Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Tennessee Affiliate Broker Exam involving deed types and affiliate broker supervision. Which statement is the best answer? (Item 86)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. Distinguish warranty, grant, special warranty, and quitclaim concepts at a high level 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. Distinguish warranty, grant, special warranty, and quitclaim concepts at a high level in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because deed types requires candidates to distinguish warranty, grant, special warranty, and quitclaim concepts at a high level. 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: deed types