Explanation: Recording a deed provides public notice of ownership,
protecting the owner's rights and establishing priority in case of
competing claims.
Question 4. Which element is essential for a real estate contract to be
considered valid?
A) Verbal agreement
B) Mutual consent, consideration, legal capacity, lawful purpose, and
written form if required
, TN Timeshare Salesperson 1010 Exam
C) Only the signature of the buyer
D) Approval from the Tennessee Real Estate Commission
Answer: B
Explanation: A valid real estate contract requires mutual consent,
consideration, legal capacity of parties, lawful purpose, and, in many
cases, a written document.
Question 5. What is the primary purpose of an assignment clause in a
real estate contract?
A) To allow transfer of contractual rights and obligations to another
party
B) To specify the closing date
C) To outline the financing terms
D) To terminate the agreement
Answer: A
Explanation: An assignment clause permits a party to transfer their
rights and obligations under the contract to another person.
, TN Timeshare Salesperson 1010 Exam
Question 6. Which type of agency relationship is created when a
salesperson is explicitly authorized by a broker to act on behalf of a
client?
A) Implied agency
B) Express agency
C) Agency by estoppel
D) Ostensible agency
Answer: B
Explanation: Express agency is established through written or oral
agreement explicitly authorizing the agent to act on behalf of the
principal.
Question 7. What is a key disclosure requirement in agency
relationships?
A) Disclose any conflicts of interest and agency status to clients
B) Keep client information confidential without disclosure
C) Disclose only after the sale is complete
D) No disclosure is required if the client requests confidentiality
Answer: A
Question 1. What is the primary characteristic that distinguishes real
property from personal property?
A) It is movable
B) It is immovable and permanently attached to land
C) It can be easily transported
D) It is intangible
Answer: B
Explanation: Real property refers to land and anything permanently
attached to it, such as buildings, making it immovable. Personal
property is movable and not permanently attached.
Question 2. Which form of ownership provides the greatest degree of
ownership rights?
A) Leasehold estate
B) Fee simple estate
C) Life estate
D) Tenancy at will
Answer: B
, TN Timeshare Salesperson 1010 Exam
Explanation: Fee simple estate offers the highest ownership rights,
including indefinite duration and the ability to transfer or will the
property.
Question 3. In a deed, what is the purpose of recording?
A) To make the transfer of ownership public and protect the owner's
rights
B) To create a legal contract between buyer and seller
C) To establish property taxes
D) To transfer possession only
Answer: A
Explanation: Recording a deed provides public notice of ownership,
protecting the owner's rights and establishing priority in case of
competing claims.
Question 4. Which element is essential for a real estate contract to be
considered valid?
A) Verbal agreement
B) Mutual consent, consideration, legal capacity, lawful purpose, and
written form if required
, TN Timeshare Salesperson 1010 Exam
C) Only the signature of the buyer
D) Approval from the Tennessee Real Estate Commission
Answer: B
Explanation: A valid real estate contract requires mutual consent,
consideration, legal capacity of parties, lawful purpose, and, in many
cases, a written document.
Question 5. What is the primary purpose of an assignment clause in a
real estate contract?
A) To allow transfer of contractual rights and obligations to another
party
B) To specify the closing date
C) To outline the financing terms
D) To terminate the agreement
Answer: A
Explanation: An assignment clause permits a party to transfer their
rights and obligations under the contract to another person.
, TN Timeshare Salesperson 1010 Exam
Question 6. Which type of agency relationship is created when a
salesperson is explicitly authorized by a broker to act on behalf of a
client?
A) Implied agency
B) Express agency
C) Agency by estoppel
D) Ostensible agency
Answer: B
Explanation: Express agency is established through written or oral
agreement explicitly authorizing the agent to act on behalf of the
principal.
Question 7. What is a key disclosure requirement in agency
relationships?
A) Disclose any conflicts of interest and agency status to clients
B) Keep client information confidential without disclosure
C) Disclose only after the sale is complete
D) No disclosure is required if the client requests confidentiality
Answer: A
