Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Oregon Real Estate Broker Exam involving fiduciary loyalty and Oregon Real Estate Agency. Which statement is most accurate for exam purposes? (Item 58)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Oregon exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Put the client’s interests ahead of the licensee’s personal interest in a way that fits Oregon exam practice.
Explanation
The correct answer is B because fiduciary loyalty requires candidates to put the client’s interests ahead of the licensee’s personal interest. 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: fiduciary loyalty