Free Oregon Real Estate Practice Exam

Q1.Under ORS Chapter 696, which of the following individuals is EXEMPT from Oregon real estate licensing requirements when performing real estate activities?

• A.A property management company employee who negotiates lease terms on behalf of the company's clients
• B.An attorney-in-fact acting under a validly executed power of attorney on behalf of a principal in a real estate transaction
• C.A salaried assistant who regularly shows properties and discusses contract terms with prospective buyers
• D.A person who receives a referral fee for directing a client to a licensed broker

Q2.Under Oregon law, a real estate broker discovers a material defect in a property she is listing. What is her obligation regarding this defect?

• A.Disclose the material defect to prospective buyers
• B.Keep the defect confidential as part of her fiduciary duty to the seller
• C.Disclose the defect only if the buyer's broker specifically asks about it
• D.Disclose the defect only after an offer has been accepted

Q3.A managing broker is responsible for a property management trust account holding security deposits for 40 residential tenants. During the monthly three-way reconciliation, the broker discovers that the bank statement balance is $2,400 higher than the sum of all tenant ledger balances. The most appropriate immediate action for the broker is to:

• A.Transfer the $2,400 overage into the operating account because it represents unidentified funds that may be brokerage income.
• B.Investigate and identify the source of the discrepancy before taking any action, and document all findings to prevent commingling or misappropriation.
• C.Leave the overage in the trust account indefinitely, because an excess balance poses no regulatory risk to the broker.
• D.Refund the $2,400 proportionally to all 40 tenants to resolve the discrepancy as quickly as possible.

Q4.Under Oregon law, a seller of residential real property typically must deliver a completed property disclosure statement to the buyer. Which of the following statements most accurately describes the buyer's right after receiving the disclosure statement for the first time?

• A.The buyer has five business days after delivery of the disclosure statement to rescind the transaction without penalty.
• B.The buyer has three business days after delivery of the disclosure statement to rescind any existing offer or agreement without penalty.
• C.The buyer has 24 hours after delivery of the disclosure statement to rescind the transaction without penalty.
• D.The buyer has no right to rescind once a purchase agreement has already been signed prior to receiving the disclosure statement.

Q5.A property sold for $425,000. The listing agent receives 3% commission and the selling agent receives 2.5% commission. If the listing agent splits their commission 60/40 with their broker (agent keeps 60%), how much does the listing agent receive?

• A.$5,100
• B.$7,650
• C.$12,750
• D.$10,625

Q6.A property management company refuses to rent available units to applicants who receive housing choice vouchers (Section 8), claiming the policy is a neutral business decision unrelated to any protected class. Under ORS Chapter 659A, this practice is BEST characterized as:

• A.Permissible, because federal law does not prohibit source-of-income discrimination and Oregon defers to federal standards in housing.
• B.Permissible, because property owners have an absolute right to set tenant qualification criteria unrelated to personal characteristics.
• C.An unlawful discriminatory practice, because ORS Chapter 659A prohibits discrimination in real property transactions based on source of income.
• D.A matter left entirely to local jurisdictions; the state of Oregon has no statute addressing source-of-income discrimination.

Q7.A buyer and seller are in a dispute over a $3,000 earnest money deposit held in the principal broker's clients' trust account. The transaction has failed to close and neither party will sign a release. Under Oregon law, how should the principal broker handle the disputed funds?

• A.Release the funds to the seller immediately, since the seller is the non-defaulting party.
• B.Release the funds to the buyer immediately, since the buyer demanded return first.
• C.Continue to hold the funds in the clients' trust account until the dispute is resolved by written agreement of the parties, a court order, or another lawful procedure.
• D.Transfer the funds to the Oregon Real Estate Agency to hold pending resolution of the dispute.

Q8.A borrower obtains a $200,000 loan at 6% annual interest. If the monthly payment is $1,199.10, how much of the first payment goes toward principal?

• A.$1,000
• B.$199.10
• C.$1,199.10
• D.$600

Q9.Under most Arizona listing agreements, when is the real estate commission considered 'earned'?

• A.When the listing agreement is signed by both parties
• B.When the seller accepts a ready, willing, and able buyer by executing the purchase contract
• C.When the transaction closes and the deed is recorded
• D.When the buyer submits an offer at full list price

Q10.Under ORS Chapter 696, a person who wishes to engage in property management activities in Oregon for compensation must hold which type of license?

• A.A standard real estate broker license with no additional endorsement required
• B.Either a principal broker license or a property manager license, depending on the scope of activity
• C.Only a business license issued by the Oregon Secretary of State
• D.A property manager license is never required if the manager works for the property owner as a W-2 employee

Q11.Which federal agency has primary enforcement authority for violations of the Fair Housing Act?

• A.Federal Trade Commission (FTC)
• B.Department of Housing and Urban Development (HUD)
• C.Consumer Financial Protection Bureau (CFPB)
• D.Environmental Protection Agency (EPA)

Q12.Which of the following is the most common method of transferring title to real estate?

• A.Deed
• B.Will
• C.Court order
• D.Adverse possession

Q13.During a routine audit, a state real estate commission investigator finds that a broker's trust account ledger shows a negative balance on one client's sub-ledger for three days during the month, even though the overall trust account bank balance remained positive throughout. Which violation has MOST likely occurred?

• A.Conversion, because funds belonging to other clients were used to cover obligations owed to the client whose sub-ledger was negative.
• B.Commingling, because the broker deposited personal funds into the trust account to offset the negative sub-ledger.
• C.A RESPA Section 8 violation, because the shortfall suggests an undisclosed kickback arrangement.
• D.No violation occurred because the overall trust account bank balance was always positive.

Q14.Under Oregon fair housing law (ORS Chapter 659A) as it relates to real estate transactions, which protected class is recognized under Oregon law but is NOT enumerated as a protected class under the federal Fair Housing Act?

• A.Race
• B.Source of income
• C.Religion
• D.National origin

Q15.Under the doctrine of substantial performance, when can a party demand full payment despite minor contract deviations?

• A.When the deviations are intentional but cost less than 5% of the contract price
• B.When both parties agree in writing to accept the deviations
• C.When the other party has received substantially what was bargained for, despite minor unintentional deviations
• D.When the deviations can be corrected within 30 days of contract completion