Contracts, Finance, and Transfer Practice Question
Question
A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving exclusive right to sell and Tennessee Real Estate Commission. Which statement is the best answer? (Item 58)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. Recognize a listing that generally earns commission if the property sells during the listing term 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 a listing that generally earns commission if the property sells during the listing term in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because exclusive right to sell requires candidates to recognize a listing that generally earns commission if the property sells during the listing term. 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: exclusive right to sell