Tennessee Realtor State Practice Exam

Which document is NOT required for Ondine, a principal broker, to review for accuracy?

1. Listing agreements

2. Consumer reports

3. Purchase contracts

4. Closing statements

The correct answer is: Consumer reports

In the context of a principal broker's responsibilities, reviewing various documents for accuracy is a critical part of maintaining compliance with real estate laws and ensuring that transactions are executed correctly. Among the listed options, consumer reports are typically not documents that a principal broker is required to review for accuracy. Consumer reports generally pertain to a client's credit history and other personal data compiled by credit reporting agencies, which fall under the privacy regulations set forth by laws like the Fair Credit Reporting Act. While a broker may utilize consumer reports to assess the financial qualifications of a buyer or tenant, the responsibility for accuracy primarily lies with the credit reporting agencies and not the broker. In contrast, documents like listing agreements, purchase contracts, and closing statements are fundamental to real estate transactions and must be reviewed by the principal broker to ensure they meet legal requirements and accurately represent the interests of their clients. This oversight helps prevent errors that could lead to legal disputes or financial losses.