Oregon Broker PSI Practice Exam

Before closing a real estate transaction, what is required from the principal broker?

1. The buyer's signature on all documents

2. A written authorization and supervision from the principal broker

3. A meeting with the buyers and sellers present

4. Payment of all closing costs

The correct answer is: A written authorization and supervision from the principal broker

The requirement for a written authorization and supervision from the principal broker before closing a real estate transaction is essential because it ensures that all actions taken in the transaction comply with legal and ethical standards. This oversight serves to protect both the clients and the integrity of the transaction. The principal broker, as the responsible party under Oregon law, must confirm that all necessary documents have been properly prepared and that all parties have adhered to their obligations during the transaction. Having this written authorization also confirms that the principal broker is aware of and agrees to the actions taken by the associated brokers involved. It establishes a clear line of accountability and guarantees that the transaction proceeds smoothly while minimizing the risk of disputes or compliance issues. In contrast, despite being important, having the buyer's signature on all documents, arranging a meeting with all parties, or ensuring that all closing costs are paid does not fulfill the specific regulatory requirement for principal broker oversight. These factors may be part of the transaction process but do not replace the need for written authorization and supervision by the principal broker.