Oregon Real Estate Broker Exam — All Questions

When must an Oregon licensee provide the Initial Agency Disclosure Pamphlet to a consumer?

• a.Only at closing
• b.At first contact with a party who has not signed a service agreement, before entering into any representation discussion✓
• c.Only if the consumer requests it in writing
• d.Never, because Oregon does not require agency disclosure

Oregon requires licensees to provide the Initial Agency Disclosure Pamphlet, which explains representation options, at the beginning of the relationship, before the consumer discloses confidential information or enters into a representation agreement.

Under Oregon agency law, what term describes the situation where one licensee or firm represents both the buyer and the seller in the same transaction with informed consent?

• a.Subagency
• b.Single agency
• c.Designated exclusive agency
• d.Disclosed limited agency✓

Oregon law uses the term 'disclosed limited agency' for representing both parties (or both a buyer and seller who are each clients of the same principal broker) in one transaction. It is permitted only with the informed written consent of all clients, and the licensee's duties are limited accordingly.

When must an Oregon agent deliver the Initial Agency Disclosure Pamphlet?

• a.Before any offer is written
• b.At the first showing of a property
• c.Before the listing or representation agreement is signed
• d.At first contact with each party to the transaction✓

The agent must provide a copy of the initial agency disclosure pamphlet at the first contact with each party to a real property transaction, including contact in person, by telephone, over the Internet or by electronic mail. Cite: ORS 696.820(2); OAR 863-015-0215 (REA 1-2017, effective 01/01/2018).

Which party need not be given the Initial Agency Disclosure Pamphlet?

• a.A party represented by a lawyer
• b.A party who may reasonably be assumed to have received it from another agent✓
• c.A party buying commercial property
• d.A party who has already signed a disclosed limited agency agreement in the deal

The rule excuses delivery only to a party who has, or may reasonably be assumed to have, received a copy of the pamphlet from another agent. Being represented by counsel, buying commercial property, or having signed a disclosed limited agency agreement does not excuse delivery. Cite: OAR 863-015-0215 (REA 1-2017, effective 01/01/2018).

What is the legal effect of delivering the Initial Agency Disclosure Pamphlet?

• a.None; it is informational and is not evidence of intent to create agency✓
• b.It creates a seller agency relationship as soon as the seller keeps a copy
• c.It binds the recipient to the disclosed limited agency rules
• d.It starts a five-business-day period in which the recipient may cancel

The Commissioner's rules must provide that the pamphlet is informational only and may not be construed to be evidence of intent to create an agency relationship. An Oregon agency relationship is created by written agreement or course of conduct, not by the pamphlet. Cite: ORS 696.820(1); OAR 863-015-0200(2).

What is the longest term an Oregon listing agreement may run, counting any automatic renewals?

• a.12 months
• b.18 months
• c.24 months✓
• d.No statutory limit, if the seller initials the term

A real estate licensee may not enter into a listing agreement whose duration, including any automatic renewals, exceeds 24 months. The same 24-month ceiling applies to a written buyer representation agreement. Cite: ORS 696.805(2) (as amended by 2024 c.3 s.16); ORS 696.810(2).

The written listing and buyer representation requirements of ORS 696.805 and 696.810 do not apply to which property?

• a.Bare land inside an urban growth boundary
• b.Commercial structures, or five or more dwelling units✓
• c.A condominium held as an investment
• d.A manufactured dwelling on rented space

Both sections exempt licensees engaged in a transaction for property that is improved or available for improvement by commercial structures or by five or more residential dwelling units. Residential property of one to four units gets the written-agreement protection. Cite: ORS 696.805(3); ORS 696.810(3).

ORS 696.800 defines "disclosed limited agency" as a real property transaction in which:

• a.a broker represents a client while also holding an ownership interest in the property
• b.a broker represents a client without any written agreement
• c.two brokerages agree to share a commission on the same sale
• d.buyer and seller, or two or more buyers, are represented in one real estate business✓

Disclosed limited agency means the representation of a buyer and seller, or the representation of two or more buyers, occurring within the same real estate business. Two buyers are in the same transaction when both have submitted offers on the same property. Cite: ORS 696.800(4); OAR 863-015-0205(2), (3).

Acting as a disclosed limited agent, what may an Oregon licensee NOT tell the buyer without the seller's express written permission?

• a.That the seller will accept a price lower than the listing price✓
• b.That the property's septic system failed its most recent inspection
• c.That another offer has been submitted
• d.That the seller has listed the property before

A disclosed limited agent may not reveal that the seller will accept a price lower or terms less favorable than the listing price or terms, that the buyer will pay more, or specific confidential information. A known material defect is the opposite: disclosing it is an affirmative duty. Cite: ORS 696.815(2)(c)(A); ORS 696.805(5)(c).

"Confidential information" under ORS 696.800 covers information communicated to the agent by a buyer or seller of:

• a.any Oregon real property
• b.commercial property
• c.one to four residential units✓
• d.five or more dwelling units

The definition is limited to the buyer or seller of one to four residential units, and covers price, terms, financial qualifications and motivation to buy or sell. It excludes information the client tells the agent to disclose, and anything whose concealment would be fraudulent. Cite: ORS 696.800(3).

Two brokers associated with the same managing principal broker represent the buyer and the seller in one sale. Who acts as the disclosed limited agent of both parties?

• a.Both brokers, jointly
• b.The managing principal broker✓
• c.The Oregon Real Estate Agency's designated reviewer
• d.Neither; designated agency ends the dual relationship

When different licensees associated with the same managing principal broker establish agency relationships with different parties, the managing principal broker is the only broker acting as a disclosed limited agent of both; each broker continues to represent only that broker's own client unless all parties agree otherwise in writing. Cite: ORS 696.815(4); OAR 863-015-0200(3)(a).

When must an Oregon seller sign the Final Agency Acknowledgement?

• a.When the offer is first submitted, even if it will be rejected✓
• b.Only when the seller accepts the offer in writing
• c.At closing, together with the signed buyer and seller settlement statement
• d.Within three banking days after the seller accepts the offer

The Agency's prescribed form directs that the seller sign the acknowledgement when the agreement is first submitted, even if it will be rejected or countered, and states that signing it is not acceptance of the offer. Cite: ORS 696.845; OAR 863-015-0200(12)(a).

In Oregon, what does the payment of a real estate commission establish about agency?

• a.It makes the payer the client of the broker who is paid
• b.It creates a subagency between the two brokerages
• c.It makes the listing broker the agent of the buyer
• d.Nothing on its own✓

Payment, or the promise of payment, of a commission or other fee does not by itself create an agency relationship. A buyer's agent remains only the buyer's agent even when paid in whole or in part by the seller or through the listing agent. Cite: ORS 696.840; OAR 863-015-0200(5); ORS 696.810(4).