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. Use flashcards and multiple-choice questions, each with hints and explanations. Ensure your success!

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 another term used for an escrow account in Tennessee?

Reserve account
Holding account
Trust account
Deposit account

The correct answer is: Trust account

In Tennessee, an escrow account is commonly referred to as a trust account. This term is used because these accounts are established to hold funds on behalf of clients in a fiduciary capacity. The purpose of a trust account is to ensure that the funds are safeguarded until they are needed for a specific purpose, such as closing a real estate transaction or completing repairs in a property sale. Trust accounts are subject to strict regulations and oversight to protect the interests of clients. Real estate professionals must maintain accurate records of all transactions involving these accounts, ensuring that the funds are used solely for their intended purposes. This is crucial for maintaining the trust of clients and complying with legal obligations. In contrast, the other terms such as reserve account, holding account, and deposit account may relate to different financial contexts or specific types of accounts but do not accurately reflect the role and function of an escrow account in the real estate transaction process in Tennessee.