Tennessee Realtor State Practice Exam

When must a Tennessee broker provide a closing statement to their clients?

1. At the beginning of the transaction

2. Within 24 hours after closing

3. Before the contract is signed

4. At the time of closing

The correct answer is: At the time of closing

A Tennessee broker is required to provide a closing statement to their clients at the time of closing. This document is crucial as it outlines the financial details of the transaction, including the final amounts due, any adjustments that have been made, and the distribution of funds. Providing the closing statement at this specific time ensures that all parties involved have a clear understanding of the financial obligations and distributions that are occurring in real-time. Timing is essential in real estate transactions; by delivering the closing statement at closing, the broker ensures that clients have a comprehensive overview of the financial aspects right as the property transfer is taking place. This practice promotes transparency and helps prevent any misunderstandings regarding the costs associated with the transaction. Delivering the statement at other times, such as before the contract is signed or at the beginning of the transaction, would not provide relevant information when it is most needed, further solidifying why the time of closing is the appropriate moment for this crucial document.