Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Tennessee Affiliate Broker Exam involving recording and agency and property condition disclosure practice. Which statement is most accurate for exam purposes? (Item 51)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Recognize constructive notice and priority effects of recording in a way that fits Tennessee exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Recognize constructive notice and priority effects of recording in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because recording requires candidates to recognize constructive notice and priority effects of recording. 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: recording