Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Tennessee Affiliate Broker Exam involving inspection contingency and agency and property condition disclosure practice. What should the licensee understand? (Item 46)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. Recognize buyer investigation rights and repair negotiation concepts 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. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. 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: inspection contingency