Question 1

After working with a couple for several months, an affiliate broker wrote an offer in January which was immediately accepted. The affiliate brokers license expired in December because he had forgotten to renew it. Is the affiliate Broker entitled to a commission?

A - yes, if his license is renewed by the end of June.

B - No, because his license was expired at the time the transaction occurred.

Yes, because he was already working with the buyers prior to the date his license expired.

C - Possibly, it is at his brokers discretion.

Question 2

Which of the following actions is not in compliance with Tennessee real estate commission rules and regulations?

A - Entering a listing based on a net price.

B - Placing a for sale sign that includes the name of the brokerage firm.

C - Telling a prospective buyer that you feel a property is located in one of the nicest areas in town, when you know that others would disagree.

D - Failing to detect faulty interior electrical wiring during an inspection of a property.

Question 3

You have been seeking a buyer for a clients property and have submitted two offers that are near list price, advising your client to accept the higher one. A third perspective buyer brings an offer that is several thousand dollars lower than either of the offers, and asks you to present it to your client also. Must you present this offer, and why or why not?

A - you need not present the offer because it would not be in your clients best interest to accept it over either of the others and you are obligated to serve your clients best interest.

B - You need not present the offer because your client has two good offers in hand, and has told you he finds both acceptable and will except one of them before they expire.

C - You must present the offer because failure to do so would breach your fiduciary duty to the prospective buyer.

D - You must present the offer because you must present all offers tendered, even disadvantageous ones.

Question 4

An affiliate broker may perform real estate brokerage activities for how many different brokerage firms during the same time period?

A - no more than one.

B - no more than two.

C - One general brokerage firm and one time-share project.

D - an unlimited number, as long as commission approval is obtained.

Question 5

Which of the following is The best definition of a brokers escrow or trust account?

A - The account is in the name of the broker or the firm, holds only funds owned by the broker or the firm, and the broker and the secretary are signatories.

B - The account is in the name of the broker, is designated as a trust or escrow account, holds deposits or earnest money from clients, and the broker is signatory.

C - The account is in the name of the client, is not designated a trust or escrow account, and both the client and the broker are signatories on the account.

D - The account is in the name of the affiliate broker and the client, and both the client and affiliate broker are signatories on the account.