Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Tennessee Affiliate Broker Exam involving record retention and Tennessee Real Estate Commission. Which statement is the best answer? (Item 15)
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. Understand transaction records must be maintained for required periods in a way that fits Tennessee exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Understand transaction records must be maintained for required periods in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because record retention requires candidates to understand transaction records must be maintained for required periods. 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: record retention