Tennessee Real Estate Exam Version 4

Practice exam for Salesperson and Broker License Exam under Real Estate Exams (Licensing Exams). 5 sample questions.

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Sample Questions

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Exam Questions

Question 1
An owner indicates to you that they prefer that you find female renters for their property because in the past, they have done less damage to the apartment building. If you comply with their request, you are
A. guilty of discriminatory practices.
B. fulfilling your agency responsibilities.
C. implementing good risk management practices.
D. serving as the property manager in addition to the agent.
Correct Answer: A
Rationale: Selecting tenants based on gender violates the federal Fair Housing Act, which prohibits discrimination based on sex, a protected class.
Question 2
How should a rental property security deposit be handled upon receipt by the broker?
A. It must be deposited in an interest bearing account.
B. It must be deposited in a non-interest bearing account.
C. It must be deposited in an escrow or trustee account.
D. It must be applied toward the rental payments.
Correct Answer: C
Rationale: Tennessee regulations require security deposits to be held in an escrow or trust account to ensure proper management and return to the tenant.
Question 3
After writing a purchase contract on behalf of a buyer, the licensee leaves a copy with the buyer. The licensee then presents the offer to the seller, who accepts and signs it. The licensee MUST now give a copy of the offer to
A. the seller only.
B. the buyer only.
C. the seller and buyer.
D. his broker with the original to the seller.
Correct Answer: C
Rationale: Tennessee Real Estate Commission (TREC) rules require both the buyer and seller to receive copies of the signed contract for transparency.
Question 4
A licensee terminates his affiliation with a brokerage firm and secures his signed release form on August 15. On August 30, the licensee completes the change of affiliation form and mails it, via certified mail, to the Commission. Did the licensee follow CORRECT procedure?
A. No. The principal broker should have been the one to complete the change of affiliation form and to submit the same to the Commission.
B. No. The licensee should have verbally notified the Commission of the termination the same day it occurred.
C. No. The licensee should have mailed the change of affiliation form earlier, with the proper fee, so that it would have been received by the Commission by August 25.
D. Yes. The licensee followed the correct procedure for change of affiliation.
Correct Answer: C
Rationale: TREC rules require notification of a change in affiliation within 10 days of termination, which the licensee missed by mailing on August 30, 15 days later.
Question 5
In order to offer any gift or prize as an inducement to list a condominium, an affiliate broker MUST obtain the approval of:
A. his or her team leader.
B. his or her firm.
C. the homeowners’ association (HOA).
D. the Tennessee Real Estate Commission.
Correct Answer: B
Rationale: The affiliate broker’s firm must approve inducements to ensure compliance with TREC regulations and ethical standards.

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