Contracts, Finance, and Transfer Practice Question
Question
An agent compares two similar exam concepts for the Tennessee Affiliate Broker Exam involving statute of frauds and affiliate broker supervision. Which response best applies the rule? (Item 20)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Tennessee exam practice.
Correct Answer
D. 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 D 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds