Contracts, Finance, and Transfer Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Oregon Real Estate Broker Exam involving statute of frauds and broker supervision and disclosure practice. Which statement is the best answer? (Item 74)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Recognize that many real estate agreements must be written to be enforceable in a way that fits Oregon exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. 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 B 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: medium
- Domain: Contracts, Finance, and Transfer
- Objective: statute of frauds