Oregon License Law
Under OREA rules, which of the following constitutes 'conversion' of client funds by a licensee?
ADepositing client funds in an interest-bearing account
BUsing client trust funds for the broker's personal or business expenses✓ Correct
CInvesting client funds in a real estate project with their knowledge
DDelaying deposit of earnest money by one banking day
Explanation
Conversion is the illegal use of client trust funds (such as earnest money or rental security deposits) for the licensee's own personal or business purposes. It is one of the most serious violations under ORS Chapter 696 and may result in license revocation, civil liability, restitution orders, and potentially criminal fraud charges.
Related Oregon Oregon License Law Questions
- Under Oregon law, when must an Oregon real estate licensee provide an agency disclosure to a prospective buyer or seller?
- What must Oregon real estate advertising include according to OREA rules?
- OREA can conduct investigations and examine records of Oregon brokerages under which authority?
- Under Oregon law, an Oregon broker who practices in another state must comply with:
- An Oregon real estate broker is required to submit continuing education records to OREA:
- The OREA Real Estate License Law prohibits a real estate licensee from:
- Which of the following is NOT a reason OREA may suspend or revoke a real estate license?
- An Oregon principal broker is responsible for:
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →