Oregon Real Estate Practice Test

If there is no written instruction for closing a transaction, who must close it?

1. The principal broker

2. An escrow agent

3. A licensed attorney

4. The buyer

The correct answer is: The principal broker

The principal broker is responsible for closing a transaction if there are no written instructions provided. In real estate practice, the principal broker acts as the primary representative of the parties involved in the transaction and has the authority to manage the transaction's closing process. While other parties, such as escrow agents or licensed attorneys, often play critical roles in facilitating closings, the principal broker holds the ultimate responsibility in the absence of specific written directives. They ensure that all necessary agreements and processes are handled according to legal and ethical standards, representing the interests of their clients throughout the transaction. The role of the principal broker is crucial, as they are generally more familiar with the local real estate laws and practices. They coordinate various elements of the transaction, including inspections, financing, and the transfer of titles, when no written instructions dictate otherwise.