Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Oregon Real Estate Broker Exam involving fiduciary loyalty and broker supervision and disclosure practice. What should the licensee understand? (Item 76)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Oregon exam practice.
Correct Answer
D. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Oregon exam practice.
Explanation
The correct answer is D because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. The Oregon reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: hard
- Domain: Agency and License Law
- Objective: fiduciary loyalty