Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving earnest money and agency and property condition disclosure practice. Which statement is the best answer? (Item 98)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. Recognize deposit handling and contract default implications in a way that fits Tennessee exam practice.
- C. The safest practice is to avoid written documentation so fewer questions are raised later.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
B. Recognize deposit handling and contract default implications in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because earnest money requires candidates to recognize deposit handling and contract default implications. 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: Contracts, Finance, and Transfer
- Objective: earnest money