Tennessee State Exam Practice Questions with Verified
Solutions
The terms of the _______ determine who receives the earnest money.
contract
Woody wanted to work for the new broker in town, so he filed the paperwork
necessary to affiliate with a new broker. What will happen to his three listings and
two buyer clients?
They remain with Woody's original broker, unless the broker agrees to other
arrangements in writing.
Who's entitled to reimbursement from the Real Estate Education and Recovery
Account?
A member of the public who's been granted a judgment against a licensee
Ralph is a broker whose license was suspended when one of his affiliated
brokers committed a violation. This is mostly likely because ______.
Ralph either knew about the violation or is guilty of failure to supervise
What are the requirements for advertising real estate in Tennessee?
You must make it clear you are a real estate agent;
Your managing broker's information must also be included;
The firm's name and phone number must be placed in the ad (you can include yours as
well);
Everything must be honest and nothing can be misleading or deceptive.
Two members of the Tennessee Real Estate Commission, Barb and Jeff,
represent the public at large. Besides not being real estate licensees, what else
do we know about Barb and Jeff?
They don't live in the same part of the state
Tamara is assisting a buyer who's making an offer on her client's listing. Tamara
and the buyer develop a good rapport, and in her desire to be helpful, Tamara
offers the buyer advice about how to structure her offer. What does Tamara risk
being charged with?
Undisclosed dual agency
A Tennessee license expired more than 120 days but less than one year due to
failure to comply will be subject to an additional penalty fee of ______ .
$100 per 30 day period
How many hours of continuing education must you complete to renew your
license for another two years?
16 hours
Samantha is an affiliate broker working for Pigeon Forge Best Realty. While she's
affiliated with the firm, all her listings and buyer representation agreements are
done in _______ .
Her broker's name
What does it mean to affiliate with a broker?
You will work as the agent of a broker who is responsible for your actions and required
to supervise you.
, Which of the following is a true statement about transactional recordkeeping
requirements in Tennessee?
A) Electronic recordkeeping isn't allowed.
B) Hard copies must be kept for three years, electronic records for two years.
C) Hard copy recordkeeping is preferred.
D) Licensees must produce records within 24 hours of a TREC request.
D) Licensees must produce records within 24 hours of a TREC request.
What is a net listing?
The seller specifies a price desired for the property and agrees to pay the broker any
amount received that's more than that price.
In other words, a seller says "I'll sell my property for a MINIMUM of X amount." The
agent's commission then becomes the difference between X amount and the larger sum
that the property sold for.
Gary is the listing agent for the Turners, who are downsizing. An affiliate broker
at his firm, Randa, has a trade-up buyer who seems like a perfect fit for the
Turners' house. Both the Turners and Randa's buyer have signed designated
agency agreements with Gary and Randa respectively. If the in-house transaction
proceeds, who will be the dual agent?
No one; no ONE agent is representing both the buyer and seller clients. It does not
matter if the buyer and seller agents are from the same firm, as long as they are not the
same person.
In Tennessee, how long must electronic real estate forms be kept with the
broker?
Three years
What happens when a broker signs a change of affiliate form for a licensee?
All supervisory responsibility for that licensee ceases.
Which of the following statements is true regarding timeshare estates in
Tennessee?
A) Timeshare estates are illegal.
B) Timeshare estates can be sold or passed down to heirs.
C) Timeshare estates cannot be passed down to heirs.
D) Timeshare estates cannot be sold.
B) Timeshare estates can be sold or passed down to heirs.
Dolly is a real estate salesperson. She placed an advertisement online that
includes her name, the firm's number, city and state where her brokerage is
located, and the county where her brokerage is licensed. What element did she
leave off that must be included?
Brokerage name
The Tennessee Real Estate Broker License Act of 1973 protects consumers
against real estate licensees who ______.
Use lies, misrepresentations, fraud, or other deceptive practices or acts to advertise or
sell real estate
All funds entrusted to a Tennessee licensee on behalf of another party in the
practice of real estate are by definition __________.
trust funds
Solutions
The terms of the _______ determine who receives the earnest money.
contract
Woody wanted to work for the new broker in town, so he filed the paperwork
necessary to affiliate with a new broker. What will happen to his three listings and
two buyer clients?
They remain with Woody's original broker, unless the broker agrees to other
arrangements in writing.
Who's entitled to reimbursement from the Real Estate Education and Recovery
Account?
A member of the public who's been granted a judgment against a licensee
Ralph is a broker whose license was suspended when one of his affiliated
brokers committed a violation. This is mostly likely because ______.
Ralph either knew about the violation or is guilty of failure to supervise
What are the requirements for advertising real estate in Tennessee?
You must make it clear you are a real estate agent;
Your managing broker's information must also be included;
The firm's name and phone number must be placed in the ad (you can include yours as
well);
Everything must be honest and nothing can be misleading or deceptive.
Two members of the Tennessee Real Estate Commission, Barb and Jeff,
represent the public at large. Besides not being real estate licensees, what else
do we know about Barb and Jeff?
They don't live in the same part of the state
Tamara is assisting a buyer who's making an offer on her client's listing. Tamara
and the buyer develop a good rapport, and in her desire to be helpful, Tamara
offers the buyer advice about how to structure her offer. What does Tamara risk
being charged with?
Undisclosed dual agency
A Tennessee license expired more than 120 days but less than one year due to
failure to comply will be subject to an additional penalty fee of ______ .
$100 per 30 day period
How many hours of continuing education must you complete to renew your
license for another two years?
16 hours
Samantha is an affiliate broker working for Pigeon Forge Best Realty. While she's
affiliated with the firm, all her listings and buyer representation agreements are
done in _______ .
Her broker's name
What does it mean to affiliate with a broker?
You will work as the agent of a broker who is responsible for your actions and required
to supervise you.
, Which of the following is a true statement about transactional recordkeeping
requirements in Tennessee?
A) Electronic recordkeeping isn't allowed.
B) Hard copies must be kept for three years, electronic records for two years.
C) Hard copy recordkeeping is preferred.
D) Licensees must produce records within 24 hours of a TREC request.
D) Licensees must produce records within 24 hours of a TREC request.
What is a net listing?
The seller specifies a price desired for the property and agrees to pay the broker any
amount received that's more than that price.
In other words, a seller says "I'll sell my property for a MINIMUM of X amount." The
agent's commission then becomes the difference between X amount and the larger sum
that the property sold for.
Gary is the listing agent for the Turners, who are downsizing. An affiliate broker
at his firm, Randa, has a trade-up buyer who seems like a perfect fit for the
Turners' house. Both the Turners and Randa's buyer have signed designated
agency agreements with Gary and Randa respectively. If the in-house transaction
proceeds, who will be the dual agent?
No one; no ONE agent is representing both the buyer and seller clients. It does not
matter if the buyer and seller agents are from the same firm, as long as they are not the
same person.
In Tennessee, how long must electronic real estate forms be kept with the
broker?
Three years
What happens when a broker signs a change of affiliate form for a licensee?
All supervisory responsibility for that licensee ceases.
Which of the following statements is true regarding timeshare estates in
Tennessee?
A) Timeshare estates are illegal.
B) Timeshare estates can be sold or passed down to heirs.
C) Timeshare estates cannot be passed down to heirs.
D) Timeshare estates cannot be sold.
B) Timeshare estates can be sold or passed down to heirs.
Dolly is a real estate salesperson. She placed an advertisement online that
includes her name, the firm's number, city and state where her brokerage is
located, and the county where her brokerage is licensed. What element did she
leave off that must be included?
Brokerage name
The Tennessee Real Estate Broker License Act of 1973 protects consumers
against real estate licensees who ______.
Use lies, misrepresentations, fraud, or other deceptive practices or acts to advertise or
sell real estate
All funds entrusted to a Tennessee licensee on behalf of another party in the
practice of real estate are by definition __________.
trust funds
