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!

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!

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Which professional is responsible for managing trust accounts, including earnest money deposits?

Real estate agent
A principal broker
A property manager
An affiliate broker

The correct answer is: A principal broker

The principal broker is responsible for managing trust accounts, which include handling earnest money deposits. This role is crucial in ensuring that transactions are conducted ethically and according to legal regulations. The principal broker oversees the financial aspects of transactions within their brokerage, maintaining proper accounting practices and ensuring that client funds are safeguarded. By managing these trust accounts, the principal broker ensures that all funds are used appropriately and in compliance with applicable laws, providing both security for clients and accountability within the brokerage. In contrast, real estate agents and affiliate brokers typically engage in the day-to-day tasks of real estate sales and client interactions but do not handle trust account management directly. Property managers focus more on the operation and maintenance of rental properties rather than managing earnest money or other trust accounts. Hence, the responsibility of managing trust accounts is squarely within the domain of the principal broker.