Principles, Property, and Land Use Practice Question
Question
A supervising broker is reviewing a transaction file for the Tennessee Affiliate Broker Exam involving market value and Tennessee Real Estate Commission. Which response best applies the rule? (Item 15)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. Identify the probable price under normal market conditions in a way that fits Tennessee exam practice.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
C. Identify the probable price under normal market conditions in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because market value requires candidates to identify the probable price under normal market 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: Principles, Property, and Land Use
- Objective: market value