Contracts, Finance, and Transfer Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Tennessee Affiliate Broker Exam involving listing agreement and Tennessee Real Estate Commission. Which statement is most accurate for exam purposes? (Item 3)
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. Identify broker employment terms, compensation, property description, and authorization in a way that fits Tennessee exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Identify broker employment terms, compensation, property description, and authorization in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because listing agreement requires candidates to identify broker employment terms, compensation, property description, and authorization. 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: listing agreement