Chapter 4-2: Oregon Real Estate License Law

The unlicensed assistant of a principal broker in a real estate office is not required to have a real estate license. Which function(s) can the assistant legally perform? 1. Market the property to the public when they call the office and the listing broker is out of the office. 2. Verify the accuracy of listing information supplied by the principal broker's associated brokers by checking property records at the county assessors office.

2 only.

In the two year license renewal cycle, a licensee must take _________ hours of continuing education from a Certified Continuing Education Provider.

30

A principal broker must review each document generated in a real estate transaction within ________ business days after it has been accepted, rejected, or withdrawn.

7

A real estate sale agreement must be reviewed by a principal broker within ________ business days after the document is signed.

7

A real estate sale agreement must be reviewed by a principal broker within ________ business days after the document is signed. 2

7

A minimum score of ________ percent is required to pass the national and state specific portions of the real estate exam.

75

A licensed personal assistant can do which of the following? A. Show a listing to a buyer. B. Hold an open house. C. Present a buyer's offer to the seller. D. Negotiate a real estate transaction.

A, B, C, and D.

Which of the following is not required to have a real estate license? A. An attorney performing their duties as an attorney. B. An individual preparing land use and environmental impact studies. C. A salaried employee of the State of Oregon dealing in real estate owned by a city, county, or state. D. A property manager.

A, B, and C only.

Which statement is FALSE? A. A principal broker must supervise other licensees and therefore cannot engage in real estate activity as an individual. B. A principal broker can engage in real estate activity as an individual. C. A principal broker must have three or more years of real estate experience to qualify for the principal broker license. D. A principal broker had to complete additional course work and pass a principal broker licensing exam.

A. A principal broker must supervise other licensees and therefore cannot engage in real estate activity as an individual.

Which of the following is required to have an Oregon real estate license? A. The individual who received compensation for auctioning properties. B. The structural engineer providing services for residential structures. C. The attorney negotiating the purchase of an apartment building for their client. D. The personal representative who is negotiating the sale of the estate's real and personal property.

A. The individual who received compensation for auctioning properties.

Which statement is true? A. The lease-option of a broker's personally owned real property must be supervised by the licensee's principal broker. B. A licensee need only disclose their status as a licensee prior to the closing of the sale of their personally owned real property. C. A licensee does not have to disclose their status as a licensee in advertising relating to the sale of personally owned real property. D. License law applies to the rental of a licensee's personal rental real estate.

A. The lease-option of a broker's personally owned real property must be supervised by the licensee's principal broker.

Which individual is required to have an Oregon real estate license? A. The sister who receives referral fees from her real estate broker brother. B. The college student who doesn't have to pay rent while acting as the resident manager of the duplex the student lives in. C. The individual who is selling their rental real estate. D. The grandchild who is representing their grandparent under a properly issued power of attorney.

A. The sister who receives referral fees from her real estate broker brother.

Under the Real Estate Agency's Administrative Rules, a licensee could be assessed a civil penalty for conducting professional real estate activity A. while their license is inactive. B. after their license is expired.

Both A and B.

When the Real Estate Commissioner registers a branch office, the registration is issued A. at the written request of the managing principal broker. B. in the same name that the main office is registered in.

Both A and B.

A broker must do all of the following EXCEPT: A. deliver to each prospective client a copy of the agency disclosure pamphlet at first contact. B. submit all transactional paperwork to their principal broker for review and approval. C. complete the required continuing education prior to license renewal and keep copies of educational certificates for three years. D. submit paperwork relating to the rental of their personal rental real property to their principal broker.

D. submit paperwork relating to the rental of their personal rental real property to their principal broker. A broker can rent a personal rental property without submitting relating paperwork to the principal broker for review and approval.

True of False: A real estate license needs to be renewed every three years.

False: A license issued by the Oregon REA is for a term not to exceed 24 months (2 years) up to and including the last day of the birthday month of the licensee.

True or False: A real estate broker associated with a principal broker can supervise the professional real estate activity of the principal broker when the broker owns the brokerage.

False: A real estate broker associated with a principal broker can have an ownership interest in a brokerage but cannot control or supervise the professional activity of the principal brokers or any other broker.

True or False: If the principal broker's license is suspended or revoked by the Agency, the licenses of the principal broker's affiliated licensees are also suspended or revoked.

False: The suspension or revocation of a principal broker or property manager's license does NOT cause the suspension or revocation of any of the associated licensees unless it is determined by the Commissioner that an associated licensee knew of the violation.

True or False: A broker moving from one brokerage to another could never continue working on a transaction that was started at the first company.

False: Under certain circumstances, a broker moving from one brokerage to another could continue working on a transaction that was started at the first company.

True or False: In an office with multiple supervising principal brokers, the affiliated licensees do NOT need to be assigned to any particular supervising principal broker.

True: All of the principal brokers can have equal supervisory control and responsibility for all the professional real estate activity in the business.

Compensation paid to an unlicensed personal assistant:

must be a fixed salary.

An individual applying for a real estate license:

must be at least 18 years of age and have a high school or equivalent diploma.

Real estate license law is based on the government's right of

police power

Which of the following would be considered a branch office? A. Model unit in a new subdivision. B. Home office not used for seeing clients. C. Promotional booth in a shopping center used only for disseminating property brochures. D. An office in a mall that is staffed with one broker.

D only. An office in a mall that is staffed with one or more brokers is considered a branch office. Because the office is staffed with licensed personnel, it must be considered a branch office.

All of the following are true about the activities of a broker except: A. A real estate broker may not engage in the unauthorized practice of law. B. A real estate licensee must notify the Oregon Real Estate Agency within 20 days of an adverse ruling in any court action involving a real estate matter. C. Personal property rental transactions are exempt from real estate licensing law. D. A real estate broker can be paid a referral fee directly by another real estate broker.

D. A real estate broker can be paid a referral fee directly by another real estate broker. A broker can only be paid by their principal broker.

Which of the following activities requires a real estate license? A. gathering data from public records for an employing broker or principal broker. B. preparing advertising copy for review by an employing principal broker. C. scheduling home inspections. D. holding an open house for a listing of the principal broker.

D. holding an open house for a listing of the principal broker.

A real estate licensee in Oregon who offers a personally owned property for sale is required by license law to do which of the following? A. Disclose the fact that he has an active real estate license. B. Disclose the fact that he has an inactive real estate license. C. Sell the property at a discounted price. D. List the property with his principal broker

A and B

An Oregon real estate broker may A. own a real estate business. B. be an officer in a corporation registered as a real estate business. C. control the professional real estate activity of licensees employed by a corporation registered as a real estate business, provided there is a principal broker and the employee broker has a controlling interest.

A and B only

An unlicensed assistant to a principal broker can legally perform which of the following activities? A. Install signs and lock boxes on listed property. B. Assist in hosting an open house by answering simple questions about the property. C. Prepare and submit advertising for submission to Craig's List so long as the principal broker reviews and approves it.

A and C

A principal broker is A. responsible for the real estate activity of all brokers they supervise. B. responsible for the non-real estate activity of all brokers they supervise.

A only.

A principal broker is A. responsible for the real estate activity of all brokers they supervise. B. responsible for the non-real estate activity of all brokers they supervise. A only.

A only. responsible for the real estate activity of all brokers they supervise.

Which of the following can hire a licensed personal assistant? A. A broker. B. A principal broker operating as an individual. C. A principal broker managing other brokers. D. A broker-owner.

B and C

A licensed real estate broker A. can be licensed to a principal real estate broker for sales activity and, at the same time, be licensed to a real estate property manager for property management activity. B. can engage in property management activity as the agent of their principal broker. C. can manage their personally-owned rental properties without the supervision of their principal broker.

B and C only.

As a part of the licensee's license renewal process, which of the following are correct? A. The principal broker must certify the license educational requirements have been met. B. The licensee must self-certify that the continuing education requirements have been met. C. The principal broker must retain continuing education course completion certificates for one year after the renewal date. D. The licensee must retain copies of completion certificates for 3 years and submit a copy to the Real Estate Agency if requested.

B and D only.

Which would be considered a branch office by the Oregon Real Estate Agency? A A non-staffed, temporary structure that is erected for the sole purpose of dissemination of informational literature. B. A permanent booth in a shopping mall staffed with an agent handing out brochures promoting his company's listings. C. A model unit in a new subdivision that is also being offered for sale. D. A real estate broker's car when it is occupied by a client.

B. A permanent booth in a shopping mall staffed with an agent handing out brochures promoting his company's listings. A permanent booth in a shopping mall staffed with an agent handing out brochures promoting his company's listings is a branch office that needs to be registered with the Oregon Real Estate Agency

Which statement is FALSE? A. A principal broker must have three or more years of real estate experience to qualify for the principal broker license. B. A principal broker must supervise other licensees and therefore cannot engage in real estate activity as an individual. C. A principal broker had to complete additional course work and pass a principal broker licensing exam. D. A principal broker can engage in real estate activity as an individual.

B. A principal broker must supervise other licensees and therefore cannot engage in real estate activity as an individual.

The principal broker must review each document of agreement generated in a transaction within ________ business days after it has been accepted, rejected or withdrawn. A. five B. seven C. three D. fourteen

B. seven

A broker must do all of the following EXCEPT: A. submit all transactional paperwork to their principal broker for review and approval. B. submit paperwork relating to the rental of their personal rental real property to their principal broker. C. deliver to each prospective client a copy of the agency disclosure pamphlet at first contact. D. complete the required continuing education prior to license renewal and keep copies of educational certificates for three years.

B. submit paperwork relating to the rental of their personal rental real property to their principal broker. A broker can rent a personal rental property without submitting relating paperwork to the principal broker for review and approval.

John has an inactive broker's license. John 1. may NOT engage in professional real estate activity. 2. must disclose to buyers or sellers of real estate that he is a real estate licensee when buying or selling property for his own account.

Both 1 and 2.

For a real estate brokerage to engage in the practice of real estate it must A. post a $25,000 performance bond. B not be a subsidiary of a corporation. C. be registered with the Oregon Real Estate Agency in the name of a real estate principal broker. D. file the name with the Oregon Secretary of State Business Registry if an assumed business name is to be used.

C and D only

For a real estate brokerage to engage in the practice of real estate it must A. post a $25,000 performance bond. B. not be a subsidiary of a corporation. C. be registered with the Oregon Real Estate Agency in the name of a real estate principal broker. D. file the name with the Oregon Secretary of State Business Registry if an assumed business name is to be used.

C and D only.

Which of the following individuals must have a real estate license? A. A secretary who is a full-time employee who shows the property of their employer to a prospective tenant. B. A regular full time employee of an employer who buys and sells real estate for their own account. C. An individual who manages a friend's rental properties for compensation. D. An individual who is acting under a power of attorney from an owner who is selling their property.

C. An individual who manages a friend's rental properties for compensation.

Joseph Munster completed his broker prelicense course and applied to take the real estate exam. He can solicit buyers and sellers A. when he has demonstrated competence in the required subject areas by completing the prelicense course . B. when he successfully completes his real estate exam. C. after his license has been issued in the name of his supervising principal broker. D. after he applies for his license.

C. after his license has been issued in the name of his supervising principal broker.

Which of the following is NOT a license type in Oregon? A. broker. B. property manager. C. designated broker. D. principal broker.

C. designated broker

Which of the following activities requires a real estate license? A. preparing advertising copy for review by an employing principal broker. B. gathering data from public records for an employing broker or principal broker. C. holding an open house for a listing of the principal broker. D. scheduling home inspections.

C. holding an open house for a listing of the principal broker.

True or False: An Oregon principal broker can pay a referral fee to an out-of-state broker.

True

True or False: Under certain circumstances, a real estate broker who is associated with a sole principal real estate broker may temporarily supervise the principal broker's professional real estate activity.

True. A real estate broker who is associated with a sole principal real estate broker may temporarily supervise the sole principal broker's professional real estate activity only if: The sole principal broker provides written authorization as required, and the real estate broker accepts the supervisory responsibility in writing.

True or False: An individual who helps a friend buy a house and expects to be paid for helping is required to have an active real estate license.

True. To be engaged in professional real estate activity means one is involved in real estate activity done for another and for compensation.