Agency
In Oregon, when an agent makes an error in completing a purchase agreement that harms their client, they may be liable for:
ANo liability since errors in paperwork are always correctable
BProfessional negligence (malpractice) — failing to exercise the standard of care expected of a competent Oregon licensee✓ Correct
COnly disciplinary action from OREA, not civil liability
DLiability only if OREA first finds them in violation
Explanation
Oregon real estate licensees who make errors in completing transaction documents that harm their clients may face professional negligence claims in civil court — separate from and in addition to any OREA disciplinary action. The standard of care is what a competent, similarly situated Oregon licensee would have done. Errors and omissions (E&O) insurance protects licensees from such claims.
Related Oregon Agency Questions
- Oregon requires that an agency agreement between a broker and a buyer client must:
- An Oregon buyer hires a broker to help find a property. Without a written buyer representation agreement, the relationship is best described as:
- In Oregon, the concept of 'ratification' in agency law means:
- What is the 'duty of obedience' owed by an Oregon agent to their client?
- In Oregon, what does 'imputed knowledge' mean in agency law?
- In Oregon, what does 'scope of authority' mean in the context of a buyer's agency agreement?
- What is 'material latent defect' in Oregon real estate and how does it differ from a 'patent defect'?
- In Oregon, which of the following describes 'implied agency'?
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