Agency and License Law Practice Question
Question
A property manager asks how a rule affects a rental property for the Oregon Real Estate Broker Exam involving agency disclosure and broker supervision and disclosure practice. Which response best applies the rule? (Item 80)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Provide agency relationship disclosures when required by state practice in a way that fits Oregon exam practice.
Correct Answer
D. Provide agency relationship disclosures when required by state practice in a way that fits Oregon exam practice.
Explanation
The correct answer is D because agency disclosure requires candidates to provide agency relationship disclosures when required by state practice. 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: agency disclosure