REAL ESTATE TN STATE EXAM WITH CORRECT ACTUAL
QUESTIONS AND A+ GRADED ANSWERS
In Tennessee, who is required to hold a real estate license? -
Answer Although there are some exemptions, a real estate license is generally
required before anyone can offer to list, sell, purchase, negotiate, lease, or manage real
estate on behalf of someone else for a fee. One must hold a real estate license before
initiating a suit or action for compensation for performing a real estate activity.
What is the most important exemption from the licensing requirements? -
Answer The most important exemption is the person who acts on his or her own
behalf. Any person can list, buy, rent, or sell his or her own property. The state does not
regulate such a transaction, if the owner makes a mistake, the owner must take
responsibility, no one else. Certain other individuals are exempt as follows:
• Person holding a valid power of attorney from the owner or lessor • Executors,
administrators, trustees acting under a deed of trust or trust agreement, or any other
persons acting under a court order or instrument
• Attorney at law while performing duties as an attorney
• Resident manager for an owner or broker or an employee of the broker with limited
authority
• Officer of a corporation authorized to handle real estate matters for the corporation, as
long as he or she is salaried
Does Tennessee recognize licensure in other states? -
Answer Reciprocity agreements exist between Tennessee and states that have
licensing requirements similar to those of Tennessee and where similar recognition and
courtesies are extended to each other Tennessee will reciprocate with any state that will
agree to reciprocate with Tennessee. Tennessee has reciprocity agreements with 21
states, including most of Tennessee's bordering states. Licensed nonresidents in these
reciprocity states may be granted a Tennessee license without passing Tennessee's
examination. (It is important to note that these agreements change from time to time.
For complete current regulations contact the specific state regulatory body.) However,
the licensee's brokerage has to have an active place of business within his or her home
state and the requesting licensee's broker must have a valid Tennessee license. In
addition, applicants must prove "active" licensure (by examination) in the reciprocal
state and have no charges pending against them. The licensee must complete an
, application form, sign an affidavit indicating familiarity with Tennessee license Law, and
sign an irrevocable consent that lawsuits and actions may be brought against him or her
in the proper court of any Tennessee county in which a cause of action may arise.
Simply stated, if a legal action is initiated, the licensee cannot request a change of
venue. If the home-state license of a nonresident Tennessee licensee is revoked or
suspended. the licensee must notify TREC. A hearing may be held to determine
whether similar disciplinary action should he taken against the Tennessee licensee.
What is the difference between an affiliate broker and a principal broker? -
Answer a.) An affiliate broker is typically a sales person
b.) A principal broker is responsible for all licensees in their firm
c.) A principal can also be a sales person
Can there be more than one broker in any given office? -
Answer Real estate licensees start out with an affiliate broker's license working under
the direct supervision of an employing, principal broker. Tennessee law requires that a
person must have been actively licensed as an affiliate broker for at least 36 months if
licensed after May 12. 1988. This time may be reduced to 24 months or 12 months,
respectively. if the applicant has a baccalaureate degree with a major in real estate.
There is only one principal broker in any office. When the license law refers to a broker
it is referring to this individual. The other licensees in the office may hold either an
affiliate brokers' licenses or a broker's license affiliated with the principal broker. The
principal broker may be the owner or a manager. The broker is responsible for the trust
account and for the real estate activities conducted by the associates in this office. The
public has the right to know that there is a person in charge locally. Even if the office is
owned by another entity in another city, the local broker is responsible for the trust
moneys held by' that office and the activities of each person licensed in that office. All
brokerage contracts are in the name of the broker
Can a corporation or partnership receive a real estate license? -
Answer A partnership association or corporation may be granted a firm license. At
least one member, who will be the principal broker has to hold a broker's license. The
basic requirements for a real estate license are: An applicant must be al least 18 years;
of age. The applicant must hold a high school diploma or GED. A copy must be
submitted when applying for the original license. In addition, pre-licensing education and
testing are required to ensure the applicants competency (discussed below). The
applicant must include with the application a sworn statement by tile principal broker
certifying the-in the broker's opinion. the applicant is honest and trustworthy' and that
the broker will actively supervise and train the applicant during the period that the
license remains in effect. The applicant does not have to be a U.S. citizen. Tennessee
requires a 45-day residency in the state. However, a person may be licensed under a
Tennessee broker if he or she does not live farther than 50 miles from the broker's
office, even if the applicant lives in another state
QUESTIONS AND A+ GRADED ANSWERS
In Tennessee, who is required to hold a real estate license? -
Answer Although there are some exemptions, a real estate license is generally
required before anyone can offer to list, sell, purchase, negotiate, lease, or manage real
estate on behalf of someone else for a fee. One must hold a real estate license before
initiating a suit or action for compensation for performing a real estate activity.
What is the most important exemption from the licensing requirements? -
Answer The most important exemption is the person who acts on his or her own
behalf. Any person can list, buy, rent, or sell his or her own property. The state does not
regulate such a transaction, if the owner makes a mistake, the owner must take
responsibility, no one else. Certain other individuals are exempt as follows:
• Person holding a valid power of attorney from the owner or lessor • Executors,
administrators, trustees acting under a deed of trust or trust agreement, or any other
persons acting under a court order or instrument
• Attorney at law while performing duties as an attorney
• Resident manager for an owner or broker or an employee of the broker with limited
authority
• Officer of a corporation authorized to handle real estate matters for the corporation, as
long as he or she is salaried
Does Tennessee recognize licensure in other states? -
Answer Reciprocity agreements exist between Tennessee and states that have
licensing requirements similar to those of Tennessee and where similar recognition and
courtesies are extended to each other Tennessee will reciprocate with any state that will
agree to reciprocate with Tennessee. Tennessee has reciprocity agreements with 21
states, including most of Tennessee's bordering states. Licensed nonresidents in these
reciprocity states may be granted a Tennessee license without passing Tennessee's
examination. (It is important to note that these agreements change from time to time.
For complete current regulations contact the specific state regulatory body.) However,
the licensee's brokerage has to have an active place of business within his or her home
state and the requesting licensee's broker must have a valid Tennessee license. In
addition, applicants must prove "active" licensure (by examination) in the reciprocal
state and have no charges pending against them. The licensee must complete an
, application form, sign an affidavit indicating familiarity with Tennessee license Law, and
sign an irrevocable consent that lawsuits and actions may be brought against him or her
in the proper court of any Tennessee county in which a cause of action may arise.
Simply stated, if a legal action is initiated, the licensee cannot request a change of
venue. If the home-state license of a nonresident Tennessee licensee is revoked or
suspended. the licensee must notify TREC. A hearing may be held to determine
whether similar disciplinary action should he taken against the Tennessee licensee.
What is the difference between an affiliate broker and a principal broker? -
Answer a.) An affiliate broker is typically a sales person
b.) A principal broker is responsible for all licensees in their firm
c.) A principal can also be a sales person
Can there be more than one broker in any given office? -
Answer Real estate licensees start out with an affiliate broker's license working under
the direct supervision of an employing, principal broker. Tennessee law requires that a
person must have been actively licensed as an affiliate broker for at least 36 months if
licensed after May 12. 1988. This time may be reduced to 24 months or 12 months,
respectively. if the applicant has a baccalaureate degree with a major in real estate.
There is only one principal broker in any office. When the license law refers to a broker
it is referring to this individual. The other licensees in the office may hold either an
affiliate brokers' licenses or a broker's license affiliated with the principal broker. The
principal broker may be the owner or a manager. The broker is responsible for the trust
account and for the real estate activities conducted by the associates in this office. The
public has the right to know that there is a person in charge locally. Even if the office is
owned by another entity in another city, the local broker is responsible for the trust
moneys held by' that office and the activities of each person licensed in that office. All
brokerage contracts are in the name of the broker
Can a corporation or partnership receive a real estate license? -
Answer A partnership association or corporation may be granted a firm license. At
least one member, who will be the principal broker has to hold a broker's license. The
basic requirements for a real estate license are: An applicant must be al least 18 years;
of age. The applicant must hold a high school diploma or GED. A copy must be
submitted when applying for the original license. In addition, pre-licensing education and
testing are required to ensure the applicants competency (discussed below). The
applicant must include with the application a sworn statement by tile principal broker
certifying the-in the broker's opinion. the applicant is honest and trustworthy' and that
the broker will actively supervise and train the applicant during the period that the
license remains in effect. The applicant does not have to be a U.S. citizen. Tennessee
requires a 45-day residency in the state. However, a person may be licensed under a
Tennessee broker if he or she does not live farther than 50 miles from the broker's
office, even if the applicant lives in another state
