Principles, Property, and Land Use Practice Question

Question

A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving income approach and Tennessee Real Estate Commission. What should the licensee understand? (Item 18)

Answer choices

1. A. The client’s preference eliminates the need to disclose known material facts.
2. B. Use income and capitalization concepts for income-producing property in a way that fits Tennessee exam practice.
3. C. The party who complains first automatically receives the remedy requested.
4. D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.

Correct Answer

B. Use income and capitalization concepts for income-producing property in a way that fits Tennessee exam practice.

Explanation

The correct answer is B because income approach requires candidates to use income and capitalization concepts for income-producing property. 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: income approach

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