Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the Oregon Real Estate Broker Exam involving conversion and broker supervision and disclosure practice. Which statement is the best answer? (Item 31)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Recognize unauthorized use of client money as serious misconduct in a way that fits Oregon exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Recognize unauthorized use of client money as serious misconduct in a way that fits Oregon exam practice.
Explanation
The correct answer is C because conversion requires candidates to recognize unauthorized use of client money as serious misconduct. 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: conversion