Free Tennessee Real Estate Practice Exam 2026

Tennessee real estate exam sample questions and answers

6 of the 120 practice questions, one from each topic, with the answer explained.

1. 1. Which transaction is exempt from the agency disclosure requirements of Tenn. Code Ann. 62-13-405?

   • A.Sale of a residential fourplex
   • B.Lease of an office building
   • C.Sale of a condominium unit
   • D.Sale of a single-family home

   Answer: B. Tenn. Code Ann. 62-13-405(e) exempts the transfer or lease of commercial property, public auctions, residential properties of more than four units and residential leases. A fourplex has four units, so it is still covered.

2. 2. A Tennessee licensee is selling her own home. Under TREC rules she must:

   • A.Sell it without a written contract
   • B.List it with a different firm
   • C.Get the Commission's prior approval
   • D.Identify herself as a licensee

   Answer: D. TREC Rule 1260-02-.11(2) requires every licensee to identify as a licensee when buying or selling property for herself. Rule 1260-02-.11(1) also requires full disclosure before buying a property listed with her firm.

3. 3. A title company offers an affiliate broker $200 for every buyer the affiliate refers to it. Under RESPA, accepting this payment is:

   • A.Prohibited as a kickback for referrals
   • B.Legal if paid through the principal broker
   • C.Legal if the broker approves
   • D.Legal if it is disclosed in writing to the buyer

   Answer: A. RESPA Section 8 bans payments for referring settlement service business, and disclosure does not make a referral fee legal. Separately, Tenn. Code Ann. 62-13-312(b)(11) bars an affiliate broker from taking compensation from anyone but the principal broker.

4. 4. A buyer pays $325,000 with a $260,000 loan. Buyer closing costs are $9,750, and a $10,000 earnest money deposit was paid at contract. What cash is due at closing?

   • A.$55,000
   • B.$324,750
   • C.$64,750
   • D.$74,750

   Answer: C. Down payment is $325,000 - $260,000 = $65,000; adding $9,750 in costs gives $74,750; subtracting the $10,000 earnest money already paid leaves $64,750. Forgetting the earnest money credit gives $74,750, and leaving out closing costs gives $55,000.

5. 5. A buyer toured a Tennessee time-share project before signing the purchase contract. The buyer may cancel without penalty within:

   • A.15 days after signing
   • B.30 days after signing
   • C.10 days after signing
   • D.3 business days after signing

   Answer: C. Tenn. Code Ann. 66-32-114(a) lets the purchaser void the contract for ten days after signing after an on-site inspection, or fifteen days without one, and payments are refunded within 30 days. The right cannot be waived under 66-32-114(d).

6. 6. Under TREC rules, an interest-bearing escrow account for earnest money is:

   • A.Allowed with a written agreement
   • B.Required when held over 30 days
   • C.Prohibited for all trust money
   • D.Required for all rental security deposits

   Answer: A. TREC Rule 1260-02-.09(14) neither requires nor prohibits interest-bearing accounts; if one is used, the payor must be told at contract and sign a written agreement on who gets the interest. The licensee does not own the interest until it is properly disbursed.