Tennessee Real Estate License Exam Practice Question
An owner sells a house through a licensee who works as an independent contractor for a broker. Before the closing of the sale, the owner fires the broker. However, the owner agrees to pay the licensee a $1,000 fee for services. Which of the following is TRUE?
Correct Answer: A
Rationale: In this scenario, the licensee cannot accept the $1,000 fee due to the termination of the broker's relationship with the owner, as the broker typically controls the financial transactions.
Option B is incorrect because an owner can cancel a sales contract under certain conditions, even if it may lead to penalties.
Option C is also incorrect for the same reason; the licensee is bound by the broker's agreement and cannot accept payment directly from the owner after the broker's termination.
Option D misstates the situation; while the owner may refuse to pay the commission, the broker has a legal right to pursue it based on the agreement in place.
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