Tennessee Agency Overview

Question 1

relationship in which a real estate broker acts for or represents another by the other person’s express authority in a transaction.

Answer 1

agency

Question 2

one where the licensee’s agency is limited to provide real estate services to a client. Such licensee shall function as an intermediary in negotiations between the parties to a transaction unless such parties negotiate directly.

Answer 2

limited agency

Question 3

is an agency where the agent is employed to do one task for the client.

Answer 3

special agency

Question 4

an agency where the agent is employed to perform a variety of tasks for the client, all related to a single business activity.

Answer 4

general agency

Question 5

the represented party in a transaction.

Answer 5

client

Question 6

the unrepresented party in transaction.

Answer 6

customer

Question 7

is a broker’s policy to represent one side of a transaction only.

Answer 7

single agency

Question 8

is a broker’s agreement to represent both sides of a transaction simultaneously.

Answer 8

dual agency

Question 9

licensee appointed by the managing broker to be the firm’s direct representative with a client to the exclusion of any other licensee associated with the firm, including the broker.

Answer 9

Designated agent

Question 10

is a licensee who assists one or more parties to a transaction, but represents no one in the transaction.

Answer 10

Facilitator

Question 11

is a type of exclusive listing where the owner agrees to pay commission regardless of who procures the buyer.

Answer 11

Exclusive-right-to-sell listing

Question 12

is a type of exclusive listing where the owner reserves the right to find the buyer, with no obligation for commission to the agent.

Answer 12

exclusive agency listing

Question 13

an illegal listing in Tennessee where it suggests a net amount the owner wishes to receive at closing with any excess as commission to the broker.

Answer 13

Net listing

Question 14

is the licensee who started the action that resulted in the sale.

Answer 14

procuring cause

Question 15

In order for there to be an agency in Tennessee, law requires there be

Answer 15

a written and signed bilateral agreement.

Question 16

A commission or fee in any brokerage agreement is ALWAYS

Answer 16

a negotiable amount.

Question 17

For a listing agreement to be valid, it must be signed by everyone who has an ownership interest and

Answer 17

the broker or his representative.

Question 18

On a For Sale sign of a listing firm, lettering must be the same size or larger than

Answer 18

the affiliates name

Question 19

When an agency is limited to providing real estate representation, it is referred to as

Answer 19

limited agency

Question 20

At closing, the broker may be compensated by

Answer 20

both the buyer and seller

Question 21

A management agreement is between the broker and whom?

Answer 21

An owner who wishes to lease her property

Question 22

In limited agency, a licensee functions as

Answer 22

an intermediary in negotiations between parties.

Question 23

What duties does an agent continue to owe a client after a listing expires or terminates?

Answer 23

confidentiality and accounting

Question 24

James is an affiliate broker. He negotiated a representation agreement with a client. The representation agreement is between

Answer 24

the broker and the client

Question 25

information that is considered confidential because it assists the seller or buyer in negotiating.

Answer 25

specific assistance

Question 26

A licensee acting as a transaction broker in one transaction

Answer 26

may act as a transaction broker or agent in a different transaction.

Question 27

A listing is a personal service contract and it can be assigned to a new broker only when

Answer 27

an agreement is signed by all parties

Question 28

A disclosure that must be made to a buying or leasing prospect if a residential property was built prior to 1978 is

Answer 28

lead-based paint disclosure

Question 29

A listing broker’s offer of cooperation

Answer 29

does not imply an offer of compensation

Question 30

fiduciary duties of an agent to a client

Answer 30

Loyalty, confidentiality, obedience

Question 31

representing someone in a transaction.

Answer 31

agency

Question 32

A licensee may place the firm’s For Sale sign on a property after

Answer 32

obtaining a written authorization