Unit 22 Exam Flashcards by Liza Abrasaldo

Match the statement on the left with the appropriate term: Nine, Governor, Circuit or chancery, Seven, Executive director, Education director

A)
Number of commissioners who are brokers or affiliate brokers

B)
Individual who appoints commissioners

C)
Individual who implements commission policy

D)
Courts that enforce real estate law

E)
Individual who implements educational requirements

F)
Total number of commissioners

Nine = F
Governor = B
Circuit chancery = D
Seven = A
Executive director = C
Education director = E

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Tennessee REALTORS® is the state regulatory agency.

False

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Because the Tennessee Real Estate Commission is centrally located in Nashville, the nine commissioners come from middle Tennessee.

False

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Match the term or phrase. Consent order,
Majority,
After,
Before,
Six or more,
Thirty-six

A)
Vote needed for TREC to revoke a license

B)
Vote needed for TREC to reinstate a license revoked by the court

C)
TREC document one must sign to reinstate a license

D)
Number of months one must be an affiliate broker before becoming a broker

E)
To inactivate a license, one must complete educational requirements before or after inactivating

F)
To retire a license, one must complete educational requirements before or after retiring

Consent order = C
Majority = A
After = E
Before = F
Six or more = B
Thirty-six = D

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A real estate office may have more than one principal broker if approved by TREC.

False

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Of the 16 hours prescribed by TREC for license renewal every two years, 10 hours must be CE classes considered electives, and six hours must be the Code of Ethics class.

False

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Determine whether an unlicensed assistant is permitted to do each below.

A)
Call in regard to a late rent payment

B)
Unlock property or hand out keys

C)
Cold call a potential purchaser

D)
Be paid on commission

E)
Negotiate a referral fee

Can Do = A,B

Cannot Do = C,D,E

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Once a broker accepts and signs a TREC 1 form, a licensee transferring to a new firm may begin practicing real estate there.

False

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When a broker signs a TREC 1 form releasing a licensee, the broker’s responsibility for the licensee terminates.

False

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TREC’s mission includes protecting the public through all of the following EXCEPT

A)
administration of penalties for real estate-related felonies.
B)
establishment and administration of minimum requirements for candidates and licensees.
C)
effective professional education of licensees.
D)
enforcement of professional conduct.

Explanation
The answer is administration of penalties for real estate-related felonies. The mission of TREC is to protect the public through establishment and administration of minimum requirements for candidates and licensees, effective professional education of licensees, and enforcement of professional conduct.

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When advertising real estate as part of a franchise company, in addition to disclosing the name of the franchise and the firm telephone number, the licensee must disclose

A)
the name of the principal broker of the firm.
B)
the name of the franchise owner.
C)
the telephone number of the property owner.
D)
the name of the real estate firm.

Explanation
The answer is the name of the real estate firm. When advertising as part of a franchise, disclosures include firm name, firm phone number, franchise name, name of the licensee placing the ad, and, if advertising something other than a specific property, a disclosure that each (name of franchise) is independently owned and operated.

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The mission of the Tennessee Real Estate Commission is to

A)
impose minimum and maximum real estate commissions.
B)
arbitrate commission disputes between brokers of different companies.
C)
protect the public.
D)
protect agents from unscrupulous consumers.

Explanation
The answer is protect the public. By establishing minimum education requirements, enforcing professional conduct, and so on, the Tennessee Real Estate Commission protects the public.

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An unlicensed personal assistant may

A)
make cold calls soliciting potential future buying or selling prospects.
B)
gather information for a CMA.
C)
host a public open house.
D)
be paid a commission.

Explanation

The answer is gather information for a CMA. Gathering information is clerical and does not require licensure.

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Brokers must keep records of all consummated transactions for at least

A)
three years.
B)
one year.
C)
six months.
D)
two years.

Explanation
The answer is three years. A consummated transaction is considered to be any transaction that is over, whether or not is has closed. For example, a consummated transaction may be an expired listing.

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Miranda is a licensee, and she is advertising a home for sale that she personally owns. Miranda must disclose ownership with the word(s)

A)
owner—adult female.
B)
owner—agent.
C)
owner—U.S. citizen.
D)
owner—adult male.

Explanation

The answer is owner—agent. This disclosure must be made whether the license is active, inactive, or retired.

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The number of nonlicensees serving on the Tennessee Real Estate Commission is

A)
seven.
B)
five.
C)
nine.
D)
two.

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Explanation

The answer is two. Of the nine commissioners, seven are licensees and two are not.

Should a licensee receive confidential information from an unrepresented party, the licensee is obligated to

A)
advise the unrepresented party not to share confidential information.
B)
share the information only with the broker.
C)
keep information confidential that was obtained before disclosure of agency.
D)
immediately report the information to any represented party in the same transaction.

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Explanation
The answer is keep information confidential that was obtained before disclosure of agency. Licensees must treat as confidential any information received from an unrepresented party until disclosure of agency. Once such disclosure is made, if the licensee also represents a client in an adverse position in the same transaction, the licensee must share the information with the client.

Which of the following is a requirement to become a Real Estate Commission member?

A)
Must be appointed by the mayor
B)
Must be at least 60 years old
C)
Must be appointed by the governor
D)
Must be a real estate broker

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Explanation
The answer is must be appointed by the governor. Only the governor can appoint Real Estate Commission members, and only the governor can remove members for willful neglect of duty, misconduct, or incompetency.

When a licensee is released from the present broker, the licensee must find a new broker, retire, or inactivate the license within how many days?

A)
10
B)
60
C)
30
D)
365

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Explanation
The answer is 10. TREC rules require that licensees retire, inactivate, or change firms within 10 calendar days of the date they are released from their present broker.

A partnership, corporation, or association may be granted which type of license?

A)
Time-share salesperson license
B)
Affiliate broker license
C)
Firm license
D)
Broker license

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Explanation

The answer is firm license. The business may be granted a firm license; the person in charge must have a broker license.

Jeff is a licensed non-Tennessee resident in another state. To be licensed in Tennessee, which of the following is NOT required?

A)
Charges pending against Jeff
B)
A broker with a valid Tennessee license
C)
A place of business in Jeff’s own state
D)
A place of business in Tennessee

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Explanation
The answer is a place of business in Tennessee. Jeff must have a place of business in his own state, but not necessarily in Tennessee.

A licensee receives confidential information from an unrepresented party. What must the licensee do?

A)
Share the information only with the broker
B)
Keep information confidential that was obtained before disclosure of agency
C)
Immediately report the information to any represented party in the same transaction
D)
Advise the unrepresented party not to share confidential information

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Who is responsible for the administration and implementation of TREC policy?

A)
Trustee of the Department of Commerce and Insurance
B)
Education director
C)
Executive director
D)
President of the Tennessee Association of REALTORS®

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Explanation
The answer is executive director. The executive director is the liaison between the Commission and the licensees and is responsible for the administration and implementation of Commission policy.

The primary purpose of TREC is to

A)
pass laws concerning real estate matters.
B)
protect the public.
C)
regulate real estate advertising.
D)
distribute real estate licenses.

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Explanation
The answer is protect the public. The mission of TREC is to protect the public through establishment and administration of minimum requirements for candidates and licensees, effective professional education of licensees, and enforcement of professional conduct.

If a licensee fails to comply with her conditions for licensure or renewal after 60 days of expiration, the licensee must ``` A) complete all prerequisites or conditions. B) pay renewal and penalty fees. C) sign a reinstatement order. D) do all of these. ```

Explanation The answer is do all of these. If a licensee fails to comply with her conditions for licensure or renewal after 60 days of expiration, the licensee must sign a reinstatement order, complete all prerequisites or conditions, pay renewal fees, and pay $50 in penalty fees per 30-day period (if within 120 days); if after 120 days (but less than one year), she must pay $100 per 30-day period, beginning on the 121st day.

Commissioners are appointed by the governor and may be reappointed for ``` A) one additional full term. B) three additional full terms. C) four additional full terms. D) two additional full terms. ```

Explanation The answer is one additional full term. Should a commissioner be unable to complete a full term because of death, dismissal, or retirement, the governor will appoint someone to complete the unexpired term.

TREC rules require that licensees retire, inactivate, or change firms within how long from the date they are released from their present broker? ``` A) 14 business days B) 30 business days C) 7 calendar days D) 10 calendar days ```

Explanation The answer is 10. TREC rules require that licensees retire, inactivate, or change firms within 10 calendar days of the date they are released from their present broker.

When a licensee is released from the present broker, the licensee must find a new broker, retire, or inactivate the license within ``` A) 30 days. B) 10 days. C) 60 days. D) 1 year. ```

Explanation The answer is 10 days. TREC rules require that licensees retire, inactivate, or change firms within 10 calendar days of the date they are released from their present broker.

TREC can suspend or revoke a license with a consenting vote of ``` A) six plus the consenting vote of the executive director. B) six. C) nine. D) the majority. ```

Explanation The answer is the majority. For the Commission to suspend or revoke a license, the vote must be a majority; for the Commission to reinstate a license revoked by the court, the vote must be six or more.

Licensees must treat as confidential any information received from an unrepresented party until disclosure of agency. Once such disclosure is made, if the licensee also represents a client in an adverse position in the same transaction, the licensee must A) withhold the information from the client. B) keep the information confidential indefinitely. C) keep the information confidential for at least three years. D) share the information with the client.

Explanation The answer is share the information with the client. Licensees must treat as confidential any information received from an unrepresented party until disclosure of agency. Once such disclosure is made, if the licensee also represents a client in an adverse position in the same transaction, the licensee must share the information with the client.

Mary is a licensee, and she expects to receive a legal referral fee. Disclosure of the fee A) must be made only to a represented party, not an unrepresented party. B) is not required as long as the fee is paid to the broker. C) must be made to the appropriate customer or client. D) is not required ever.

Explanation The answer is must be made to the appropriate customer or client. Should a licensee receive a legal referral fee, disclosure of receipt of such fee must be made to the appropriate customer or client unless it is a normal broker-to-broker referral fee.

A licensee expects to receive a legal referral fee. Disclosure of the fee A) must be made only to a represented party, not an unrepresented party. B) is not required as long as the fee is paid to the broker. C) is not required ever. D) must be made to the appropriate customer or client.

How often must a broker back up records if the broker intends to maintain transaction records electronically? ``` A) Once a day B) Once a week C) Once a month D) Every six months ```

Explanation | The answer is once a day. A daily back-up of electronically kept data is required by TREC.

TREC is created within the Division of Regulatory Boards of ``` A) the Home Builders Association. B) the Tennessee Association of REALTORS®. C) the Department of Commerce and Insurance. D) the Tennessee Real Estate Commission. ```

Explanation The answer is the Department of Commerce and Insurance. TREC is a nine-member body created within the Division of Regulatory Boards of the Tennessee Department of Commerce and Insurance.

A licensee's license expired more than one year ago. The individual must ``` A) meet current educational requirements. B) all these. C) reapply for licensure. D) pass all required exams. ```

Explanation The answer is all of these. If a license is expired for more than one year, the individual must reapply for licensure, meet current education requirements, and pass all required exams.

A full-time broker is one who A) does not compete with his sales staff during normal business hours. B) works at least a 40-hour week in real estate. C) is accessible to his sales staff during normal business hours. D) works more than 60 hours per week in real estate.

Explanation The answer is is accessible to his sales staff during normal business hours. The other requirement is that real estate be the broker's main occupation.

For licensees required to complete 16 hours of continuing education each license cycle, what course is the only mandatory continuing education course? ``` A) Pre-License Course. B) Office and Brokerage Management Course. C) Core Course. D) New Affiliates Course. ```

Explanation The answer is Core Course. This is an updated course that must be taken by licensees required to complete 16 hours in every 24-month license period.

Which of the following are commissioners NOT allowed to do? ``` A) Establish minimum standards of practice B) Set fees for real estate transactions C) Adopt a code of ethics D) Promulgate rules and regulations ```

Explanation | The answer is set fees for real estate transactions. Fees are set individually by brokers.

Unit 22 Exam Flashcards

(38 cards)