Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Oregon Real Estate Broker Exam involving commingling and Oregon Real Estate Agency. What should the licensee understand? (Item 12)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. Identify improper mixing of client funds and broker funds in a way that fits Oregon exam practice.
Correct Answer
D. Identify improper mixing of client funds and broker funds in a way that fits Oregon exam practice.
Explanation
The correct answer is D because commingling requires candidates to identify improper mixing of client funds and broker funds. 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: commingling