TENNESSEE REAL ESTATE TEST PAPER QUESTIONS AND
ANSWERS GUARANTEE A+ 2025/2026
✔✔Class B - ✔✔Class B buildings have a lot of great features to offer tenants, but
they're a step down from Class A buildings
✔✔Class C - ✔✔Class C buildings are older, and while they can still be functional, they
are not as well maintained and are generally not located in favorable places. Price
driven buyers
✔✔Industrial Properties - ✔✔Manufacturing plants
Distribution facilities
Warehouses
Storage facilities
Research facilities
Data centers
✔✔Here are three characteristics typical of special-purpose real estate properties: -
✔✔*Often publicly owned
*Require substantial reinvestment to convert to another purpose or use
*Do not come up for sale as frequently as other property types
✔✔Special-purpose real estate can include: - ✔✔Places of worship
Schools
Recreational facilities
Cemeteries
Government-held land
✔✔The Tennessee Horizontal Property Act - ✔✔which applies to condominium
developments built prior to 2009, refers to condominium units as "apartments."
✔✔The Condominium Act - ✔✔which applies to condominium developments built after
January 1, 2009 defines units as explained below according to Tennessee Code § 66-
27-203(23):
✔✔______ _____ ______ restricted access but are still jointly owned. - ✔✔Limited
common elements
✔✔common element ex & limited common ex - ✔✔swimming pool or parking lot &
assigned parking spot or private terrace
✔✔CC&Rs - ✔✔restrictions developers can put on condos. Stand for Covenants,
Conditions and Restrictions
, ✔✔Condos have two management options - ✔✔self manage or property manage
✔✔True or False
If there are less than 50 units: The owner must provide the bylaws and CC&Rs. -
✔✔True
✔✔True or False
If there are 50 or more units: The owners association must provide the bylaws and
CC&Rs. - ✔✔True
✔✔What is unique about co-op ownership? - ✔✔Owners have shares of stock instead
of owning the unit itself.
✔✔How do co-op tenants contribute to expenses? - ✔✔Each co-op tenant pays a pro
rata share of the whole building's expenses.
✔✔Many co-ops have strict rules: - ✔✔The number of people who can live in a unit
The type and number of pets allowed
Quiet hours
Acceptable renovations
Subleasing
✔✔Fee Simple - ✔✔With fee simple ownership, the co-op corporation owns the building
and its full bundle of rights in perpetuity.
✔✔Characteristics of a Condop - ✔✔Condops contain both commercial and residential
property.
Some properties are owned as condominiums and some as cooperatives.
✔✔Planned Unit Development - ✔✔a subdivision that includes residential dwellings
along with nonresidential real estate, departing from normal zoning and subdivision
regulations.
✔✔Unlike condos, PUD ownership includes the land beneath the dwelling. - ✔✔True
✔✔Two forms of Planned Unit Development - ✔✔Fee simple interest ownership of the
individual unit (including the land beneath it)
Tenancy in common ownership of all common elements
✔✔Buyers of units in PUDs are entitled to receive what info ? - ✔✔The bylaws and
rules of the association
The declaration of CC&Rs
The master deed (upon request)
ANSWERS GUARANTEE A+ 2025/2026
✔✔Class B - ✔✔Class B buildings have a lot of great features to offer tenants, but
they're a step down from Class A buildings
✔✔Class C - ✔✔Class C buildings are older, and while they can still be functional, they
are not as well maintained and are generally not located in favorable places. Price
driven buyers
✔✔Industrial Properties - ✔✔Manufacturing plants
Distribution facilities
Warehouses
Storage facilities
Research facilities
Data centers
✔✔Here are three characteristics typical of special-purpose real estate properties: -
✔✔*Often publicly owned
*Require substantial reinvestment to convert to another purpose or use
*Do not come up for sale as frequently as other property types
✔✔Special-purpose real estate can include: - ✔✔Places of worship
Schools
Recreational facilities
Cemeteries
Government-held land
✔✔The Tennessee Horizontal Property Act - ✔✔which applies to condominium
developments built prior to 2009, refers to condominium units as "apartments."
✔✔The Condominium Act - ✔✔which applies to condominium developments built after
January 1, 2009 defines units as explained below according to Tennessee Code § 66-
27-203(23):
✔✔______ _____ ______ restricted access but are still jointly owned. - ✔✔Limited
common elements
✔✔common element ex & limited common ex - ✔✔swimming pool or parking lot &
assigned parking spot or private terrace
✔✔CC&Rs - ✔✔restrictions developers can put on condos. Stand for Covenants,
Conditions and Restrictions
, ✔✔Condos have two management options - ✔✔self manage or property manage
✔✔True or False
If there are less than 50 units: The owner must provide the bylaws and CC&Rs. -
✔✔True
✔✔True or False
If there are 50 or more units: The owners association must provide the bylaws and
CC&Rs. - ✔✔True
✔✔What is unique about co-op ownership? - ✔✔Owners have shares of stock instead
of owning the unit itself.
✔✔How do co-op tenants contribute to expenses? - ✔✔Each co-op tenant pays a pro
rata share of the whole building's expenses.
✔✔Many co-ops have strict rules: - ✔✔The number of people who can live in a unit
The type and number of pets allowed
Quiet hours
Acceptable renovations
Subleasing
✔✔Fee Simple - ✔✔With fee simple ownership, the co-op corporation owns the building
and its full bundle of rights in perpetuity.
✔✔Characteristics of a Condop - ✔✔Condops contain both commercial and residential
property.
Some properties are owned as condominiums and some as cooperatives.
✔✔Planned Unit Development - ✔✔a subdivision that includes residential dwellings
along with nonresidential real estate, departing from normal zoning and subdivision
regulations.
✔✔Unlike condos, PUD ownership includes the land beneath the dwelling. - ✔✔True
✔✔Two forms of Planned Unit Development - ✔✔Fee simple interest ownership of the
individual unit (including the land beneath it)
Tenancy in common ownership of all common elements
✔✔Buyers of units in PUDs are entitled to receive what info ? - ✔✔The bylaws and
rules of the association
The declaration of CC&Rs
The master deed (upon request)
