Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Oregon Real Estate Broker Exam involving commission payment and Oregon Real Estate Agency. Which statement is the best answer? (Item 68)
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. Recognize that affiliated licensees are usually paid through their broker in a way that fits Oregon exam practice.
Correct Answer
D. Recognize that affiliated licensees are usually paid through their broker in a way that fits Oregon exam practice.
Explanation
The correct answer is D because commission payment requires candidates to recognize that affiliated licensees are usually paid through their broker. 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: commission payment