Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving counteroffer and affiliate broker supervision. Which statement is most accurate for exam purposes? (Item 78)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Tennessee exam practice.
- C. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
B. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because counteroffer requires candidates to recognize that a counteroffer rejects the prior offer and proposes new 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: counteroffer