Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Tennessee Affiliate Broker Exam involving purchase agreement and Tennessee Real Estate Commission. What should the licensee understand? (Item 5)
Answer choices
- A. Identify essential residential sale terms and buyer/seller obligations in a way that fits Tennessee exam practice.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
A. Identify essential residential sale terms and buyer/seller obligations in a way that fits Tennessee exam practice.
Explanation
The correct answer is A because purchase agreement requires candidates to identify essential residential sale terms and buyer/seller obligations. 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: purchase agreement