Tennessee Real Estate Exam Version 1
Practice exam for Salesperson and Broker License Exam under Real Estate Exams (Licensing Exams). 5 sample questions.
Sample Questions
You're viewing a limited preview. Log in and subscribe to access all questions.
Log InExam Questions
Question 1
The Real Estate Commission does NOT have the power to
Correct Answer: C
Rationale: Real Estate Commission (TREC) is empowered to suspend/revoke licenses (A), issue subpoenas (B) and audit escrow accounts (D). Regulating commission rates (C) is anti-competitive and is left to the marketplace; TREC has no statutory authority to dictate what brokers may charge.
Rationale: Real Estate Commission (TREC) is empowered to suspend/revoke licenses (A), issue subpoenas (B) and audit escrow accounts (D). Regulating commission rates (C) is anti-competitive and is left to the marketplace; TREC has no statutory authority to dictate what brokers may charge.
Question 2
A real estate broker wrote a full-price offer of $350000 for a buyer. The earnest-money deposit was $25000. The offer was accepted and the broker placed the deposit in her escrow account. The next week the parties cancelled the contract in writing and asked the broker to return the deposit. Which is TRUE?
Correct Answer: B
Rationale: Under TREC and general trust-account law, earnest money is held for the parties, not the broker. Until the parties instruct otherwise or a court orders disbursement, the broker has no right to unilaterally withhold any portion for commission. Hence the broker must return the full $25,000 unless the parties expressly authorize a different disposition.
Rationale: Under TREC and general trust-account law, earnest money is held for the parties, not the broker. Until the parties instruct otherwise or a court orders disbursement, the broker has no right to unilaterally withhold any portion for commission. Hence the broker must return the full $25,000 unless the parties expressly authorize a different disposition.
Question 3
A firm has six branch offices. Each branch office MUST have
Correct Answer: B
Rationale: allows one principal broker to oversee multiple branches, but every branch must have a person (manager) responsible for that location. The manager need not be a principal broker (A) nor an affiliate broker (D), and there is no requirement that every branch have at least one affiliate broker (C).
Rationale: allows one principal broker to oversee multiple branches, but every branch must have a person (manager) responsible for that location. The manager need not be a principal broker (A) nor an affiliate broker (D), and there is no requirement that every branch have at least one affiliate broker (C).
Question 4
A licensee can advertise property solely under their own name
Correct Answer: B
Rationale: Tennessee rules permit a licensee to advertise a property in their own name only when the licensee is the owner and the ad discloses the licensee’s interest. Absent ownership, all advertising must be in the firm’s name or with conspicuous firm identification. Therefore owning the property (B) is the correct trigger; approval (A) or price inclusion (C) does not suffice.
Rationale: Tennessee rules permit a licensee to advertise a property in their own name only when the licensee is the owner and the ad discloses the licensee’s interest. Absent ownership, all advertising must be in the firm’s name or with conspicuous firm identification. Therefore owning the property (B) is the correct trigger; approval (A) or price inclusion (C) does not suffice.
Question 5
Who is ultimately responsible for all trust-account funds received by a firm?
Correct Answer: D
Rationale: makes the PRINCIPAL broker the fiduciary for every dollar that flows through the firm. While staff or agents may physically handle money, legal responsibility cannot be delegated; therefore the principal broker (D) is always the correct answer.
Rationale: makes the PRINCIPAL broker the fiduciary for every dollar that flows through the firm. While staff or agents may physically handle money, legal responsibility cannot be delegated; therefore the principal broker (D) is always the correct answer.