Tennessee Real Estate Exam Practice Question
Earnest-money deposits received by an affiliate broker while in the office
Correct Answer: B
Rationale: Earnest-money deposits received by an affiliate broker must be transmitted to the principal broker immediately after receipt to ensure proper handling and compliance with regulations. This practice safeguards the funds and maintains transparency in transactions.
Option A is incorrect because affiliate brokers cannot maintain their own escrow accounts for earnest-money deposits. Option C is misleading; holding funds for 3 business days is not compliant with proper procedures. Option D is also incorrect, as returning the deposit to the buyer does not fulfill the obligation to transmit it to the principal broker, which is essential for accountability.
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