TN Real Estate Exam Questions And Answers, Over 250 Questions And Correct Answers 2024
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Course
TN Real Estate
Institution
TN Real Estate
TN Real Estate Exam Questions And Answers, Over 250 Questions And Correct Answers 2024
Brokerage
The business of bringing buyers and sellers together
Agency
The broker is hired by someone called the client to represent that client in negotiating contracts
Independent Contract
One who is not...
TN Real Estate Exam Questions And Answers, Over
250 Questions And Correct Answers 2024
Brokerage
The business of bringing buyers and sellers together
Agency
The broker is hired by someone called the client to represent that client in negotiating
contracts
Independent Contract
One who is not an employee-They are paid gross earnings and the broker does not
subtract tax/S.S. from their earnings
Law that passed to be treated as Independent Contractor
TEFRA (Tax, Equity, Fiscal, Responsibility, Act)
*Single Agency
The broker represents either buyer or seller not both
*Dual Agency (not recommended b/c of legal liability)
Represents buyer and seller in same transaction
*Disclosed- Dual agency
Legal in TN if full disclosure is given to both clients and written consent is received from
both clients
*Undisclosed-Dual agency
Illegal in TN
*Subagent
an agent of an agent. Both agent and subagent represent same client, must have
written consent
*Imputed Knowledge
A presumption of law. If 1 agent in the firm knows any info then it is presumed all agents
in the firm know that info
*Designated Agency (has no imputed knowledge)
When practiced the broker designates a licensee to represent the buyer or seller. The
designated licensee will be the exclusive agent of the client for the firm
*Facilitator AKA Transaction Broker
non agent. Represents no one in a R.E. transaction
Broker
The clients agent
Role of affiliate broker
to represent the broker
Agency relationship must be...
WRITTEN. Implied, assumed, or oral contracts are NOT valid in TN
*The client (we work FOR our clients)
a principal (buyer or seller) WHO SIGNED and agency agreement
*The Customer (we work WITH our customers)
a principal (buyer or seller) that HAS NOT SIGNED agency agreement
**Fiduciary
holds a position of trust and confidence
,Duties owed to client under common law
COALD (Care, Obedience, Accounting, Loyalty, Disclosure)
7 Duties owed to all parties under Statutory Law of TN (Customer and Client)
1. Exercise reasonable skill and care
2. Disclose all adverse facts that the licensee has actual notice or knowledge
3.Duty of confidentiality
4. Provide honesty and good faith
5. Disclose timely and accurate market conditions that might affect transaction
6. Timely account for trust fund deposits
7a. Do not engage with anybody of personal interest w/o prior disclosure and written
consent
7b. Do not use services with anyone outside the transaction to receive
kickbacks/referral fees
Material Facts
Anything that would or could cause you to not buy the property
Adverse/negative Facts (must be disclosed to all parties)
a. Anything that has a negative effect on the value of the property
b. Anything that has a significant effect on the structural integrity of improvements
c. Anything that has a negative affect on the health and safety of the occupants
*Special Agent
The broker-because of limited authority granted
In TN the relationship between client and agent is governed by...
Statutory law and written agreement
*How are commission rates established?
Determined by the 2 parties
*When has a broker earned commission?
When the agent has found a ready, willing, and able buyer acceptable to the seller
When is commission collected?
When there is a closing
A broker may share commission with...
1. The affiliate broker (me)
2. Another broker (even in another state only if the other broker doesn't conduct any
negotiations in in TN)
An Affiliate broker may receive compensation from?
The broker from the firm where they are affiliated
*Anti trust laws
a. allocation of markets-geographically dividing the area by segment
b. Price fixing-all to conspire to charge a minimum rate
c. Boycotts- conspiring to put one of your competitors out of business
*What is a listing contract?
- An employment contract between and seller and broker
- The listing creates a fiduciary relationship
The listing is owned by?
The broker
*Listings must be...
Written, signed by parties, have an expiration date, and a definite commission amnt
, *Types of listings
1. Exclusive right to sell- owner appoints a R.E. broker as his exclusive agent to sell the
prop on owners terms, and agrees to pay the broker commission when sold whether by
broker, owner, or another broker
2. Exclusive Agency- Owner reserves the right to sell w/o paying commission if he finds
buyer not introduced or claimed by broker
3 Open- Seller hires multiple brokers but pays commission to the one that finds, ready,
willing, and able buyer
4. Net- Illegal in TN
Multiple Listing Service (MLS)
Database where listings are entered and shared
Protection Clause (carryover clause)
Provides protection to the listing broker for a specified period of time if the seller sells
the property to someone introduced to the property during the period of listing
Mutual Consent
All parties agree to terminate the listing
Full performance
The property is sold and closed and as a result the listing is terminated
Expiration of term
The specified time for the listing to be in effect has elapsed
Cancellation by client
client has the right to withdraw/cancel the listing under certain circumstances
Renunciation by agent
The listing can be cxld by agent if necessary (If client asks agent to do something
illegal)
Abandonment by agent
If firm went out of business and could no longer provide services contracted
Death of either party
most contracts live on, but listings do not
*Condemnation (PROCESS)
The PROCESS used by govt to take private property and use it for public use
*Eminent Domain (RIGHT)
The right of the govt to take private property and use it for public use
Importance of listings to the broker?
They are the lifeblood of the firm
*What is property management?
The business of managing investment properties that others own
*Primary objectives of property manager
1. maximize owners profit
2. maintain the property
*How is the relationship between owners and property managers created?
Written contract called management agreement
*The property manager is usually a
general agent
Is property manager required to be licensed?
Yes if they perform rental or leasing functions
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