Exam (elaborations)
Tennessee Real Estate Questions with correct Answers
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Tennessee Real Estate
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TN Real Estate Exam 1Matches borrowers with the loan that meets their needs - answer Mortgage broker
Responsible for the actions of affiliated licensees - answer Real estate broker
Funds the loan for a home buyer - answer Institutional lender
Represents a buyer or seller in a real estate transaction, under the supervision of a broker - answer Affiliate broker
Develops an estimate of the market value of the property, usually a requirement of the lender - answer Appraiser
Performs a visual inspection of the property and reports to the buyer about any safety hazards or repairs that are needed - answer Home inspector
Handles the financial details and paperwork at closing - answerTitle agent
Prepare comparative market analysis - answerObtain the listing
Negotiate offers and counter-offers - answer Manage the transaction
Hold open houses - answerList and market
Schedule photography - answerPrepare for the listing
Do the listing presentation - answerBefore signing listing agreement
At which point in the residential selling process does scheduling a photographer take place? - answerPreparing the listing
Which of these choices represents a specialization for which a real estate licensee may pursue an NAR designation? - answerGreen buildings
At what stage of the residential sales process would the listing agent typically obtain tax and property boundary information? - answerPreparing the listing
At which point in the residential selling process does the real estate professional prepare a comparative market analysis? - answerObtaining the listing In the real estate business, which professional's primary role is to provide brokerage services to their clients and to supervise licensees who work for them? - answerReal estate broker
George has closed a transaction. Which final step must he complete as part of the typical residential sales process? - answerRetain copies of transactional paperwork
Which association is credited with laying the foundation for many states' real estate license law? - answerThe National Association of Real Estate Brokers (NAREB)
Carol has been licensed for a few short months and has closed three residential transactions. Her uncle calls and informs her that he'd like to engage her as a buyer's agent. He's interested in purchasing some commercial investment property. Which part of the Code of Ethics prohibits Carol from helping her uncle unless she receives some assistance from someone experienced in commercial investment property? - answerArticle 11, Standard of practice 11-12
Licensee Renaldo is working with a client who's selling a home that's been on the market for some time. Eventually the seller agrees to take an offer lower than the listing price. But just a week later, another offer is made, this time at the price the seller had originally wanted. The seller asks Renaldo, "Where do I stand legally if I break the purchase agreement with the first buyer and accept this new offer?" Does the NAR Code of Ethics or TREC allow Renaldo to offer an opinion on the seller's question? - answerBoth TREC and the NAR Code of Ethics prohibit Renaldo from the unauthorized practice of law, which he would be doing if he offered an opinion on the result of breaking a contract.
The Tennessee Real Estate Commission (TREC) enacts rules addressing professional conduct and standards of practice for real estate licensees in the state. You'll need to know these rules and follow them as a licensee. You'll be subject to disciplinary action from TREC if you're found in violation of these rules of conduct. - answerBeyond simply avoiding violations, following a professional standard of behavior makes it possible for consumers to place their trust in licensees. So let's practice using those standards.
Which entity is given authority to regulate the professional conduct of real estate licensees in Tennessee? - answerTennessee Real Estate Commission
Article 11 of ______________ requires REALTORS® to act only within their area of competence, unless they receive assistance from someone who is competent in the area. - answerThe NAR Code of Ethics
Snidely is a real estate licensee who regularly misrepresents himself to clients, provides
opinions of property value that he calls appraisals, and frequently advises his clients about the legal ramifications of the clauses they'd like to include in their contracts. Snidely is _____________. - answerViolating multiple articles of the NAR Code of Ethics A downcycle is a... - answerperiod of stagnation in real estate, during which no one's buying and no one's selling.
A new business moves into town, significantly increasing the availability of good paying jobs. How is this likely to affect the town's housing market? - answerDemand will go up, creating a seller's market.
The city of River Heights is experiencing a shortage of skilled workers in the construction trades. Is this likely to affect the real estate market, and if so, how? - answerYes, this would impact the supply of homes on the market, potentially creating a seller's market.
Chloe focuses her marketing efforts on a specific neighborhood. This is known as her ______. - answerFarm Area
In most markets, in which month would a real estate downcycle typically start? - answerNovember
One evening during their weekly card game, Cecilia and her group of retired friends are recounting the difficulty they had finding a place they could afford that was close to a hospital. Cecilia added that they were the lucky ones because she has a few other friends who have had to put their names on a waiting list to get into a low-maintenance condo development just down the street. What current market trend is this an example of? - answerAging Baby boomers
Because these types of properties have both specific physical and complex operational requirements, they are usually handled by more experienced real estate professionals. -
answerIndustrial
What two requirements does TREC have for licensees who keep business records in an
electronic format? - answer- Must be accessible within 24 hours of a request from TREC
- Must maintain the security and accessibility of the records
Lisette is an employee at ABC Brokerage. She's not licensed and her role is to answer phones and process paperwork. She's supervised by broker Bob. Which of the following
statements is true? - answerBob can control the number of hours that Lisette works each day.
Jenna is an affiliate broker in Tennessee. She recently helped a seller client close on a real estate transaction. Which of the following would it be illegal for her to receive as part of this transaction? - answerAccepting an undisclosed cash gift from the seller, thanking her for negotiating on his behalf Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor? - answerWhether the licensee receives benefits from the brokerage firm
Real estate licensees may be classified as ______ for tax purposes, even though they're subject to supervision from a more experienced broker. - answerIndependent contractors
What's one benefit to affiliating with a broker? - answerTraining
Woody wanted to work for the new broker in town, so he filed the paperwork necessary to affiliate with a new broker. What will happen to his three listings and two buyer clients? - answerThey remain with Woody's original broker, unless the broker agrees to other arrangements in writing.
Andrew just received a compensation check from his brokerage firm. Since Andrew is an independent contractor, what determines how he's paid? - answerAndrew's sales
Which of the following statements is true about affiliating with a broker? - answerAll of the client engagement agreements you sign are done in the name of your principal broker.
An unlicensed assistant at ABC Brokerage conducts a showing of one of the firm's listings. Because showing property is an activity that requires a license, which of these statements is true? - answerThe principal broker may be sanctioned.
Members of the Tennessee Real Estate Commission are appointed by ______. - answerThe governor
Which of the following is within TREC's authority? - answerAdopt bylaws and create rules and regulations to carry out license law.
Jen, a TREC commissioner who is a broker, has been disheartened to see brokerage fees fall over the years. She would like to see the industry set a standard brokerage fee of no less than 5%. As a member of TREC, Jen can ______. - answerLose her license for even suggesting a standard fee
What entity is responsible for ensuring the Real Estate Education and Recovery Account maintains a $500,000 minimum balance? - answerTREC
How many TREC members must be present in order for the commission meetings to be
valid? - answerFive
What's the maximum dollar amount the Real Estate Education and Recovery fund will pay out for a single transaction? - answer$15,000
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