PSI TN (STATE) EXAM QUESTIONS
WITH VERIFIED ANSWERS
Broker Protection Clause - Answer-Clause in a contract that protects a broker from
losing a commission in the event a transaction is not completed or is intentionally
delayed until after the listing expires.
referral fee - Answer-You can't give them money
A Bonus from a really happy seller for being a great agent should go to who? -
Answer-You have to tell them to give it to your Broker
Listing a commercial property when you know nothing about it, what do you do? -
Answer-Admit you don't know anything about Commercial real estate or get the
assistance of someone who does know what they are doing.
Never sign a document for another person without getting what? - Answer-Power of
Attorney
(You become the Attorney In Fact)
Anit-Trust Laws - Answer-Allocation of customers or Markets
Price Fixing
Price Fixing - Answer-An agreement among firms or brokers to charge one price for
the same good
Group Boycott
(Illegal in violation of Federal Anti-Trust Laws)
What is the going rate for a commission in this area? - Answer-It's Negoitable
Tie-in agreements - Answer-are agreements to sell one product only if the buyer
purchases another product as well. The sale of the first (desired) product is "tied" to
the purchase of a second, less desirable, product. Tie-in agreements are illegal.
Sherman Antitrust Act - Answer-an 1890 law that banned the formation of trusts and
monopolies in the United States
FHA (Federal Housing Administration) - Answer-[Recovery] Insured mortgage loans,
thus guaranteeing their repayment.
A real estate broker may do which of these - Answer-solicit listing in a minority
neighborhood
******STATE LAW STARTS HERE****** - Answer-******STATE LAW STARTS
HERE******
, Acquisition Agent - Answer-attempts directly to encourage any person to attend a
sales presentation for a time-share program
Adverse Facts - Answer-Something bad you know about the property thats HAS to
be disclosed
Affiliate Broker - Answer-any person engaged under contract by or on behalf of a
licensed broker.
Broker - Answer-Licensee who is paid directly for a transaction in real estate
Designated Agent
(appointed only by the broker - Answer-In case a brokerage firm is agent for both a
seller and a buyer, the firm sometimes designates one salesperson to serve the
buyer and one to serve the seller. The two salespersons are presumed to maintain
the privacy, and serve the interest of the party they represent.
faciliator - Answer-when an agent provides general services to both the buyer and
seller but DOES NOT represent either party
Dual Agent - Answer-One broker representing both the buyer & the seller in a single
transaction
In TN Verbal and Implied Agencies are what___________?
(Has to be in writing/ written contract) - Answer-NOT Permitted
Time-share salesperson - Answer-A licensee who, either as an employee or
independent contractor, sells time-shares under the supervision of a broker.
For sale by owner - Answer-owner of property that can sell it without a license due to
their freehold
Resident Manager - Answer-An individual, usually living in the building, who handles
all of the day-to-day problems in the building.
(do not have to license)
Does the same exception (Not being forced to have a license) apply to LLC? -
Answer-NO, LLC's have to have a license, corporations on the other hand do not.
Tennessee is divided into what? - Answer-Horizontal 3 grand divisions
East- 3 mems
Middle- 3 mems
West- 3 mems
The agent has how long is the Response Time to tell the commission their side of a
complaint? - Answer-10 days
Today the commission is going to revoke a license, however two (out of the 9 in
total) of the commissioners are sick and unable to attend what will happen? -
WITH VERIFIED ANSWERS
Broker Protection Clause - Answer-Clause in a contract that protects a broker from
losing a commission in the event a transaction is not completed or is intentionally
delayed until after the listing expires.
referral fee - Answer-You can't give them money
A Bonus from a really happy seller for being a great agent should go to who? -
Answer-You have to tell them to give it to your Broker
Listing a commercial property when you know nothing about it, what do you do? -
Answer-Admit you don't know anything about Commercial real estate or get the
assistance of someone who does know what they are doing.
Never sign a document for another person without getting what? - Answer-Power of
Attorney
(You become the Attorney In Fact)
Anit-Trust Laws - Answer-Allocation of customers or Markets
Price Fixing
Price Fixing - Answer-An agreement among firms or brokers to charge one price for
the same good
Group Boycott
(Illegal in violation of Federal Anti-Trust Laws)
What is the going rate for a commission in this area? - Answer-It's Negoitable
Tie-in agreements - Answer-are agreements to sell one product only if the buyer
purchases another product as well. The sale of the first (desired) product is "tied" to
the purchase of a second, less desirable, product. Tie-in agreements are illegal.
Sherman Antitrust Act - Answer-an 1890 law that banned the formation of trusts and
monopolies in the United States
FHA (Federal Housing Administration) - Answer-[Recovery] Insured mortgage loans,
thus guaranteeing their repayment.
A real estate broker may do which of these - Answer-solicit listing in a minority
neighborhood
******STATE LAW STARTS HERE****** - Answer-******STATE LAW STARTS
HERE******
, Acquisition Agent - Answer-attempts directly to encourage any person to attend a
sales presentation for a time-share program
Adverse Facts - Answer-Something bad you know about the property thats HAS to
be disclosed
Affiliate Broker - Answer-any person engaged under contract by or on behalf of a
licensed broker.
Broker - Answer-Licensee who is paid directly for a transaction in real estate
Designated Agent
(appointed only by the broker - Answer-In case a brokerage firm is agent for both a
seller and a buyer, the firm sometimes designates one salesperson to serve the
buyer and one to serve the seller. The two salespersons are presumed to maintain
the privacy, and serve the interest of the party they represent.
faciliator - Answer-when an agent provides general services to both the buyer and
seller but DOES NOT represent either party
Dual Agent - Answer-One broker representing both the buyer & the seller in a single
transaction
In TN Verbal and Implied Agencies are what___________?
(Has to be in writing/ written contract) - Answer-NOT Permitted
Time-share salesperson - Answer-A licensee who, either as an employee or
independent contractor, sells time-shares under the supervision of a broker.
For sale by owner - Answer-owner of property that can sell it without a license due to
their freehold
Resident Manager - Answer-An individual, usually living in the building, who handles
all of the day-to-day problems in the building.
(do not have to license)
Does the same exception (Not being forced to have a license) apply to LLC? -
Answer-NO, LLC's have to have a license, corporations on the other hand do not.
Tennessee is divided into what? - Answer-Horizontal 3 grand divisions
East- 3 mems
Middle- 3 mems
West- 3 mems
The agent has how long is the Response Time to tell the commission their side of a
complaint? - Answer-10 days
Today the commission is going to revoke a license, however two (out of the 9 in
total) of the commissioners are sick and unable to attend what will happen? -
