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 conversion and Tennessee Real Estate Commission. Which response best applies the rule? (Item 67)
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. Recognize unauthorized use of client money as serious misconduct 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. Recognize unauthorized use of client money as serious misconduct in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because conversion requires candidates to recognize unauthorized use of client money as serious misconduct. 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: conversion