Tennessee Realtor State Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Tennessee Realtor State Exam with questions and explanations designed to help you succeed. Master the principles and regulations of real estate in Tennessee. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary role of a principal broker regarding their affiliate brokers?

To manage the marketing strategies.
To oversee the compliance with real estate laws.
To handle all client interactions.
To negotiate all commission rates.

The correct answer is: To oversee the compliance with real estate laws.

The primary role of a principal broker regarding their affiliate brokers is to oversee compliance with real estate laws. This responsibility is critical because the principal broker ensures that all activities conducted by affiliate brokers adhere to state regulations, ethical standards, and industry practices. By overseeing compliance, the principal broker protects not just the reputation of their agency but also the interests of their clients and the broader community. This accountability helps to maintain a professional standard in real estate transactions, which is essential for fostering trust among clients and lenders alike. While managing marketing strategies, handling client interactions, and negotiating commission rates are important aspects of a real estate business, they are secondary to the fundamental duty of ensuring legal compliance. It is essential for the principal broker to provide guidance and support to affiliate brokers in understanding legal obligations, thereby minimizing the risk of violations that could lead to legal consequences or loss of licensure.