[CH.1] (Tennessee License Law) Tennessee Affiliate Broker Pre-license Course exam with 100% correct answers

How long does a licensee changing affiliation have to complete required procedures with the Commission? 10 Days From whom may an affiliate broker receive compensation? From the broker he or she is affiliated with When may a licensee who has changed affiliation begin to engage in real estate transactions at the new firm? After transmitting the proper form and fees to the Commission What does an affiliate broker have to do to change affiliation from one broker to another? Obtain a signed release form from the current principal broker. If a seller rejects an offer, the broker must request the seller to note the rejection on the offer and return it to the offeror. What is the requirement for giving the division of regulatory boards access to escrow records? The licensee must allow access to all records at any reasonable time. Which of the following contracts must be in writing? An exclusive right to sell agreement Time-share firms must allow Commission access to records at all times. An exclusive listing agreement is governed by agency law and contract law. A listing agreement is improper unless it specifies a termination date and selling price. What is a possible penalty for a licensee who advertises as a Realtor without being a member of the National Association of Realtors? Suspension or revocation of license If a licensee offers a gift as an inducement to purchase a listed property, the offer must be in writing and disclose the fair market value of the gift. If a licensee wants to use a trade name on transaction-related documents, what information must be clearly indicated? That the office is independently owned and operated To seal a deal, licensee Jake frequently gives a client a set of golf clubs if he or she lists with him. What can be said about this strategy? Jake must have firm approval and full disclosure for gifts to be legal. When may a licensee advertise a property for sale without any supervision? When the broker owns the property and includes the designation "owner/agent" in the a The term REALTOR applies to NAR membership. What information must be included on all advertising other than that for an unlisted owner/agent property? The firm name and telephone number The two kinds of misuse of escrow accounts are commingling and conversion. When can a broker deposit his own funds into an escrow account? To maintain the account Interest-bearing escrow accounts are neither required nor prohibited. Which of the following must be specified in a contract authorizing a broker to place funds in a trustee account? Terms for disbursement of funds If a firm does not receive or handle the funds of others, which of the following is true The principal broker may receive a waiver of the requirement to maintain an escrow fund. If an escrow account earns interest, who does the interest belong to? Whoever is specified in the written agreement What kind of agency relationship is created by a listing agreement? Limited agency Which of the following agency relationships are not permitted in Tennessee? Undisclosed dual agency Agent Jim is working without a written agreement with buyer Al. This type of relationship is known as facilitator A disclaimer statement is only valid if the purchaser waives the required disclosure. Under what circumstances may a seller give the buyer a disclaimer statement rather than a disclosure statement? The buyer explicitly waives the disclosure. The licensee may be subject to legal action for failure to disclose adverse facts of which the licensee had actual knowledge. Which of the following practices would most likely be permitted under the Consumer Protection Act? Advertising that a house is for sale even though there is an offer pending What is the maximum amount the Recovery Fund might pay the seller of a property who accuses the licensee who represented him of failing to present all the offers to him? $15,000 Agent Mark frequently has his sister-in-law purchase distressed property for him in her name. What can be said about this strategy? Failure to disclose to an owner the licensee's intention is a law violation. Which of the following actions guard against creating a conflict of interest? Signed Disclosures Agent Bill frequently allow months to pass before depositing escrow monies. He is in violation of the Real Estate Licensing Act. An example of an improper listing agreement is a listing based on a net price. What is the grace period for a tenant? 5 Days