Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Oregon Real Estate Broker Exam involving accounting and broker supervision and disclosure practice. Which answer best reduces risk? (Item 79)
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. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Oregon exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Properly handle and account for money, documents, and property entrusted to the licensee in a way that fits Oregon exam practice.
Explanation
The correct answer is C because accounting requires candidates to properly handle and account for money, documents, and property entrusted to the licensee. 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: accounting