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 financing contingency and affiliate broker supervision. What should the licensee understand? (Item 27)
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. Understand buyer protection tied to loan approval or financing terms in a way that fits Tennessee exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Understand buyer protection tied to loan approval or financing terms in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. 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: financing contingency