Tennessee Real Estate Practice Exam

What is required for a real estate agent to effectively conduct their business?

1. Living within 10 miles of the office

2. Having a principal broker available

3. Working exclusively from home

4. Having multiple licenses

The correct answer is: Having a principal broker available

To effectively conduct business as a real estate agent, having a principal broker available is crucial. In Tennessee, real estate agents must operate under the supervision of a licensed principal broker. This relationship ensures compliance with legal and ethical standards, as the principal broker provides guidance, oversight, and support to the agent. The principal broker is responsible for the actions of the agents working under them, which helps protect consumers and maintain the integrity of the real estate profession. Other approaches, such as living near the office, working from home, or holding multiple licenses, do not directly address the necessary oversight and support provided by a principal broker. While these may contribute to the convenience or skills of an agent, they do not substitute for the essential requirement of having a broker to legally conduct real estate transactions in Tennessee.