TAB - Tennessee Affiliate Broker Exam

Question 21: A Franklin landlord instructs a property manager to quote a higher security deposit whenever an applicant speaks Spanish on the phone. Under Tennessee law, what is the property manager's correct response?

Follow it only for new applicants

Follow it because the client directed it

Refuse the instruction and follow the law

Apply the higher deposit to everyone

Question 22: A Columbia property-management firm facing a payroll shortfall moves money from its rent trust account into operations for two weeks before repaying every owner. Under the Tennessee Real Estate Broker License Act, what has the firm committed?

Lawful borrowing since owners were repaid

A definite termination date violation

A permissible advance against future commissions

Conversion of trust funds

Question 23: A Murfreesboro listing agent tells buyers a home is on city sewer, never checking, when it actually runs on a failing septic system. Under Tennessee law, this statement is best described as which of the following?

A substantial and willful misrepresentation

A permissible opinion of value

A harmless innocent mistake

Lawful puffing of the property

Question 24: An affiliate broker in Murfreesboro receives an earnest money check from a buyer along with a signed offer on a brick ranch. Under Commission rules, what must the affiliate broker do with the check?

Return it to the buyer until closing

Deliver it to the principal broker immediately

Deposit it into the firm escrow account personally

Hold it personally until the offer is accepted

Question 25: A buyer in Jackson signs an offer and tenders earnest money, and the seller accepts the offer two days later. The offer says nothing about deposit timing. When must the firm deposit the money?

Immediately when the buyer signs the offer

Within thirty days after the closing date

Promptly upon acceptance of the offer

Only after every contingency has cleared

Question 26: A principal broker keeps a cushion of the firm's own operating cash in the escrow account so the account never overdrafts. No client has lost any money. Which violation does this describe?

Lawful, because a cushion protects clients

A permissible bank-charge reserve

Conversion

Commingling

Question 27: A Knoxville contract collapses and both buyer and seller send written demands for the earnest money. The contract does not resolve the fight. Within how long must the principal broker act, absent a compelling reason?

Within twenty-one calendar days of the written request

Whenever the parties finally reach agreement

Within ten business days of the dispute arising

Within thirty days of the contract terminating

Question 28: A financing contingency in a Franklin contract fails on time, and the contract plainly states the deposit returns to the buyer in that event. On what basis may the principal broker refund the money?

A fresh written release signed by the seller

A reasonable interpretation of the contract

A directive from the Commission approving the refund

The buyer's status as the firm's own client

Question 29: Near the end of the twenty-one days, a Chattanooga broker still holds a contested deposit and the parties will not sign a release. Which course satisfies the rule while removing the broker from the fight?

Send the contested funds to the Commission to decide

Apply the deposit toward the firm's earned commission

File an interpleader and pay the money into court

Release the deposit to whichever party seems right

Question 30: A Nashville firm both sells homes and manages rentals. A buyer's earnest money and a tenant's security deposit both arrive the same week. How must these two funds be held?

With the closing attorney by default

Together in one escrow account

In the firm operating account with a ledger

In two separate escrow accounts

Question 31: A Brentwood offer names a title company as the holder of the earnest money and gives its address and the disbursement terms. When is the principal broker relieved of responsibility for the funds?

Once the named title company receives the funds

As soon as the offer naming the holder is signed

Only after the transaction reaches closing

The broker is never relieved of responsibility

Question 32: A principal broker wants to place a large commercial earnest money deposit into an interest-bearing escrow account. Which step does Tennessee require before the money begins earning interest?

An assignment of the interest to the firm

A written agreement on who receives the interest

A guarantee that interest goes to the buyer

Commission approval of the interest arrangement

Question 33: A buyer in Cookeville offers a check dated three weeks in the future as earnest money because savings mature then. Under Commission rules, when may the firm accept this postdated check?

Only with written permission from the Commission

Whenever the buyer explains the delay verbally

Only when the offer provides for it

Never, because postdated checks are forbidden

Question 34: A firm in Clarksville is audited and the question arises of who is ultimately responsible for keeping the firm's transaction records complete and producible. Who carries that duty?

The affiliate broker who handled the deal

The firm's outside bookkeeper

The closing attorney for the transaction

The principal broker

Question 35: A principal broker in Memphis is setting the firm's purge schedule for closed files. For how long must records relating to a real estate transaction be preserved?

Three years following consummation

Five years following consummation

Seven years following consummation

One year following consummation

Question 36: A Knoxville listing is signed in one year, goes under contract months later, and closes the following spring. From which event does the three-year retention period run?

The date the affiliate broker renews the license

The consummation of the transaction

The date the listing agreement was signed

The date the purchase contract was formed

Question 37: A firm in Johnson City keeps its files entirely in a cloud platform. The Commission sends an inspection request. Within what time must the electronic records be made available in an organized format?

Within ten days of the request

Within forty-eight hours of the request

Within twenty-four hours of the request

Within three years of the request

Question 38: A seller signs a listing agreement at the kitchen table in Hendersonville. What does Tennessee require the licensee to do regarding a copy of that document?

Provide a copy only if the seller requests one

Keep the only signed copy in the firm file

Mail a copy within ten days afterward

Furnish a copy at the time of execution

Question 39: While a Williamson County listing is active, a second written offer arrives before any contract is signed. What does Tennessee require the licensee to do with that offer?

Present it to the seller

Discard it because a deal is nearly done

Hold it until the first offer is resolved

Present it only if it beats the first offer

Question 40: A Gatlinburg seller turns down a written offer on a Smoky Mountains cabin. To document the rejection properly in the file, what does Tennessee practice call for on the offer itself?

The buyer's signature acknowledging defeat

The seller's notation that the offer was rejected

A Commission stamp confirming the rejection

Immediate destruction of the rejected offer

TAB Tennessee Affiliate Broker Exam - Set 5 - Part 2