Oregon 30-Hour Real Estate Law Practice Test

What is a true statement about licensees providing closing cost estimates?

1. They are legally required to provide accurate estimates

2. Brokerage offices may encourage such assistance as a customer service

3. Only the lender can provide closing cost estimates

4. Estimates can vary widely and are not helpful

The correct answer is: Brokerage offices may encourage such assistance as a customer service

The selection highlighting that brokerage offices may encourage licensees to provide closing cost estimates as a customer service is an accurate depiction of common practice. In the real estate industry, licensees often assist clients by providing estimates to help them better understand the financial aspects of a transaction. These estimates serve as a valuable tool to prepare buyers and sellers for the various costs associated with closing a sale, which can enhance the overall customer experience. This approach not only fosters a sense of trust and transparency but also demonstrates the licensee's proactive involvement in the transaction process, highlighting their role as knowledgeable professionals in the real estate market. By offering these estimates, licensees help clients make informed decisions about budgeting for their real estate transactions. While there are some legal obligations surrounding disclosures and accuracy in estimates, the core reason for providing these estimates is rooted in enhanced customer service, making the stated choice fitting in the context of real estate practice. Other options regarding legal requirements or limitations from lenders do not fully capture the customer service initiative encouraged in brokerage environments.