Tennessee Real Estate License Exam Practice Question
A licensee must provide disclosure of licensed status when acting as a principal if
Correct Answer: C
Rationale: A licensee must disclose their licensed status when they have any economic interest in the property to ensure transparency and avoid conflicts of interest. This disclosure protects all parties involved by clarifying the licensee's potential motivations.
Option A is incorrect because the obligation to disclose is not contingent on inquiries from others; it is a proactive requirement. Option B is irrelevant, as the lack of errors and omissions insurance does not necessitate disclosure of licensed status. Option D is also incorrect; the residency of a relative does not inherently create a conflict of interest that requires disclosure.
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