Free Tennessee Real Estate Practice Exam Questions (November 2024) 40+

“No licensees who hold themselves out as a team, group, or similar entity within a firm shall receive compensation from anyone other than their principal broker for the performance of any acts specified in.” Per T.C.A. Title 62, Chapter 13.

“The account is maintained by the Tennessee Real Estate Commission (“the Commission”) with a minimum balance of five hundred thousand dollars ($500,000.00).” Per Tennessee Department of Commerce.

Tennessee is a title theory state. In title theory states the lender holds title to the property in the name of the borrower through a Deed of Trust. When the loan is paid in full, the lender issues and records a Deed of Reconveyance, which clears the title of the property.

Without delay. 1260-02-09 states that Trust Money shall be disbursed in a proper manner without “unreasonable delay.”

Tennessee is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

The Tennessee Real Estate Commission is responsible for ensuring that Tennessee licensees are able to safely help the public with real estate transactions.

All of the following actions are allowed aside from discussing or explaining listings, offers, contracts, or other similar matters with persons outside the firm. Per Tennessee Department of Commerce.

Inactive licensees are NOT required to maintain Errors and Omissions Insurance. “A licensee who places his license in inactive or retired status is not required to carry errors and omissions insurance until such time as his license is activated.” Per 1260-01-.15 Errors and Omission Coverage.

"Acquisition agent" means a person who by means of telephone, mail, advertisement, inducement, solicitation, or otherwise attempts directly to encourage any person to attend a sales presentation for a time-share program. Per Tennessee Code 66-32-102

The Tennessee Real Estate Commission (TREC) requires most licensees to complete a total of 16 hours of continuing education each two-year license cycle.

Pursuant to TCA 62-13-304, you have 6 months from the day you passed your first exam to apply for your license.

The statute of frauds refers to the requirement that certain kinds of contracts be in writing, and signed. Every state has a statute that requires certain types of contracts to be in writing and signed by the party to be charged. The most common requirements are for contracts that involve the sale or transfer of land, and contracts that cannot be completed within one year.

No. Not real estate brokers. According to 1260-02-09, this would be considered an act of “commingling”. Each principal broker shall maintain a separate escrow or trust account for the purpose of holding any trust money which may be received in his fiduciary capacity.

Nine members. “Consists of nine (9) members appointed by the governor, each of whom shall be a resident of this state and shall possess good moral character.” Per Tennessee Real Estate Commission
62-13-201 - Creation Members

The real estate education and recovery account (“the account”) was established in order to compensate aggrieved members of the public who have been adjudged to have suffered monetary damages as a result of the violation of the Tennessee Real Estate Broker License Act of 1973 or any rules promulgated thereunder by a licensed broker, affiliate broker, or time-share salesperson. Per Tennessee Department of Commerce.

“No. A real estate licensee from another state or jurisdiction cannot ‘‘cooperate’’ or ‘‘partner’’ with a Tennessee licensee in order to conduct business that requires a real estate license in this state without obtaining a license issued by the Tennessee Real Estate Commission (TREC).” Tennessee Department of Commerce.

“All advertising shall be under the direct supervision of the principal broker and shall list the firm name and the firm telephone number as listed on file with the Commission. The firm name must appear in letters the same size or larger than those spelling out the name of a licensee or the name of any team, group or similar entity.” Per Tennessee Advertising 1260-02-.12

“Every member of the commission shall be appointed for a term of five (5) years.” Per Tennessee Real Estate Commission 62-13-201 - Creation Members

“When an individual applies for an original license as a broker, affiliate broker, or time-share salesperson, the applicant shall pay, in addition to the original license fee, a fee in the amount of one dollar ($1.00) for deposit into the real estate education and recovery account.” Per Tenn. Comp. R. & Regs. 1260-01-.12

After the expiry date agents have 60 days grace period to renew their license.

The Uniform Residential Landlord Tenant Act is designed to simplify and clarify, the laws governing the rental of dwelling units and the rights and obligations of both landlords and tenants. Essentially, its the main law covering all landlord-tenant relations.

Dower and Curtesy was an old law. Oftentimes, back in the day, real property owned by a husband was typically not inherited by the wife nor was the wife's property inherited by her husband. Instead, the property would either go to the children or some other member of the husband or wife's line. Since the late 1800’s the law has been largely abolished, however some states still hold the law true. Today most states (Tennessee included) abolished dower and curtesy and generally provide the same benefits regardless of sex.

“Whenever any licensee pleads guilty or is convicted of any offense enumerated in this chapter, the licensee must within sixty (60) days notify the commission of that conviction and provide the commission with certified copies of the conviction.” Per 62-13-312 - Discipline Refusal, revocation or suspension of license, downgrading of licenses automatic revocation.

“Exchange agent” means a person who exchanges or offers to exchange time-share intervals in an exchange program with other time-share intervals. Per Tennessee Code 66-32-102

Rental deposits MUST be held in a separate account. Regardless of the situation or circumstance per Tennessee state law.

“In Tennessee, a timeshare purchaser has the right to cancel the sale for 10 days from the date of signing the contract if the purchaser made an onsite inspection of the property, and 15 days if there was no inspection. The cancellation notice must be in writing (Tenn. Code Ann. § 66-32-114).” Per Tennessee Department of Commerce.

All of the options would be illegal. Under the Fair Housing Act of 1968 and the Tennessee Human Rights Act, it is illegal to discriminate based on one or more protected classes: race, color, national origin, religion, sex, familial status, and disability.

In Tennessee, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks, they must hold an active real estate license.

“A licensed broker or affiliate broker in this state for at least five (5) years prior to the date of the member's appointment and shall be of recognized business standing.” Per Tennessee Real Estate Commission
62-13-201 - Creation Members

None. “In accordance with T.C.A. § 62-13-303(g) & (h), all licensees, including non-resident licensees, are required to submit sixteen (16) hours of real estate education as a requisite for re-issuance of their real estate license.” Per Tennessee Department of Commerce.

“The maximum amount of possible recovery under the account is fifteen thousand dollars ($15,000.00) per transaction. This amount represents the maximum liability of the account for a transaction, regardless of the number of aggrieved persons or real estate parcels associated with the transaction. The liability of the account for the acts of a broker, affiliate broker, or time-share salesperson shall be limited to an aggregate amount of thirty thousand dollars ($30,000).” Per Tennessee Department of Commerce.

“The account is maintained by the Tennessee Real Estate Commission.” Per Tennessee Department of Commerce.

“No. A lawyer can only receive a referral fee or commission if they are properly licensed as a real estate broker or affiliate and the compensation is paid to them by the licensed real estate firm where they are affiliated.” Per Tennessee Department of Commerce.

Dual agency is legal in Tennessee (if it is fully disclosed to both parties and both parties consent to it). While it is legal, however, is rarely practiced. “Daul agent refers to a situation in which the licensee has agreements to provide services as an agent to more than one (1) party in a specific transaction and in which the interests of the parties are adverse.” Per Tennessee Code 62-13-102

“Time-share resale broker” means any person or entity who undertakes to list, advertise for sale, promote, or sell by any means whatsoever more than five time-share intervals per year in one or more time-share projects on behalf of any number of purchasers. A time-share resale broker must be a licensed real estate broker. Per Tennessee Code 66-32-102.

“Establishes the requirement for each broker to maintain an escrow account relating to a real estate transaction, records must be maintained for (3) years with accurate records.” Per Tennessee 62-13-321

“Managing agent” means a person who undertakes the duties, responsibilities, and obligations of the management of a time-sharing program. Per Tennessee Code 66-32-102

The Tennessee Real Estate Commission (TREC) requires most licensees to complete a total of 16 hours of continuing education each two-year license cycle.

All of the following actions are allowed aside from host open houses, home show booths, or fairs. Per Tennessee Department of Commerce.

Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions. Tennessee Real Estate Law mandates agents have errors and omissions insurance. Per 62-13-112 - Errors and omissions insurance.