Tennessee Law Quiz

1. The maximum payout from the recovery account regarding any one transaction that an aggrieved party may claim against a licensee is:

a. $30.00

b. $15,000

c. $30,000

d. $500,000

CORRECT!

2. Which of the following may not do an act of brokerage in Tennessee without a license?

a. A person acting as a trustee under a bankruptcy.

b. An attorney-in-fact under a duly executed and recorded power of attorney from the owner or lessor.

c. A resident manager employed by the owner of an apartment building, who is not negotiating the details of a lease for the owner.

d. An attorney-at-law operating a real estate company.

CORRECT!

3. All of the following are true about Errors and Omissions insurance except:

a. Each real estate licensee is required to obtain insurance.

b. Insurance must be acquired in the name of the firm.

c. The commission must make the insurance required available to each licensee by contracting with an insurance provider for coverage for each licensee.

d. Each licensee has the option of obtaining the required insurance independently.

CORRECT!

4. An agent is working with a buyer who has seen a house he loves, but is not for sale. The agent contacts the homeowners and tells them that they should sell their house because minorities moving into the neighborhood are bringing down property values, and they could lose a lot of money if they stay there. The agent is guilty of:

a. Blockbusting.

b. Steering.

c. Redlining.

d. Nothing. This is an acceptable business practice.

CORRECT!

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