Tennessee Real Estate Exam QUESTIONS AND VERIFIED
SOLUTIONS
TREC - ✔✔Regulates and Licenses RE pros in Tennessee Administers and Enforces Laws
of the state ...RE activities, Agency Contracts, Referral Fees Tenn RE Brokers License Act -
✔✔1973 creates rules for RE pros Education Requirements for Affiliated vs Brokers - ✔✔90
hours affiliated brokers 120 hours Brokers RE license renewal - ✔✔Every 2 yrs except
Broker's initial license (3 yrs in that case) Affiliate brokers have to complete 16 hrs of CE to
renew RE Ed and Recovery Acct - ✔✔Max $15k per consumer Max $30k per licensee min
$500k balance By when must TN licensees respond to a request by the commission when
a complaint has been made against them? - ✔✔10 days Which RE license type in TN
doesn't require an exam? - ✔✔Acquisition Agent Who serves on the TN RE commission? -
✔✔Nine appointed members, 7 RE industry & 2 are general public members How long do
RE commission members serve - ✔✔5 yrs Where and when are annual commission
meetings held? - ✔✔1 annual in each of the three grand divisions Mechanic's liens rights
defined in ... - ✔✔TN code Title 66 Property, Chapter 11 If a contractor's work began before
a refinance loan funded.... - ✔✔The mechanic's lien would have priority over the loan
Escape Clause - ✔✔Homeowner has 3 days after receipt of the notice of right to lien to
reject the contractor's right. Direct Lien - ✔✔General laborer, subcontractor or general
contractor has a lien for 1 yr after work is completed or materials are supplied Indirect
liens - ✔✔Indirect liens don't attach to residential property, but they do attach to
commercial property as long as the contractor sends a Notice of Nonpayment to the owner
and general contractor as well as a Notice of Lien. Direct liempln claimants vs Indirect lien
claimants deadlines - ✔✔Direct - within 1 yr after completion of work Indirect - within 90
days after the date of notice of lien TREC responsibilities - ✔✔- Grant and renew licenses
and setting and increasing licensing fees - Administering and enforcing state laws
regarding Commission members appointed by... - ✔✔the governor Commission members
serve.... - ✔✔5 yr terms At least 1 member of the commission .... 3 members must be ... -
✔✔- must be 60 or older - must be person of color - 3 members E. Grand Division, 3 in
Middle Grand, 3 in West Grand TN RE Broker License Act of 1973 protects consumers
against.... - ✔✔RE licensees who make misrepresentations or false promises through
advertising. Gifts and prizes may only be given as an incentive to a purchase, listing or
lease if the gift or prize is made... - ✔✔- with the affiliated firm's approval and under
sponsorship - inwriting and signed - with disclosing accurate details, value, time and place
of delivery Fed Fair Housing Act 7 protected classes - ✔✔Race, Color, Religion, National
, Origin, Familial Status and Disability Tennessee added what protected class? - ✔✔Creed
Federal Fair Housing allows an exemption for property ... - ✔✔Owned and operated by
Religious Orgs, Non profits, and private clubs as long as they don't discriminate on race,
color, national origin. Tennessee does not exempt private clubs Tennessee Fair Housing
law is more restrictive for senior housing exemption by.... - ✔✔Only applies when at least
90% of the units occupied by people over 55 yrs old Rental fo one housing unit when the
building contains no more than 2 independent units .... - ✔✔if the owner or a family
member lives in one of the units Reasons TREC can suspend or revoke the license of a
licensee who has violated by.... - ✔✔- making substantial or willful misrepresentations -
participating in fraud or dishonest dealings - making promises without planning on fulfilling
promises - acting for more than 1 party without consent by all parties - failing to disclose
personal interest - convicted of bribery, forgery, larceny, embezzlement, defraud, extortion
- practicing law unlawfully - failure to supervise affiliate brokers Broker pre-licensing
education requirements - ✔✔Diploma or GED 120 hrs including 30 hrs brokerage mgmt
Affiliate broker pre-licensing educational requirements and post licensing education -
✔✔Pre- HS diploma and 90 hrs pre-licensing coursework Post - 30 hr course within 6
months of obtaining license Continuing - 16 hrs every 2 yrs Experience required for Broker -
✔✔2 yrs as an affiliate broker Reinstate an expired license - within 60 days of exp - over 60
days but less than 120 - more than 120 days but less than 1 yr - more than 1 yr - ✔✔- 60 or
less - pay renewal fee, meet ed requirements, sign reinstatement - 60 - 120 days - $50 fee
per 30 day period plus above over 120 days - $100 per 30 day period beginnning on 121 day
-over 1 yr reapply for a license Without an agency agreement... - ✔✔the consumer is a
customer and receives no representation Possible agency relationships in TN - ✔✔Seller
Agency Designated Agent for seller Buyer Agency Designated Agent for buyer Facilitator
Facilitator - ✔✔non agency - provides non agency assistance to the buyer, seller or both
Sellers property disclosure requirements in TN... - ✔✔Sellers of single family residential
real properties that include 4 or less single family units must provide disclosure Adverse
fact - ✔✔conditions or occurrences generally recognized by competent licensees that
significantly reduce the structural integrity of improvements to real property, or present a
significant health risk to occupants of the property. One type of property that doesn't need
a property disclosure - ✔✔New construction home if builder warranty is provided
Designated agency allows - ✔✔the chosen licensee to function as the advocate for one
client when the other party in the same transaction is represented by someone in the same
firm Facilitator is any licensee who - ✔✔assists one or more unrepresented transaction
parties If the licensee or someone associated with the licensee also represents another
party to the same transaction - ✔✔the licensee will default to a facilitator to avoid dual
SOLUTIONS
TREC - ✔✔Regulates and Licenses RE pros in Tennessee Administers and Enforces Laws
of the state ...RE activities, Agency Contracts, Referral Fees Tenn RE Brokers License Act -
✔✔1973 creates rules for RE pros Education Requirements for Affiliated vs Brokers - ✔✔90
hours affiliated brokers 120 hours Brokers RE license renewal - ✔✔Every 2 yrs except
Broker's initial license (3 yrs in that case) Affiliate brokers have to complete 16 hrs of CE to
renew RE Ed and Recovery Acct - ✔✔Max $15k per consumer Max $30k per licensee min
$500k balance By when must TN licensees respond to a request by the commission when
a complaint has been made against them? - ✔✔10 days Which RE license type in TN
doesn't require an exam? - ✔✔Acquisition Agent Who serves on the TN RE commission? -
✔✔Nine appointed members, 7 RE industry & 2 are general public members How long do
RE commission members serve - ✔✔5 yrs Where and when are annual commission
meetings held? - ✔✔1 annual in each of the three grand divisions Mechanic's liens rights
defined in ... - ✔✔TN code Title 66 Property, Chapter 11 If a contractor's work began before
a refinance loan funded.... - ✔✔The mechanic's lien would have priority over the loan
Escape Clause - ✔✔Homeowner has 3 days after receipt of the notice of right to lien to
reject the contractor's right. Direct Lien - ✔✔General laborer, subcontractor or general
contractor has a lien for 1 yr after work is completed or materials are supplied Indirect
liens - ✔✔Indirect liens don't attach to residential property, but they do attach to
commercial property as long as the contractor sends a Notice of Nonpayment to the owner
and general contractor as well as a Notice of Lien. Direct liempln claimants vs Indirect lien
claimants deadlines - ✔✔Direct - within 1 yr after completion of work Indirect - within 90
days after the date of notice of lien TREC responsibilities - ✔✔- Grant and renew licenses
and setting and increasing licensing fees - Administering and enforcing state laws
regarding Commission members appointed by... - ✔✔the governor Commission members
serve.... - ✔✔5 yr terms At least 1 member of the commission .... 3 members must be ... -
✔✔- must be 60 or older - must be person of color - 3 members E. Grand Division, 3 in
Middle Grand, 3 in West Grand TN RE Broker License Act of 1973 protects consumers
against.... - ✔✔RE licensees who make misrepresentations or false promises through
advertising. Gifts and prizes may only be given as an incentive to a purchase, listing or
lease if the gift or prize is made... - ✔✔- with the affiliated firm's approval and under
sponsorship - inwriting and signed - with disclosing accurate details, value, time and place
of delivery Fed Fair Housing Act 7 protected classes - ✔✔Race, Color, Religion, National
, Origin, Familial Status and Disability Tennessee added what protected class? - ✔✔Creed
Federal Fair Housing allows an exemption for property ... - ✔✔Owned and operated by
Religious Orgs, Non profits, and private clubs as long as they don't discriminate on race,
color, national origin. Tennessee does not exempt private clubs Tennessee Fair Housing
law is more restrictive for senior housing exemption by.... - ✔✔Only applies when at least
90% of the units occupied by people over 55 yrs old Rental fo one housing unit when the
building contains no more than 2 independent units .... - ✔✔if the owner or a family
member lives in one of the units Reasons TREC can suspend or revoke the license of a
licensee who has violated by.... - ✔✔- making substantial or willful misrepresentations -
participating in fraud or dishonest dealings - making promises without planning on fulfilling
promises - acting for more than 1 party without consent by all parties - failing to disclose
personal interest - convicted of bribery, forgery, larceny, embezzlement, defraud, extortion
- practicing law unlawfully - failure to supervise affiliate brokers Broker pre-licensing
education requirements - ✔✔Diploma or GED 120 hrs including 30 hrs brokerage mgmt
Affiliate broker pre-licensing educational requirements and post licensing education -
✔✔Pre- HS diploma and 90 hrs pre-licensing coursework Post - 30 hr course within 6
months of obtaining license Continuing - 16 hrs every 2 yrs Experience required for Broker -
✔✔2 yrs as an affiliate broker Reinstate an expired license - within 60 days of exp - over 60
days but less than 120 - more than 120 days but less than 1 yr - more than 1 yr - ✔✔- 60 or
less - pay renewal fee, meet ed requirements, sign reinstatement - 60 - 120 days - $50 fee
per 30 day period plus above over 120 days - $100 per 30 day period beginnning on 121 day
-over 1 yr reapply for a license Without an agency agreement... - ✔✔the consumer is a
customer and receives no representation Possible agency relationships in TN - ✔✔Seller
Agency Designated Agent for seller Buyer Agency Designated Agent for buyer Facilitator
Facilitator - ✔✔non agency - provides non agency assistance to the buyer, seller or both
Sellers property disclosure requirements in TN... - ✔✔Sellers of single family residential
real properties that include 4 or less single family units must provide disclosure Adverse
fact - ✔✔conditions or occurrences generally recognized by competent licensees that
significantly reduce the structural integrity of improvements to real property, or present a
significant health risk to occupants of the property. One type of property that doesn't need
a property disclosure - ✔✔New construction home if builder warranty is provided
Designated agency allows - ✔✔the chosen licensee to function as the advocate for one
client when the other party in the same transaction is represented by someone in the same
firm Facilitator is any licensee who - ✔✔assists one or more unrepresented transaction
parties If the licensee or someone associated with the licensee also represents another
party to the same transaction - ✔✔the licensee will default to a facilitator to avoid dual
