Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Tennessee Affiliate Broker Exam involving accounting and agency and property condition disclosure practice. What should the licensee understand? (Item 43)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Tennessee exam practice.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. 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: accounting