Oregon Broker PSI Practice Exam

A principal broker is most likely responsible for overseeing which of the following?

1. Market research

2. Client financing

3. Finalizing property sales

4. Supervising the completion of listing agreements

The correct answer is: Supervising the completion of listing agreements

A principal broker plays a critical role in the real estate industry, and one of their primary responsibilities is to supervise the practices and operations of their brokerage. This includes ensuring compliance with laws and regulations, but also extends to overseeing the activities of agents under their supervision. Supervising the completion of listing agreements is a crucial task for a principal broker because these agreements are foundational to the real estate transaction process. Listing agreements formalize the relationship between the seller and the broker. The principal broker must ensure that these agreements comply with legal standards and that agents are following industry protocols when completing them. This supervision helps maintain professionalism in the brokerage and protects both the agents and the clients by ensuring transparency and ethical practices are adhered to. Other responsibilities such as market research, client financing, and finalizing property sales are typically tasks that can be handled by agents or other specialized staff within the brokerage. While the principal broker may have oversight in these areas, their direct supervisory role is most evident in ensuring that listing agreements are accurately executed, outlining the terms of the relationship between sellers and the brokerage. This is integral to the operations of a real estate business and the safeguarding of client interests.