Before you read
Test yourself first: 5 questions
Question 1 of 5
Regarding record-keeping of trust funds, Tennessee brokers are required to:
Answer: B. Brokers must keep complete and accurate records of escrow/trust funds and of each transaction, and must retain those records and make them available to the Commission upon request for the period required by TREC rules.
Question 2 of 5
Which statement about a Tennessee broker's brokerage operations and recordkeeping is correct?
Answer: A. The principal/managing broker bears responsibility for supervising the firm, including proper handling and supervision of escrow/trust accounts and maintenance of required transaction and financial records, which must be retained and available for TREC inspection.
Question 3 of 5
A Tennessee licensee places an ad that states a property is available but does not disclose that the person placing the ad holds a real estate license. This is best described as:
Answer: B. Tennessee prohibits blind ads. Advertising by a licensee must identify the firm and make clear the property is being offered through a real estate brokerage, not concealed as a private owner sale. Misleading or deceptive advertising is an actionable violation.
Question 4 of 5
Several affiliate brokers in a Tennessee firm want to operate as a 'team' and market under a team name. Under TREC requirements, the team name must:
Answer: B. A team operates within a single firm. Team advertising must include the firm name and may not be presented in a way that implies the team is an independent brokerage or that misleads the public about who holds the license.
Question 5 of 5
When a Tennessee affiliate broker advertises a listing, the advertisement must:
Answer: B. Tennessee advertising rules require that advertisements identify the firm/brokerage, since an affiliate broker may only advertise in the name of the firm they work under.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Affiliate brokers must advertise under the supervision of their firm rather than as independent operators, and online and social-media advertising is held to the same standards. Brokers are also responsible for keeping transaction and trust-account records, including escrow funds held in proper accounts, for the period required by TREC so the Commission can review them during an audit or investigation.
Tennessee Advertising & Record-Keeping Rules: FAQs
Is Tennessee Advertising & Record-Keeping Rules on the real estate exam?
Yes. State License Law is a scored domain on the Tennessee real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Tennessee test this differently?
Tennessee applies its own license law on top of the national portion. This page covers the Tennessee rules specifically, which is what the state section of your exam tests.
