1. Under Tennessee law, which state agency is responsible for licensing and regulating real estate brokers and affiliate brokers?
- A. Tennessee Department of Commerce and Insurance
- B. Tennessee Real Estate Commission ✓
- C. Tennessee Department of Financial Institutions
- D. Tennessee Secretary of State
The Tennessee Real Estate Commission (TREC) is the regulatory body created under T.C.A. § 62-13-201 that licenses, disciplines, and oversees real estate brokers and affiliate brokers in Tennessee. It operates under the umbrella of the Tennessee Department of Commerce and Insurance but is a separate commission with its own authority.
2. In Tennessee, an individual who holds a real estate license but is not yet qualified to act independently and must work under a principal broker is called an:
- A. Associate broker
- B. Provisional broker
- C. Affiliate broker ✓
- D. Designated agent
Tennessee uses the term 'affiliate broker' (T.C.A. § 62-13-102) to describe a licensee who works under the supervision of a principal broker. This is Tennessee-specific terminology; many other states use 'salesperson' or 'sales associate' for the same license level.
3. Tennessee requires that every real estate firm have a licensed individual who is ultimately responsible for the supervision of all affiliated licensees. This person holds which designation?
- A. Managing broker
- B. Principal broker ✓
- C. Supervising broker
- D. Responsible broker
Under T.C.A. § 62-13-102, each firm must designate a 'principal broker' who is accountable for the real estate activities conducted by all affiliate brokers and brokers associated with that firm. The principal broker must hold an active Tennessee broker license.
4. How many members serve on the Tennessee Real Estate Commission?
- A. Five members
- B. Seven members
- C. Nine members ✓
- D. Eleven members
The Tennessee Real Estate Commission is composed of nine members appointed by the Governor under T.C.A. § 62-13-201. Seven members must be licensed real estate brokers or affiliate brokers with the required experience, and two are public/consumer members who are not engaged in the real estate business.
5. Under TREC rules, what is the minimum number of clock hours of post-licensing education an affiliate broker in Tennessee must complete within the first year after obtaining an initial license?
- A. 16 hours
- B. 30 hours ✓
- C. 60 hours
- D. 90 hours
In Tennessee, an affiliate broker applicant must complete the 60-hour basic principles course and the separate 30-hour Course for New Affiliates associated with initial licensure. Ongoing renewal education is generally 16 hours per renewal cycle. The cited 60-hour first-year post-licensing requirement is not the applicable Tennessee affiliate broker rule.
6. A Tennessee real estate licensee who wishes to upgrade from affiliate broker to broker must have held an active affiliate broker license for at least how long?
- A. One year
- B. Two years
- C. Three years ✓
- D. Five years
T.C.A. § 62-13-303 requires that an applicant for a broker license have held an active affiliate broker license for a minimum of three years before applying for the broker license. Additional broker education coursework and an examination are also required.
7. Under Tennessee law, when a licensee changes their affiliated firm, which of the following is TRUE regarding their license?
- A. The licensee's license automatically transfers to the new firm upon signing an employment agreement.
- B. The licensee must surrender their current license and apply for a new one.
- C. The license must be released by the current principal broker before TREC will activate it under a new principal broker. ✓
- D. The licensee may begin working at the new firm immediately without any notification to TREC.
Under TREC rules, a licensee's license is held by the principal broker. When changing firms, the current principal broker must release the license through the TREC system before the licensee can be affiliated with and activated under a new principal broker. Licensees cannot operate without being properly affiliated.
8. Tennessee's real estate license law prohibits which of the following activities by an unlicensed person?
- A. Referring a friend to a licensed agent without receiving compensation
- B. Performing clerical duties in a real estate office
- C. Negotiating the sale of real property on behalf of another for a fee ✓
- D. Attending an open house as a prospective buyer
T.C.A. § 62-13-301 requires a license for anyone who, for compensation, negotiates or attempts to negotiate the sale, purchase, lease, or exchange of real property on behalf of another. Clerical work and personal attendance at open houses do not require a license; unlicensed referrals without compensation are also generally permitted.
9. A Tennessee licensee is convicted of a felony involving fraud. Under T.C.A. § 62-13-312, which disciplinary action may TREC impose?
- A. TREC may only issue a written reprimand for a first offense.
- B. TREC may suspend, revoke, or deny renewal of the license. ✓
- C. TREC must immediately revoke the license with no hearing required.
- D. TREC is limited to placing the license on inactive status for one year.
Under T.C.A. § 62-13-312, TREC has the authority to suspend, revoke, or deny the renewal of a license for causes including a conviction of a felony involving fraud or moral turpitude. A hearing process is required before discipline is imposed; automatic revocation without due process is not prescribed by statute.
10. The Tennessee Real Estate Education and Recovery Account primarily exists to:
- A. Fund continuing education scholarships for Tennessee licensees
- B. Compensate members of the public who suffer financial losses caused by the fraudulent or dishonest acts of a licensed real estate agent ✓
- C. Pay the administrative costs of operating TREC
- D. Reimburse principal brokers whose clients default on real estate contracts
The Tennessee Real Estate Education and Recovery Account (T.C.A. § 62-13-501 et seq.) is a fund of last resort that compensates consumers who have obtained a final, unsatisfied court judgment against a licensee for fraud, misrepresentation, or dishonest conduct in a real estate transaction. It is not for scholarships, TREC operations, or broker reimbursements.