Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the Oregon Real Estate Broker Exam involving financing contingency and broker supervision and disclosure practice. What should the licensee understand? (Item 27)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. Understand buyer protection tied to loan approval or financing terms in a way that fits Oregon exam practice.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
C. Understand buyer protection tied to loan approval or financing terms in a way that fits Oregon exam practice.
Explanation
The correct answer is C because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. 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: financing contingency