Tennessee License Law
Under Tennessee license law, a licensee who engages in property management must keep management funds:
AIn a personal savings account earning interest
BIn a trust account separate from the brokerage's operating funds✓ Correct
CIn any FDIC-insured institution regardless of account type
DIn the property owner's personal bank account
Explanation
Property management funds (rent collections, security deposits) are client funds that must be held in a separate trust/escrow account. Commingling these with operating funds is a serious violation of Tennessee license law.
Related Tennessee Tennessee License Law Questions
- In Tennessee, a real estate licensee who fails to complete continuing education by the renewal deadline will have their license:
- Which of the following best describes a Tennessee 'net listing'?
- In Tennessee, a licensee who advertises a property must include:
- In Tennessee, a licensee who pays another person to refer clients must ensure the referral recipient is:
- A Tennessee licensee who commits an act of fraud in a real estate transaction may face all of the following EXCEPT:
- In Tennessee, the TREC Education and Recovery Account maximum payment to any one claimant is:
- A Tennessee principal broker who opens a new branch office must:
- In Tennessee, a licensee who knowingly makes a false statement in a real estate transaction may face:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →