Tennessee Realtor State Practice Exam

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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!

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When a developer is ready to sell a finished lot, what must they ensure regarding the title?

Title must be contested.
Title must be clear to transfer the property.
Title must be held by the state.
Title can be unclear if the lot is well-known.

The correct answer is: Title must be clear to transfer the property.

In real estate transactions, particularly when a developer is selling a finished lot, having a clear title is essential. A clear title refers to a property ownership title that is free of any liens, disputes, encumbrances, or legal challenges. This ensures that the buyer receives complete ownership rights without potential claims from previous owners or creditors. A clear title protects both the seller and the buyer; it minimizes the risk of legal issues following the sale and supports a smooth transfer of ownership. If the title were not clear, as would be the case if it were contested or encumbered by debts, it could complicate the sale or even lead to the failure of the transaction. While there might be situations where well-known lots have some ambiguities, such situations still don’t negate the necessity of having a clear title to facilitate a legally sound sale. Ownership documenting clear paths also contributes to the overall stability and trustworthiness of the real estate market, making it crucial for developers to ensure that titles are clear before selling.