Final Exam TN Real Estate Course
Questions
A Tennessee licensee must use the "Exclusive Right to Sell" form
required by the licensee's broker.
According to the level of authority delegated to the agent, the usual real estate
agency is a
limited agency.
When must the contract be in writing?
John is agreeing to sell his shed to Shawn for $1,000.
One disadvantage in using active listings for comparables is
they provide somewhat dubious comparisons because listing prices are not selling
prices.
Why is it sometimes necessary to include a bill of sale with a purchase contract?
A bill of sale confirms that all promised inclusions are in fact part of the conveyance.
Prior to the acceptance of a purchase contract, the seller must provide the buyer
with a written property condition disclosure if
the property is a residential property of less than 5 units.
Which HUD document provides information to builders regarding fair housing
compliance?
Fair Housing Act Accessibility Guidelines
The two restraints of trade of most concern to real estate brokers are
conspiracies to fix prices and
group boycotts.
The payment amount a borrower makes periodically to a lender consists of
a portion of principal and a portion of interest.
If a loan is subject to RESPA, the lender must give the borrower an estimate of
closing costs
within three days of receiving the loan application.
"Farming" is the practice of
prospecting for business in a selected area.
___________ is normally the single most important element in a home's value.
Location
______________ property is land or improved property with buildings designed
for humans to live in, such as single-family homes, apartments, or
condominiums.
Residential
When does a purchase and sale agreement become enforceable?
At time of offer delivery and acceptance by seller
Which of the following is subject to the requirements of RESPA?
A single-family home purchase financed by a federally-insured loan
A licensee found guilty of engaging in the unauthorized practice of law could face
suspension of license.
An affiliate broker's license should be displayed
in her broker's principle place of business.
, Among the primary sources of real estate ethics and standards is
state real estate licensing regulation.
In contract law, which of the following is NOT required for the contract to be
valid?
Both parties to the contract must be 21 years old.
In Tennessee, all advertising for real property must
be under the firm's name.
Honestly representing property condition is a duty a licensee owes to
clients and customers.
How can a licensee be at risk when disclosing an agency relationship?
If the licensee fails to inform and disclose properly
Earnest money must be deposited into an escrow account "promptly" upon
acceptance of an offer unless stated otherwise. "Promptly" usually means
within 72 hours.
Which of the following statements is true?
Proper disclosures prevent clients from claiming they were misled.
Which of the following statements is false?
An agent may enter into a legally binding oral agency relationship with a client.
Which of the following is not an area of risk in terms of unintentional
misrepresentation?
Stating that a client should seek legal counsel.
Cancellation and discharge of a contract includes all of the following EXCEPT
Revocation without repercussions
FHA guidelines require the income ratio on a mortgage loan to be
no more than 29%
What is a property manager's most important duty?
To maximize ROI for the property owner
What are the two ways escrow funds are most often misused?
Commingling and conversion
The Tennessee Landlord and Tenant Act allows the landlord to enter the
premises in any of the following situations EXCEPT
to quiet down noisy tenants.
What is the primary method for transferring risk in real estate transactions?
Carrying an Errors & Omissions policy
What is the amount a lender normally requires to be included for taxes and
insurance in a borrower's monthly mortgage payment?
1/12th of the annual real estate taxes and hazard insurance payment
Upon execution of the contract, a licensee should provide all signatories with
copies of any listing or contract relevant to the real estate transaction.
A broker has an agency relationship with a client. An affiliate broker is working as
that broker's agent. This kind of agency is called
subagency.
Strategies for managing risk fall into all except which of the following categories?
Protection
An owner is not liable for errors and omissions in the condition disclosure
provided
Questions
A Tennessee licensee must use the "Exclusive Right to Sell" form
required by the licensee's broker.
According to the level of authority delegated to the agent, the usual real estate
agency is a
limited agency.
When must the contract be in writing?
John is agreeing to sell his shed to Shawn for $1,000.
One disadvantage in using active listings for comparables is
they provide somewhat dubious comparisons because listing prices are not selling
prices.
Why is it sometimes necessary to include a bill of sale with a purchase contract?
A bill of sale confirms that all promised inclusions are in fact part of the conveyance.
Prior to the acceptance of a purchase contract, the seller must provide the buyer
with a written property condition disclosure if
the property is a residential property of less than 5 units.
Which HUD document provides information to builders regarding fair housing
compliance?
Fair Housing Act Accessibility Guidelines
The two restraints of trade of most concern to real estate brokers are
conspiracies to fix prices and
group boycotts.
The payment amount a borrower makes periodically to a lender consists of
a portion of principal and a portion of interest.
If a loan is subject to RESPA, the lender must give the borrower an estimate of
closing costs
within three days of receiving the loan application.
"Farming" is the practice of
prospecting for business in a selected area.
___________ is normally the single most important element in a home's value.
Location
______________ property is land or improved property with buildings designed
for humans to live in, such as single-family homes, apartments, or
condominiums.
Residential
When does a purchase and sale agreement become enforceable?
At time of offer delivery and acceptance by seller
Which of the following is subject to the requirements of RESPA?
A single-family home purchase financed by a federally-insured loan
A licensee found guilty of engaging in the unauthorized practice of law could face
suspension of license.
An affiliate broker's license should be displayed
in her broker's principle place of business.
, Among the primary sources of real estate ethics and standards is
state real estate licensing regulation.
In contract law, which of the following is NOT required for the contract to be
valid?
Both parties to the contract must be 21 years old.
In Tennessee, all advertising for real property must
be under the firm's name.
Honestly representing property condition is a duty a licensee owes to
clients and customers.
How can a licensee be at risk when disclosing an agency relationship?
If the licensee fails to inform and disclose properly
Earnest money must be deposited into an escrow account "promptly" upon
acceptance of an offer unless stated otherwise. "Promptly" usually means
within 72 hours.
Which of the following statements is true?
Proper disclosures prevent clients from claiming they were misled.
Which of the following statements is false?
An agent may enter into a legally binding oral agency relationship with a client.
Which of the following is not an area of risk in terms of unintentional
misrepresentation?
Stating that a client should seek legal counsel.
Cancellation and discharge of a contract includes all of the following EXCEPT
Revocation without repercussions
FHA guidelines require the income ratio on a mortgage loan to be
no more than 29%
What is a property manager's most important duty?
To maximize ROI for the property owner
What are the two ways escrow funds are most often misused?
Commingling and conversion
The Tennessee Landlord and Tenant Act allows the landlord to enter the
premises in any of the following situations EXCEPT
to quiet down noisy tenants.
What is the primary method for transferring risk in real estate transactions?
Carrying an Errors & Omissions policy
What is the amount a lender normally requires to be included for taxes and
insurance in a borrower's monthly mortgage payment?
1/12th of the annual real estate taxes and hazard insurance payment
Upon execution of the contract, a licensee should provide all signatories with
copies of any listing or contract relevant to the real estate transaction.
A broker has an agency relationship with a client. An affiliate broker is working as
that broker's agent. This kind of agency is called
subagency.
Strategies for managing risk fall into all except which of the following categories?
Protection
An owner is not liable for errors and omissions in the condition disclosure
provided
