Oregon Broker Kevin is working on a transaction where his Principal Broker, Linda, is unavailable for two weeks due to a family emergency. Kevin's client needs to close on a property during that time. Another licensed Broker in Linda's office, Tom, offers to supervise Kevin's transaction while Linda is away. Under Oregon law, which of the following is most accurate?
Correct Answer
A) Only a licensed Principal Broker may provide the required supervision; Tom, as a Broker, cannot supervise Kevin
Under ORS Chapter 696, supervision of a Broker must be provided by a licensed Principal Broker. A Broker like Tom does not have the legal authority to supervise another Broker's activities, regardless of experience or seniority. Linda would need to arrange for another licensed Principal Broker to provide coverage, or the brokerage would need to designate an acting Principal Broker.
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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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