Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Tennessee Affiliate Broker Exam involving purchase agreement and Tennessee Real Estate Commission. Which response best applies the rule? (Item 59)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Identify essential residential sale terms and buyer/seller obligations in a way that fits Tennessee exam practice.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
C. Identify essential residential sale terms and buyer/seller obligations in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because purchase agreement requires candidates to identify essential residential sale terms and buyer/seller obligations. 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: purchase agreement