Tennessee Law real estate Flashcards

Tennessee Law real estate Flashcards The TREC, under the law administers the education and recovery account. In that law there are maximum fines set by the legislature. Which of the following best describes these maximum fines?$30,000.00 per licensee total and $15,000.00 total per transaction.The title of the Tennessee law isTennessee Broker license act of 1973 When does an agent become a dual agent representing both parties in a real estate transaction?Both parties must accept the dual agency agreement in writing prior to real estate services being rendered.Which of the following do not have to be licensed to perform any actions covered by Tennessee real estate law?Owner of real estate and Attorney in fact operation under a recorded power of attorney Jennifer is opening her own office. She wants to get everything completed correctly before she sends in her application for the new office. Which of the following will NOT be necessary to receive her firm license?List of all the affiliate she will be supervising Which of the following time share participants must be licensed at a minimum with a time share license?A sales agent and an acquisition agent.Agency relationship are considered limited agency. In this situation which of the following is true?The agent functions as an intermediary between the parties unless the parties negotiate directly

A house was advertised: "fine executive home in an

exclusive neighborhood, suitable for an older couple near St. Mary's Church." All of the following statements are true except?This is descriptive of the property for sale and a good ad.Which of the following duties are owed by an agent to all parties of a transaction?Disclose adverse facts and reasonable care and skill The amount of commission to be earned in a real estate transaction is determined by Negotiation between the seller and the broker Sally mistakenly let her E&O insurance lapse. She applied for her renewal license after completing her continuing education and sent in her renewal fee. Which of the following activities are permissible by TREC?TREC will notify both Sally and her broker of the lapsed insurance.All real estate offices must clearly indicate they are such an office with a sign outside of the office. Which of the following is NOT an office sign requirement?Sign much be lit after hours if office is opened for business in the evening hours.A person engaged under contract by or on behalf of a licensed broker participating in real estate activities as defined by Tennessee law is considered a?Affiliate broker Agents may offer gifts and prizes as an inducement to a transaction if it is made with which of the following?Sponsorship and approval of the firm; Fair market value of the gift; Time and place of delivery.Henry lists the Jones house. They explain to him that they had foundation problems and had them repaired a few years back. Henry sold the house and did not tell the buyer

the above. Which of the following is correct?Henry is singularly liable for the nondisclosure Which of the following is a requirement in Tennessee for initial licensure?Must be finger printed prior to applying for a license.

Which of the following is not a power of TREC? Turn agent over to proper court of this state for violations of this law.How many licensed members are there on the Tennessee Real Estate Commission?7 As an agent for the seller a real estate agent can?Solicit an offer to purchase the property form a prospective buyer.Which of the following types of commission payments is permissible under Tennessee real estate law?Payments to a licensee of another state when referring a customer or client to and agent of this state.All licensees must submit finger prints to TREC? At the issue of original licenses issued as of Jan 1, 2014.The Browns were very dissatisfied with the agent's performance in the purchase of their new home. The felt they were not made aware of many adverse conditions in the property and that some were even covered over by the agent and their broker. Which of the following avenues action should the Browns pursue?Make a written complaint to the TREC A property management agreement should include all of the following except?Restrictions regarding children and pets.Which of the following is considered unlawful? Solicit referral fees without reasonable casue; Counsel a client on how to terminate an existing agency contract; Requiring a client to only work with a relocation companies agent.Is there any time that oral disclosure of agency relationship will suffice as a substitute for written disclosure?No If an agent's E&O insurance lapses for nonpayment of renewal fees, which of the following steps are necessary to re-activate the license after the initial 30 days of suspension?If less than 120 days must pay a fine of $200.00 and have carrier; if not back dated the fine doubles.Laura writes an offer on property listed by another firm. She gets contract to the listing office and it is countered with instructions for the listing office to hold the earnest money deposit. If this term is complied with who is responsible for the funds?Laura's PB is relieved of the responsibility for the funds if different escrow agent is specified in the contract Isabellla sold a listing that belonged to an office other than her own. The listing agent was taken ill and she had to handle almost all the paper work for both parties to effect a timely closing. The listing broker decided to pay her a portion of the listing side of the commission since she had to do so much extra work due to the situation. In the case what can Isabella do?Agents can only accept commissions from their principal broker.What restrictions are set that allow the TREC to withhold payments from the education and recovery account when ordered to by the courts?May not pay if the payment would drop the account balanc below $500,000.00 When a broker acts as the closing agent which of following is he required to do?Provide closing documents to all parties

Adam showed a house on Elm Street to the Richards.While touring the house Adam noticed some old termite damage in the floor joists while in the basement. It was obviously old damage so Adam decided not to mention it since the Richards didn't notice it. Is this conduct by Adam is cause for a disciplinary action by TREC?Adam will probably be found guilty of non-disclosure of a material fact he should have known There are 3 reasonable causes to solicit a referral fee, which of the following is not considered reasonable cause?There is a verbal referral fee relationship.ABC realty has had Phil as their broker for the past eight years. A few months ago Phil was diagnosed with inoperable lung cancer and started treatments right away.After 3 treatment Phil suddenly died. What process must be followed to keep the office open until a new PB is brought in?Within 10 days TREC must be notified of the death and presented with a plan to address the continuing operations without a PB; TREC may at its discretion permit the continued operation without a PB for up to 30 days and the period may be extended by TREC for an additional 30 days; A new principal broker must be in place by the 61st day in order for the firm to continue to operate.All real estate licenses in Tennessee expire? 2 years from date of issue and fees must be paid prior to expiration date.Adverse facts are defined under Tennessee law as Conditions or occurrences generally recognized as having a negative impact on the value of real estate.Which of the following statement are true concerning qualifications for licensing?Must be of good reputation for honest, trustworthy, integrity and competence.Who is required to carry Errors and Omissions insurance in Tennessee?All active licensees In the events a licensee is found guilty of breaking the real estate law, the TREC?Must either suspend, revoke or downgrade the licensee