Principles, Property, and Land Use Practice Question

Question

A property manager asks how a rule affects a rental property for the Oregon Real Estate Broker Exam involving title insurance and broker supervision and disclosure practice. Which statement is most accurate for exam purposes? (Item 100)

Answer choices

1. A. The affiliated licensee may handle the matter independently without broker responsibility.
2. B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
3. C. The requirement matters only when the buyer obtains institutional financing.
4. D. Recognize protection against covered title defects in a way that fits Oregon exam practice.

Correct Answer

D. Recognize protection against covered title defects in a way that fits Oregon exam practice.

Explanation

The correct answer is D because title insurance requires candidates to recognize protection against covered title defects. 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: Principles, Property, and Land Use
• Objective: title insurance

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