Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Tennessee Affiliate Broker Exam involving contingencies and affiliate broker supervision. Which response best applies the rule? (Item 79)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Tennessee exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because contingencies requires candidates to identify conditions that must be satisfied or waived before obligations become final. 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: contingencies