Tennessee Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Tennessee real estate exam, and it's also one of the most misunderstood. The Tennessee Real Estate Commission (TREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Tennessee law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for TN-specific rules are among the most common failures on the state portion.
Tennessee Exam Study Resources
Everything you need to pass — in one place.
Tennessee Agency — Practice Questions & Answers
134 questions on Agency from the Tennessee real estate question bank. First 10 are free — sign up to unlock all 134.
Q1. In Tennessee, when representing a buyer, an affiliate broker is required to:
Explanation
Tennessee law requires agency disclosure to be provided to a buyer before any substantive discussion about real property, so they understand who the broker represents.
Q2. A Tennessee affiliate broker is working with a buyer but has no buyer representation agreement. The broker is most likely acting as:
Explanation
Without a buyer representation agreement, an affiliate broker working with a buyer is typically a subagent of the seller (the listing broker's principal). This means the broker's duties run to the seller, not the buyer.
Q3. A principal broker in Tennessee owes which of the following duties to a customer (non-client)?
Explanation
To customers (non-clients), a broker owes the duties of honest and fair dealing and disclosure of material facts. Full fiduciary duties—including loyalty, obedience, and confidentiality—are owed only to clients.
Q4. In Tennessee, the duty of confidentiality to a client means the broker may NOT disclose:
Explanation
The duty of confidentiality prohibits disclosing a client's bargaining position, such as the seller's willingness to accept less than the asking price. Material defects and flood zone information are facts that must be disclosed to all parties.
Q5. An agency relationship is generally terminated by all of the following EXCEPT:
Explanation
Transferring a listing to another agent within the same brokerage does not terminate the agency relationship between the brokerage and the seller. The agency relationship ends by expiration, completion, mutual consent, death of a party, or other legally recognized events.
Q6. A Tennessee broker who represents neither party in a transaction but assists both in completing the transaction is known as a:
Explanation
A transaction broker (also called a facilitator) assists both parties in a transaction without acting as an agent for either. They do not owe fiduciary duties to either party but must treat both honestly and fairly.
Q7. In Tennessee, a 'designated agency' arrangement means:
Explanation
Designated agency in Tennessee allows a principal broker to appoint one licensee in the firm to represent the seller exclusively and another to represent the buyer exclusively, even within the same transaction, to avoid true dual agency.
Q8. The Tennessee Agency Disclosure document must be provided to a prospective buyer or seller:
Explanation
Tennessee law requires that the agency disclosure be provided before or at the first substantive contact with a buyer or seller, so the consumer understands who the licensee represents before any confidential information is shared.
Q9. A seller's agent in Tennessee MUST disclose to a buyer:
Explanation
Even a seller's agent owes the duty to disclose known material defects to buyers. This duty exists regardless of the agency relationship. The seller's bargaining position and personal information are confidential.
Q10. Implied agency arises when:
Explanation
Implied agency is created through the actions and conduct of the parties rather than a formal written agreement. In real estate, this can arise when a licensee's behavior leads a consumer to reasonably believe the licensee is their agent.
Q11. A Tennessee broker who represents both the buyer and seller in the same transaction without disclosure and written consent is guilty of:
124 more Agency questions
Create a free account to unlock all 134 Tennessee Agency questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Tennessee topics