Oregon License Law

Under ORS Chapter 696, what is an Oregon principal broker's responsibility when they discover an affiliated licensee has commingled client funds?

ACorrect the error internally without reporting
BImmediately address the violation, remediate client harm, and report to OREA as required✓ Correct
CAllow the affiliated licensee to correct the issue on their own
DOnly report if the amount involved exceeds $5,000

Explanation

A principal broker who discovers commingling or conversion of client funds must take immediate corrective action, remediate any harm to clients, and report the violation to OREA. Failure to report known violations by affiliated licensees can result in disciplinary action against the principal broker. Oregon's supervisory responsibility extends to taking action when violations are discovered.

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