Tennessee Real Estate License Exam Practice Question
A licensee listed a property that had an unfinished garage. The licensee received an offer subject to the garage being finished. Was a contractual obligation created?
Correct Answer: C
Rationale: In this scenario, a contractual obligation has not been established because the seller has not accepted the buyer's offer, which is contingent upon the garage being finished. Without acceptance, there is no binding agreement.
Option A is incorrect as mere listing and an offer do not constitute a contract without acceptance.
Option B is misleading; while the buyer's offer may appear definite, it is contingent and thus does not create a binding obligation until accepted.
Option D is inaccurate because, while written contracts are generally preferred, not all contracts require notarization to be valid, especially in real estate transactions.
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