Final Exam TN Real Estate Course Exam
Questions with 100% Correct Answers |
Updated & Verified | 2024
In contract law, which of the following is NOT required for the contract to be valid? ✔✔Both parties
to the contract must be 21 years old.
In Tennessee, all advertising for real property must ✔✔be under the firm's name.
Honestly representing property condition is a duty a licensee owes to ✔✔clients and customers.
How can a licensee be at risk when disclosing an agency relationship? ✔✔If the licensee fails to
inform and disclose properly
Earnest money must be deposited into an escrow account "promptly" upon acceptance of an offer
unless stated otherwise. "Promptly" usually means ✔✔within 72 hours.
Which of the following statements is true? ✔✔Proper disclosures prevent clients from claiming
they were misled.
Which of the following statements is false? ✔✔An agent may enter into a legally binding oral
agency relationship with a client.
,Which of the following is not an area of risk in terms of unintentional misrepresentation? ✔✔Stating
that a client should seek legal counsel.
Cancellation and discharge of a contract includes all of the following EXCEPT ✔✔Revocation without
repercussions
FHA guidelines require the income ratio on a mortgage loan to be ✔✔no more than 29%
What is a property manager's most important duty? ✔✔To maximize ROI for the property owner
What are the two ways escrow funds are most often misused? ✔✔Commingling and conversion
The Tennessee Landlord and Tenant Act allows the landlord to enter the premises in any of
the following situations EXCEPT ✔✔to quiet down noisy tenants.
What is the primary method for transferring risk in real estate transactions? ✔✔Carrying an Errors
& Omissions policy
What is the amount a lender normally requires to be included for taxes and insurance in a borrower's
monthly mortgage payment? ✔✔1/12th of the annual real estate taxes and hazard insurance payment
Upon execution of the contract, a licensee should provide all signatories with ✔✔copies of any listing
or contract relevant to the real estate transaction.
, A broker has an agency relationship with a client. An affiliate broker is working as that broker's agent.
This kind of agency is called ✔✔subagency.
Strategies for managing risk fall into all except which of the following categories? ✔✔Protection
An owner is not liable for errors and omissions in the condition disclosure provided ✔✔the error
was based on information provided by a professional engineer or inspector.
The rules for internet advertising in Tennessee are ✔✔the same as those that apply to all
advertising, regardless of medium.
What is the difference in the principal broker's supervisory responsibilities to an employee affiliate
broker and an independent contractor affiliate broker? ✔✔There is no difference in the
supervisory responsibilities of the broker to any affiliate.
How is etiquette distinguished from ethics and laws? ✔✔Ethics and laws must be obeyed; etiquette
is voluntary.
When a code of ethics violation complaint goes to a Grievance Committee, the Committee has the
authority to ✔✔dismiss the complaint.
Under which type of listing agreement is the listing broker entitled to a commission regardless of who is
the procuring cause of the sale? ✔✔Exclusive right-to-sell
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