Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Tennessee Affiliate Broker Exam involving license renewal and agency and property condition disclosure practice. What should the licensee understand? (Item 53)
Answer choices
- A. Identify continuing education and renewal compliance duties in a way that fits Tennessee exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
A. Identify continuing education and renewal compliance duties in a way that fits Tennessee exam practice.
Explanation
The correct answer is A because license renewal requires candidates to identify continuing education and renewal compliance duties. The Tennessee reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: easy
- Domain: Agency and License Law
- Objective: license renewal