Oregon Broker PSI Practice Exam

What type of approval is needed for advertising related to real estate?

1. Board approval

2. Principal broker approval

3. Client approval

4. Government approval

The correct answer is: Principal broker approval

In the context of advertising related to real estate, principal broker approval is essential because the principal broker is responsible for the overall compliance of the real estate brokerage with laws and regulations. This includes ensuring that all advertisements adhere to ethical standards, truthfulness, and the relevant legal requirements set forth by the state and real estate boards. The principal broker's oversight helps to maintain the integrity of the brokerage’s marketing practices and protects the interests of clients. While it may be beneficial to have client approval for specific marketing strategies or materials, it is the principal broker's approval that is crucial to ensure that all advertising meets regulatory standards and is in line with the brokerage’s policies. This oversight mitigates the risk of legal violations that could arise from misleading or false advertising. In some cases, certain advertising materials may also require governmental approval, particularly if they utilize specific types of information or claims that are heavily regulated; however, the foundational requirement remains that of obtaining the principal broker's approval prior to disseminating any advertising materials.