Fair Housing, Practice, and Disclosures Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Tennessee Affiliate Broker Exam involving material facts and Tennessee Real Estate Commission. Which statement is most accurate for exam purposes? (Item 11)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Tennessee exam practice.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
C. Disclose known facts affecting value, desirability, or party decision-making in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because material facts requires candidates to disclose known facts affecting value, desirability, or party decision-making. 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: medium
- Domain: Fair Housing, Practice, and Disclosures
- Objective: material facts