Oregon Broker PSI Practice Exam

What activity must a principal broker supervise regarding a broker?

1. Completion of a sales contract

2. Preparation of marketing materials

3. Completion of a listing agreement

4. Recruitment of new agents

The correct answer is: Completion of a listing agreement

The principal broker is responsible for overseeing various activities that brokers engage in, and one critical area of this supervision is the completion of listing agreements. This is because listing agreements are formal contracts that establish the relationship between the broker and the property owner, detailing the terms of the property sale or lease. Supervising the completion of these agreements ensures that they adhere to legal standards and regulatory requirements and that all necessary information is accurately documented. It is vital for maintaining ethical standards and protecting the interests of all parties involved, including compliance with state laws governing real estate transactions. While completing a sales contract and preparing marketing materials are important tasks that brokers may handle, these do not typically require direct supervision by the principal broker as listing agreements do. Recruitment of new agents also falls outside the scope of direct oversight over day-to-day operations and specific transactional activities, making listing agreement supervision a more pertinent responsibility for principal brokers in the context of their brokers’ duties.