TREES PRELICENSE TN STATE LAW EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2024, Exams of Advanced Education

Download TREES PRELICENSE TN STATE LAW EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2024 and more Exams Advanced Education in PDF only on Docsity! TREES PRELICENSE TN STATE LAW EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2024 An affiliate broker can legally start working with their broker when: A. They receive notification of a passing grade on license test B. The recovery fund fee is paid C. The applicant requests a hearing before the Real Estate Commission D. The affiliate broker's license has been issued. - Correct Answer-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 account B. The account is to protect members of the public who may be injured by actions of affiliate brokers or brokers C. Account of $10 is required every license renewal period pg. 1 professoraxe l D. The account covers judgements not to exceed $15,000 per transaction - Correct Answer-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 broker B. Adopt new Rules and Regulations C. Conduct hearings for possible violations of Commission Rules & Regulations D. Sentence a guilty licensee to a jail term - Correct Answer-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 home B. An auctioneer selling real property by auction C. An Attorney in Fact under a signed and recorded Power of Attorney pg. 2 professoraxe l 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. - Correct Answer-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. - Correct Answer-B. A judicial body. In advertising real estate, all of the following apply EXCEPT: pg. 5 professoraxe l 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. - Correct Answer- 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. - Correct Answer-B. Preparing the offer to purchase. Errors & Omissions Insurance is required: pg. 6 professoraxe l 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. - Correct Answer-A. As a condition to licensing. How many members of the Tennessee Real Estate Commission are there? A. 5 B. 7 C. 6 D. 9 - Correct Answer-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. pg. 7 professoraxe l 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. - Correct Answer-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. - Correct Answer-D. It is approved by the affiliate broker's principal broker. pg. 10 professoraxe l 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. 3 B. 4 C. 6 D. 12 - Correct Answer-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. - Correct Answer-D. The firm name and telephone number must be on each page. pg. 11 professoraxe l 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. - Correct Answer-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. pg. 12 professoraxe l D. Approval by the State Senate - Correct Answer- 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. - Correct Answer- 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. Governor pg. 15 professoraxe l B. 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. - Correct Answer-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. $500,000 B. $750,000 C. $1,000,000 D. There is no required minimum amount. - Correct Answer-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 date pg. 16 professoraxe l B. 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. - Correct Answer-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. - Correct Answer-C. A 30 day right of rescission for whole ownership real estate purchases. pg. 17 professoraxe l D. Property condition disclosure. - Correct Answer-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. - Correct Answer-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. pg. 20 professoraxe l C. A list of all the local MLS companies and their website addresses. D. The email address of all listing agents. - Correct Answer-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. - Correct Answer-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 pg. 21 professoraxe l 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. - Correct Answer-C. Bedrooms. pg. 22 professoraxe l