Contracts, Finance, and Transfer Practice Question
Question
A license applicant is reviewing a practice scenario for the Tennessee Affiliate Broker Exam involving prorations and Tennessee Real Estate Commission. Which response best applies the rule? (Item 72)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Tennessee exam practice.
Correct Answer
D. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because prorations requires candidates to allocate recurring expenses such as taxes, rent, interest, or assessments. 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: prorations