Tennessee National Portion REAL ESTATE EXAM Updated 2024/2025 Actual Questions and answers with complete solutions

A $2,400 term loan has a 10% annual interest rate. What is the monthly payment? - $20. A term loan is interest only. $2,400 × 0.10 = $240 240 ÷ 12 = $20 per month A 15-year-old boy recently inherited many parcels of real estate from his late father and has decided to sell one of them. If the boy enters into a deed conveying his interest in the property to a purchaser, such a conveyance would be - voidable A 50-year-old commercial building is located in the center of a 10-year-old residential subdivision. It is MOST likely there because it has - a nonconforming use. A bail bond lien against the real estate of a property owner who is charged with a crime that will result in a trial is a - specific, statutory, voluntary lien. A bankruptcy of the principal to an agency representation agreement will - terminate the agency by operation of law. A borrower wants to obtain a loan that will allow regular payments of principal and interest for five years and then a final balloon payment to pay off the remaining principal balance. This type of loan is known as a - partially amortized loan. A broker accepted a listing and later discovered that the client had been declared incompetent by a court. What is the current status of the listing? - the listing is of no value to the broker because the contract is void A broker asks a neighbor who wishes to sell her home if she can present an offer from a prospective buyer, and the neighbor agrees. At this point, which statement is TRUE? - the neighbor is not obligated to pay the broker a commissionA broker can agree upon which of the following with an independent contractor? - compensation the person would receive A broker enters into a listing agreement with a seller. The seller advertises and negotiates a sale contract on her house. At closing, the broker is paid a full commission. The listing agreement must have been a(n) - exclusive right to sell. A broker has established the following office policy: "All listings taken by any sales associate of this real estate brokerage must include compensation based on a 7% commission. No lower commission rate is acceptable." If the broker attempts to impose this uniform commission requirement, which statement is TRUE? - the broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm A broker in another state is NOT entitled to a referral fee from a Tennessee broker if the - broker came to Tennessee and got involved in the negotiations A broker is permitted to represent both the seller and the buyer in the same transaction when - both parties have been informed and agree in writing to the dual representation. A broker may unintentionally establish an agency relationship by means of - an implied agreement. A broker performing as a property manager who deposits the rent into his operating account is an example of - commingling. A broker receives a check for earnest money from a buyer and deposits the money in the broker's personal interest-bearing checking account over the weekend. This action exposes the broker to - a charge of commingling