Ch. 1 - Tennessee License Law Pg. 189 - Unit 14: Tennessee Affiliate Broker Law exam with 100% correct answers

A licensee negotiates the sale of a home intended for his fiancée and himself. He properly identifies himself as a licensee to the seller but neglects to disclose that he is getting married to the buyer. Do the actions of the licensee violate the license law? Yes, because a licensee cannot purchase or negotiate the sale of property in which the licensee will have a future interest. Yes, because the licensee did not disclose his possible future interest to the seller. No, because a licensee's marital plans do not require agency disclosure. No, because a licensee is simply required to give proper real estate company identification only. Yes, because the licensee did not disclose his possible future interest to the seller. To create an agency relationship, there must be a licensed broker and an affiliate broker. a meeting of the minds. a power of attorney. a written bilateral agreement. a written bilateral agreement. Can the Commission suspend a license while the affiliate broker is under investigation in response to a complaint? Yes, the TREC can suspend a license anytime it wants. Yes, an affiliate broker's license can be suspended, but a broker's cannot. No, an investigation must be completed before the Commission can suspend a license. No, once a license has been issued, it cannot be suspended for any reason other than a felony. No, an investigation must be completed before the Commission can suspend a license. The TREC, believing a licensee has violated the law, may file a complaint only in the U.S. District Court. only in the appeals court. only in a court in the county where the act was committed. in any court of competent jurisdiction. in any court of competent jurisdiction. Broker Numberson was in the habit of preparing documents for clients. He could be liable to a charge of practicing law without a license for preparing which of the following? A listing agreement. A sworn statement. A deed. An escrow receipt. A deed. Brokers may prepare listing and sales agreements and buyer representation agreements without being considered to be practicing law without a license. However, they may not prepare deeds, installment sales contracts, mortgages or deeds of trust, or title documents, because that would be considered practicing law without a license. A new agent got permission from friends to put "for sale" signs in their yards. When buyers called in, she told them the house had sold, but she would be happy to help them find another. Is this permissible? Yes, it's simply a sales technique. Yes, as long as friends were justly compensated. No, since the properties were not really sold. No, since the properties were not really "for sale" and this is misrepresentation. No, since the properties were not really "for sale" and this is misrepresentation. When must earnest money received by the broker be deposited into an escrow or trustee account? As soon as it is received from the cooperating broker. Promptly on acceptance of the offer, or according to instructions in the offer. On the day of closing. According to instructions from the seller. Promptly on acceptance of the offer, or according to instructions in the offer. How often must a rental location agent verify that her advertised properties are still available? Every time a prospective tenant calls about an advertised property. Every time the ad is about to expire. Every day. Once a week. Every day. Claire is an affiliate broker who receives an offer on one of her listings from an agent at another firm. She is scheduled to show the property the next day, so she wants to hold the offer until after the showing, hoping to take two offers to the seller. In this case, Claire: is keeping the seller's best interest in mind because the seller can choose the better of the two offers. must present the other agent's offer promptly. should inform her seller that she may be presenting an offer or two soon. should refuse the offer from the other agent, knowing she will be showing the property the next day. must present the other agent's offer promptly. How many broker members are there on the TREC? 4 5 6 7 7 An inactive licensee refers his brother as a buyer to an out-of-state broker. How much money can he receive for a referral fee? Whatever the other broker's state law allows. 50% of the commission from the out-of-state broker. Whatever is called for in the referral agreement. None. None.