Oregon Real Estate Broker Exam — All Questions
15 questions
In Oregon, who is primarily responsible for maintaining and reconciling a brokerage's clients' trust account for earnest money and other client funds?
- a.Each individual broker
- b.The Oregon Real Estate Board
- c.The principal broker✓
- d.The title company
The principal broker is responsible for the brokerage's clients' trust accounts, including proper deposit, record-keeping, and monthly reconciliation of earnest money and other client funds held in trust under ORS Chapter 696 and Oregon Administrative Rules.
In Oregon, engaging in professional real estate property management activity for another for compensation generally requires:
- a.No license of any kind
- b.A broker, principal broker, or a separate property manager license issued by the Oregon Real Estate Agency✓
- c.Only a business registration with the county
- d.A general contractor license
Oregon regulates property management as a distinct licensed activity. A person managing rental real estate for others for compensation must hold an active broker or principal broker license, or a specific Oregon property manager license, all issued by the Oregon Real Estate Agency.
An Oregon broker receives an earnest money check. Absent the buyer's written instructions to the contrary, how soon must it reach the authorized principal broker?
- a.The same business day
- b.Within two banking days
- c.Within three banking days✓
- d.Within five banking days
A broker must deliver money, checks and other consideration received while conducting professional real estate activity to the authorized principal broker within three banking days, and must transmit all earnest monies within three banking days of receipt. Cite: OAR 863-015-0257(1) (REA 4-2025, effective 01/01/2026).
A broker receives funds that are not earnest money while conducting professional real estate activity. Within what time must those funds be deposited?
- a.Five banking days✓
- b.Three banking days after receipt
- c.Ten business days after receipt
- d.Two banking days after receipt
For funds other than earnest money, the broker has five banking days following receipt to deposit them into a clients' trust account or a licensed neutral escrow depository in this state, or to deliver a check made payable to the seller. Cite: OAR 863-015-0257(4) (REA 4-2025, effective 01/01/2026).
When may an Oregon broker hold an earnest money check un-deposited until the offer is accepted or rejected?
- a.Whenever the buyer asks orally
- b.When the written sale agreement discloses that the check is being held un-deposited✓
- c.Only if the check is for less than $1,000 and the seller agrees in writing
- d.Never; the check must be deposited into the clients' trust account on receipt
The check may be held un-deposited only if the written sale agreement says the broker is holding it and further states where and when it will be deposited on acceptance. Once the offer or a counter offer is accepted, the broker has three banking days to deposit it. Cite: OAR 863-015-0257(2)(a), (3).
Within what time must an Oregon authorized principal broker review each document of agreement after it has been accepted, rejected or withdrawn?
- a.Three banking days
- b.Five banking days
- c.Ten business days
- d.Seven banking days✓
The authorized principal broker must review each document of agreement generated in a transaction within seven banking days of acceptance, rejection or withdrawal, and must either initial and date a hard copy or make an electronic record naming the reviewer and the review date. Cite: OAR 863-015-0140(4) (REA 4-2025, effective 01/01/2026).
An Oregon authorized principal broker opens a clients' trust account. When must the Real Estate Agency be notified?
- a.Before the first deposit is accepted into it
- b.Within three banking days of the first deposit
- c.Within 10 business days✓
- d.At the licensee's next license renewal
Notice must reach the Agency through its online process within 10 business days of the date the account is opened, and the same 10-business-day deadline applies when the account is closed or transferred. Cite: OAR 863-015-0255(2), (3) (REA 4-2025, effective 01/01/2026); ORS 696.245.
Which of these is flatly prohibited on an Oregon clients' trust account?
- a.Electronic fund transfers
- b.Any form of debit card✓
- c.Checks from one pre-numbered sequence
- d.An interest-bearing balance
A managing principal broker may not use or allow the use of any form of debit card on a clients' trust account. Electronic fund transfers are allowed if the bank supplies an accurate paper record; checks must be pre-numbered; and an interest-bearing trust account is permitted with the required written approval. Cite: OAR 863-015-0255(5), (6); ORS 696.243(2); ORS 696.241(7).
A seller delivers an Oregon seller's property disclosure statement after receiving the buyer's written offer. How long does the buyer then have to revoke that offer?
- a.Five business days after delivery✓
- b.Three business days after the offer is accepted
- c.Ten calendar days after delivery of the statement
- d.Until closing of the transaction, in every case
Unless the buyer has already delivered a written waiver of the right to revoke, the buyer has five business days after delivery of the disclosure statement to revoke the offer by a separate signed written statement of revocation. Cite: ORS 105.475(1).
An Oregon seller refuses to provide the seller's property disclosure statement. What is the buyer's position?
- a.The buyer must close or forfeit the earnest money
- b.The buyer has five business days from the refusal to revoke
- c.The sale agreement is void from the outset
- d.The buyer may revoke the offer any time before closing✓
If the seller fails or refuses to provide the statement, the buyer's right of revocation runs until it is terminated by the buyer closing the transaction. On a valid revocation the buyer is entitled to immediate return of all deposits and the offer is void. Cite: ORS 105.475(3), (4), (5).
Which sale is excluded from Oregon's seller's property disclosure statement requirement?
- a.A sale of a 1920s bungalow by its long-time owner
- b.The first sale of a dwelling that has never been occupied✓
- c.A sale of a duplex the seller has rented out for years
- d.A sale by a seller who has owned the home less than a year
The statute excludes the first sale of a dwelling never occupied, provided the seller gives the buyer the prescribed statement naming the building or installation permit number and issuing authority. Other exclusions cover court-appointed fiduciaries, foreclosing financial institutions and government agencies. Cite: ORS 105.470(1), (2), (3), (4).
A rental advertisement in Oregon reads "no Section 8." Which protected class does that implicate?
- a.Familial status of the household
- b.The applicant's marital status
- c.Source of income✓
- d.The applicant's national origin
Oregon's fair housing statute protects source of income, which expressly includes federal rent subsidy payments under 42 U.S.C. 1437f and any other local, state or federal housing assistance. Publishing a notice indicating such a limitation is itself an unlawful practice. Cite: ORS 659A.421(1)(d)(A), (2)(e) (last amended 2021 c.367 s.40).
Which body has exclusive jurisdiction to review an Oregon city's land use decision?
- a.The Land Use Board of Appeals✓
- b.The circuit court of the county
- c.The Land Conservation and Development Commission
- d.The Oregon Court of Appeals, on initial review
The Land Use Board of Appeals has exclusive jurisdiction to review any land use decision or limited land use decision of a local government, special district or state agency, once the petitioner has exhausted local remedies. LUBA orders are then reviewed by the Court of Appeals. Cite: ORS 197.825(1), (2)(a), (2)(b).
Absent a lower county minimum acknowledged by LCDC, what is the statewide minimum parcel size for land zoned exclusive farm use and not designated rangeland?
- a.20 acres
- b.40 acres
- c.160 acres
- d.80 acres✓
The statute sets at least 80 acres for exclusive farm use land not designated rangeland, at least 160 acres for exclusive farm use rangeland, and at least 80 acres for designated forestland. Counties may go lower only in the circumstances the statute lists. Cite: ORS 215.780(1)(a), (1)(b), (2) (last amended 2019 c.440 s.8).
Oregon's statewide land use planning system requires every city and county to:
- a.submit every building permit application to the state for review
- b.adopt a comprehensive plan that complies with the state goals✓
- c.put every zone change to a vote of the electors
- d.obtain the Land Use Board of Appeals' approval of its zoning map
Each city and county must prepare, adopt and revise comprehensive plans in compliance with the goals and enact land use regulations to implement them. Once the plan and regulations are acknowledged, land use decisions are measured against the acknowledged plan. Cite: ORS 197.175(2)(a), (2)(b), (2)(d); ORS 197.225.