Agency and License Law Practice Question
Question
A seller is preparing to list a home for the Tennessee Affiliate Broker Exam involving fiduciary loyalty and Tennessee Real Estate Commission. Which statement is the best answer? (Item 4)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Tennessee exam practice.
Correct Answer
D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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: fiduciary loyalty