TREES REAL ESTATE PRACTICE PAPER
2026 COMPLETE QUESTIONS SOLUTIONS
A+
⩥ Agency. Answer: Where the broker represents the best interest of a
party in a real estate transaction. Requires a written agreement.
⩥ Independent Contractor. Answer: A real estate licensee (self
employed) pays own taxes
⩥ Employee. Answer: Works under a hourly or salary fee but does not
sell real estate.
⩥ Single Agency. Answer: Broker only represent 1 party in a real estate
transaction either seller or buyer
⩥ Dual Agency. Answer: Where a broker represents BOTH buyer and
seller. Legal to do in TN if it is disclosed with consent from both parties
but not often done. Undisclosed is illegal
⩥ Sub agent. Answer: A separate broker working for another agency that
represents the best interest of the seller
, ⩥ Imputed knowledge. Answer: The broker representing the best interest
of the buyer must know EVERYTHING about the property.
⩥ Designated Agency. Answer: Where the Broker designates one of
his/her licensed agents to represent the best interest of either the seller or
buyer . Limits liabilities and is not subject to Imputed Knowledge.
⩥ Facilitator. Answer: Also called a transaction broker, where a licensed
agent does not represent either the seller or the buyer in a real estate
transaction.
⩥ Principle Broker. Answer: The Clients agent is called the ..
⩥ Fiduciary. Answer: A position of trust and confidence
⩥ Duties owed to a client under Common Law. Answer: Obey all lawful
instructions
Must be loyal to the interest of the client above all else
⩥ Duties owed to ALL parties under Statutory Law of TN. Answer: Care
Accountability
Honesty
Are all duties that are
2026 COMPLETE QUESTIONS SOLUTIONS
A+
⩥ Agency. Answer: Where the broker represents the best interest of a
party in a real estate transaction. Requires a written agreement.
⩥ Independent Contractor. Answer: A real estate licensee (self
employed) pays own taxes
⩥ Employee. Answer: Works under a hourly or salary fee but does not
sell real estate.
⩥ Single Agency. Answer: Broker only represent 1 party in a real estate
transaction either seller or buyer
⩥ Dual Agency. Answer: Where a broker represents BOTH buyer and
seller. Legal to do in TN if it is disclosed with consent from both parties
but not often done. Undisclosed is illegal
⩥ Sub agent. Answer: A separate broker working for another agency that
represents the best interest of the seller
, ⩥ Imputed knowledge. Answer: The broker representing the best interest
of the buyer must know EVERYTHING about the property.
⩥ Designated Agency. Answer: Where the Broker designates one of
his/her licensed agents to represent the best interest of either the seller or
buyer . Limits liabilities and is not subject to Imputed Knowledge.
⩥ Facilitator. Answer: Also called a transaction broker, where a licensed
agent does not represent either the seller or the buyer in a real estate
transaction.
⩥ Principle Broker. Answer: The Clients agent is called the ..
⩥ Fiduciary. Answer: A position of trust and confidence
⩥ Duties owed to a client under Common Law. Answer: Obey all lawful
instructions
Must be loyal to the interest of the client above all else
⩥ Duties owed to ALL parties under Statutory Law of TN. Answer: Care
Accountability
Honesty
Are all duties that are
