Free Tennessee State Portion of the Real Estate Broker Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Tennessee State Portion of the Real Estate Broker Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A Tennessee broker asks why the Real Estate Commission regulates licensees. Which statement best expresses the Commission's statutory public-protection purpose?

   1. A. To protect the public from irresponsible or unscrupulous persons dealing in real estate
   2. B. To protect licensees from civil contract claims arising in real estate transactions
   3. C. To promote membership in private real estate trade associations
   4. D. To set local property-tax assessments for real estate owners

   Answer: A

   Explanation: The Commission's official sunset report says the statute is "designed to protect the public from irresponsible or unscrupulous persons dealing in real estate." That purpose, not private advocacy or taxation, controls.

   Reference: Tn Real Estate Commission Qa (2023) — Question 1, p. 1

2. 2A Tennessee broker applicant is ready to schedule the licensing examination. Which procedures must the applicant follow?

   1. A. The procedures published by the TREC-approved testing vendor
   2. B. The procedures chosen by the applicant's local REALTOR association
   3. C. The procedures issued by the county register of deeds
   4. D. The procedures used by the applicant's prelicense school

   Answer: A

   Explanation: Rule 1260-01-.01(2) says broker applications "must follow the procedures published by the testing vendor approved by the Tennessee Real Estate Commission."

   Reference: Tn Rules 1260 01 — Rule 1260-01-.01(2), p. 1

3. 3An advertisement refers to an individual Tennessee licensee. How must that individual's name appear?

   1. A. Under any nickname the principal broker recognizes
   2. B. Under the team name alone
   3. C. As the individual's name is licensed with the Commission
   4. D. As the franchise trade name

   Answer: C

   Explanation: Rule 1260-02-.12(3)(c) requires an advertisement referring to an individual to list "that individual licensee’s name as licensed with the Commission."

   Reference: Tn Rules 1260 02 — Rule 1260-02-.12(3)(c), p. 7

4. 4An affiliated Tennessee licensee completes a sale and is offered the commission directly by the client. From whom may the affiliated licensee accept that commission?

   1. A. The client if the principal broker is notified
   2. B. The closing attorney if the check identifies the transaction
   3. C. Only the licensed real estate broker with whom the licensee is affiliated
   4. D. Any party named in the purchase agreement

   Answer: C

   Explanation: TREC lists as discipline grounds accepting compensation by an affiliate "from any person except the licensed real estate broker with whom the licensee is affiliated."

   Reference: Tennessee Real Estate Commission File a Complaint — Disciplinary violations, item 11

5. 5Who must preserve records relating to Tennessee real estate transactions for the required retention period?

   1. A. The Commission's testing vendor
   2. B. The county register
   3. C. Real estate licensees
   4. D. The local trade association

   Answer: C

   Explanation: Rule 1260-02-.40(1) states, "real estate licensees must preserve records relating to any real estate transaction" for the required period.

   Reference: Tn Rules 1260 02 — Rule 1260-02-.40(1), p. 13

6. 6A Tennessee escrow contract authorizes the principal broker to hold earnest money. Which basis permits disbursement without an additional agreement?

   1. A. A verbal demand from one interested party
   2. B. The firm's customary practice regardless of contract terms
   3. C. A reasonable interpretation of the contract authorizing the broker to hold the money
   4. D. An affiliated broker's personal judgment about fairness

   Answer: C

   Explanation: Rule 1260-02-.09(7)(a) permits disbursement "Upon a reasonable interpretation of the contract which authorizes him to hold the trust money."

   Reference: Tn Rules 1260 02 — Rule 1260-02-.09(7)(a), p. 5

7. 7A Tennessee seller proposes a listing based on a net price that excludes the customary commission and sale expenses. May the broker accept it?

   1. A. No; Tennessee prohibits brokers and affiliate brokers from accepting net-price listings
   2. B. Yes, if the seller initials the commission clause
   3. C. Yes, if the broker discloses the resale price after closing
   4. D. No, unless the listing lasts fewer than thirty days

   Answer: A

   Explanation: Rule 1260-02-.07 states, "No broker or affiliate broker shall accept or enter a listing" based on a net price, which the rule defines as excluding customary commission and sale expenses.

   Reference: Tn Rules 1260 02 — Rule 1260-02-.07, p. 4

8. 8A Tennessee licensee begins assisting a buyer but has not signed an agency agreement. Has an agency relationship arisen merely from the assistance?

   1. A. Yes; initial verbal disclosure establishes the relationship
   2. B. Yes; a signed receipt for agency-status disclosure establishes it
   3. C. No; agency is not assumed or implied without a written bilateral agreement establishing its terms
   4. D. No; a written facilitator-status confirmation establishes agency instead

   Answer: C

   Explanation: The enacted agency provision states, "An agency or subagency relationship shall not be assumed, implied or created without a written bilateral agreement that establishes the terms and conditions" of the relationship.

   Reference: Tn Ha (0447) — Section 3, p. 3

9. 9By what latest point must a Tennessee time-share developer obtain the purchaser's signed and dated receipt for the public offering statement?

   1. A. Before transfer and no later than the date of the sales contract
   2. B. Within ten days after the transfer
   3. C. At the first annual owners' meeting
   4. D. When the developer files for renewal

   Answer: A

   Explanation: Rule 1260-06-.02 requires the receipt "Before transfer of a time-share interval and no later than the date of any sales contract."

   Reference: Tn Rules 1260 06 — Rule 1260-06-.02, p. 1

10. 10The Tennessee Real Estate Commission wants to implement the Broker License Act through enforceable standards. Which power does its official description identify?

    1. A. Issue county zoning ordinances
    2. B. Promulgate rules under the Uniform Administrative Procedures Act and establish minimum practice standards
    3. C. Adjudicate title disputes between private owners
    4. D. Set mortgage underwriting standards for federally insured lenders

    Answer: B

    Explanation: The official report states that the Commission has "the authority to promulgate and adopt rules and regulations pursuant to the UAPA" and to establish minimum acceptable practice standards.

    Reference: Tn Real Estate Commission Qa (2023) — Question 1, p. 1