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 statute of frauds and broker supervision and disclosure practice. Which response best applies the rule? (Item 20)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Oregon exam practice.
Correct Answer
D. Recognize that many real estate agreements must be written to be enforceable in a way that fits Oregon exam practice.
Explanation
The correct answer is D because statute of frauds requires candidates to recognize that many real estate agreements must be written to be enforceable. 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: hard
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds