Tennessee State Exam Practice Questions with Verified Solutions

Tennessee State Exam Practice Questions with Verified Solutions The terms of the _______ determine who receives the earnest money. contract Woody wanted to work for the new broker in town, so he filed the paperwork necessary to affiliate with a new broker. What will happen to his three listings and two buyer clients? They remain with Woody's original broker, unless the broker agrees to other arrangements in writing. Who's entitled to reimbursement from the Real Estate Education and Recovery Account? A member of the public who's been granted a judgment against a licensee Ralph is a broker whose license was suspended when one of his affiliated brokers committed a violation. This is mostly likely because ______. Ralph either knew about the violation or is guilty of failure to supervise What are the requirements for advertising real estate in Tennessee? You must make it clear you are a real estate agent; Your managing broker's information must also be included; The firm's name and phone number must be placed in the ad (you can include yours as well); Everything must be honest and nothing can be misleading or deceptive. Two members of the Tennessee Real Estate Commission, Barb and Jeff, represent the public at large. Besides not being real estate licensees, what else do we know about Barb and Jeff? They don't live in the same part of the state Tamara is assisting a buyer who's making an offer on her client's listing. Tamara and the buyer develop a good rapport, and in her desire to be helpful, Tamara offers the buyer advice about how to structure her offer. What does Tamara risk being charged with? Undisclosed dual agency A Tennessee license expired more than 120 days but less than one year due to failure to comply will be subject to an additional penalty fee of ______ . $100 per 30 day period How many hours of continuing education must you complete to renew your license for another two years? 16 hours Samantha is an affiliate broker working for Pigeon Forge Best Realty. While she's affiliated with the firm, all her listings and buyer representation agreements are done in _______ . Her broker's name What does it mean to affiliate with a broker? You will work as the agent of a broker who is responsible for your actions and required to supervise you. Which of the following is a true statement about transactional recordkeeping requirements in Tennessee? A) Electronic recordkeeping isn't allowed. B) Hard copies must be kept for three years, electronic records for two years. C) Hard copy recordkeeping is preferred. D) Licensees must produce records within 24 hours of a TREC request. D) Licensees must produce records within 24 hours of a TREC request. What is a net listing? The seller specifies a price desired for the property and agrees to pay the broker any amount received that's more than that price. In other words, a seller says "I'll sell my property for a MINIMUM of X amount." The agent's commission then becomes the difference between X amount and the larger sum that the property sold for. Gary is the listing agent for the Turners, who are downsizing. An affiliate broker at his firm, Randa, has a trade-up buyer who seems like a perfect fit for the Turners' house. Both the Turners and Randa's buyer have signed designated agency agreements with Gary and Randa respectively. If the in-house transaction proceeds, who will be the dual agent? No one; no ONE agent is representing both the buyer and seller clients. It does not matter if the buyer and seller agents are from the same firm, as long as they are not the same person. In Tennessee, how long must electronic real estate forms be kept with the broker? Three years What happens when a broker signs a change of affiliate form for a licensee? All supervisory responsibility for that licensee ceases. Which of the following statements is true regarding timeshare estates in Tennessee? A) Timeshare estates are illegal. B) Timeshare estates can be sold or passed down to heirs. C) Timeshare estates cannot be passed down to heirs. D) Timeshare estates cannot be sold. B) Timeshare estates can be sold or passed down to heirs. Dolly is a real estate salesperson. She placed an advertisement online that includes her name, the firm's number, city and state where her brokerage is located, and the county where her brokerage is licensed. What element did she leave off that must be included? Brokerage name The Tennessee Real Estate Broker License Act of 1973 protects consumers against real estate licensees who ______. Use lies, misrepresentations, fraud, or other deceptive practices or acts to advertise or sell real estate All funds entrusted to a Tennessee licensee on behalf of another party in the practice of real estate are by definition __________. trust funds Derek made an on-site inspection of the timeshare project prior to signing the contract. He signed the contract, but is having second thoughts. In Tennessee, how many days does Derek have to cancel the contract? 10 days. The contract is voidable by the buyer until receipt of the public offering statement, and for 10 days after signing the contract if the buyer made an on-site inspection of the timeshare project prior to signing. Whose responsibility is it to ensure that a prospective buyer receives a copy of the Tennessee Residential Property Condition Disclosure prior to the buyer making a written offer to the seller? The buyer's agent What is creed? any system, doctrine, or formula of religious belief, as of a denomination TREC must operate in accordance with what act? The Uniform Administrative Procedures Act Brokerage documents that the Tennessee Real Estate Commission requests must be produced within ______ of the request. 24 hours What's the name for someone providing general assistance to a buyer and/or seller, but not serving as a legal representative? Facilitator What's the term length for a member of the Tennessee Real Estate Commission? Five years For residential property managers dealing with prospective tenants in Tennessee, their responsibilities include checking ______. references In Tennessee, what's the pre-licensing education requirement for affiliate brokers? 90 hours What responsibility does a broker have when a licensee wants to change brokerages? Immediately sign TREC's Transfer, Release and Change of Status Form to release the licensee. Which of the following is required on any Tennessee real estate advertising? A) Business name and office phone number B) Personal contact information C) Personal photo D) Sales volume A) Business name and office phone number The protected classes under Tennessee's fair housing law are ______. (Hint: there are 8) Race, color, religion, national origin, creed, sex, familial status, and disability Tennessee buyers may provide assurance they won't back out of the sale by offering to deposit ______ money that will be kept in escrow until the conditions are met at closing. earnest