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Tennessee National Portion Real Estate Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary function of the Tennessee Real Estate Commission (TREC)?✔✔To regulate and enforce real estate laws in Tennessee
What is required to obtain a real estate license in Tennessee?✔✔Successful completion of the required pre-licensing education and passing the state exam
What is the term "dual agency" in real estate?✔✔When a single agent represents both the buyer and the seller in a transaction
What is the purpose of a deed of trust in Tennessee real estate transactions?✔✔To secure a loan by transferring title to a trustee until the debt is paid
What is the definition of “eminent domain”?✔✔The government’s right to take private property for public use with compensation
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What is a “cloud on title”?✔✔A claim or encumbrance on the title that may affect its transferability
What is the role of a listing agent in Tennessee real estate?✔✔To represent the seller in the sale of property, ensuring legal compliance and facilitating the` transaction
What is the purpose of an easement?✔✔To grant someone the right to use another person's land for a specific purpose
What is a "quitclaim deed" used for in Tennessee?✔✔To transfer whatever interest the grantor has in a property, without guarantees about the title
What is the difference between a “mortgage” and a “deed of trust” in Tennessee?✔✔A mortgage is a lien against property, while a deed of trust involves a third-party trustee holding the property title until the loan is paid
What is a "life estate"? 2 / 4
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✔✔A property interest that lasts for the duration of an individual's life
What does “marketable title” mean in Tennessee real estate?✔✔A title that is free from defects and can be readily transferred without risks to the buyer
What is the purpose of title insurance?✔✔To protect the buyer or lender from financial losses due to defects or issues in the title
What is "conveyance" in real estate terms?✔✔The transfer of legal title or ownership of property from one party to another
What is a "tenant-in-common"?✔✔A form of co-ownership where each owner has an undivided interest in the property, but no right of survivorship
What is “escrow” in real estate transactions?✔✔An account where funds are held by a third party to ensure that the conditions of a sale or loan are met before the transaction is completed 3 / 4
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What is the purpose of “zoning laws” in Tennessee?✔✔To regulate the use of land and property in various areas for the benefit of the community
What is a "real estate agent's fiduciary duty"?✔✔The legal obligation to act in the best interests of the client, including loyalty, full disclosure, and confidentiality
What does "puffing" mean in real estate?✔✔Exaggerated statements made by an agent that are not intended to be taken as factual representations
What does "appraisal" mean in the context of real estate?✔✔An unbiased estimate of a property’s market value, typically performed by a licensed appraiser
What is the term "capital gain" in real estate?✔✔The profit from the sale of an asset, such as a property, that is higher than its purchase price
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