Fair Housing, Practice, and Disclosures Practice Question
Question
A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving market allocation and affiliate broker supervision. Which statement is most accurate for exam purposes? (Item 78)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. Avoid dividing territories, customers, or property types with competitors in a way that fits Tennessee exam practice.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
B. Avoid dividing territories, customers, or property types with competitors in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because market allocation requires candidates to avoid dividing territories, customers, or property types with competitors. 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: market allocation