Agency and License Law Practice Question
Question
An agent compares two similar exam concepts for the Oregon Real Estate Broker Exam involving trust money and broker supervision and disclosure practice. Which answer best reduces risk? (Item 83)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Oregon exam practice.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Handle client funds separately, promptly, and according to broker/state rules in a way that fits Oregon exam practice.
Explanation
The correct answer is C because trust money requires candidates to handle client funds separately, promptly, and according to broker/state rules. 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: medium
- Domain: Agency and License Law
- Objective: trust money