Tennessee Affiliate Broker Exam Questions with 100% Correct Answers|Verified|Updated 2024, Exams of Advanced Education

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Tennessee Affiliate Broker Exam

Questions with 100% Correct Answers |

Verified | Updated 2024

The Tennessee Human Rights Commission (THRC) - Correct Answer-enforces fair housing laws in the state. Exemptions to Tennesse's Human Rights Act are: - Correct Answer-1. Rental of one housing unit when the building contains no more than two independent units, if the owner or a family member lives in one of the units. 2. Rental of a room or rooming unit in a housing accommodation that shares a common bath (and only in regards to sex as a protected class).

3. Sale, rental, or preference of a dwelling owned, operated, or used in conjunction with a religious organization, association, society, or any nonprofit to members of the same religion (unless membership in that religion discriminates on the basis of race, color, or national origin) 4.Single-sex dorms or rental properties including, but not limited to, those at colleges and universities. Functions of the Tennessee Human Rights Commission (THRC)

• Correct Answer-Safeguard individuals from discrimination through enforcement and education. Oversees the state's

execution of federal laws prohibiting discrimination. Ensures the state has legislation that supports and expands, as needed, on federal civil rights laws. Conducts investigations into discrimination complaints, which can be made online. Educates members of the public about their rights under the Human Rights Act. Commingling - Correct Answer-the act of depositing trust funds in a personal or business bank account. Conversion - Correct Answer-the act of using escrow funds for personal use. Vital records - Correct Answer-records necessary to continue to do business in the event of a disruption or disaster. EX Client files and contract, current lists of customers, current accounts receivable (money people owe you), and financial record General records - Correct Answer-records deemed important enough to manage and keep. These might include accounts payable (money you owe others), bills and invoices, employment records, expense receipts, travel logs, prospect and referral correspondence, or referral phone lists.

3 years - Correct Answer-amount of time state law requires all documents and records be kept, both hard copy and electronic. 24 hours - Correct Answer-amount of time you have to make documents readily accessible to TREC 10 days - Correct Answer-amount of time licensee has to complete tasks associated with transfer of affiliation Advertising does not include - Correct Answer-promotional materials that advertise licensees themselves, such as hats, pens, notepads, t-shirts, name tags, business cards, and the sponsorship of charitable and community events. written permission from the owner is required - Correct Answer-to advertise another licensees listing A gift, prize, or other valuable consideration may only be given as an incentive to a purchase, a listing, or lease if the gift or prize is made: - Correct Answer-With the affiliated firm's

approval and under its sponsorship. In writing and signed by the licensee Prize or Gift Disclosure of all pertinent details must be included, - Correct Answer-Accurate details of the gift or prize, Fair market value of the gift or prize, The time and place of delivery of the offered item, Any requirements that the prospective buyer or lessor must satisfy 75% - Correct Answer-passing score for broker examination required hours of education for brokers - Correct Answer- 50 miles - Correct Answer-distance in which a licensee must live from their firms office hours of education required for new broker to complete prior to 3rd anniversary - Correct Answer- broker and affiliate broker CEU requirements per 2 year licensing period - Correct Answer-16hrs

$50 - Correct Answer-penalty per 30 day period prior to 120 days for licensing lapse $100 - Correct Answer-penalty per 30 day period beginning on 121st day but prior to 1 year $50 - Correct Answer-change of address fee 10 days - Correct Answer-amount of time licensees have to notify TREC of change of firm address requirement for educator - Correct Answer-4 year term and college degree $80 - Correct Answer-license renewal fee Renewal Deadline - Correct Answer-60 days prior to expiration date Uniform Administrative Procedures Act. - Correct Answer-- act that TREEC members must operate within

10 days - Correct Answer-amount of time a licensee has to respond to a TREC complaint term for TREC member - Correct Answer-5 years 7 - Correct Answer-number of TREC members required to have 5 years of real estate experience or more class b misdemeanor - Correct Answer-license law violations classified as the maximum civil penalty imposed for a single occurrence of a license law violation - Correct Answer-is 50 to 1,000 per separate violation (per day) the commission automatically revokes the licensee's license - Correct Answer-60 days after conviction 500,000 - Correct Answer-minimum account balance for the real estate education and recovery fund

30,000 - Correct Answer-maximum lifetime payout per licensee 15,000 - Correct Answer-the maximum payout any consumer can receive from the Real estate education and recovery fund/maximum award per transaction no matter amount of judgements or number of complainants seven protected classes: - Correct Answer-race, color, religion, national origin, sex, familial status, and disability. must be in place prior to executing a listing agreement or you are guilty of misrepresentation - Correct Answer-listing agreement and disclosure of agency status Required for all sales contracts and listing agreements in TN - Correct Answer-termination date net listing - Correct Answer-type of listing that specifies a sales price the owner wants, with anything in excess of that amount going to the broker as commission (illegal in TN)

Agent - Correct Answer-Someone who acts on someone else's behalf, at that person's request. Customer - Correct Answer-The agency relationship determines client vs. customer. Without an agency agreement, the consumer is a customer and receives no representation. Client - Correct Answer-Only a client receives agency representation under an agency agreement. Principal - Correct Answer-A customer is a principal when he or she is a party to a transaction (e.g., buyer or seller). fiduciary - Correct Answer-a person who's in a position of trust and owes loyalty to another. the only way to create agency in TN - Correct Answer-bilateral written agreement two duties that survive agency - Correct Answer-accounting and confidentiality

disclosure of agency status - Correct Answer-MUST be made prior to providing any real estate services Exclusive Right to Represent - Correct Answer-This is the highest level of representation, similar to an exclusive listing agreement. The agent named on the agreement is assured of a commission if the buyer locates a property within the term of the agreement. Exclusive Agency - Correct Answer-buyers are represented by a single brokerage but reserve the right to self-represent. If the broker locates the property, he or she earns the commission. If the buyer found the home, no one owes commission to the broker. Open Agency - Correct Answer-This allows a buyer to work with several buyer representatives (or to self-represent). Only the brokerage completing the transaction receives a commission. This gives the buyer flexibility but limits the amount of representation from any one professional. Percolating Rights - Correct Answer-Rights of the owners to draw water from underground wells

Risparian Rights - Correct Answer-Rights of the owners of bordering property to use flowing body of water such as river or creek Littoral Rights - Correct Answer-rights of the owners of bordering property to use stationary body of water such as lake or sea. Prior appropriation - Correct Answer-doctrine granting water rights based on which entity was first to put given body of water to beneficial use rather than based on the adjacency of water to given property fixture - Correct Answer-anything permanently attached to land that's a part of real property unless parties negotiate differently chattel - Correct Answer-another word for personal property Five legal tests courts used to determine whether something is real property or personal property? - Correct Answer- Method of annexation, relationship of the parties, intentions

of the annexing party, agreement of the parties, and adaptability emblements - Correct Answer-Cultivated crops (considered personal property even though they're attached to the soil) Emblements - Correct Answer-Cultivated crops (considered personal property even though they're attached to the soil) Severance - Correct Answer-When an item that was real property becomes personal property through detaching it from the land Annexation - Correct Answer-When personal property is attached to real property, making it a fixture Manufactured home - Correct Answer-A home built with transport in mind, with an attached chassis, tongue, axles, and wheels (personal property, unless legally annexed to the land) Mobile Home - Correct Answer-Manufactured home built prior to 1976

What are the economic characteristics of land? - Correct Answer-Scarcity, improvements, permanence of investment, and situs (location) What are the physical characteristics of land? - Correct Answer-Immobility, indestructibility, and uniqueness (non- homogeneity) Name several "sticks" (rights) in the bundle of rights. - Correct Answer-Air, water, mineral, profit, mortgage, fixtures, crops, possession and enjoyment, exclusion, and disposition Per se violation - Correct Answer-one in which suit is established on face of circumstances no evidence required and no justification allowed What are the four antitrust violations common to real estate?

• Correct Answer-price fixing, market allocation, tie in arrangements, group boycotting

central elements of an anti-trust violation - Correct Answer- contract, combination, or conspiracy between or among competitors to unreasonably restrain trade Easement appurtenant - Correct Answer-A permanent right to use another's land for the benefit of a neighboring parcel Easement by necessity - Correct Answer-easement that is created when the owner of a landlocked parcel has no access to a public right of way such as a street or highway. Easement in gross - Correct Answer-This type of easement is the right to use the land of another and does not involve any adjoining estate. Utility companies often make use of these easements. Easement by prescription - Correct Answer-A permanent right to use another's property because you've been doing so for a statutory period of time party wall - Correct Answer-Shared between two buildings and constructed on the boundary line between two owner's lots

possessory - Correct Answer-rights to occupy the property easements fall into what category? - Correct Answer-non- possessory license - Correct Answer-Not classified as an encumbrance, this is a temporary right to enter the land or use property belonging to another for a specific purpose. deed restriction - Correct Answer-private provision in a deed controlling use of a property lien - Correct Answer-legal claim on a property that includes the right to sell a property if not paid off metes and bounds - Correct Answer-a method of surveying property that includes point of reference and directional indicators to identify and locate a property for legal purposes Rectangular government survey system - Correct Answer-A survey system that describes land in reference to principal

meridians and baselines. The Fifth Principal Meridian serves as the starting point in Missouri surveys Plat map - Correct Answer-A map which shows the location of a piece of property in context to its adjoining lots, roads and landmarks. It includes lot, street and block identifiers lot and block - Correct Answer-A legal description that refers to lot and block number within a subdivision as indicated on a recorded subdivision plat section - Correct Answer-1 /36th of a township in a government survey system Township - Correct Answer-A square that is six miles by six miles (36 square miles) and makes up the principal unit of the rectangular government survey system fee simple - Correct Answer-type of estate that is inheritable fee absolute - Correct Answer-Provides the most complete form of ownership and bundle of rights in real property

Qualified fee - Correct Answer-An inheritable freehold estate that is defeasible (the grantor can terminate the title). For example, a parent could transfer property to a child as long as the child remained unmarried freehold estate - Correct Answer-Ownership for an undetermined length of time. An example is home ownership, may be passed down to heirs leasehold estates - Correct Answer-An estate for a limited time (e.g., renting, leasing) Estate for years - Correct Answer-An estate for a specified time (e.g., days, months, years) estate at will - Correct Answer-An estate for an unknown period of time; either party may terminate the lease by giving notice to the other estate or tenancy at sufferance - Correct Answer-Non-lawful possession after the expiration of a lease

Escheat - Correct Answer-The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors homestead - Correct Answer-A type of estate that gives the owner special rights in property used as a family home (not valid in all states) remainderman - Correct Answer-The person receiving title upon the death of the life tenant remainder interests - Correct Answer-Fee simple present interest in conjunction with receipt of title upon the death of the life tenant reversionary interest - Correct Answer-Right of repossession of the property by the owner after the end of the life estate encumberance - Correct Answer-Any claim attached to real property that may lessen its value or impair its use

Encumbrance - Correct Answer-Any claim or lien on the property held by another person or entity that limits the owner's use or rights or decreases the value of the property decleration - Correct Answer-Also called master deed, this describes and defines the units and their use and is recorded cooperation - Correct Answer-A form of real property ownership in which the owner is a member of an association that owns the building, and shares stock in that association tenancy in common - Correct Answer-Ownership by two or more persons who hold undivided interest without right of survivor-ship; interests need not be equal joint tenancy - Correct Answer-form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship (must have equal shares, right to partition) tenancy by entirety - Correct Answer-Marital estate akin to a joint tenancy b/w husband & wife w/ right of survivorship

testamentary trust - Correct Answer-An express trust created by a will land trust - Correct Answer-A trust created by a trustor who will also be the beneficiary who will retain control over management of the property (often used to protect against the effects of divorce, judgment, bankruptcy or to assemble parcels for development while maintaining privacy) ordinary life estate with remaindermen or reversion - Correct Answer-after life estate owner dies, property reverts to original owner(reversion). reversionary owner or remainder man then have fee simple estate pu autre vie - Correct Answer-type of life estate meaning "for anothers life." the holder of this life estate remains in possession with all the rights of a life estate until the death of another person who was names when the life estate was established. Tennessees Homestead Exemption Act - Correct Answer- allows state residents who meet minimum residency requirements to remain and keep their property during tough economic hardships. An example of a legal life estate.

Legal Life Estate - Correct Answer-an involuntary life estate created automatically by law when certain events occur. Dower and Curtesy - Correct Answer-Form of life estate NOT practiced in Tennessee that's sometimes called marital life estate Dower gives the widow life estate rights on the death of her husband and curtesy gives the widower life estate rights on the death of his wife Fee simple defeasible - Correct Answer-contains a condition of ownership; if that condition is violated or not met, the ownership will revert to the original owner, or to a named third party) fee simple absolute - Correct Answer-it means ownership without any conditions or limitations Group that is NOT excluded from federal fair housing laws - Correct Answer-Private clubs Tennessee Senior Housing exemption - Correct Answer-90% of units are occupied by persons 55 or older

Improper dealing - Correct Answer-Violation that is broad in description. Could include Entering into a brokerage relationship that does not specify a definite termination date. Offering real estate for sale without owner's consent. Amount of time broker has after exam to apply - Correct Answer-6 months Parties of sales agreement - Correct Answer-Seller and buyer Parties of mortgage loan commitment - Correct Answer-Buyer and mortgage company Parties of title insurance contract - Correct Answer-Buyer and title company Parties of brokerage agreement - Correct Answer-Listing agent and buying agent Parties of compensation agreement - Correct Answer-Listing agent broker and buyer agent broker

Listing Agreement - Correct Answer-Listing agent broker receives sale transaction commission specified in what? Brokerage agreement - Correct Answer-What stipulates the selling agents broker will pay the buyers agents commission to buyer agents broker? The buyer - Correct Answer-Who should provide evidence of a lenders and owners title insurance policy before closing Purpose of Loan Estimate form - Correct Answer-To detail estimated closing costs Title insurance - Correct Answer-What does the lender require to ensure collateral for the loan is secure and free of encumbrances Type of financing for which closing disclosure and loan estimate forms are not required - Correct Answer-Seller financing

Prorations - Correct Answer-Proportionate calculations based on who actually owes an expense for given period. Computed by attorney and lender Examples of prorated expenses - Correct Answer-Interest in assumed loans. Taxes. Rent, Utility Bills Accrued expenses - Correct Answer-Type of expense that goes to the sellers debit column. Expenses that the seller owes at the day of closing but which the buyer will eventually pay Examples of prorated accrued items - Correct Answer-Unpaid real estate taxes. Utility bills not paid in advance. Rent the seller collected from tenant for time period the in which the buyer will own the property What would TN brokerage firms most likely do to avoid dual agency? - Correct Answer-default to facilitator status Ellen and Isaac have a timeshare near the Smoky Mountains. They'll be able to use it for two weeks every September, for the next eight years. What type of timeshare is this? - Correct Answer-timeshare use

when must written confirmation of agency status occur? - Correct Answer-prior to offer preparation the first disclosure of agency status can be either - Correct Answer-verbal or written what MUST be in place prior to providing any real estate services - Correct Answer-agency disclosure the disclosure of agency status in Tennessee is required in writing: - Correct Answer-Prior to creating an offer with an unrepresented buyer Prior to execution of a listing agreement with or presentation of an offer to purchase to an unrepresented seller (whichever comes first) REALTORS® Confirmation of Agency Status disclosure form - Correct Answer-lets all parties know whether the licensee is representing the buyer or seller. Licensees should obtain a signed receipt for each ________ from the party to whom it was provided - Correct Answer- disclosure

Tennessee's Residential Property Disclosure Act - Correct Answer-establishes residential sellers' property condition disclosure requirements. Under this law, sellers of single- family residential real properties that include four or fewer single-family units must provide buyers with a written disclosure of what they know about the property's condition. The disclosure must be provided before the parties sign the sales contract. If the seller fails to provide the disclosure statement, - Correct Answer-it doesn't give the buyer the right to terminate the contract, or right to rescind, but the buyer may seek other legal actions. adverse fact - Correct Answer-conditions or occurrences generally recognized by competent licensees that significantly reduce the structural integrity of improvements to real property, or present a significant health risk to occupants of the property. What type of property is exempt from property disclosure but must offer home warranty - Correct Answer-new construction