Free Oregon Real Estate Practice Exam

Q1.Oregon's seller's property disclosure statement is governed by ORS 105.464. To whom does this disclosure requirement apply?

• A.Only sellers of newly constructed residential properties
• B.Sellers of residential property consisting of one to four dwelling units
• C.All commercial and residential property sellers in Oregon
• D.Only sellers who are represented by a licensed real estate broker

Q2.Which federal law requires lenders to provide borrowers with a Good Faith Estimate of settlement costs within three business days of receiving a loan application?

• A.Truth in Lending Act (TILA)
• B.Fair Housing Act
• C.Real Estate Settlement Procedures Act (RESPA)
• D.Equal Credit Opportunity Act (ECOA)

Q3.A borrower obtains a conventional home mortgage loan. Under which federal law does the borrower have the right to request cancellation of Private Mortgage Insurance (PMI) once the loan-to-value ratio reaches 80%?

• A.The Real Estate Settlement Procedures Act (RESPA)
• B.The Homeowners Protection Act (HPA)
• C.The Equal Credit Opportunity Act (ECOA)
• D.The Truth in Lending Act (TILA)

Q4.A property generates a monthly gross rent of $1,800. An investor uses a gross rent multiplier (GRM) of 120 to estimate value. What is the estimated value of the property?

• A.$216,000
• B.$21,600
• C.$180,000
• D.$240,000

Q5.A property manager collects monthly rent from tenants and deposits all funds into an account that also contains operating expenses and the manager's own personal funds. Under generally accepted property management principles and most licensing laws, this practice is:

• A.Acceptable, provided the property owner has given written consent to the commingling arrangement.
• B.A violation of commingling rules, because client funds must be kept in a separate trust or escrow account.
• C.Required by RESPA whenever the property manager handles rental payments on behalf of an owner.
• D.Permissible as long as accurate accounting records are maintained and funds are disbursed within 30 days.

Q6.Under the Equal Credit Opportunity Act (ECOA), a lender who denies a credit application must notify the applicant of the adverse action within how many days of the credit decision?

• A.10 days
• B.30 days
• C.45 days
• D.60 days

Q7.Under ORS 696.805, what is the primary purpose of the Oregon Real Estate Agency's Real Estate License Law?

• A.To generate tax revenue for the state of Oregon through licensing fees
• B.To protect the public interest in real estate transactions
• C.To promote the business interests of real estate brokers
• D.To regulate home prices in Oregon's real estate market

Q8.In a designated agency arrangement, what happens to the confidential information shared by each party?

• A.All information must be shared between designated agents
• B.Each designated agent maintains confidentiality for their respective client
• C.Confidential information can only be shared with the broker
• D.No confidential information can be maintained in designated agency

Q9.When a broker learns that a buyer client is sending unwanted personal messages to an agent, the broker's obligation is to:

• A.Ignore it — clients are not brokerage employees and cannot create liability
• B.Wait for the agent to file a formal police report before acting
• C.Refer the agent to a different broker to avoid conflict of interest
• D.Take action: restrict communications, set written boundaries with the client, and if necessary terminate the buyer agency agreement

Q10.What is the licensee's personal liability for discriminatory conduct, even if the seller or broker instructed it?

• A.Personal liability for civil damages, civil penalties, attorney fees, ADRE discipline, and possible loss of license — instructions from a seller or broker are NEVER a defense
• B.None — agents follow principal instructions
• C.Only the seller is liable
• D.Only the broker is liable

Q11.In Oregon, a newly licensed real estate broker is required to work under the supervision of a principal broker. How long must an Oregon broker remain supervised before being eligible to apply for a principal broker license?

• A.Three years of active licensure as a broker
• B.One year of active licensure as a broker
• C.Two years of active licensure as a broker
• D.Five years of active licensure as a broker

Q12.Under the Equal Credit Opportunity Act (ECOA), which of the following actions by a lender would be considered discriminatory?

• A.Requiring verification of income from all applicants
• B.Requesting documentation of assets for loan qualification
• C.Asking about an applicant's marital status when the spouse will not be liable for the debt
• D.Requiring a larger down payment for investment properties

Q13.A seller's agent in Oregon learns during the listing period that the seller is facing foreclosure and must sell within 60 days. The seller has not authorized disclosure of this fact. Under ORS Chapter 696, how must the broker handle this information when dealing with a buyer's inquiry about seller motivation?

• A.Disclose the information to the buyer because material facts must always be shared with all parties
• B.Volunteer the information to the buyer to ensure a fair transaction
• C.Keep the information confidential and refrain from disclosing the seller's financial distress without authorization
• D.Withdraw from the listing immediately to avoid a conflict of interest

Q14.An Oregon Real Estate Agency investigator arrives unannounced at a brokerage during normal business hours and requests immediate access to all trust account records, including bank statements, client ledgers, and reconciliation worksheets, for the past 24 months. The principal broker states that the records are stored off-site and asks the investigator to schedule an appointment for the following week. Which statement BEST describes the broker's legal obligations under Oregon law?

• A.The broker may lawfully require the investigator to provide 48 hours' advance written notice before inspecting trust account records, as this is protected under Oregon administrative procedure rules.
• B.The broker must make all trust account records available to the Oregon Real Estate Agency upon demand during normal business hours without prior notice, and failure to do so constitutes grounds for license suspension or revocation.
• C.The broker is only required to produce records that pertain to currently open transactions; records for closed transactions more than one year old are considered proprietary and are exempt from agency inspection.
• D.The broker may delay production of off-site records for up to five business days without penalty, provided the broker gives the investigator a written acknowledgment of the request.

Q15.Under the Truth in Lending Act (TILA), when must a lender provide the initial Truth in Lending disclosure to a mortgage applicant?

• A.Within 3 business days of receiving a completed application
• B.Within 7 business days of loan closing
• C.At the time the loan application is submitted
• D.Within 30 days of loan approval