Broker Samantha in Salem is negotiating a commission split arrangement directly with another brokerage's client, promising to rebate part of her commission to the buyer in exchange for the buyer working exclusively with her. Under Oregon law, which aspect of this arrangement raises the most significant legal concern?
Correct Answer
B) Samantha is negotiating compensation arrangements without the knowledge or approval of her Principal Broker, which violates Oregon law
Under ORS 696.290, a Broker may only receive and negotiate compensation through their Principal Broker. Samantha negotiating commission arrangements or rebates directly with a client — without the knowledge and approval of her Principal Broker — violates Oregon's requirement that all compensation flow through and be authorized by the Principal Broker. This is a disciplinable offense.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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