Fair Housing, Practice, and Disclosures Practice Question
Question
An agent compares two similar exam concepts for the Tennessee Affiliate Broker Exam involving unauthorized legal advice and affiliate broker supervision. Which statement is most accurate for exam purposes? (Item 80)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Tennessee exam practice.
Correct Answer
D. Avoid drafting legal rights or giving legal opinions beyond license authority in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because unauthorized legal advice requires candidates to avoid drafting legal rights or giving legal opinions beyond license authority. 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: Fair Housing, Practice, and Disclosures
- Objective: unauthorized legal advice