Free Tennessee Property Practice Test — LicenseIQ

Question 1

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 2

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 3

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 4

An owner of lakefront property holds:

Accepted Answer

Littoral rights apply to properties abutting standing bodies of water such as lakes and oceans. (Reclassified from section 16 to section 1 / CORE.)

Question 5

A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

Accepted Answer

$365,000 / 100 = 3,650 units; 3,650 x $2.85 = $10,402.50.

Question 6

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 7

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 8

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 9

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 10

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 11

A borrower records a $250,000 deed of trust in Tennessee. What is the indebtedness tax?

Accepted Answer

Section 67-4-409(b) taxes indebtedness at $0.115 per $100, exempting the first $2,000. Taxable = $250,000 - $2,000 = $248,000; $248,000 / 100 = 2,480; 2,480 x $0.115 = $285.20. Forgetting the $2,000 exemption gives $287.50.

Question 12

A deed that conveys only whatever interest the grantor has, with no warranties, is a:

Accepted Answer

A quitclaim deed conveys the grantor's interest, if any, with no warranties - often used to clear clouds on title.

Question 13

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 14

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 15

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 16

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 17

Under Tennessee law, an owner or licensee faces no liability for failing to disclose that

Accepted Answer

Section 66-5-207 bars any cause of action for failing to disclose that the property was the site of a homicide, felony or suicide, or of an occupant's HIV or similar disease. Physical conditions like sinkholes, moved foundations and flooding must be disclosed.

Question 18

The Tennessee Residential Property Condition Disclosure Act applies to residential property containing

Accepted Answer

Section 66-5-201 applies to residential real property of not less than one nor more than four dwelling units.

Question 19

A buyer discovers in March 2026 that a licensee misrepresented a property in a closing that occurred in June 2025. Assuming no crime is involved, the latest the buyer may file a TREC complaint is

Accepted Answer

Under §62-13-313(e), the complaint must be filed within two years of the violation or of the complainant's discovery of it, using the longest applicable period. Discovery in March 2026 plus two years gives March 2028, which is later than two years from the June 2025 closing.

Question 20

An affiliate broker advertises her own rental house for sale without listing it with anyone. Under Rule 1260-02-.11(2), she must

Accepted Answer

Rule 1260-02-.11(2) requires all licensees who buy or sell property for themselves to identify themselves as licensees.

Question 21

Under Tennessee law, commercial and industrial real property is assessed at what percentage of appraised value?

Accepted Answer

Section 67-5-801 assesses public utility property at 55%, commercial and industrial at 40%, and residential and farm at 25%.

Question 22

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 23

Which of the following is outside the authority of the Tennessee Real Estate Commission?

Accepted Answer

Section 62-13-204 states that nothing in the Act allows the Commission to set fees or commissions, and members would forfeit their licenses if fee-setting resulted from Commission action. Suspension, civil penalties and rulemaking are all core Commission powers.

Question 24

A licensee wants to write an offer for her sister on a property listed by her firm. Under §62-13-403(7), she must

Accepted Answer

Section 62-13-403(7)(A) prohibits acting on behalf of the licensee's immediate family, or an entity in which the licensee has a personal interest, without prior disclosure and the timely written consent of all parties.

Question 25

Tennessee real estate licenses expire

Accepted Answer

Section 62-13-307 states that all licenses expire two years from the date issued or renewed. There is no common birthday or calendar-year expiration.

Tennessee real estate property practice test

1. Which action may a life tenant take WITHOUT the remainderman's consent?

2. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

3. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

4. An owner of lakefront property holds:

5. A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

6. A buyer of a unit in a cooperative receives:

7. The four unities required to create a joint tenancy are:

8. Which is the most common and desirable way a real estate sales contract terminates?

9. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

10. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

11. A borrower records a $250,000 deed of trust in Tennessee. What is the indebtedness tax?

12. A deed that conveys only whatever interest the grantor has, with no warranties, is a:

13. Private restrictions placed in a deed by a developer are called:

14. In a lease, the tenant holds a estate and the landlord holds a .

15. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

16. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

17. Under Tennessee law, an owner or licensee faces no liability for failing to disclose that

18. The Tennessee Residential Property Condition Disclosure Act applies to residential property containing

19. A buyer discovers in March 2026 that a licensee misrepresented a property in a closing that occurred in June 2025. Assuming no crime is involved, the latest the buyer may file a TREC complaint is

20. An affiliate broker advertises her own rental house for sale without listing it with anyone. Under Rule 1260-02-.11(2), she must

21. Under Tennessee law, commercial and industrial real property is assessed at what percentage of appraised value?

22. 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

23. Which of the following is outside the authority of the Tennessee Real Estate Commission?

24. A licensee wants to write an offer for her sister on a property listed by her firm. Under §62-13-403(7), she must

25. Tennessee real estate licenses expire

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