Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Tennessee Affiliate Broker Exam involving fiduciary disclosure and Tennessee Real Estate Commission. Which statement is most accurate for exam purposes? (Item 5)
Answer choices
- A. Tell the client material information relevant to the representation in a way that fits Tennessee exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
A. Tell the client material information relevant to the representation in a way that fits Tennessee exam practice.
Explanation
The correct answer is A because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: easy
- Domain: Agency and License Law
- Objective: fiduciary disclosure