Tennessee Real Estate Practice Exam

Which scenario requires a licensee to present an offer to their client?

1. Only if the offer is over a certain amount

2. Regardless of whether the offer is reasonable

3. If the offer includes contingencies

4. If specifically requested by the client

The correct answer is: Regardless of whether the offer is reasonable

In real estate practice, a licensee has an ethical and legal obligation to present all offers to their client, regardless of whether the offer is deemed reasonable. This duty ensures that the client is fully informed about all potential transactions that might be beneficial or relevant to their interests. It reflects the principle of loyalty that real estate agents owe to their clients, allowing the client to make informed decisions based on all available options, rather than filtering out offers based on the agent's personal judgment of their value or reasonableness. This requirement aligns with the fiduciary duties that agents have, which include maintaining transparency and acting in the best interests of their clients. By presenting every offer, the agent upholds their responsibility to facilitate the client's decision-making process comprehensively. The other scenarios do not mandate the same obligation under real estate practice. For example, limitations based on offer amounts or contingencies do not change the basic requirement for the agent to present all offers. Additionally, even if a client does not explicitly request that all offers be presented, the duty to do so remains.