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. Review and test your knowledge with our comprehensive quizzes featuring multiple choice questions, hints, and detailed explanations. Boost your confidence and ace your exam!

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 true about licensee commission in Tennessee?

It is fixed by law
It is subject to a brokerage split
It is not influenced by market conditions
It must be disclosed to clients upfront

The correct answer is: It is subject to a brokerage split

In Tennessee, a licensee’s commission is indeed subject to a brokerage split. This means that the commission earned by a real estate agent is typically divided between the agent and the brokerage they represent. This arrangement allows brokerages to support their agents with marketing, resources, and administrative assistance, while also ensuring the brokerage receives a share of the commissions generated through sales. The structure of commissions is generally not fixed by law, allowing for flexibility based on negotiations between agents and clients as well as the agreements in place with their respective brokerages. Additionally, while market conditions can certainly influence the overall commission structure—based on what clients are willing to pay, competition, and prevailing practices—this variability reinforces the fact that commissions are not set in stone. Lastly, while it is vital for agents to communicate their commission structure to clients, it is not mandated by law to disclose all commission details upfront.