PSI Oklahoma Real Estate Practice Test

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Prepare for the PSI Oklahoma Real Estate Test with flashcards and multiple choice questions, all equipped with hints and explanations. Master the material and pass your exam confidently!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following actions must a broker take when charging fees in advance?

Provide a verbal summary of the expenditures
Provide a written contract only
Provide a detailed accounting of expenditures
Release clients from obligations

The correct answer is: Provide a detailed accounting of expenditures

When a broker charges fees in advance, it is essential for them to provide a detailed accounting of expenditures. This is vital as it ensures transparency and accountability in the financial transactions between the broker and the client. Clients have the right to understand how their funds are being utilized, and a detailed accounting lays out specific information regarding what the fees cover, how much has been spent, and what remains. This level of detail fosters trust and helps maintain a clear professional relationship. Providing just a verbal summary or a written contract alone does not fulfill the comprehensive requirement necessary for clients to make informed decisions about their investments. Additionally, while releasing clients from obligations might seem beneficial, it does not address the need for clarity regarding how their advance fees are being managed and spent, which is a critical component of maintaining ethical practices in real estate. Therefore, a detailed accounting of expenditures reflects proper adherence to regulatory requirements and ethical standards in the real estate industry.