Free Tennessee Agency Practice Test — LicenseIQ

Question 1

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 2

In Tennessee, until a licensee enters into a specific written agency agreement with a party, the licensee is considered

Accepted Answer

Section 62-13-401 states that until a licensee enters into a specific written agreement establishing agency, the licensee is a facilitator and not an agent or advocate of any party. Agency cannot be implied.

Question 3

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 4

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 5

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 6

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 7

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 8

For an unrepresented seller, written confirmation of the licensee's agency status, with a signed receipt, must be obtained

Accepted Answer

Section 62-13-405(b) requires written confirmation for unrepresented sellers before a listing agreement is signed or an offer is presented, whichever occurs first. For unrepresented buyers, the trigger is before an offer is prepared.

Question 9

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 10

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 11

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 12

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 13

Which statement about acquisition agents is correct?

Accepted Answer

Section 62-13-102 defines an acquisition agent as one who induces persons to attend a time-share sales presentation, and §62-13-112 exempts acquisition agents from E&O. Selling intervals is the time-share salesperson's role.

Question 14

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 15

A seller-client instructs her agent not to tell buyers about a known roof leak. The agent should

Accepted Answer

Section 62-13-404(1) requires obedience only to lawful instructions within the scope of the agency, and §62-13-403(2) requires disclosure of known adverse facts to all parties.

Question 16

Which duty does a Tennessee listing agent owe to an unrepresented buyer-customer?

Accepted Answer

Section 62-13-403 lists duties owed to all parties, including disclosing known adverse facts. Loyalty and obedience are client duties under §62-13-404 and are owed to the seller-client.

Question 17

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 18

The agency duties and disclosures of §§62-13-403 through -405 do NOT apply to

Accepted Answer

Section 62-13-405(e) exempts commercial transfers or leases, public auctions, transfers of residential property with more than four units, and leases or rentals of residential property. Sales of 1-4 unit residential property are covered.

Question 19

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 20

A managing broker appoints Licensee A as designated agent for a seller and Licensee B as designated agent for a buyer of the same property. The managing broker is

Accepted Answer

Section 62-13-406(a) provides that a managing broker is not a dual agent when each designated agent represents only one party in the transaction.

Question 21

Acting for more than one party in a Tennessee transaction is a ground for discipline when done

Accepted Answer

Section 62-13-312(b)(7) makes it a ground for discipline to act for more than one party without the knowledge and consent in writing of all parties. Dual agency with written consent is not prohibited.

Question 22

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 23

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 24

A seller signs a limited-service listing waiving the agent's duty to receive and forward offers. The listing agent must also

Accepted Answer

Section 62-13-404(3)(B) requires the consumer's agent to advise the consumer in writing that the consumer may not expect or seek assistance from other licensees for the waived duties.

Question 25

Which of the following establishes an agency relationship with a seller under Tennessee law?

Accepted Answer

Section 62-13-401 provides that the negotiation and execution of an exclusive agency or exclusive right to sell listing agreement establishes agency with the seller, and that agency cannot be assumed, implied or created without a written bilateral agreement.

Tennessee real estate agency practice test

1. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

2. In Tennessee, until a licensee enters into a specific written agency agreement with a party, the licensee is considered

3. A material defect that a seller/agent must disclose is one that:

4. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

5. The best way to create an agency relationship is a(n):

6. A property manager owes fiduciary duties primarily to the:

7. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

8. For an unrepresented seller, written confirmation of the licensee's agency status, with a signed receipt, must be obtained

9. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

10. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

11. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

12. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

13. Which statement about acquisition agents is correct?

14. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

15. A seller-client instructs her agent not to tell buyers about a known roof leak. The agent should

16. Which duty does a Tennessee listing agent owe to an unrepresented buyer-customer?

17. The client a broker represents is the:

18. The agency duties and disclosures of §§62-13-403 through -405 do NOT apply to

19. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

20. A managing broker appoints Licensee A as designated agent for a seller and Licensee B as designated agent for a buyer of the same property. The managing broker is

21. Acting for more than one party in a Tennessee transaction is a ground for discipline when done

22. Which statement about dual agency is correct?

23. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

24. A seller signs a limited-service listing waiving the agent's duty to receive and forward offers. The listing agent must also

25. Which of the following establishes an agency relationship with a seller under Tennessee law?

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