TN Real Estate exam latest update with 100% correct answers already graded A+

coordinate inspections and deliver documents and escrow monies to the appropriate attorney a broker or affiliate broker may perform all of the following in preparation for the closing EXCEPT may conduct the closing a broker decides he wants to conduct the closing on a all-cash sales of a property between his clients, the seller, and the buyer, his customer. with these parties, the broker receive up to $50K from the real estate education and recovery account for the full judgment amount plus court costs and attorney's fees an aggrieved person is awarded a judgment against a real estate licensee for violation of the Tennessee Real Estate Broker Act of 1973. Regarding the real estate education and recovery account, the aggrieved party has the right to provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee violating the license law or committing other illegal acts related to a real estate transaction the purpose of the Tennessee Real Estate Education and Recovery Account is $15K the maximum liability of the Tennessee Real Estate Education and Recovery Account for any single transaction, regardless of the number of persons aggrieved or parcels of real estate involved in such transaction, shall not exceed $30K a real estate licensee ( broker, affiliate broker, or time share salesperson) is found financially liable in four law suits involving several different transactions. The court orders payment from the Real Estate Education and Recovery Account for the judgments. What is the maximum that can be paid to the consumers of behalf of the broker affiliate broker, or time share salesperson for these judgments licensee must repay the full amount plus interest to the account if his or her license is to be reinstated. whenever the commission is required to satisfy a claim against a licensee with money from the real estate education and recovery account, they may revoke the licensee's license. In the event that this happens, the $500,000 what is the minimum balance of the Tennessee Real Estate Education and Recovery Account the licensee's license may be suspended or revoked, at the discretion of the commission after proper investigation or upon a court order to the commission, payment is made from the real estate education and recovery account due to the improper activities of a license. what happens when the payment is made? no, the firm is not required to have insurance, only the licensees a broker of a firm has errors and omissions insurance for herself. Is E&O insurance also required on the firm? no, his insurance will not cover the claim against him an affiliate renewed his license and E&O insurance two months late and paid the required penalty fees. he is now being sued for an event that happened during the last licensing period. He was insured when the event occurred and is insured as the lawsuit is being filed against him. Is the affiliate covered by insurance for this event? no, licensees, who have their licenses in temporary retirement are not required to carry E&O insurance a licensed broker has decided to put her license in temporary retirement. is the broker required to continue to carry E&O insurance the requirement for these licensees to have insurance is void until such time that is is available the commission was unable to obtain E&O insurance for all licensees who chose to participate in the insurance program. in this situation the company will represent Broker Z, but is only required to pay a claim up to the amount that they were willing to settle for out of court. any amount over that will be at broker Z's expense broker Z's client, the purchaser, is suing Broker Z for misstating the square footage of the home that was purchased. Broker Z's errors and omissions insurance company wants to settle the claim without going to court and Broker Z refuses the company's request, insisting the claim is excessive. Which of the following is true? the listing agent has no duty to inform a buyer, buyer's agent, or facilitator showing the property about the water settlement under the building if it has dried up and does not appear to have caused any damage when listing a property, a listing agent observed water pooling under the conventional foundation of the building during a rainstorm. three days later, the water dried up an did not return. there has been no rainfall since that date. in the showing and sale of the property, all of the following statements are true EXCEPT that may show property to the buyer and treat him as a customer a buyer wants to see a house listed by XYZ Realty. Affiliate Broker K of XYZ Realty greets the buyer and offers to show the property for sale for his broker. in this situation, affiliate Broker K K may not tell her seller that the buyer was willing to pay full price K, an affiliate broker of XYZ Realty, meets a customer who inquires about K's listing. The buyer told K that he was willing to pay full price for the property and then asked if K would represent him. K then advised him that she was the seller's agent and would show him the property, but would only treat him as a customer. After looking at the property, the buyer requested that she write up the offer for less than the listed price. Which of the following is correct? K must first execute a bilateral agency agreement with the buyer to establish the buyer agency relationship the prospective buyer asked affiliate broker K if she would be his agent to assist and advise him in the purchase of a residence. What action should K take to establish a buyer agency with this prospective buyer? Zero new affiliate broker J just received his Tennessee license and posted it on the broker's office wall. The broker explained the commission split that J would make and told him he was now an agent of the company. No written agreements were signed between the broker and affiliate broker J. During the next 2 weeks J gave 6 listing presentations to sellers and obtained four listings for the company. As a result of J's outstanding performance how many new listings does the company now have? neither the buyer nor the seller. There has been no creation of agency status regarding the agency status of a "facilitator" a facilitator represents single agency as a buyer's agent a broker's real estate company only represents buyers and does not list property for sale. The broker requires that all agents within the company only work with buyers who will sign a buyer agency agreement. They further agree in the contract to never default to another status or request a change in their relationship with the buyer. What form of agency does this establish? no one a real estate broker verbally tells the buyer that the broker will be his agent. the broker then shows the buyer a property listed with another firm and writes and offer that is accepted. later, the buyer pays a commission to the broker. tho did the broker represent? misrepresented himself the broker in XYZ Realty has obtained and agency listing for the company to sell a dental office. a customer called about the property and wants to look at it. the brokers tells the customer that since he has no written agency agreement with the customer, he will show it as a facilitator. prior to preparing the offer, the broker has the customer acknowledge his facilitator status in writing and gives the customer a copy of the written disclosure statement, in this scenario, the broker the broker did nothing wrong and the complaint is frivolous after a sales call, a buyer came to the office. the broker gave the prospect the state-required pamphlet explaining the duties owed to to a customer and a client. the broker never offered to serve as the buyer's agent. the broker sold the buyer, P, a property that was listed through the broker's firm. prior to showing the property that was listed through the broker disclosed his seller's agency status and the buyer signed the disclosure form prior to the reparation of the offer. a month after the buyer purchased the property, he complained to the commission that the broker should have offered to represent him. what penalty may the commission levy against the broker for this actions? obtain written permission from both clients to serve as both a landlord agent and a tenant agent within the same real estate firm. 2 different affiliate brokers obtained agency contracts for their company. one agency agreement was with a landlord to lease office space. the other agency agreement was with a tenant to find office space. all of the following are ways to show the landlord client's the office space to the tenant client EXCEPT community property rights Tennessee law requires all of the following forms of ownership EXCEPT conventional life estates which of the following life estates are recognized in Tennessee legislature who determines the rate of the transfer tax