Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Tennessee Affiliate Broker Exam involving dual agency or limited representation and affiliate broker supervision. Which answer best reduces risk? (Item 27)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Tennessee exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Recognize consent and neutrality duties when one brokerage is involved with both sides in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because dual agency or limited representation requires candidates to recognize consent and neutrality duties when one brokerage is involved with both sides. 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: medium
- Domain: Agency and License Law
- Objective: dual agency or limited representation