Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Tennessee Affiliate Broker Exam involving escrow and Tennessee Real Estate Commission. Which statement is the best answer? (Item 70)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. Identify neutral handling of funds and documents under written instructions in a way that fits Tennessee exam practice.
- C. A verbal understanding always replaces a written real estate requirement.
- D. The safest practice is to avoid written documentation so fewer questions are raised later.
Correct Answer
B. Identify neutral handling of funds and documents under written instructions in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: escrow