Broker-in-Charge Diane operates a real estate firm in Knoxville. She receives a formal complaint from a buyer alleging that one of her affiliate brokers, Kevin, failed to disclose a known material defect. TREC initiates an investigation and schedules a formal hearing. At the hearing, Kevin argues that the defect was disclosed orally to the buyer during a property showing and that written disclosure was not required. Under Tennessee law, which of the following best evaluates Kevin's argument?

Question

Practice Of Real EstateLicense LawHARD

Broker-in-Charge Diane operates a real estate firm in Knoxville. She receives a formal complaint from a buyer alleging that one of her affiliate brokers, Kevin, failed to disclose a known material defect. TREC initiates an investigation and schedules a formal hearing. At the hearing, Kevin argues that the defect was disclosed orally to the buyer during a property showing and that written disclosure was not required. Under Tennessee law, which of the following best evaluates Kevin's argument?

Answer Options

A

Kevin's argument is valid because oral disclosure at the time of showing satisfies Tennessee's disclosure requirements if the buyer was present.

B

Kevin's argument is valid because the Tennessee Residential Property Condition Disclosure Act only requires written disclosure for transactions above $250,000.

C

Kevin's argument is invalid because Tennessee's disclosure obligations under the Residential Property Condition Disclosure Act require a standardized written disclosure form, and oral disclosure does not satisfy this requirement.

D

Kevin's argument is valid because as an affiliate broker, Kevin's disclosure obligations are limited to what his BIC instructs him to disclose in writing.