Tennessee Realtor State Practice Exam

Which documents do principal brokers in Tennessee need to retain?

1. Only sales contracts

2. Transaction broker agreements and leases

3. Transaction broker agreements, property disclosure forms, and leases

4. Client feedback forms

The correct answer is: Transaction broker agreements, property disclosure forms, and leases

Principal brokers in Tennessee are required to retain several key documents to ensure compliance with state regulations and to facilitate effective record-keeping. The correct answer encompasses transaction broker agreements, property disclosure forms, and leases, all of which are vital in the real estate transaction process. Transaction broker agreements are necessary because they outline the responsibilities and duties of the broker in assisting the parties involved in a real estate transaction without representing either party as a client. Retaining these agreements helps ensure that all parties are aware of their roles and that the broker fulfills their duties appropriately. Property disclosure forms are crucial as they provide important information regarding the condition of the property, which can significantly impact a buyer's decision. Being able to reference these forms can not only help in addressing potential disputes but also serves to protect the broker and ensure transparency in transactions. Leases are another essential document that principal brokers must retain, as they represent contractual agreements between landlords and tenants. These documents must be kept for reference, especially in cases of disputes or clarifications about terms and conditions. The other options listed do not capture the full range of documents that need to be retained under Tennessee real estate regulations, highlighting why the selected answer is the most comprehensive and accurate choice. By retaining these key documents, principal brokers can fulfill