Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Tennessee Affiliate Broker Exam involving commingling and Tennessee Real Estate Commission. What should the licensee understand? (Item 12)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- D. Identify improper mixing of client funds and broker funds in a way that fits Tennessee exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds and broker funds. 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: hard
- Domain: Agency and License Law
- Objective: commingling