Because Oregon aligns license expiration dates to a set renewal cycle, a newly licensed broker's very first license period will typically run for what general duration?

Somewhere between 13 and 24 months, depending on when the license is issued

Exactly 12 months in every case

Exactly 36 months in every case

A fixed 6-month probationary period

Which practice best reflects proper document handling and recordkeeping obligations for a brokerage's transaction files?

Retaining complete transaction records, including offers and disclosures, for the retention period set by license law

Discarding files immediately once a transaction closes

Keeping only the final settlement statement and nothing else

Storing records solely in an agent's personal, unsecured notes

A property management broker in Newport regularly collects tenants' rent and security deposits on behalf of owner-clients. Best practice and license law generally require that these funds be handled how?

Deposited promptly into a dedicated trust or client trust account, kept separate from the broker's own funds

Deposited into the broker's personal checking account for convenience

Held as cash in the office safe indefinitely

Immediately forwarded to the owner in cash with no accounting

In a typical mortgage transaction, the promissory note serves what primary function?

It is the borrower's personal promise to repay the debt under stated terms

It pledges the property as collateral

It records the transfer of title

It insures the lender against default

In a divorce settlement near Bend, the decree splits a couple's home so that each spouse owns an undivided one-half interest with no automatic right of survivorship. Which form of co-ownership does this describe?

Community property with right of survivorship

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PRACTICE ENGINE · OREGON REAL ESTATE

Oregon Real Estate Practice Exam.
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QUESTION 1 / 60OR License Law & RegulationEasy0/0

What is the minimum age a person must be to obtain a real estate broker license in Oregon?

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1. What is the minimum age a person must be to obtain a real estate broker license in Oregon?
- A. 21 years old
- B. 17 years old
- C. 16 years old
- D. 18 years old
Show answer & explanation
Answer: D
Oregon requires broker license applicants to be at least 18 years old, which is younger than the 21-year threshold used in some other regulated professions but older than the minor ages listed among the other choices.
2. In Oregon, what is the title of the entry-level real estate license, unlike many other states that use the title "salesperson"?
- A. Agent
- B. Salesperson
- C. Associate
- D. Broker
Show answer & explanation
Answer: D
Oregon uses "broker" as the title for its entry-level real estate license, a naming convention that differs from many other states that reserve the broker title for a higher supervisory license level and call entry-level licensees salespersons.
3. After a licensee's first renewal, how often must an Oregon real estate license generally be renewed?
- A. Every 4 years
- B. Every 3 years
- C. Every year
- D. Every 2 years
Show answer & explanation
Answer: D
Once past the initial licensing period, Oregon real estate licenses are placed on a recurring 2-year renewal cycle with expiration dates set two years apart, rather than an annual or longer multi-year cycle.
4. Because Oregon aligns license expiration dates to a set renewal cycle, a newly licensed broker's very first license period will typically run for what general duration?
- A. Exactly 12 months in every case
- B. Somewhere between 13 and 24 months, depending on when the license is issued
- C. A fixed 6-month probationary period
- D. Exactly 36 months in every case
Show answer & explanation
Answer: B
Because Oregon staggers license expirations onto a common cycle, a first-time licensee's initial license period varies depending on issue date, generally falling somewhere between 13 and 24 months rather than a single fixed term.
5. Which practice best reflects proper document handling and recordkeeping obligations for a brokerage's transaction files?
- A. Keeping only the final settlement statement and nothing else
- B. Discarding files immediately once a transaction closes
- C. Storing records solely in an agent's personal, unsecured notes
- D. Retaining complete transaction records, including offers and disclosures, for the retention period set by license law
Show answer & explanation
Answer: D
License law requires brokerages to retain complete transaction documentation, including offers, disclosures, and closing paperwork, for a defined retention period, rather than discarding files after closing or keeping incomplete, informal records.
6. A property management broker in Newport regularly collects tenants' rent and security deposits on behalf of owner-clients. Best practice and license law generally require that these funds be handled how?
- A. Held as cash in the office safe indefinitely
- B. Immediately forwarded to the owner in cash with no accounting
- C. Deposited into the broker's personal checking account for convenience
- D. Deposited promptly into a dedicated trust or client trust account, kept separate from the broker's own funds
Show answer & explanation
Answer: D
Client funds such as rent and deposits must be kept in a separate trust account distinct from the broker's own operating funds, with prompt deposit and accurate accounting, rather than being commingled with personal funds or handled informally in cash.
7. Which type of loan is insured by a federal agency and commonly used by borrowers making a low down payment?
- A. Seller carryback loan
- B. Conventional uninsured loan
- C. Bridge loan
- D. FHA-insured loan
Show answer & explanation
Answer: D
FHA loans are insured by a federal agency, allowing lenders to offer more flexible qualifying standards and lower down payments, unlike conventional loans, which carry no federal insurance, or bridge and seller-carryback loans, which serve different short-term or private financing purposes.
8. In a typical mortgage transaction, the promissory note serves what primary function?
- A. It pledges the property as collateral
- B. It insures the lender against default
- C. It is the borrower's personal promise to repay the debt under stated terms
- D. It records the transfer of title
Show answer & explanation
Answer: C
The promissory note is the borrower's personal IOU, spelling out repayment terms, while the mortgage or deed of trust is the separate instrument that pledges the property as collateral security for that promise.
9. In a divorce settlement near Bend, the decree splits a couple's home so that each spouse owns an undivided one-half interest with no automatic right of survivorship. Which form of co-ownership does this describe?
- A. Joint tenancy
- B. Community property with right of survivorship
- C. Tenancy in common
- D. Tenancy by the entirety
Show answer & explanation
Answer: C
Tenancy in common allows co-owners to hold separate, undivided fractional interests that pass through each owner's own estate rather than automatically to the surviving co-owner, which distinguishes it from arrangements built around a right of survivorship.
10. Approving a new subdivision outside Corvallis, the county requires the developer to leave a 20-foot strip along the creek undisturbed. This kind of land-use restriction is best described as an exercise of which government power?
- A. Taxation
- B. Eminent domain
- C. Escheat
- D. Police power
Show answer & explanation
Answer: D
Zoning and land-use restrictions that protect public health, safety, and welfare, such as a creekside buffer requirement, are exercises of police power, which is different from eminent domain's forced purchase of property or escheat's reversion of property to the state.
11. Fee simple absolute is best described as which of the following?
- A. An interest that ends automatically when a stated event occurs
- B. An ownership interest that reverts to a grantor's heirs
- C. A leasehold interest for a fixed term
- D. The greatest and most complete form of ownership an individual can hold in real property
Show answer & explanation
Answer: D
Fee simple absolute is the most complete ownership estate, carrying no built-in condition or time limit, unlike a leasehold, a determinable fee that ends on a triggering event, or a life estate that reverts upon someone's death.
12. A homeowner in Tillamook holds a life estate in a farmhouse, with the remainder passing to her son upon her death. During her lifetime, which of the following is she generally prohibited from doing?
- A. Collecting rental income from the property
- B. Leasing the property to a tenant
- C. Committing waste that permanently damages the property's value
- D. Living in the home
Show answer & explanation
Answer: C
A life tenant may possess, use, and even lease the property, but is legally obligated not to commit waste, meaning actions that permanently reduce the value of the estate, because doing so would harm the remainderman's future interest.
13. Which duty is NOT typically owed by a broker acting as a fiduciary to their client?
- A. Reasonable care and diligence
- B. Confidentiality
- C. Guaranteeing the client will receive the highest possible sale price
- D. Loyalty
Show answer & explanation
Answer: C
Fiduciary duties require loyalty, confidentiality, and diligent care in representing a client's interests, but they do not obligate a broker to guarantee a specific financial outcome, since market conditions and buyer behavior are outside the broker's control.
14. "Why do we even bother filing this deed with the county clerk?" a new agent asks during training in Silverton. What is the best answer?
- A. It transfers equitable title only
- B. It satisfies the statute of frauds
- C. It provides constructive notice of ownership to the public
- D. It guarantees marketable title
Show answer & explanation
Answer: C
Recording gives constructive notice to the world of a claimed interest and helps establish priority among competing claims, but it does not itself guarantee that title is free of defects, since that protection instead comes from title insurance or a title search.
15. "I just want someone to unlock the door and let buyers in, I don't need advice," a seller in Salem tells a broker. If the broker takes on only that limited task without becoming the seller's full representative, the relationship created is best described as what?
- A. A subagency
- B. A limited, non-agency service arrangement
- C. A general agency relationship
- D. A fiduciary dual agency
Show answer & explanation
Answer: B
When a broker performs only ministerial tasks at a customer's direction without undertaking fiduciary representation, no full agency relationship is created; that differs from a general agency, which involves broader authority and fiduciary duties owed to a represented client.
16. Representing both the buyer and seller in the same transaction with informed written consent from each, a broker in Medford still owes each party which of the following?
- A. Undivided loyalty exclusively to the seller
- B. No fiduciary duties at all, since dual representation cancels agency
- C. A reduced set of duties, since full loyalty cannot be owed to both parties simultaneously
- D. Loyalty to whichever party pays the highest commission
Show answer & explanation
Answer: C
In a properly consented dual-agency arrangement, the broker cannot provide full, undivided loyalty to both principals at once, so the duties owed to each are necessarily limited compared with representing only one side, even though basic duties like honesty and confidentiality generally continue.
17. To terminate an agency relationship before a listing agreement's stated expiration date, which of the following is generally required?
- A. Mutual agreement of both parties, or grounds such as breach, death, or incapacity
- B. Nothing; agency relationships cannot be ended early
- C. A court order
- D. Only the broker's verbal notice
Show answer & explanation
Answer: A
Agency relationships typically end at the agreed expiration, but can also end earlier through mutual consent, breach by either party, or events like death or incapacity of a principal or agent, rather than unilaterally or only by court order.
18. For a real estate purchase contract to be enforceable, it generally must satisfy the statute of frauds requirement that it be what?
- A. In writing and signed by the party to be bound
- B. Witnessed by two independent parties
- C. Notarized by a licensed notary
- D. Recorded with the county within 30 days of signing
Show answer & explanation
Answer: A
The statute of frauds requires contracts for the sale of real property to be in writing and signed by the party against whom enforcement is sought, but it does not itself require notarization, witnesses, or immediate recording to be enforceable between the parties.
19. Refinancing a rental duplex in Ontario, the owner wants to convey a portion of the property to a business partner using the deed form that offers the broadest protection against title defects, including flaws predating the current owner's tenure. Which deed accomplishes this?
- A. Quitclaim deed
- B. Deed of trust
- C. General warranty deed
- D. Special warranty deed
Show answer & explanation
Answer: C
A general warranty deed warrants clear title against defects for the entire history of the property, even those predating the current owner's tenure, while a quitclaim deed conveys only whatever interest the grantor may have with no such warranties.
20. A buyer relocating to Bend for a new job signs a purchase agreement contingent on obtaining financing within 30 days. If the buyer is unable to secure a loan within that period and properly notifies the seller, what is the usual result?
- A. The buyer forfeits the earnest money automatically
- B. The contract remains binding until closing regardless of financing
- C. The seller may sue for specific performance regardless of the contingency
- D. The contract terminates and earnest money is typically returned to the buyer
Show answer & explanation
Answer: D
A financing contingency protects the buyer by allowing the contract to terminate, with earnest money returned, if a loan cannot be obtained within the agreed period, distinguishing it from a breach where the buyer would risk forfeiting the deposit.
21. A seller in Newberg agrees to sell her home to a buyer for $1 in exchange for the buyer taking over her remaining mortgage payments. Does this arrangement still satisfy the consideration requirement for a valid contract?
- A. No, contracts involving mortgage assumption cannot include monetary consideration
- B. No, because $1 is too small an amount to count as consideration
- C. Yes, because consideration only requires something of legal value be exchanged, not a specific dollar amount
- D. Yes, but only once a court later approves the amount
Show answer & explanation
Answer: C
Consideration requires that something of legal value change hands, but courts generally do not police the adequacy of that value, so a nominal $1 payment combined with the buyer's assumption of the mortgage still satisfies the requirement, unlike a promise made with nothing exchanged at all.
22. Having already signed a firm purchase agreement, a buyer in Grants Pass later discovers the seller misrepresented a material fact about the roof's condition. The buyer's most likely remedy is to seek what?
- A. Reformation of the property's legal description
- B. Rescission of the contract due to the misrepresentation
- C. Automatic forfeiture of the seller's commission
- D. Immediate criminal charges against the seller
Show answer & explanation
Answer: B
A material misrepresentation that induced the buyer to enter the contract typically supports rescission, unwinding the transaction, rather than reformation, which corrects clerical errors, or criminal prosecution, which is a separate legal avenue unrelated to contract remedies.
23. Relocating from Idaho for a new job in Hermiston, a buyer finances $412,000 and agrees to pay 2.75 points at closing to buy down the interest rate. What dollar amount do the points total?
- A. $4,120
- B. $2,750
- C. $15,450
- D. $11,330
Show answer & explanation
Answer: D
Points are calculated as a percentage of the loan amount, so 2.75 points on a $412,000 loan equals 2.75% of that amount, or $11,330, while applying 1% or 3.75% instead produces the smaller or larger totals among the other figures.
24. Under federal closing disclosure requirements for most residential mortgage loans, when must the buyer generally receive the Closing Disclosure before signing?
- A. There is no required timing
- B. At least three business days before closing
- C. At the same time as the initial loan application
- D. Only after the closing has already occurred
Show answer & explanation
Answer: B
Federal rules require most borrowers to receive the Closing Disclosure at least three business days before consummation of the loan, giving them time to review final terms, rather than receiving it simultaneously with the application or only after closing.
25. Property taxes and homeowners association dues that cover a period spanning the closing date are typically handled at settlement through what process?
- A. Full payment by the buyer regardless of timing
- B. Proration between buyer and seller based on their respective ownership periods
- C. Cancellation of the charges for the closing month
- D. Deferral until the next billing cycle with no adjustment
Show answer & explanation
Answer: B
Prorated charges divide costs like taxes and dues between buyer and seller according to how much of the billing period each party actually owned the property, rather than assigning the full amount to one party or skipping the adjustment entirely.
26. An investor evaluating a rental duplex in Springfield calculates net operating income of $58,500 and wants to apply a 6.25% capitalization rate. What value does this produce?
- A. $58,500
- B. $936,000
- C. $1,462,500
- D. $365,625
Show answer & explanation
Answer: B
The income approach estimates value by dividing net operating income by the capitalization rate; dividing $58,500 by 0.0625 yields $936,000, whereas multiplying instead of dividing, or applying the wrong rate, produces the smaller or larger incorrect figures among the other choices.
27. "This duplex just sold for $372,000 and brings in $2,400 a month in rent," an appraiser tells a trainee in Sherwood. Based on these figures, what gross rent multiplier does the sale indicate?
- A. 15.5
- B. 1,550
- C. 155
- D. 1.55
Show answer & explanation
Answer: C
The gross rent multiplier equals the sale price divided by monthly gross rent, so $372,000 divided by $2,400 produces a multiplier of 155, while misplacing a decimal point produces the smaller or larger incorrect values among the other options.
28. Which appraisal approach relies primarily on recent sales of comparable properties to estimate value?
- A. Sales comparison approach
- B. Cost approach
- C. Gross income approach
- D. Income approach
Show answer & explanation
Answer: A
The sales comparison approach adjusts recent comparable sale prices for differences to estimate a subject property's value, while the cost approach estimates reproduction cost minus depreciation and the income approach capitalizes anticipated income.
29. A home located near a newly built highway interchange in Woodburn loses value due to increased noise and traffic, even though nothing about the structure itself has changed. This loss in value is best classified as what?
- A. Physical deterioration
- B. External (economic) obsolescence
- C. Curable depreciation
- D. Functional obsolescence
Show answer & explanation
Answer: B
External obsolescence is a loss in value caused by factors outside the property itself, such as nearby land use changes or increased traffic noise, and unlike physical deterioration or functional obsolescence, it typically cannot be cured by the owner.
30. Market value is best defined as which of the following?
- A. The amount an owner originally paid for a property
- B. The total cost to rebuild a property from scratch
- C. The assessed value used for property tax purposes
- D. The most probable price a property should bring in a competitive, open market under normal conditions
Show answer & explanation
Answer: D
Market value represents the most probable selling price under fair, arm's-length market conditions, which differs from the original purchase price, reconstruction cost, or a government-assessed tax value that may not reflect current market conditions.
31. A seller in Roseburg knows the basement floods every winter but does not mention it anywhere on the property disclosure form. This omission is best characterized as what?
- A. An acceptable omission since buyers should inspect independently
- B. A curable clerical error
- C. A failure to disclose a known material fact
- D. Standard practice in as-is sales
Show answer & explanation
Answer: C
A recurring flooding problem is a material fact that could affect a buyer's decision or the property's value, and sellers who knowingly withhold such known defects from a disclosure statement have failed to meet their disclosure obligations, regardless of whether the buyer later inspects.
32. To advertise a listed property truthfully and in compliance with standard practice rules, a broker must avoid which of the following?
- A. Advertising the property without disclosing the brokerage's name, a so-called blind ad
- B. Including the listing price
- C. Including photographs of the property
- D. Naming the brokerage firm in the ad
Show answer & explanation
Answer: A
Advertising standards generally require that a real estate advertisement disclose the brokerage's identity so consumers know they are dealing with a licensed business, which rules out so-called blind ads that omit this information, unlike including price or photos, which are ordinary and encouraged.
33. A licensed broker in Salem moves to a new home. Within how many days must she notify the Oregon Real Estate Agency of the change to her mailing address?
- A. 60 days
- B. 90 days
- C. 30 days
- D. 10 days
Show answer & explanation
Answer: D
Licensees are required to promptly update their contact information with the regulating agency, and Oregon requires notice of an address change within 10 days, which is far sooner than the longer periods listed among the other choices.
34. After a listing agreement expires without a sale, a former client contacts the broker asking about a competing offer she once considered. What obligation does the broker still owe regarding confidential information learned during the agency?
- A. Confidentiality only continues if a new agreement is signed
- B. None; all duties end immediately when the agreement expires
- C. The duty of confidentiality generally continues even after the agency relationship ends
- D. The broker may freely share the information with any future client
Show answer & explanation
Answer: C
Confidentiality is one of the fiduciary duties that typically survives termination of the agency relationship, meaning a broker cannot freely disclose a former client's private information even after representation ends, unlike duties tied to active representation such as obedience.
35. A broker helping a family relocate to Beaverton for work learns the seller is under serious financial pressure and must sell quickly. May the broker representing the buyer use this knowledge to negotiate a lower price?
- A. No, using any information about a seller's circumstances is always unethical
- B. Only if the seller's agent gives written permission first
- C. No, because doing so would violate fair housing law
- D. Yes, using publicly relevant market and motivation information to negotiate favorably for the buyer is consistent with the buyer's agent's duty of loyalty
Show answer & explanation
Answer: D
A buyer's agent owes loyalty to the buyer and may ethically use legitimately available information about market conditions or a seller's motivation to negotiate the best possible terms, which is different from misusing confidential client information or violating fair housing protections, neither of which is implicated here.
36. A broker discovers a licensee at the same firm is being deceptive with a client about property defects. What is the most appropriate course of action?
- A. Confront the client directly on the licensee's behalf
- B. Wait until the deal closes to raise the issue
- C. Ignore it since it is not the observing broker's transaction
- D. Report the concern through appropriate internal or regulatory channels
Show answer & explanation
Answer: D
Ethical practice standards call for licensees who become aware of deceptive conduct to address it through proper internal supervision or, if warranted, regulatory reporting channels, rather than ignoring it, waiting until after closing, or bypassing supervision to intervene directly with someone else's client.
37. Which best describes a stigmatized property in real estate practice?
- A. A property with an unresolved title defect
- B. A property flagged for code violations
- C. A property with a lien attached
- D. A property psychologically impacted by a past event, such as a death, even though it has no physical defect
Show answer & explanation
Answer: D
A stigmatized property carries a psychological or perceptual impact from a past event rather than a physical or legal defect, which distinguishes it from title issues, code violations, or liens, all of which involve tangible legal or physical problems.
38. A landlord in a multi-unit building refuses to allow a tenant with a mobility disability to install a grab bar in the bathroom at the tenant's own expense. This refusal most likely violates what fair housing principle?
- A. Blockbusting
- B. Redlining
- C. Steering
- D. The duty to permit reasonable modifications for a person with a disability
Show answer & explanation
Answer: D
Fair housing law generally requires landlords to allow tenants with disabilities to make reasonable modifications to a unit at their own expense, so refusing a simple safety modification like a grab bar implicates that duty, unlike steering, blockbusting, or redlining, which involve different discriminatory practices.
39. During an internal compliance review in Ontario, a supervising broker discovers that an agent has been routinely limiting the neighborhoods shown to Latino buyers while offering white buyers a much broader range of listings. What discriminatory practice does this describe?
- A. Puffing
- B. Redlining
- C. Blockbusting
- D. Steering
Show answer & explanation
Answer: D
Steering describes directing homebuyers toward or away from particular neighborhoods based on a protected characteristic, which differs from redlining, a lending practice that denies services in certain areas, and blockbusting, which involves inducing panic selling.
40. Federal law requires disclosure of known lead-based paint hazards for most homes built before what general era?
- A. Homes built after 1990
- B. All homes regardless of age
- C. Homes built before 1978
- D. Homes built after 2000
Show answer & explanation
Answer: C
Federal lead-based paint disclosure requirements apply to housing built before 1978, when residential use of lead-based paint was banned, so newer housing built after that year is not subject to this particular federal disclosure requirement.
41. A lender's practice of routinely denying mortgage applications for properties located in a specific area, regardless of individual applicant qualifications, is best described as what?
- A. Steering
- B. Puffing
- C. Redlining
- D. Testing
Show answer & explanation
Answer: C
Redlining refers to a lender or insurer denying or limiting services based on a property's location, often correlated with the racial or ethnic composition of the area, rather than on individual creditworthiness, distinguishing it from steering, which involves buyer referrals rather than lending decisions.
42. Under the Civil Rights Act of 1866 as applied to housing, which protected characteristic has no statutory exemptions?
- A. Religion
- B. Race
- C. Disability
- D. Familial status
Show answer & explanation
Answer: B
The Civil Rights Act of 1866 prohibits racial discrimination in property transactions with no exemptions, unlike the later Fair Housing Act, which contains limited exemptions in some circumstances for characteristics such as religion in specific owner-occupied or religious-organization contexts.
43. After an investigation substantiates that a licensee repeatedly failed to account for client trust funds, the state real estate regulatory agency most likely has authority to do what?
- A. Require the licensee to refund the commission only
- B. Impose disciplinary measures ranging from a reprimand or fine up to license suspension or revocation
- C. Refer the matter exclusively to a private arbitration panel with no agency involvement
- D. Only issue a verbal warning, with no further recourse
Show answer & explanation
Answer: B
State real estate regulatory agencies generally hold a range of disciplinary tools for substantiated trust-fund violations, from reprimands and fines to suspension or revocation of a license, rather than being limited to a mere warning or having no direct enforcement authority.
44. A newly licensed broker in Astoria wants to independently manage her own brokerage without any supervising principal broker. Under typical license law structures, what is required first?
- A. Only completion of a background check
- B. Nothing; any licensed broker may operate independently at any time
- C. Meeting additional licensing requirements, such as experience or additional education, to become a principal broker
- D. A separate license from a different state
Show answer & explanation
Answer: C
Operating an independent brokerage without supervision typically requires advancing to a principal broker license level, which involves additional experience or education requirements beyond the entry-level license, rather than being available immediately to any newly licensed broker.
45. An unlicensed administrative assistant at a Bend brokerage may generally perform which of the following tasks?
- A. Scheduling showings and preparing marketing flyers under a licensee's direction
- B. Hosting an open house and answering questions about price
- C. Signing a listing agreement on the broker's behalf
- D. Negotiating the terms of a purchase offer
Show answer & explanation
Answer: A
Unlicensed staff may perform clerical and administrative support tasks, such as scheduling and preparing marketing materials, but activities requiring a license, including negotiating terms, discussing price at an open house, or signing binding agreements, are reserved for licensed individuals.
46. A principal broker fails to adequately supervise a broker in her office who commits repeated license law violations. Under typical supervisory-responsibility principles, what is the most likely regulatory consequence for the principal broker?
- A. The principal broker bears no responsibility, since only the offending broker acted improperly
- B. The principal broker may face independent disciplinary action for the supervisory failure, separate from any action against the offending broker
- C. Supervisory failures are addressed only through civil lawsuits, never through licensing action
- D. The principal broker's license is automatically and permanently revoked with no hearing
Show answer & explanation
Answer: B
Principal brokers carry an independent duty to supervise licensees in their office, so a documented failure of supervision can expose the principal broker to disciplinary action in its own right, separate from whatever action is taken against the offending broker, rather than escaping responsibility entirely or facing only automatic revocation.
47. During a licensing-exam prep session in Redmond, a broker trainee reviews a legal description that begins at a marked corner post, follows a sequence of bearings and distances along each boundary line, and returns to that same corner post. Which method of legal description does this illustrate?
- A. Metes and bounds
- B. Government rectangular survey
- C. Lot and block
- D. Assessor's parcel identification
Show answer & explanation
Answer: A
A description that starts at a fixed marker, follows bearings and distances around the parcel, and closes back on that same marker is a metes-and-bounds description, unlike a lot-and-block description that references a recorded subdivision plat.
48. During a Coos Bay closing review, a lender notes that the property appraised for $520,000, the buyer put down $130,000, and financed the rest with a conventional loan. Which loan-to-value ratio applies to this file?
- A. 65%
- B. 25%
- C. 75%
- D. 80%
Show answer & explanation
Answer: C
Loan-to-value compares the loan amount to the appraised value, not the down payment to the price; subtracting the $130,000 down payment from the $520,000 appraisal leaves a $390,000 loan, which is 75% of the value, while mistaking the down-payment percentage for the loan-to-value figure produces the smaller 25% option.
49. Which state agency has regulatory authority over real estate licensees in Oregon?
- A. Oregon Department of Consumer and Business Services
- B. Oregon Real Estate Agency
- C. Oregon Secretary of State
- D. Oregon Department of Justice
Show answer & explanation
Answer: B
Real estate licensing, discipline, and rule enforcement in Oregon fall under the Oregon Real Estate Agency, which is distinct from other state offices such as the Secretary of State or Department of Justice that handle unrelated regulatory functions.
50. While conducting a routine walkthrough for an owner-client in La Grande, a property manager notices that the vacant lot next door has a storage shed built roughly two feet across the surveyed boundary line. What term describes this situation?
- A. A claim of ownership built on years of open, continuous use
- B. A recorded right to cross another owner's land for access
- C. A voluntary, revocable permission to use another's land
- D. A structure that unlawfully extends onto a neighboring owner's property
Show answer & explanation
Answer: D
A shed built across the boundary line onto the neighboring lot is a physical trespass known as an encroachment, which differs from an easement's recorded access right, an adverse-possession claim built on years of open use, or a license's revocable permission.
51. A rancher outside Pendleton grants a neighboring landowner a recorded right to cross a stretch of pasture to reach the county road. What kind of interest has been created?
- A. Encroachment
- B. Revocable license
- C. Easement in gross
- D. Easement appurtenant
Show answer & explanation
Answer: D
Because the right benefits the neighboring parcel itself and was recorded to bind future owners, it is an easement appurtenant rather than a personal, revocable license or an easement in gross, which would benefit a person or company instead of adjoining land.
52. A buyer's agent in Eugene discovers that the buyer she represents intends to offer far less than the buyer can actually afford, hoping to negotiate up slowly. The seller's agent asks the buyer's agent directly what the buyer's true budget is. What should the buyer's agent do?
- A. Decline to disclose the confidential information, since it would harm the client's negotiating position
- B. Disclose the buyer's maximum budget to help move the deal along
- C. Ask the buyer for permission each time before withholding any information
- D. Disclose only an estimate to keep negotiations friendly
Show answer & explanation
Answer: A
Confidentiality is a core fiduciary duty owed to a represented client, so an agent must protect information, like a client's true budget, that could be used against the client's interests, rather than volunteering it to the other side.
53. During an estate settlement in Hermiston, does a broker holding an exclusive-right-to-sell contract still earn a commission if the heir locates a buyer independently, entirely without brokerage involvement?
- A. Yes, since the exclusive-right-to-sell contract entitles the broker to a commission no matter who produces the buyer
- B. No, because the buyer was found without any brokerage assistance
- C. No, unless the buyer first appeared on an approved prospect list
- D. Only if the principal broker personally negotiates the sale
Show answer & explanation
Answer: A
An exclusive-right-to-sell contract entitles the broker to a commission regardless of who procures the buyer, including the seller or heir, which distinguishes it from an exclusive-agency listing where an owner-procured sale avoids commission.
54. A broker in Cottage Grove is retained by a buyer purchasing an investment property, but ends up negotiating directly with the seller, who chose not to hire an agent. What level of duty does the broker owe that unrepresented seller?
- A. Full fiduciary duties identical to those owed the buyer
- B. Basic duties of honesty, fair dealing, and accurate disclosure of material facts, without fiduciary loyalty
- C. A duty to negotiate the highest possible price on the seller's behalf
- D. No duties whatsoever
Show answer & explanation
Answer: B
Even without a fiduciary relationship, a broker owes any party in a transaction basic obligations of honesty and disclosure of material facts, but full fiduciary duties such as undivided loyalty are reserved for the party the broker actually represents.
55. "We accept your offer, but only if you cover the survey cost," a seller in Newport writes back to a buyer's original purchase offer. In contract terms, this response operates as what?
- A. A ratification of the original offer
- B. A counteroffer that rejects the original offer and creates a new offer
- C. A unilateral contract
- D. An unconditional acceptance
Show answer & explanation
Answer: B
Adding a new condition to an offer, rather than accepting it exactly as presented, legally rejects the original offer and creates a counteroffer, which the original buyer is then free to accept, reject, or counter again.
56. A land sale contract (contract for deed) in which the seller retains legal title until the buyer completes payments differs from a standard financed purchase primarily in what way?
- A. No purchase price is ever specified
- B. The buyer receives equitable title and possession while the seller holds legal title until the contract is fulfilled
- C. The buyer receives legal title immediately at signing
- D. The seller cannot ever repossess the property
Show answer & explanation
Answer: B
In a land sale contract, the buyer typically takes possession and equitable title right away, but the seller withholds legal title as security until the full purchase price is paid, unlike a conventional sale where the deed transfers legal title at closing.
57. A lender forecloses non-judicially under a deed of trust after a borrower defaults. What distinguishes this from a judicial foreclosure?
- A. It cannot result in a public sale of the property
- B. It requires a full court trial before any sale can occur
- C. It relies on a power-of-sale clause allowing a trustee to sell the property without a lawsuit
- D. It takes place only after the loan is fully paid off
Show answer & explanation
Answer: C
Non-judicial foreclosure relies on a power-of-sale clause in the deed of trust, letting a trustee sell the property through a defined notice process without going through the court system, unlike judicial foreclosure, which requires filing a lawsuit and obtaining a court order.
58. As part of a divorce settlement in Medford, each spouse's appraiser must value the family home for equitable division. If one appraiser primarily relies on estimating land value plus current construction cost minus depreciation, which approach is being used?
- A. Income approach
- B. Gross rent multiplier method
- C. Sales comparison approach
- D. Cost approach
Show answer & explanation
Answer: D
The cost approach values property by adding estimated land value to the current cost of reconstructing improvements, then subtracting accumulated depreciation, which differs from comparing recent sales or capitalizing rental income.
59. A broker refers a client to an unlicensed acquaintance and receives a referral fee for a service related to the transaction. What is the concern with this arrangement?
- A. Paying a fee for real estate brokerage activity to an unlicensed person is generally prohibited
- B. Referral fees are always illegal, even between licensees
- C. There is no concern, since referral fees are unregulated
- D. The fee must be disclosed only if it exceeds a set dollar amount
Show answer & explanation
Answer: A
Compensation for activities that require a real estate license generally may only be paid to licensed individuals or entities, so directing a referral fee tied to brokerage activity to an unlicensed person raises a licensing law violation, regardless of the dollar amount involved.
60. A property manager in Redmond declines to rent to an applicant solely because of low income, while carefully avoiding any consideration of the applicant's race, religion, familial status, or disability. Under the federal Fair Housing Act, does this decision violate a protected class?
- A. No, because income level is not among the federally protected classes
- B. No, but only if the applicant is also a member of another protected class
- C. Yes, but only for properties receiving federal housing assistance
- D. Yes, because economic status is treated the same as familial status
Show answer & explanation
Answer: A
The Fair Housing Act's protected classes include race, color, religion, sex, national origin, familial status, and disability, but income level itself is not a federally protected class under that law, even though it can affect qualification for financing.

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Key facts: Oregon Real Estate exam

75% on both the…

To pass

$75

Exam fee

The Oregon Real Estate is administered by Oregon Real Estate Agency, with a 75% on both the national and state sections result.

This free Oregon Real Estate practice test has 60 original questions written to Oregon Real Estate Agency's official content outline, last checked against it on August 10, 2026. Every question shows a worked explanation, and nothing here requires a signup.

As of 2026, the Oregon Real Estate exam fee is $75 (separate $300 license application fee).

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Official sources

Every exam fact on this page traces to a primary document published by the body that administers the exam.

Oregon Real Estate Agency -- Real Estate Broker, Principal Broker, Timeshare and Property Manager Examination Candidate Information Bulletin (PSI Services LLC, updated 1/1/2026)Oregon Real Estate Agencytest-takers.psiexams.com
Oregon Real Estate Agency -- Broker Licensing (Get a License)Oregon Real Estate Agencyoregon.gov
Oregon Real Estate Agency -- New Licensee InformationOregon Real Estate Agencyoregon.gov

Last verified against the official exam content outline: August 10, 2026

Frequently asked questions

How many questions are on the real Oregon real estate broker exam?

The licensing exam is split into two parts: an 80-question national section and a separate 50-question Oregon state-law section. A good practice test should mirror that split rather than lumping everything into one bank.

What score should I be aiming for on practice questions?

Oregon requires 75% or better on both the national section and the state section to pass, so use that same threshold as your practice-test target for each portion.

How much time will I have for each section on test day?

Candidates get 150 minutes for the 80-question national section and 90 minutes for the 50-question state section. Timing yourself to those limits during practice is the best way to gauge your pacing.

What topics should a practice test cover for the state-law portion?

The state section draws heavily from Oregon Real Estate Related Statutes and Regulation of Broker Activities, with smaller shares from license law, document handling, agency law, and property management. A practice bank that skips these categories won't reflect the real exam.

How should I use a practice test to prepare for the Oregon broker exam?

Work through timed sections that match the real exam's structure, review every missed question against the topic it came from, and repeat until you're consistently clearing 75% on both halves. Pair practice questions with your required pre-license coursework rather than relying on them alone.

Is this Oregon real estate broker practice test free, and do I need to sign up?

Yes, the practice questions here are free to use and don't require creating an account or entering payment details.