Principles, Property, and Land Use Practice Question

Question

A supervising broker is reviewing a transaction file for the Oregon Real Estate Broker Exam involving restrictive covenants and seller property disclosure awareness. Which answer best reduces risk? (Item 48)

Answer choices

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

Correct Answer

D. Recognize private deed or association limits on property use in a way that fits Oregon exam practice.

Explanation

The correct answer is D because restrictive covenants requires candidates to recognize private deed or association limits on property use. 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: restrictive covenants

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