Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Tennessee Affiliate Broker Exam involving statute of frauds and affiliate broker supervision. Which statement is the best answer? (Item 74)
Answer choices
- A. A verbal understanding always replaces a written real estate requirement.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Tennessee exam practice.
- C. The safest practice is to avoid written documentation so fewer questions are raised later.
- D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
Correct Answer
B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: statute of frauds