Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Tennessee Affiliate Broker Exam involving license-required activity and Tennessee Real Estate Commission. Which statement is most accurate for exam purposes? (Item 55)
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. Identify acts requiring a license when performed for compensation 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. Identify acts requiring a license when performed for compensation in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because license-required activity requires candidates to identify acts requiring a license when performed for compensation. 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: license-required activity