Free Tennessee Real Estate Practice Exam

Q1.Under Tennessee real estate license law, in which situation would a broker be permitted to pay a commission directly to an unlicensed person?

• A.When the unlicensed person is the property owner selling their own property
• B.When the unlicensed person assisted with showing properties
• C.When the unlicensed person provided referral services
• D.Brokers are never permitted to pay commissions to unlicensed persons

Q2.What is the primary difference between an easement in gross and an easement appurtenant?

• A.An easement in gross benefits a specific parcel of land
• B.An easement appurtenant benefits an individual rather than land
• C.An easement in gross benefits an individual or entity rather than land
• D.There is no difference between the two types

Q3.In Tennessee, what must a principal broker do when an affiliate broker salesperson violates license law?

• A.Immediately terminate the salesperson's affiliation
• B.Report the violation to the Tennessee Real Estate Commission within 10 days
• C.Take appropriate disciplinary action and maintain records of the action
• D.Suspend the salesperson for 30 days without pay

Q4.A Tennessee broker discovers that their affiliate broker has been commingling client funds with personal funds. What action must the principal broker take immediately?

• A.Report the violation to TREC within 10 business days
• B.Terminate the affiliate broker and notify all affected clients
• C.Transfer all trust account funds to a new account
• D.All of the above

Q5.According to Tennessee Real Estate Commission rules, what disclosure must be made in writing before a buyer representation agreement is signed?

• A.The broker's commission split with the listing agent
• B.Possible dual agency relationships
• C.The broker's other current buyer clients
• D.The broker's sales volume for the previous year

Q6.According to Tennessee Real Estate Commission regulations, what documentation must a principal broker maintain when disciplining an affiliate broker salesperson?

• A.Verbal warnings are sufficient with no written documentation required
• B.Written record of the violation, disciplinary action taken, and dates
• C.Only the final disciplinary decision needs documentation
• D.Documentation is only required for termination actions

Q7.Under Tennessee property law, which type of lien takes priority over all other liens?

• A.Mortgage lien
• B.Property tax lien
• C.Mechanic's lien
• D.HOA assessment lien

Q8.Which federal law requires disclosure of lead-based paint hazards in residential properties built before 1978?

• A.Fair Housing Act
• B.Residential Lead-Based Paint Hazard Reduction Act
• C.Truth in Lending Act
• D.Real Estate Settlement Procedures Act

Q9.Under Tennessee law, if a listing agreement does not specify a definite expiration date, what is the legal status of the agreement?

• A.It is valid for one year by default
• B.It is unenforceable
• C.It expires after 90 days automatically
• D.It remains valid indefinitely until terminated by either party

Q10.Under the Fair Housing Act, which of the following advertising practices is prohibited?

• A.Describing the physical features of a property
• B.Using the Equal Housing Opportunity logo
• C.Publishing an ad that indicates a preference based on a protected class
• D.Advertising in a language other than English

Q11.A landlord may request documentation of a tenant's disability-related need for an assistance animal when:

• A.The disability and need are both readily apparent
• B.The disability is not readily apparent
• C.The animal is a dog
• D.Never — documentation requests are always prohibited

Q12.According to Tennessee law, what is the minimum duration required for a listing agreement to be enforceable?

• A.No minimum duration is required
• B.30 days
• C.60 days
• D.90 days

Q13.Under the Fair Housing Act, which of the following is NOT a protected class in housing transactions?

• A.Race
• B.Religion
• C.Sexual orientation
• D.National origin

Q14.What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?

• A.To regulate interest rates on mortgages
• B.To ensure consumers receive information about settlement costs and eliminate kickbacks
• C.To establish minimum down payment requirements
• D.To standardize loan qualification criteria

Q15.Under the Tennessee Human Rights Act, which protected class is included in addition to those covered by federal fair housing law?

• A.Sexual orientation
• B.Marital status
• C.Age
• D.Political affiliation