Tennessee License Law
Under Tennessee license law, a licensee who receives an earnest money deposit must:
ADeposit it in their personal account for safekeeping
BHold it in a non-interest-bearing account in their own name
CDeposit it in the principal broker's escrow trust account✓ Correct
DForward it directly to the closing attorney within 24 hours
Explanation
Earnest money deposits must be placed in the principal broker's escrow trust account. Commingling client funds with personal or brokerage operating funds is a serious violation.
Related Tennessee Tennessee License Law Questions
- A Tennessee affiliate broker may receive their real estate commission directly from:
- If a Tennessee affiliate broker's license is placed on inactive status, the licensee may:
- In Tennessee, an affiliate broker must work under:
- Which of the following activities is permitted without a real estate license in Tennessee?
- Commingling, as defined under Tennessee license law, means:
- If a Tennessee licensee is found guilty of a crime involving fraud or dishonesty, TREC may:
- A Tennessee principal broker is responsible for:
- The Tennessee REALTORS® (formerly the Tennessee Association of REALTORS®) differs from TREC in that:
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