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 contingencies and Tennessee Real Estate Commission. Which statement is most accurate for exam purposes? (Item 7)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Tennessee exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Identify conditions that must be satisfied or waived before obligations become final in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because contingencies requires candidates to identify conditions that must be satisfied or waived before obligations become final. 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: contingencies