How to Lose Your Real Estate License

Meaning of Fiduciary

Duties & Obligations

• Deal Honestly
• Present All Offers
• Loyalty
• Disclose Material Facts
• Maintain Confidential Information

Sources of Duties & Obligations

• ORS Chapter 696
• Code of Ethics
• Oregon Administrative Rules
• Contracts

1. Misrepresentation

• Statement
• Material
• Intend Reliance
• Damages

Types of Misrepresentation

Statutory Disclosures

• Purpose
• Yes, No, Unknown
• Who Prepares Disclosures?

2. Mismanagement of Client Funds

3. Failure to Supervise

• Vicarious Liability
• Non-licensed Assistants

4. Poorly Drafted Contingencies

• Useful to protect client's interests
• Have non-broker review
• Use OREF Forms

5. Not Referring Clients to Experts

6. Conflicts of Interest

• Who is your client?
• Informed Consent
• What Constitutes a Conflict?

7. Conveying Incorrect Size or Acreage

• Legal Descriptions
• Surveyors
• Assessor Map v. Plat Map

8. Unauthorized Practice of Law

9. Discrimination

• Fair Housing Act
• Protected Classes
• Intent Does NOT Matter

10. Not Being Nice

Handling Complaints and Investigations

• Cooperation!
• Insurance
• Record Keeping