Fair Housing, Practice, and Disclosures Practice Question
Question
An agent compares two similar exam concepts for the Tennessee Affiliate Broker Exam involving seller property disclosure and Tennessee Real Estate Commission. Which statement is the best answer? (Item 10)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Recognize disclosure of known material property conditions in a way that fits Tennessee exam practice.
- 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
B. Recognize disclosure of known material property conditions in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because seller property disclosure requires candidates to recognize disclosure of known material property conditions. 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: seller property disclosure