TREES PRELICENSE TN STATE LAW QUIZ G QUESTIONS WITH COMPLETE SOLUTIONS
An affiliate broker can legally start working with their broker when:A. They receive notification of a passing grade on license testB. The recovery fund fee is paidC. The applicant requests a hearing before the Real Estate CommissionD. The affiliate broker’s license has been issued. D. The affiliate broker’s license has been issued
All of the following are true concerning the Tennessee Real Estate Education & Recovery Account EXCEPT:A. All affiliate brokers and brokers must pay a fee to the accountB. The account is to protect members of the public who may be injured by actions of affiliate brokers or brokersC. Account of $10 is required every license renewal periodD. The account covers judgements not to exceed $15,000 per transaction C. Account of $10 is required every license renewal period
The Tennessee Real Estate Commission has the authority to perform the following duties EXCEPT:A. Revoke/suspend a license of an affiliate broker or brokerB. Adopt new Rules and RegulationsC. Conduct hearings for possible violations of Commission Rules & RegulationsD. Sentence a guilty licensee to a jail term D. Sentence a guilty licensee to a jail term
Which of the following people would be required to hold a real estate license?A. An unlicensed owner attempting to sell his homeB. An auctioneer selling real property by auctionC. An Attorney in Fact under a signed and recorded Power of AttorneyD. An employee collecting rent for broker managing a residential rental property B. An auctioneer selling real property by auction
When an affiliate broker leaves their former firm to work for another firm, which of the following is NOT TRUE:A. The affiliate can take to the new company those listings obtained while with the former firm without the consent of the former firmB. The required administrative procedures must be completed within 10 days after the date of release by the use of the TREC #1 form or online submissionC. An administrative fee to the Commission is required to be paid as part of the transfer procedure of change of affiliationD. The affiliate broker must obtain a release from the former firm’s principal broker A. The affiliate can take to the new company those listings obtained while with the former firm without the consent of the former firm
A person found guilty in a court of law of illegally selling real estate without a license could be:A. Sentenced to County Jail for not less than 18 months.B. Required to pay up to 5 times the amount of money received if they received an y compensation.C. Ineligible to obtain a license for 10 years.D. Is a Class B misdemeanor with a fine not to exceed $500 and jail term not greater than 6 months or both. D. Is a Class B misdemeanor with a fine not to exceed $500 and jail term not greater than 6 months or both.
To place a liense in Temporary Retirement status, a licensee must perform all of the following procedures EXCEPT:A. Current continuing educational requiremtns are not required to be competed prior to placing a license on Temporary Retirement.B. Physically transmit the license certificate to the Commission and pay a fee.C. Reactivate the license every 3 years.D. Advise the Real Estate Commission of their current residence address. C. Reactivate the license every 3 years.
A licensee can have their license revoked or suspended for teh following violations, EXCEPT:A. Broker commingling escrow funds with company funds.B. Not giving a copy of the listing contract to the client/customer at the time it is signed.C. Insofar as an affiliate broker is concerned, receiving a commission frmo someone other than the principal broker they are affiliated.D. Putting an expiration date in listing and sales contracts. D. Putting an expiration date in listing and sales contracts.
The Tennessee Real Estate Commission is declared to be:A. A legislative body.B. A judicial body.C. An executive body.D. An administrative body. B. A judicial body.
In advertising real estate, all of the following apply EXCEPT:A. The ad must notify the public that a real estate firm is advertising.B. All licensees shall identify themselves as a licensee when buying or selling property for themselves.C. Franchised companies do not have to include the names of the company with the franchise name in company advertising.D. Affiliate brokers must advertise in the name of the firm/broker with whom they are affiliated. C. Franchised companies do not have to include the names of the company with the franchise name in company advertising.
A licensee representing a seller in a transaction must disclose such agency relationship to the buyer in writing prior to:A. Showing the buyer a property.B. Preparing the offer to purchase.C. Anytime prior to closing.D. At closing. B. Preparing the offer to purchase.
Errors & Omissions Insurance is required:A. As a condition to licensing.B. Only after the first renewal.C. Only if the agent is full time.D. Only if the licensee becomes a broker. A. As a condition to licensing.
How many members of the Tennessee Real Estate Commission are there?A. 5B. 7C. 6D. 9 D. 9
Should an affiliate broker wish to transfer their license from their present principal broker to a new principal broker, the present principal broker:A. May hold the license until the next renewal date.B. May hold the license if the affiliate owes money to the broker.C. Upon demand by licensee for release from the firm, it shall be promptly granted by the principal broker.D. Must return the license to the Real Estate Commission. C. Upon demand by licensee for release from the firm, it shall be promptly granted by the principal broker.
An affiliate broker who retires their real estate license may:A. Continue to list and sell so long as the list price is under $100,000.B. Continue to list property but cannot work with buyers.C. Have the license re-activated by taking the necessary steps.D. Sell another person’s real property for a salary but not a commission. C. Have the license re-activated by taking the necessary steps.
With property for sale yard signs, the affiliate broker’s name must be:A. Above the firm name.B. Below the firm name.C. Larger than the firm name.D. The same size or smaller than the firm name. D. The same size or smaller than the firm name.
Earnest money collected by an affiliate broker must be:A. Held by the affiliate broker until closing.B. Given to the listing agent.C. Turned over to their broker immediately upon receipt.D. Given to the seller until closing. C. Turned over to their broker immediately upon receipt.
Brokers and affiliate brokers are only required by law to present offers to the seller if:A. The offer is for full price.B. The offer is written.C. The offer includes earnest money of at least $1,000D. The buyers are financially qualified for a conventional loan. B. The offer is written.
An affiliate broker must hold an active license for how many months before they are legally eligible to take the real estate broker’s license examination?A. 48 months.B. 36 months.C. 24 months.D. 12 months. B. 36 months.
An affiliate broker can legally offer an inducement, prize or gift to encourage a buyer to buy. Which one of the following statements is TRUE:A. The cost of the prize does not exceed $1,000.B. The offer to purchase must be signed within 24 hours.C. The affiliate broker and broker must share in the cost of the prize.D. It is approved by the affiliate broker’s principal broker. D. It is approved by the affiliate broker’s principal broker.
An applicant for an affiliate broker’s, broker’s or time share salesperson’s license must apply for the license within how many months of passing the respective license examination or be subject to reexamination?A. 3B. 4C. 6D. 12 C. 6
Which of the following statements is TRUE concerning internet advertising?A. It is illegal in Tennessee. B. The firm name and telephone number are required to be shown on the first page.C. Affiliate brokers are allowed to advertise on the internet without their principal broker’s, or firm’s name.D. The firm name and telephone number must be on each page. D. The firm name and telephone number must be on each page.
An affiliate broker, with his broker’s consent, wished to offer a large screen TV set to a buyer to induce them to purchase a listed property. Which of the following disclosures is INCORRECT?A. The cost of the item must be disclosed.B The time and place of delivery must be disclosed.C. The fair market value of the item must be disclosed.D. Accurate specifications of the gift or prize must be disclosed. A. The cost of the item must be disclosed.
“””J””, an affiliate broker, has had a complaint filled against him. What is the next step in the complaint process?A. The affiliate broker is informed of a time and place for a hearing.B. The affiliate broker’s license is suspended pending a hearing.C. The affiliate broker receives a letter from the TN Real Estate Commission with a copy of the complaint against the affiliate broker.D. The affiliate broker is required to deposit $1,000 with the TN Real Estate Commission pending the outcome of a trial.” C. The affiliate broker receives a letter from the TN Real Estate Commission with a copy of the complaint against the affiliate broker.
“””D”” is a licensed affiliate broker and has represented a seller in a successful transaction. After closing, the buyer was so well pleased with the way “”D”” handled the sale, the buyer offers “”D”” a $500 bonus. “”D”” the affiliate broker may:A. accept the bonus.B. Reject the bonus.C. Have the bonus paid to their broker.D. Inform the buyer that the $500 is an illegal bribe and threaten to have the buyer arrested.” D. Inform the buyer that the $500 is an illegal bribe and threaten to have the buyer arrested.
“””S””, a real estate affiliate broker, gives her broker her check for the renewal of her license and goes on an extended vacation with her family. When she returns, she finds her license has not been renewed because her broker forgot to send in her check. She now has no license since it is past the license expiration date. Which statement is CORRECT?A. It is the broker’s fault & he must pay all renewal and late fees.B. The Tennessee Real Estate Commission will waive all late fees because it was not the affiliate broker’s fault.C. Both “”S”” and the broker must share the cost of any late fees.D. “”S”” is solely responsible for the payment of the license renewal fee, any late fees and any other requirements of the TN Real Estate Commission.” “D. “”S”” is solely responsible for the payment of the license renewal fee, any late fees and any other requirements of the TN Real Estate Commission.”
In appointing individuals to the Tennessee Real Estate Commission, the Governor needs concurrence from which of the following parties?A. The State Attorney GeneralB. The director of Commerce and Insurance.C. No oneD. Approval by the State Senate
A principal broker must display on the outside of their place of business a sign that shows:A. The company name as registered with the Commission and wording that clearly states that the company is engaged in the real estate business. B. The company name and telephone number in letters no less than 18 inches in size.C. The name of the broker, company name, telephone number and name of all affiliate brokers licensed at that location.D. There is no requirement in Tennessee that the broker display a sign outside their real estate office. A. The company name as registered with the Commission and wording that clearly states that the company is engaged in the real estate business.
If a member of the Tennessee Real Estate Commission is sued because of the performance of their duties as a commissioner, they shall be defended by the:A. GovernorB. Their attorney.C. The state of Tennessee Attorney General’s office.D. No one. That is the risk one takes when they accept an appointment as a commissioner. C. The state of Tennessee Attorney General’s office.
The minimum dollar amount required to be on deposit in the Tennessee Real Estate Education and Recovery Account at all times is:A. $500,000B. $750,000C. $1,000,000D. There is no required minimum amount. A. $500,000
Licenses expire 2 years from the date of issuance. By what time period, if any, should a licensee complete all renewal requirements including education and payment of fees and then file for license renewal with the commission?A. By the license expiration dateB. No later than 90 days prior to the license expiration date.C. No later than 30 days prior to the license expiration date.D. No later than 60 days prior to the license expiration date. D. No later than 60 days prior to the license expiration date.
Time-share, alxo called interval ownership, is defined as fractional ownership of a specific real property and the Tennessee time-share law allows indicidual licensees to market time-share or fractional ownership units. All of the following statements concerning the time-share law are correct EXCEPT:A. A 10 day right of rescission from the date of contract for an on-site inspection.B. A 15 day right of rescission from the fate of contract when no inspection has been made prior to purchase.C. A 30 day right of rescission for whole ownership real estate purchases.D. A time-share licensee can only market initial time-share offerings. C. A 30 day right of rescission for whole ownership real estate purchases.
A model home or modular unit may be used in a subdivision under construction for the purposes of soliciting business and will NOT be required to be licensed as a branch office as long as the model home or modular unit meets certain requirements. Of the following requirements, all apply EXCEPT:A. The location and/or telephone number is only advertised in conjunction with advertising the main firm office and such advertising complies with all laws and Commission Rules.B. The model home or modular unit does not have a mail drop.C. The licenses of all agents working in the model home or modular location.D. The model home or modular unit cannot be the sole sales office for the firm. C. The licenses of all agents working in the model home or modular location.
An unlicensed personal assistant may NOT do which of the following?A. Receive, record, and deposit earnest money under the direct supervision of the principal broker.B. Host open houses and home show booths.C. Hand out objective, written information on a listing.D. Full out and submit listings to the multiple listing service. B. Host open houses and home show booths.
All of the following duties of an agency relationship in Tennessee are correct EXCEPT:A. Obey all lawful instructions of the client.B. Be loyal to the interests of the client.C. Exercise reasonable skill and care in providing services.D. Advising the clients as to which type of tenancy is best suited for them. D. Advising the clients as to which type of tenancy is best suited for them.
If a broker as the closing agent, the broker must provide each customer or client with a copy of:A. An agency agreement,B. Title insurance policy.C. Closing documents.D. Property condition disclosure. C. Closing documents.
“An affiliate broker or broker can have their license revoked or suspended for the following reasons EXCEPT:A. Not naming the principal broker as an “”also insured”” party on the affiliate broker’s car insurance.B. Engaging in the authorized practice of law.C. Failing to specify a definite termination date in a real estate contract.D. Misleading or untruthful advertising.” “A. Not naming the principal broker as an “”also insured”” party on the affiliate broker’s car insurance.”
Where a broker’s website displays listings from an outside database of available properties, such as MLS, then each page of that broker’s website must include:A. The listing agent’s real estate license number.B. The statement that some or all of the advertised listings may not belong to advertising broker’s firm or company.C. A list of all the local MLS companies and their website addresses.D. The email address of all listing agents. B. The statement that some or all of the advertised listings may not belong to advertising broker’s firm or company.
The presence of any known exterior injection will and/or the results of any known percolation test of soil absorption rate tests or that the house has been moved to a new foundation must be disclosed:A. By the seller prior to entering into a contract with a buyer.B. By the seller after the acceptance of the contract by the buyer.C. By the licensee prior to the seller entering into a contract with a buyer.D. By the licensee after the acceptance of the contract by the buyer. A. By the seller prior to entering into a contract with a buyer.
It is a violation of Tennessee law to advertise or market for sale a newly constructed residence as having more of what then are permitted by the constructed residence’s subsurface sewage disposal system permit?A. Bathrooms.B. Sinks and Toilets.C. Bedrooms.D. Bath tubs and Showers. C. Bedrooms.
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All of the following statements are characteristics of Real Estate Education and Recover Account, EXCEPTA)Liability of account shall not exceed 15,000 per transaction B)liability of account shall not exceed 30,000 on behalf of an individual licenseeC)Licensee acting as an agent in a RE transaction shall have no claim against the account.D)Commissions shall maintain a minimum balance of 750,000 in recovery Account. D
A principal broker must keep records of a real estate transaction for three years from theA)Listing DateB)Consummation Date C)Date the sales contract was acceptedD)Date earnest money was deposited B
By Law the TN Real estate commission is declared to be aA)Administrative bodyB)Judicial bodyC)Executive bodyD)Legislative body B-9 members make up TREC and 6 need to agree in order for anything to pass
Renewal for Licensees needs to be done how many days before expiration of license?A)60 days prior to expiration date B)90 days prior to expiration dateC)120 days prior to expiration date D)180 days prior to expiration date A)60 days. All Licenses expire 2 years from date of license issue
TREC member can be removed from office by the action of A)the governor B)recall election of the commissionersC)Majority vote by commissions members D)Six votes of the members of the commission A)the governor. Think of this as a local supreme court.
What is the max dollar amount a licensee can give as prize or gift as inducement? A)100.00B)500.00C)1,000D)There is no amount D-there is no amount
All TN real estate licenses are issued by whoA)TN attorney GeneralB)The presidentC)TREC D)TN department of commerce and insurance C
The following conditions are requirements to maintaining a legal RE brokerage office in TN EXCEPTA)each license broker shall maintain a sign on the outside of brokers office of such size and content as local ordinances and the commission shall prescribe which shall clearly state that the broker is engaged in RE businessB)In making application for a license or a for a change of location, the licensee shall verify, in writing, that the licensee’s office conforms with zoning laws and ordinances C)The maintenance of the broker’s office in the broker’s home relieves the broker from the requirements of having a sign outside of such houseD)Licensees can work out of a model home in a subdivision under construction and the model home location does not have to be registered with TREC as a branch office assuming the model home meets the commissions model home office requirements C