Questions and Answers
What are the qualifications to become an Affiliate Broker?
What is an Acquisition Agent?
Requires a special acquisition agent licensure to solicit people for timeshare programs off-site.
What does the term 'Adverse Fact' refer to?
Condition recognized by licensees that have a negative impact on a property that must be disclosed.
Who is an Affiliate Broker?
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What is a Broker in real estate?
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What defines a Client in real estate?
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What is the difference between a Client and a Customer?
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What is a Designated Agent?
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What is a Dual Agent?
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What does a Facilitator do?
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What does it mean if someone is a Timeshare Salesperson?
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The penalty for acting as a licensed real estate agent without a license is guilty of a _____ misdemeanor.
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The penalty for violations can be between $_____ and $_____ per violation per day.
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What is the Tennessee Real Estate Broker License Act of 1973 designed for?
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How often does the TREC meet?
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What qualifications must one have to be granted a broker's license?
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Unlicensed real estate employees ______ operate in certain capacities.
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Unlicensed real estate employees ______ make cold calls.
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What must advertisements include?
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What is the role of Trust Money in real estate transactions?
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What are escrow/trust accounts required to do?
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What is meant by commingling?
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What constitutes a Facilitator in real estate?
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Study Notes
Affiliate Broker Qualifications
- Requires 60 hours of education, plus a 30-hour "Course for New Affiliates" before licensing.
Acquisition Agent
- Needs special licensure to promote attendance at timeshare presentations, which must occur off-site.
Adverse Fact
- Licensees must disclose conditions negatively impacting a property.
Affiliate Broker
- A licensee providing real estate services under a licensed broker.
Broker
- An intermediary who negotiates transactions for consumers, earning fees or commissions.
Client
- A party in a transaction with a specific written agency agreement with the broker.
Customer
- Any party not classified as a client but who receives services from a real estate agent.
Designated Agent
- A licensee assigned by a managing broker to represent a party in a transaction.
Dual Agent
- A licensee contracted to represent multiple parties within a specific transaction.
Facilitator (Transaction Broker)
- Assists parties in a transaction without formal representation; known as a transaction broker in Tennessee.
Timeshare Salesperson
- A licensee exclusively selling timeshare properties.
Material
- Any significant statement or fact that could influence a reasonable person's transaction decisions.
Exemptions to Licensure
- Certain individuals can engage in real estate transactions without a license, including property owners (FSBO), attorneys, and trustees.
Penalties
- Acting as a licensed real estate agent without a license is classified as a Class B misdemeanor.
Civil Penalties
- Violations can incur a fine of $50 to $1,000 per day.
Tennessee Real Estate Broker License Act of 1973
- Established to protect the public from unscrupulous real estate practices.
Creation of TREC
- Comprised of 9 members appointed by the governor, including 7 real estate agents and 2 from unrelated industries, with required representation from different regions and demographics.
TREC Meetings
- The commission holds monthly meetings, with at least one meeting annually in each grand division of Tennessee.
Executive Director
- Must pass the broker's exam and possess a college degree; serves a 4-year term.
General Counsel
- Must be a licensed attorney in Tennessee with an accredited law degree.
Notice & Hearing
- Procedures for handling complaints against applicants, including responses and potential hearings.
Refuse, Suspend, or Revoke
- The commission may take action against licenses based on misrepresentations, fraud, or violations of regulations.
Qualifications - Prerequisites for Licensing
- Must demonstrate honesty and competency; brokers require 36 months of active affiliate broker experience and additional education.
Continuing Education Requirements
- License renewal mandates ongoing education: 16 hours for affiliate brokers and 120 hours for brokers over specific periods.
Unlicensed Real Estate Employees (Cannot Do)
- Prohibited from direct interaction regarding listings, negotiating transactions, and making cold calls.
Unlicensed Real Estate Employees (Can Do)
- Allowed tasks include phone answering, submitting listings, document preparation, advertising, and assistance with closing processes.
Types of Advertising
- Includes various media forms; physical promotional items like pens and hats are not considered advertising.
Advertising Requirements
- Must include the company name and phone number, ensuring firm identification is prominent.
Offers to Purchase
- Licensees are required to present all written offers and promptly deliver executed copies to involved parties.
Commingling
- Mixing personal and client funds in the same bank account violates ethical standards.
Trust Money
- Funds belonging to clients that must be managed appropriately by the licensee.
Escrow/Trust Accounts
- Brokers must maintain separate accounts for client funds and keep meticulous records.
Depository and Account Requirement
- Earnest money deposits must be labeled clearly, with immediate transfer by affiliate brokers.
Interest: Non-Liquid Valuables as Earnest Money
- Interest-bearing accounts are permitted; non-liquid items may serve as earnest money if all parties agree.
Time Requirements for Deposit of Funds
- Trust money should be deposited promptly upon contract acceptance unless otherwise specified.
Duty Owed to All Parties
- Licensees must exercise skill, maintain confidentiality, disclose adverse facts, and provide timely information.
Duties of Real Estate License
- Agents must inform clients of their disclosure rights and any known adverse facts about a property.
Exempt Property Transfer
- Transfers exempt from licensing include court orders, certain family transfers, or properties unoccupied for 3 years.
Adequate Facilities Tax
- A development tax levied by local governments.
Development
- Involves various construction activities that modify land use or improve structures.
Impact Fee
- A charge imposed by local governments related to new development costs.
Sinkhole
- A geological formation due to erosion that can affect property surface stability.
Bylaws
- Governing rules for homeowner associations outlining management and operational procedures.
Planned Unit Development (PUD)
- A large area developed under a unified plan that does not conform to traditional zoning regulations.
Restrictive Covenant
- Legal limitations or conditions placed on the use of property, defining what can or cannot occur on the land.
Facilitator
- A licensee assisting parties in a transaction without formal representation, modeled as a neutral participant.
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Description
This quiz covers essential terms and qualifications related to real estate licensing. Learn about various roles such as affiliate brokers, acquisition agents, and more. Test your understanding of key concepts crucial for real estate professionals.
