Contracts, Finance, and Transfer Practice Question
Question
A property manager asks how a rule affects a rental property for the Oregon Real Estate Broker Exam involving escrow and Oregon Real Estate Agency. Which statement is the best answer? (Item 70)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Identify neutral handling of funds and documents under written instructions 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 neutral handling of funds and documents under written instructions in a way that fits Oregon exam practice.
Explanation
The correct answer is B because escrow requires candidates to identify neutral handling of funds and documents under written instructions. 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: Contracts, Finance, and Transfer
- Objective: escrow