Fair Housing, Practice, and Disclosures Practice Question
Question
A license applicant is reviewing a practice scenario for the Tennessee Affiliate Broker Exam involving market allocation and Tennessee Real Estate Commission. Which answer best reduces risk? (Item 62)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Avoid dividing territories, customers, or property types with competitors in a way that fits Tennessee exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
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