Tennessee Real Estate Affiliate Broker Practice

Question 1

Which of the following best describes a special agent?

Answer 1

A broker authorized by the client to perform a specific act, such as locate a buyer.

Question 2

Which of the following is the agent authorized to take actions for and bind the principal in all matters within the scope of real estate practice?

Answer 2

General Agent

Question 3

Tom, Duck, and a Harry are farmers in a state that uses the prior appropriation doctrine. Tom legally appropriated 100,000 gallons of water in 2001 and 25,000 more in 2005. Dick appropriated 100,000 gallons of water in 2003 and 25,000 more in 2004, Harry appropriated 125,000 gallons of water in 2004. In 2008, there are only 350,000 gallons available. How much water does each get?

Answer 3

Tom: 100,000
Dick: 125,000
Harry: 125,000

Question 4

When does a state usually own a bed of a body of water?

Answer 4

If the body is navigable

Question 5

Underwriters are concerned about confirming the status of what property threat that isn’t covered by regular homeowner insurance policies?

Answer 5

Flood

Question 6

Under TRID rules, the lender must provide the borrower with the Loan Estimate within what amount of time?

Answer 6

Three business days of loan application

Question 7

Which of the following is TRUE of a bridge loan?

Answer 7

Lenders may ignore the first mortgage in the debt-to-income ratio

Question 8

What happens to the monthly payments for a variable rate mortgage when interest rates go higher?

Answer 8

Payments stay the same

Question 9

What is one difference between a real estate broker and an affiliate broker in Tennessee?

Answer 9

An affiliate broker is a licensed broker but not working as a broker

Question 10

What is an example of a blatant lie for real estate brokers?

Answer 10

Making a promise you can’t or don’t intend to keep

Question 11

Which of the following is a risk of having property that is home to a protected species?

Answer 11

1. The presence might reduce property values
2. Development potential of the land may be limited
3. The plant or animal cannot be killed or removed even if it interferes with the enjoyment of the property

Question 12

What does a 100 year floodplain mean in terms of flood risk for a property?

Answer 12

There is a 1% chance a property will flood in any given year

Question 13

In which of these locations should a Ground Fault Circuit Interrupter outlet be used?

Answer 13

1. On the outside patio of the building
2. Next to the bathroom sink
3. On the kitchen counter

Question 14

When is a buyer and seller willing?

Answer 14

When each enters into the sales transaction voluntarily

Question 15

How are lease commercial properties typically priced?

Answer 15

As an annual price per square foot