Real Estate License Definitions

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Questions and Answers

What are the qualifications to become an Affiliate Broker?

Must complete sixty (60) hours of education (correct)

Must complete forty (40) hours of education

Must complete ninety (90) hours of education

Must complete thirty (30) hour 'Course for New Affiliates' (correct)

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?

A licensee engaged under a licensed broker to provide real estate services. Signup and view all the answers

What is a Broker in real estate?

A licensee who may be paid directly by the consumer for various real estate services. Signup and view all the answers

What defines a Client in real estate?

A party to a transaction with whom the broker has a specific written agency agreement. Signup and view all the answers

What is the difference between a Client and a Customer?

Clients have a specific written agency agreement; Customers do not. Signup and view all the answers

What is a Designated Agent?

A licensee designated by the managing broker to represent a party in a transaction. Signup and view all the answers

What is a Dual Agent?

A licensee that represents more than one party in a specific transaction. Signup and view all the answers

What does a Facilitator do?

Assists parties in a transaction but does not represent them. Signup and view all the answers

What does it mean if someone is a Timeshare Salesperson?

A licensee who is solely focused on selling timeshares. Signup and view all the answers

The penalty for acting as a licensed real estate agent without a license is guilty of a _____ misdemeanor.

class B Signup and view all the answers

The penalty for violations can be between $_ and $_ per violation per day.

$50, $1000 Signup and view all the answers

What is the Tennessee Real Estate Broker License Act of 1973 designed for?

To protect the public from irresponsible or unscrupulous individuals dealing in real estate. Signup and view all the answers

How often does the TREC meet?

Once a month for no more than 3 days. Signup and view all the answers

What qualifications must one have to be granted a broker's license?

Must have an active affiliate broker license for at least 36 months. Signup and view all the answers

Unlicensed real estate employees ______ operate in certain capacities.

Can Signup and view all the answers

Unlicensed real estate employees ______ make cold calls.

Cannot Signup and view all the answers

What must advertisements include?

Company name and phone number. Signup and view all the answers

What is the role of Trust Money in real estate transactions?

Money belonging to others received by a licensee acting as an agent or facilitator. Signup and view all the answers

What are escrow/trust accounts required to do?

Maintain records for at least 3 years for any deposited and withdrawn funds. Signup and view all the answers

What is meant by commingling?

Maintaining funds belonging to others in the same bank account as personal business funds. Signup and view all the answers

What constitutes a Facilitator in real estate?

A licensee who assists parties in a transaction without a specific agency agreement. Signup and view all the answers

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.