TENNESSEE LICENSE LAW 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔Tennessee uses the legal property description system of lot and block, in addition to
- ✔✔metes-and-bounds.
✔✔What is the penalty for three or more violations of discriminatory housing practices?
- ✔✔$50,000
✔✔The transfer of real property in Tennessee is typically subject to the:
- Property Transfer and Mortgage Tax.
- Realty Transfer and Mortgage Tax.
- Land Transfer and Mortgage Tax.
- Asset Transfer and Mortgage Tax. - ✔✔Realty Transfer and Mortgage Tax.
✔✔Which of the following is an example of a discriminatory practice?
- Interfering with a person who is trying to discriminate in providing services
- Willfully preventing an employee from complying with an order from the Human Rights
Commission
- Complying with a provision of the Human Rights Act in spite of a direct order from
one's employer to ignore it
- Offering service to customers who speak a certain language - ✔✔Willfully preventing
an employee from complying with an order from the Human Rights Commission
✔✔What is the penalty for a first-time discriminatory housing practice offense? -
✔✔$10,000
✔✔Which agency approves septic tank installations? - ✔✔The Tennessee Department
of Environment and Conservation
✔✔How long does a person have to file a discrimination complaint? - ✔✔180 Days - Six
months from the date of the alleged violation
✔✔ How many of the members of the Commission may come from the real estate
industry? - ✔✔7
✔✔Which rule applies to the appointment of a full-time director of education? - ✔✔The
person must be a college graduate.
✔✔What is the purpose of The Real Estate Act? - ✔✔To protect the public against
harmful acts by licensees
✔✔If the Recovery Fund currently has $612,000 on-hand, what would be the most the
Commission could spend on educational activities? - ✔✔$112,000
, ✔✔What minimum balance must always be maintained in the Recovery Fund? -
✔✔$500,000
✔✔What is the dollar limit of the additional license renewal fee that goes towards The
Real Estate Fund? - ✔✔$30
✔✔What statement from a broker must a license applicant provide in the application? -
✔✔That the broker will supervise and train the applicant
✔✔What license is required for a real estate branch office? - ✔✔A firm license
-All real estate offices and branch offices must have; a real estate firm license, a
principal broker, and a fixed location with adequate facilities for affiliated licensees.
✔✔On 8/1/2011, Norm was released on probation. When is the earliest he could be
considered for licensure? - ✔✔8/1/2013
-It is the Commission's policy that any person will not be considered for licensure until
two years after the expiration of a probation, parole, conviction, or release from
incarceration, whichever is later in time.
✔✔In what situation does a property owner NOT require a real estate license? -
✔✔When representing themselves in a transaction
✔✔What is the residency requirement for an affiliate broker's license? - ✔✔45 Days
✔✔How many active licenses may a broker hold at any given time? - ✔✔One
✔✔Which of the following is allowed for an unlicensed person to perform? - ✔✔Submit
a listing to an MLS.
✔✔Which of the following activities can an affiliate broker NOT perform? - ✔✔Establish
his or her own office.
✔✔Which of the following statements regarding non-resident applicants is FALSE?
-An applicant must meet the qualifications for licensure in Tennessee.
-The applicant must be from a state that offers reciprocity.
-The applicant must provide Errors and Omissions insurance.
-An applicant needs to maintain a place of business in Tennessee. - ✔✔An applicant
needs to maintain a place of business in Tennessee.
✔✔At the time of applying for a firm license, the broker must furnish proof of - ✔✔the
firm's escrow account and compliance with zoning laws and ordinances.
SOLUTIONS RATED A+
✔✔Tennessee uses the legal property description system of lot and block, in addition to
- ✔✔metes-and-bounds.
✔✔What is the penalty for three or more violations of discriminatory housing practices?
- ✔✔$50,000
✔✔The transfer of real property in Tennessee is typically subject to the:
- Property Transfer and Mortgage Tax.
- Realty Transfer and Mortgage Tax.
- Land Transfer and Mortgage Tax.
- Asset Transfer and Mortgage Tax. - ✔✔Realty Transfer and Mortgage Tax.
✔✔Which of the following is an example of a discriminatory practice?
- Interfering with a person who is trying to discriminate in providing services
- Willfully preventing an employee from complying with an order from the Human Rights
Commission
- Complying with a provision of the Human Rights Act in spite of a direct order from
one's employer to ignore it
- Offering service to customers who speak a certain language - ✔✔Willfully preventing
an employee from complying with an order from the Human Rights Commission
✔✔What is the penalty for a first-time discriminatory housing practice offense? -
✔✔$10,000
✔✔Which agency approves septic tank installations? - ✔✔The Tennessee Department
of Environment and Conservation
✔✔How long does a person have to file a discrimination complaint? - ✔✔180 Days - Six
months from the date of the alleged violation
✔✔ How many of the members of the Commission may come from the real estate
industry? - ✔✔7
✔✔Which rule applies to the appointment of a full-time director of education? - ✔✔The
person must be a college graduate.
✔✔What is the purpose of The Real Estate Act? - ✔✔To protect the public against
harmful acts by licensees
✔✔If the Recovery Fund currently has $612,000 on-hand, what would be the most the
Commission could spend on educational activities? - ✔✔$112,000
, ✔✔What minimum balance must always be maintained in the Recovery Fund? -
✔✔$500,000
✔✔What is the dollar limit of the additional license renewal fee that goes towards The
Real Estate Fund? - ✔✔$30
✔✔What statement from a broker must a license applicant provide in the application? -
✔✔That the broker will supervise and train the applicant
✔✔What license is required for a real estate branch office? - ✔✔A firm license
-All real estate offices and branch offices must have; a real estate firm license, a
principal broker, and a fixed location with adequate facilities for affiliated licensees.
✔✔On 8/1/2011, Norm was released on probation. When is the earliest he could be
considered for licensure? - ✔✔8/1/2013
-It is the Commission's policy that any person will not be considered for licensure until
two years after the expiration of a probation, parole, conviction, or release from
incarceration, whichever is later in time.
✔✔In what situation does a property owner NOT require a real estate license? -
✔✔When representing themselves in a transaction
✔✔What is the residency requirement for an affiliate broker's license? - ✔✔45 Days
✔✔How many active licenses may a broker hold at any given time? - ✔✔One
✔✔Which of the following is allowed for an unlicensed person to perform? - ✔✔Submit
a listing to an MLS.
✔✔Which of the following activities can an affiliate broker NOT perform? - ✔✔Establish
his or her own office.
✔✔Which of the following statements regarding non-resident applicants is FALSE?
-An applicant must meet the qualifications for licensure in Tennessee.
-The applicant must be from a state that offers reciprocity.
-The applicant must provide Errors and Omissions insurance.
-An applicant needs to maintain a place of business in Tennessee. - ✔✔An applicant
needs to maintain a place of business in Tennessee.
✔✔At the time of applying for a firm license, the broker must furnish proof of - ✔✔the
firm's escrow account and compliance with zoning laws and ordinances.
