Broker Wei is associated with Portland Realty, a brokerage operated by Principal Broker Fiona. Wei negotiates a sale transaction and earns a commission. Before the commission is paid, Fiona surrenders her Principal Broker license and the brokerage closes. Wei then receives the commission check made out to him personally from the escrow company. Under Oregon law, which of the following most accurately describes Wei's situation?
Correct Answer
D) Wei's receipt of the commission directly from escrow likely violates ORS 696.290, even though the brokerage has closed, and he should consult OREA about proper procedures
This is a complex situation that highlights a key trap: ORS 696.290 requires compensation to flow through a Principal Broker, but when a brokerage closes mid-transaction, the proper procedure is not clear-cut and OREA guidance should be sought. Wei's receipt of the commission directly from escrow likely still violates the spirit and letter of ORS 696.290. The proper course is to contact OREA for guidance on how to handle compensation when the supervising brokerage has closed — not to simply pocket the check or forfeit the commission. OREA has procedures for handling compensation in such transitional situations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
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