Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Tennessee Affiliate Broker Exam involving record retention and Tennessee Real Estate Commission. Which statement is most accurate for exam purposes? (Item 69)
Answer choices
- A. Understand transaction records must be maintained for required periods in a way that fits Tennessee exam practice.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
A. Understand transaction records must be maintained for required periods in a way that fits Tennessee exam practice.
Explanation
The correct answer is A 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: easy
- Domain: Agency and License Law
- Objective: record retention