Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Tennessee Affiliate Broker Exam involving inspection contingency and agency and property condition disclosure practice. Which response best applies the rule? (Item 100)
Answer choices
- A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- B. The client’s preference eliminates the need to disclose known material facts.
- C. The party who complains first automatically receives the remedy requested.
- D. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Tennessee exam practice.
Correct Answer
D. Recognize buyer investigation rights and repair negotiation concepts in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because inspection contingency requires candidates to recognize buyer investigation rights and repair negotiation concepts. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: inspection contingency