Oregon Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. An Oregon principal broker transfers a client trust account to a different institution. What must the broker do under the account-notification rule?

   • ATreat the account's original opening notice as sufficient forever
   • BNotify the Agency within 10 business days of the transfercorrect
   • CReport the change only if client funds are lost
   • DNotify clients instead of notifying the Agency

   Why: Closing or transferring a client trust account requires Agency notification within 10 business days. The original opening notification does not cover all later account changes.

   Practice of real estate

2. 2. What compensation information belongs in an Oregon buyer representation agreement?

   • AA statement that the seller always pays every buyer's agent
   • BA statement that commissions are fixed by the Agency
   • CAn explanation of how the buyer's agent may be compensatedcorrect
   • DAn agreement to leave all compensation terms undisclosed

   Why: OAR 863-015-0133 requires the agreement to explain how the buyer's agent may be compensated. The requirement calls for actual compensation information, not an assumed payment source.

   Contracts

3. 3. An Oregon listing has a definite expiration date but says the seller must give cancellation notice after that date. What is wrong with the clause?

   • AA seller must renew the listing before giving any notice
   • BA listing cannot require that post-expiration cancellation noticecorrect
   • CA listing may never contain any expiration date
   • DA seller must give notice only to the Agency instead

   Why: OAR 863-015-0130 prohibits a listing provision requiring seller cancellation notice after its definite expiration. The definite term cannot be defeated by this notice requirement.

   Contracts

4. 4. An Oregon seller asks an agent to waive every affirmative statutory duty in a listing addendum. What is the correct response?

   • AAffirmative duties generally cannot be waived, apart from the specified continuous-effort dutycorrect
   • BA waiver is effective whenever the commission is reduced
   • CEvery affirmative duty can be waived if the seller initials
   • DOnly oral waivers of duties are prohibited

   Why: ORS 696.805 permits the specified continuous-effort exception but otherwise prohibits waiver of affirmative duties. A broad signed addendum cannot erase all statutory obligations.

   Agency

5. 5. Oregon buyers and sellers agree to change a purchase contract. How must the amendment or addendum be documented?

   • ABy the broker's unsigned telephone log alone
   • BBy the listing agent's initials without the parties
   • COnly by changing the original file's electronic filename
   • DIn writing, dated and signed by the buyers and sellerscorrect

   Why: OAR 863-015-0135 requires written, dated amendments and addenda signed by the sellers and buyers. A broker's record of a conversation is not a substitute for their signatures.

   Contracts

6. 6. An Oregon manager starts managing a rental after the owner's written management agreement has expired. What is required to continue lawfully?

   • AOnly a bank account bearing the manager's own name
   • BOnly an old agreement kept in the closed transaction file
   • COnly a tenant's oral request to continue collecting rent
   • DA written, unexpired management agreement with the ownercorrect

   Why: OAR 863-025-0020 prohibits rental management without a written, unexpired owner agreement. An expired agreement does not become sufficient merely because the tenant wants service to continue.

   Property management

7. 7. After an Oregon seller agency ends, a former agent is asked to reveal the seller's protected confidential information. What duty continues?

   • AOnly information received in the final month remains protected
   • BConfidentiality lasts only if another commission will be earned
   • CAll confidentiality ends with the listing expiration
   • DConfidentiality continues, subject to subpoena or court ordercorrect

   Why: ORS 696.805 continues the seller-agent confidentiality duty after termination. A subpoena or court order is an exception; ordinary expiration is not permission to disclose.

   Agency

8. 8. An Oregon buyer's agent receives the entire commission from the seller's agent. No written disclosed limited agency agreement exists. Whose agent is the licensee?

   • ABoth parties' agent automatically
   • BThe buyer's agentcorrect
   • CNeither party's agent because the seller paid
   • DThe seller's agent automatically

   Why: ORS 696.810 preserves the buyer agency despite payment by the seller or seller's agent unless written disclosed limited agency is agreed. The source of compensation alone does not switch the client.

   Agency

9. 9. An Oregon broker proposes advertising a property as guaranteeing future resale profits. Is that claim permitted?

   • AYes, if the owner privately believes prices will rise
   • BYes, if the advertisement includes a broker license number
   • CNo, the advertising rule prohibits guarantees of future profitscorrect
   • DYes, whenever the property has risen in value before

   Why: OAR 863-015-0125 prohibits advertising that guarantees future profits. A favorable history or the owner's confidence does not turn a prediction into a permitted guarantee.

   Practice of real estate

10. 10. During an Oregon licensing investigation, a witness refuses voluntarily to produce relevant records. Which power does the Commissioner have?

    • AIssue a subpoena to compel records needed to administer the lawscorrect
    • BRely solely on voluntary cooperation in every investigation
    • CTransfer licensing authority automatically to a trade association
    • DRequire only a verbal summary because records cannot be subpoenaed

    Why: The Commissioner may administer oaths, take depositions and issue subpoenas for witnesses and records. A refusal to cooperate voluntarily does not remove those investigative powers.

    Practice of real estate