TAB - Tennessee Affiliate Broker Exam

Question 1: An affiliate broker in Cookeville shows several homes to a buyer who has signed no paperwork of any kind. Under Tennessee law, what is the licensee's status with that buyer?

A facilitator

A designated agent

A subagent of the seller

A buyer's agent

Question 2: Under the Tennessee Real Estate Broker License Act, which of the following is required before a licensee becomes the agent of a buyer or seller rather than a facilitator?

A signed agency disclosure form

An oral promise to represent the client

A written bilateral agency agreement

Receipt of a commission from the client

Question 3: A buyer in Murfreesboro signs a written buyer representation agreement, yet the affiliate broker's fee will ultimately be paid from the seller's proceeds through a commission split. Whom does the affiliate broker represent?

The buyer

Neither party as a facilitator

The seller, who funds the commission

Both parties as a dual agent

Question 4: Under Tennessee law a licensee owes certain duties to every party in a transaction, client or customer. Which of the following is owed to every party rather than only to a client?

Loyalty in negotiation

Obedience to lawful instructions

Advising on post-execution closing steps

Reasonable skill and care

Question 5: A listing agent in Chattanooga personally knows the basement seeps water after heavy rain. The seller instructs the agent to say nothing about it. Under Tennessee law, what must the agent do?

Disclose the known adverse fact to all parties

Disclose only if a buyer specifically asks

Order an inspection to verify the seepage

Obey the seller and stay silent

Question 6: At an open house a prospective buyer privately tells a Kingsport licensee the highest price he would pay. The licensee later becomes the seller's designated agent for that home. What may the licensee do with the buyer's figure?

Disclose it as a known adverse fact

Reveal it because loyalty now favors the seller

Keep it confidential permanently

Share it only after the sale closes

Question 7: A customer asks a facilitator in Jackson for recent recorded sale prices in the subdivision, all available through public records. Under Tennessee law, what must the facilitator do?

Decline because facilitators owe no duties

Provide the firm's private market analysis

Refer the customer to the county assessor

Provide timely and accurate information

Question 8: An affiliate broker in Brentwood recommends a home inspector to a buyer without mentioning that the inspector pays the firm a fee for each referral. Which duty owed to all parties has the affiliate broker breached?

Disclosing interested recommendations

Maintaining confidentiality of information

Disclosing adverse facts about the property

Accounting for trust funds

Question 9: A seller in Franklin has signed an offer, but the buyer has not yet seen the signed copy returned. A second written offer then arrives. Under Commission rules, what must the listing licensee do with the second offer?

Present it only if it exceeds the first

Hold it until the first deal fails

Tender it promptly to the seller

Return it because the seller already signed

Question 10: A seller in Knoxville decides to reject a written offer outright. Under Commission rules governing the handling of offers, who notes the rejection on the offer before it is returned to the buyer?

The listing licensee notes it

The buyer's agent notes it

The principal broker notes it

The seller notes the rejection

Question 11: A Nashville firm holds a listing and also represents the buyer who wants that home, with a different appointed licensee on each side. Under Tennessee law, what is the status of the firm and its managing broker?

Not a dual agent

A facilitator for both parties

A subagent of the seller

A dual agent requiring written consent

Question 12: In a Williamson County firm, the seller's designated agent privately knows the seller will accept far less than list price. Under Tennessee designated agency law, how is that knowledge treated as to the buyer's designated agent?

It passes to the buyer's agent through the broker

It is not imputed to the buyer's agent

It is imputed throughout the firm

It must be disclosed as an adverse fact

Question 13: A single affiliate broker in Memphis wants to represent both the buyer and the seller in the same transaction. Under Tennessee law, what makes this dual agency lawful?

Approval from the principal broker

Verbal agreement from both parties

Written consent of all parties

A larger commission to offset the conflict

Question 14: A buyer in Clarksville signs only a Confirmation of Agency Status form prepared by a licensee, but no listing or buyer representation agreement. Under Tennessee law, what is the legal effect of that form on the buyer's status?

It serves as the agency agreement

It creates a temporary agency until closing

It makes the buyer a client

It creates no agency relationship

Question 15: A listing agent in Sevierville is approached by an unrepresented buyer who wants to make an offer on the listed cabin. Under Tennessee law, by when must the agent give that buyer written confirmation of agency status?

Before preparing any offer to purchase

Only if the buyer requests it

At the closing of the transaction

Within three days after the offer

Question 16: A seller in Maryville tells an affiliate broker to keep everything the house sells for above one hundred eighty thousand dollars as the firm's compensation. Under Commission rules, how must the affiliate broker respond?

Accept it with the seller's written consent

Refuse the structure and use a stated commission

Accept it if the spread stays reasonable

Accept it with the principal broker's approval

Question 17: A Clarksville brokerage uses a listing form stating the agreement remains in force until the property is sold or withdrawn. Under the Tennessee Real Estate Broker License Act, why is this form a problem?

It was not signed by the principal broker

It was printed rather than handwritten

It lacks a definite termination date

It fails to name the commission rate

Question 18: A Johnson City firm advertises that it will buy any home that does not sell within ninety days. Under Commission rules, how must this guaranteed-sale offer be presented to consumers?

Approved in advance by the Commission

Banned entirely as deceptive

Disclosed only if a seller asks

In writing with all details on its face

Question 19: An affiliate broker in Germantown who listed a fourplex wants to buy it through an entity she partly owns. Beyond identifying herself as a licensee, what does Tennessee law require before she proceeds?

Full disclosure and written consent of all parties

Disclosure to the owner alone

Resignation from the listing first

Approval from the Commission to buy

Question 20: The Tennessee Human Rights Act protects one housing class in its list that the federal Fair Housing Act does not use by that name. Which of the following is that distinctly Tennessee class?

Familial status

Creed

Disability

National origin

TAB Tennessee Affiliate Broker Exam - Set 5 - Part 1