Tennessee Realtor State Practice Exam

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Which factor is critical for establishing the relationship between Cassandra and Paula in the real estate profession?

Trust between the broker and affiliate broker.
Agreement on commission structure.
Compliance with Tennessee real estate regulations.
The broker's expertise in property appraisal.

The correct answer is: Compliance with Tennessee real estate regulations.

The relationship between Cassandra and Paula in the real estate profession hinges on compliance with Tennessee real estate regulations. This compliance ensures that both parties operate within the legal framework governing real estate transactions. It is critical for establishing a professional relationship as it protects both the broker and the affiliate broker, ensuring that their actions are aligned with state laws and standards. Compliance builds a foundation of accountability and integrity in their working relationship, which is essential in maintaining credibility and trust with clients and within the industry. The other factors, while important in various contexts, do not hold the same level of foundational significance. Trust, commission structure norms, and expertise in property appraisal are all aspects that can enhance a working relationship, but they are secondary to the overarching requirement of adherence to laws and regulations that define and govern the professional conduct of real estate agents in Tennessee. Without a solid understanding and commitment to these regulations, the relationship could face significant challenges and legal repercussions.