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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Who will Donnie receive his compensation from in the transaction involving May and George?

From May, the listing agent
From his own broker
From George, the seller
From a shared fund

The correct answer is: From his own broker

In this scenario, Donnie will receive his compensation from his own broker, which is a common practice within the real estate industry. Typically, real estate agents are affiliated with brokers, and any commissions earned from transactions are paid to the broker first. The broker then disburses the appropriate share to the agent based on their agreement. This structure is designed to ensure that agents operate under the legal and ethical umbrella provided by their brokers, who bear the responsibility for the transactions. Donnie’s compensation will depend on the commission agreement he has with his broker, and not directly from May, George, or any shared fund. Understanding this flow of compensation is critical for agents operating within the real estate market, as it clarifies the relationships and financial ties involved in property transactions.