Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Tennessee Affiliate Broker Exam involving listing agreement and affiliate broker supervision. What should the licensee understand? (Item 21)
Answer choices
- A. Identify broker employment terms, compensation, property description, and authorization in a way that fits Tennessee exam practice.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
A. Identify broker employment terms, compensation, property description, and authorization in a way that fits Tennessee exam practice.
Explanation
The correct answer is A because listing agreement requires candidates to identify broker employment terms, compensation, property description, and authorization. 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: listing agreement