Free Oregon Real Estate Practice Exam

Q1.Under the Statute of Frauds, which of the following contracts MUST be in writing to be enforceable?

• A.A contract for the sale of real property
• B.A verbal agreement to mow a neighbor's lawn
• C.An oral agreement to paint a room for $50
• D.A handshake deal to lend a friend a lawnmower

Q2.A licensed Oregon property management broker maintains a clients' trust account for rental property funds. At the end of the month, the broker discovers that a data-entry error caused the account to be short by $200 relative to the combined ledger balances of all owners. Under OAR Chapter 863 requirements governing clients' trust accounts, which action must the broker take?

• A.Document the shortage in the monthly reconciliation and carry it forward to the following month without further action.
• B.Immediately deposit personal or operating funds into the trust account to cover the shortage and then investigate and correct the underlying error.
• C.Withdraw funds from the trust account to the operating account to reflect the actual balance, then notify all affected clients.
• D.Report the shortage directly to OREA within 10 business days before taking any corrective action.

Q3.A broker in Oregon is supervising a property management company and discovers that a property manager has been commingling personal funds with client rent proceeds in the trust account. Under ORS Chapter 696 and OAR Chapter 863, which of the following actions is the Oregon Real Estate Agency MOST likely to pursue against the responsible principal broker?

• A.Issue a citation with a fine only, because commingling is a civil matter handled exclusively by Oregon courts.
• B.Revoke or suspend the principal broker's license for failure to properly supervise, and potentially impose a civil penalty, because supervision of trust account compliance is the principal broker's responsibility.
• C.Require the principal broker to reimburse all affected clients and then close the investigation with no license action.
• D.Transfer the case to the Oregon Department of Justice without taking any independent agency action against the license.

Q4.Which combination of protective steps most effectively reduces both wire fraud risk and FinCEN compliance exposure in a high-value all-cash transaction?

• A.Verbally confirming wiring instructions and verifying the buyer entity's beneficial ownership through the title company
• B.Using a cashier's check and filing a 1099-S
• C.Requiring the buyer to appear in person at closing and paying in certified funds
• D.Submitting a SAR (Suspicious Activity Report) to FinCEN before closing

Q5.A property's market value is $320,000. If the property is assessed at 80% of market value, what is the assessed value?

• A.$256,000
• B.$240,000
• C.$288,000
• D.$300,000

Q6.A residential neighborhood is located adjacent to a wetland. A developer wants to fill in a portion of the wetland to build additional homes. Which federal law primarily regulates the developer's ability to discharge fill material into this wetland?

• A.The National Environmental Policy Act (NEPA)
• B.The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• C.Section 404 of the Clean Water Act
• D.The Resource Conservation and Recovery Act (RCRA)

Q7.Under the federal Truth in Lending Act (TILA) and Regulation Z, the Annual Percentage Rate (APR) is best described as which of the following?

• A.The simple interest rate agreed upon by the borrower and lender, expressed as an annual figure.
• B.The total dollar amount of interest paid over the life of the loan.
• C.A broader measure of the cost of credit that includes the interest rate plus certain fees and charges, expressed as a yearly rate.
• D.The maximum rate a lender may charge on a federally insured mortgage.

Q8.Under the Truth in Lending Act (TILA), which disclosure must a lender provide to a borrower applying for a mortgage loan, and within what timeframe must it generally be delivered?

• A.The Loan Estimate must be delivered within three business days of receiving a completed loan application.
• B.The Closing Disclosure must be delivered within one business day of receiving a completed loan application.
• C.The Good Faith Estimate must be delivered within five business days of receiving a completed loan application.
• D.The Truth-in-Lending Statement must be delivered within seven business days of receiving a completed loan application.

Q9.A designated broker cannot act for 20 days. Which action fits A.R.S. § 32-2127(D)?

• A.Make a written designation lasting no more than 30 days and retain it for one year.
• B.Use an oral designation for 60 days.
• C.Allow an unlicensed person to serve as broker.
• D.Make no record if the absence is temporary.

Q10.A licensed Oregon broker operating under a principal broker receives an earnest money deposit from a buyer on a Friday afternoon. The principal broker's trust account is at a bank that is closed for the weekend. Under OAR Chapter 863, by when must the broker deliver the earnest money to the principal broker or the principal broker's trust account?

• A.By the end of the next banking day after receipt
• B.Within 24 hours of receipt, regardless of banking hours
• C.Within three calendar days of receipt
• D.By the close of business on the same day the funds are received

Q11.How long does a complainant have to file a fair housing complaint with HUD under 42 U.S.C. § 3610?

• A.90 days
• B.1 year
• C.180 days
• D.3 years

Q12.The maximum civil penalty for a first Fair Housing Act violation under the current HUD-adjusted schedule is approximately:

• A.$21,663
• B.$5,000
• C.$10,000
• D.$54,157

Q13.In a real estate purchase contract, what is the legal effect of a condition precedent that fails to occur?

• A.The contract becomes voidable at either party's option
• B.The contract remains valid but performance is delayed
• C.The parties' obligations under the contract are discharged
• D.The contract becomes an option contract

Q14.Which statement about E&O is appropriately limited?

• A.Arizona licensing law requires one policy form for every brokerage.
• B.No general Arizona licensing mandate was identified, but contracts or business relationships may impose separate requirements.
• C.E&O is unnecessary when agents are experienced.
• D.E&O guarantees every professional claim will be paid.

Q15.A principal broker in Oregon receives an earnest money deposit on behalf of a buyer. Under Oregon law, how must these funds be handled?

• A.Deposited into a separate trust account maintained by the brokerage
• B.Held in the principal broker's personal checking account until closing
• C.Forwarded directly to the title company within 24 hours of receipt
• D.Held by the listing broker in a general business account