Contracts, Finance, and Transfer Practice Question
Question
A client asks whether a fact should be disclosed for the Oregon Real Estate Broker Exam involving earnest money and Oregon Real Estate Agency. Which statement is most accurate for exam purposes? (Item 62)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Recognize deposit handling and contract default implications 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 deposit handling and contract default implications in a way that fits Oregon exam practice.
Explanation
The correct answer is B because earnest money requires candidates to recognize deposit handling and contract default implications. 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: earnest money