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 prorations and broker supervision and disclosure practice. Which statement is most accurate for exam purposes? (Item 90)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Oregon exam practice.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
B. Allocate recurring expenses such as taxes, rent, interest, or assessments in a way that fits Oregon exam practice.
Explanation
The correct answer is B because prorations requires candidates to allocate recurring expenses such as taxes, rent, interest, or assessments. 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: prorations