Tennessee Real Estate Exam Practice Question
A licensee must disclose to all parties that the licensee has an economic interest in a property when
Correct Answer: C
Rationale: Disclosure of an economic interest in a property is crucial for maintaining transparency and trust in real estate transactions. When a licensee has any economic interest in a property, they must disclose this to all parties involved to avoid conflicts of interest and ensure informed decision-making.
Option A is incorrect because merely being asked by the other party's agent does not negate the duty to disclose; the obligation exists regardless of inquiries. Option B is irrelevant, as the presence or absence of errors and omissions insurance does not relate to economic interest disclosure. Option D is also incorrect, as a relative's past residency does not constitute an economic interest that necessitates disclosure.
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