Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Oregon Real Estate Broker Exam involving commingling and Oregon Real Estate Agency. Which response best applies the rule? (Item 66)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Identify improper mixing of client funds and broker funds in a way that fits Oregon exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Identify improper mixing of client funds and broker funds in a way that fits Oregon exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: commingling