section 25 TN licensing reg

Question 1

Which of the following is NOT a requirement for a branch office?

Answer 1

Operating under the main office license, without a separate license

Question 2

Which of the following statements regarding broker applicants is FALSE?

Answer 2

complete one hundred twenty (120) classroom hours in real estate, before or after receipt of an affiliate broker’s license, at a school, college or university approved by the Commission, including thirty (30) classroom hours covering office or brokerage management

pass both the state and national portion of the license examination with a minimum score of seventy-five percent (75%.)

Question 3

Broker and affiliate broker applicants must have resided in Tennessee for a minimum of

Answer 3

45 days

Question 4

Which of the following statements is TRUE regarding time-share salesperson applicants?

Answer 4

An individual who is seeking a time-share salesperson license must submit an application for examination and licensure to the Commission on the prescribed form. The following item must accompany the application:

certification, by the broker with whom the applicant desires to . affiliated, that the applicant has completed a 30-hour training program consisting of instruction in the fundamentals of the Tennessee Time-Share Act and related topics

Question 5

Broker and affiliate broker applicants must file an application for licensure within how many months of passing the licensing exam?

Answer 5

6

Question 6

Which of the following is NOT required of brokers?

Answer 6

Contracting with affiliated licensees as independent contractors.

Question 7

Typically, the purpose of errors and omissions insurance is to cover claims resulting from

Answer 7

Licensees should keep in mind that errors and omission insurance generally does not cover fair housing or anti-trust violations. It might cover defense expenses, but insurance will not cover unlawful activity of any kind. Errors and omissions insurance is intended primarily to cover agency and contract errors.

Question 8

License law stipulates that licensees provide evidence of having completed the required continuing education

Answer 8

60 days prior to license expiration.

Question 9

An affiliate broker licensee who is in retired status

Answer 9

The licensee may not engage in real estate activity while on retired status.

Question 10

Regarding continuing education requirements for affiliate brokers, the licensee

Answer 10

Affiliate broker continuing education requirement. As indicated previously, an affiliate broker whose license was originally obtained on or after July 1, 1980, is not eligible for license renewal unless he or she completes a minimum of sixteen (16) hours of continuing education in real estate during the two (2) year license period immediately preceding renewal.
Licensees are required to complete a six (6) hour core course as part of the required sixteen (16) hours of continuing education.

Question 11

A real estate license is required for

Answer 11

Individuals required to have a real estate license include any person who, for a fee, commission, finder’s fee or any other valuable consideration, or who intends or expects to receive compensation from someone, solicits, negotiates (or attempts to solicit or negotiate) the listing, sale, purchase, exchange, lease or option to buy, sell, rent or exchange for any real estate or of the improvements on real estate or any time-share interval.

Question 12

If a licensee lets his or her license expire,

Answer 12

there is no grace period in which the licensee may renew without paying a late fee.

Question 13

After a broker or affiliate broker applicant passes the licensing exam, he or she must apply for a license within

Answer 13

Application submission required after passing exam. Broker and affiliate broker applicants who have passed the licensing examination must submit an application for the appropriate license to the Commission. If an applicant for licensure does not file an application with the Commission within six (6) months after the date of the examination, the applicant must retake and pass the examination in order to be eligible for a license.

Question 14

Which of the following is TRUE regarding licensing?

Answer 14

An individual may not be licensed as a timeshare salesperson and as an acquisition agent simultaneously.

Question 15

Which of the following individuals is required to be licensed?

Answer 15

Individuals required to have a real estate license include any person who, for a fee, commission, finder’s fee or any other valuable consideration, or who intends or expects to receive compensation from someone, solicits, negotiates (or attempts to solicit or negotiate) the listing, sale, purchase, exchange, lease or option to buy, sell, rent or exchange for any real estate or of the improvements on real estate or any time-share interval.

Question 16

The Commission will NOT consider a broker to be maintaining a branch office if

Answer 16

A model home may be used in a subdivision or on a commercial lot, and a modular unit may be used in subdivisions that are under construction, to soliciting business and will not be required to be licensed as a branch office if the model home or modular unit meets the following requirements:

advertising of the location and/or telephone number occurs only in conjunction with advertising the firm’s main office

advertising complies with the statutes, rules and regulations of the Commission

the home or unit does not have a mail drop

it is not the sole sales office for the firm

it is not used to allow unlicensed individuals to perform any of the acts requiring a licensure

the principal broker of the main firm office adequately supervises licensees operating from the location

Question 17

Which of the following statements is TRUE regarding affiliate broker applicants?

Answer 17

The applicant must complete a 60-hour course in basic real estate principles prior to taking the license exam, and a 30-hour course for new affiliates prior to associating with a broker.

Question 18

A license can be suspended as a result of all of the following EXCEPT

Answer 18

Suspended status. Licenses may be placed on suspended status by the Commission for a specific period of time or until certain conditions are met. The licensee cannot engage in real estate activity, and the license cannot be renewed while suspended. Other state agencies have a statutory right to direct the Commission to suspend a license, including the Tennessee Department of Revenue; the Child Support Division of the Department of the Department of Human Services, and the Tennessee Student Assistance Corporation. This means that a license can be suspended as a result of the licensee’s nonpayment of taxes, child support, or student loans.

Question 19

Which of the following is TRUE regarding requirements for time-share salespersons?

Answer 19

Time-share salesperson. These applicants must complete a thirty (30) hour pre-license course.

Question 20

Which of the following statements is TRUE regarding licensing in Tennessee?

Answer 20

Application after license denial. An applicant who appears before the Commission requesting licensure and who is denied will not be eligible for reconsideration for six (6) months from the date of denial.

Question 21

An application for time-share or acquisition agent must be received by the Commission at least _____ before the applicant plans to take the exam.

Answer 21

The Commission must receive the application for the time-share salesperson license examination at least ten (10) days prior to the date on which the applicant wishes to take the examination.

Question 22

Which of the following statements is TRUE regarding licensing requirements for any real estate related license?

Answer 22

Fingerprinting. The Commission requires that applicants for their initial licensure submit a complete and legible set of fingerprints, in a format as prescribed by the Commission, to the Commission or to the Tennessee Bureau of Investigation. The purpose of fingerprinting is to obtain a criminal background check from the Tennessee Bureau of Investigation and the Federal Bureau of Investigation. The cost is paid by the applicant.

Question 23

Which of the following statements is FALSE regarding a certificate of eligibility?

Answer 23

Certificate of employability. If an individual has a certificate of employability to restore his or her citizenship, that person will not be denied a license based solely on the person’s past criminal activity but will be required to appear before the Commission. The Commission will then consider on a case-by-case basis whether to issue or deny the license.

Question 24

Which of the following individuals is NOT required to be licensed?

Answer 24

The following exemptions to licensure are provided:

a receiver, executory, guardian, trustee in a bankruptcy, or trustee under a trust agreement, deed of trust or will, or an individual acting under a court order or other court instrument

Question 25

Which of the following is FALSE regarding a real estate corporation?

Answer 25

The following exemptions to licensure are provided:

a domestic or foreign corporation acting through an officer who is authorized to engage in a real estate transaction, if the transaction is incidental to the management, lease, sale or other disposition of real estate owned by the corporation; this exemption does not apply to a person who performs licensing act as a vocation or for compensation if the amount of compensation is dependent upon or directly related to the value of the real estate involved