Tennessee Real Estate Exam Practice Question
An owner fires the broker before closing but agrees to pay the licensee a $1000 fee. Which is TRUE?
Correct Answer: A
Rationale: In this scenario, the licensee cannot accept the $1000 fee because the broker, who holds the listing agreement with the owner, must be compensated for their services. Accepting payment directly from the owner undermines the broker's contractual rights.
Option B is incorrect; the owner can cancel the contract but may still owe a commission to the broker.
Option C is also incorrect, as accepting the fee would violate the broker's entitlement to commission.
Option D is misleading; while the broker may not collect from the owner after termination, they can still seek compensation if the contract stipulates it.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now