Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the Tennessee Affiliate Broker Exam involving recording and affiliate broker supervision. Which statement is the best answer? (Item 87)
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