Oregon Real Estate Broker Exam — All Questions

Under Oregon law (ORS Chapter 696), what is the entry-level real estate license that a newly licensed practitioner receives?

• a.Salesperson
• b.Broker✓
• c.Principal broker
• d.Realtor

Oregon is unusual in that its entry-level license is the 'broker' license, not 'salesperson.' A newly licensed Oregon broker must be supervised by and associated with a principal broker. 'Principal broker' is the higher-level license authorized to supervise others and operate a brokerage.

Which state body issues and regulates real estate licenses in Oregon?

• a.The Oregon Department of Consumer and Business Services
• b.The Oregon Association of Realtors
• c.The Oregon Real Estate Agency✓
• d.The Oregon Secretary of State

The Oregon Real Estate Agency (OREA), led by the Real Estate Commissioner, licenses and regulates brokers, principal brokers, and property managers under ORS Chapter 696. The Oregon Real Estate Board advises the Agency but does not itself issue licenses.

In Oregon, an active real estate broker who wishes to engage in professional real estate activity must:

• a.Be associated with and supervised by a licensed principal broker✓
• b.Operate entirely independently once licensed
• c.Hold a separate escrow agent license
• d.Be a member of a Realtor association

An Oregon broker cannot practice independently. The broker's license must be associated with a principal broker (or the broker must upgrade to principal broker), who is responsible for supervising the broker's real estate activity and client trust accounts.

Chapter 389, Oregon Laws 2025 made "managing principal broker" a defined Oregon license term. Which individual fits that definition?

• a.Any principal real estate broker who supervises the professional real estate activity of an associated broker
• b.A principal real estate broker who has registered or assumed responsibility for a business name✓
• c.A real estate broker who has completed three years of active licensed experience
• d.A principal broker appointed by the Real Estate Commissioner to audit a brokerage

A managing principal broker is a principal real estate broker who has registered or assumed responsibility for a business name. Supervising associated licensees is not enough by itself: a principal broker who supervises under a written supervisory agreement is an "authorized principal broker." The term took effect January 1, 2026. Cite: ORS 696.010(15); OAR 863-014-0003(11) (REA 4-2025, filed 10/09/2025, effective 01/01/2026).

Under OAR chapter 863, who is an "authorized principal broker"?

• a.The managing principal broker, or a principal broker given written supervisory control✓
• b.Any Oregon principal broker who holds an active license
• c.A broker the Agency has separately authorized to open a clients' trust account
• d.The principal broker who owns the largest share of the registered business

The managing principal broker may allocate some or all supervisory control and responsibility to an associated principal broker through a written supervisory agreement; that broker is then an authorized principal broker. The supervisory agreement cannot limit the managing principal broker's own responsibility. Cite: OAR 863-014-0003(3) (REA 4-2025, effective 01/01/2026); ORS 696.310(1)(a)(F); ORS 696.237(4).

A brokerage's sole managing principal broker is unexpectedly hospitalized. Under ORS 696.022, who may supervise the associated licensees?

• a.No one; the associated licenses go inactive at once
• b.Any associated broker, for as long as the managing principal broker is absent
• c.The Real Estate Commissioner, who appoints a receiver for the registered business
• d.A broker with three years of active experience, for up to 90 days✓

A real estate broker who has acquired three years of active experience as a real estate broker may supervise another licensee's professional real estate activity for up to 90 days because of unforeseen circumstances or the temporary absence of a sole managing principal broker. Cite: ORS 696.022(2)(c).

An Oregon broker closes a cooperative sale. From whom may that broker accept the commission?

• a.From the buyer directly
• b.Only from the broker's own managing principal broker✓
• c.From the escrow agent
• d.From either managing principal broker

A licensee associated with a managing principal broker may not accept compensation from any person other than that managing principal broker, and a managing principal broker may not pay another firm's broker except through that broker's own managing principal broker. Cite: ORS 696.290(2), (3).

ORS 696.290 bars an Oregon licensee from sharing compensation with an unlicensed person. Which payment is expressly permitted?

• a.A finder's fee to the unlicensed neighbor who introduced the buyer
• b.A referral bonus to the seller's unlicensed adult child
• c.A share of the commission donated to a 501(c)(3) charitable organization✓
• d.A thank-you payment to the unlicensed assistant who drafted the listing

The statute prohibits paying any part of a licensee's compensation, or a finder's fee, to a person who is not a real estate licensee, but expressly allows a licensee to give parts or shares of that compensation to an organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code. Cite: ORS 696.290(1)(a), (1)(c).

How long must an Oregon managing principal broker keep the records of a real estate transaction that has closed?

• a.Six years after closing or failure✓
• b.Three years after the transaction closed or failed
• c.Two years from the date the license was last renewed
• d.Permanently, unless the Agency authorizes destruction

Records of professional real estate activity must be kept at least six years after the transaction closed or failed, whichever is later. The three-year figure belongs to a different record: a licensee's own continuing education attendance records. Cite: ORS 696.280(4)(b); ORS 696.280(2); OAR 863-015-0260.

What must appear in an Oregon licensee's advertising under OAR 863-015-0125?

• a.The managing principal broker's license number
• b.The Oregon Real Estate Agency's consumer complaint line
• c.The registered business name, immediately noticeable✓
• d.A statement that the licensee is an equal housing opportunity provider

Advertising must use the licensee's licensed name, a common derivative of it, or a registered alternative name with the license number, and the registered business name as registered with the Agency must be immediately noticeable in all advertising. Cite: OAR 863-015-0125(3), (4) (REA 4-2025, effective 01/01/2026).

A member of an Oregon real estate team meets a prospective seller for the first time. When is the real estate team disclosure due?

• a.When the listing agreement is signed
• b.Within three banking days of the first showing
• c.At closing, as part of the final agency acknowledgement
• d.At first contact with the person, in writing✓

A team member must give the real estate team disclosure at first contact with a prospective party or an unrepresented party seeking representation, delivered in a written format. It need not be repeated to someone who already received it from another member of the same team. Cite: OAR 863-015-0143(1)-(4) (adopted REA 4-2025, effective 01/01/2026); ORS 696.370(3).

Under ORS 696.370, which real estate team member may supervise or control other members of the team?

• a.Any member the managing principal broker designates
• b.Only a principal real estate broker✓
• c.Any broker with two years of active experience
• d.The team's unlicensed transaction coordinator

A team member must be a principal real estate broker before supervising or controlling other team members, and unless that person is the managing principal broker, the supervision must rest on a written supervisory agreement with the managing principal broker. Cite: ORS 696.370(4); ORS 696.310.

Who may register a business name with the Oregon Real Estate Agency?

• a.A managing principal broker or a licensed property manager✓
• b.Any principal broker
• c.Any Oregon real estate broker
• d.The corporation that owns the brokerage

Only a managing principal broker or a licensed real estate property manager may register a business name or a branch office under it. A nonlicensed person may hold an ownership interest in the business but may not control or supervise any licensee's professional real estate activity. Cite: ORS 696.026(6), (13).

Oregon's timeshare sales agent license authorizes the holder to do what?

• a.Sell any residential property
• b.Manage rental real estate
• c.Sell or offer to sell timeshares only✓
• d.Supervise other timeshare agents

The only professional real estate activity a timeshare sales agent may conduct is selling or offering to sell timeshares. The agent must be associated with and supervised by a managing principal broker and may not supervise any other licensee. Cite: ORS 696.022(5)(a); OAR 863-014-0030(3)(d) (REA 4-2025, effective 01/01/2026).