Practice Exam 1: Missed Questions

d.

A buyer's agent: a. must make a continuous, good faith effort to find property for her buyer, even while the buyer is subject to a contract for purchase of a property. b. would breach an affirmative duty to the buyer by showing properties in which the buyer is interested to other prospective buyers. c. should continue to send active listings after the buyer is under contract. d. must do everything she can to make sure the buyer is able to close the contract.

d.

A principal broker who is going to be absent from his business may authorize another principal broker to control the business in his absence for a maximum of: a. 48 hours. b. 10 working days. c. 1 month. d. 90 days.

b.

A couple obtains a divorce and thereby terminates their tenancy by the entirety of a section (640 acres) of Oregon land. If nothing else is said as to their holding, the former spouses will find that each has: a. a fee simple estate of 320 acres. b. an undivided half interest in 640 acres as tenants in common. c. the right of survivorship in the undivided estate of the other. d. a life estate in 320 acres.

b.

A licensed "real estate property manager" may: a. list the owner's rental property for sale. b. collect a commission for the lease of an owner's real estate. c. negotiate a lease-option for an owner of real estate. d. collect a commission for the lease-option of an owner's real estate.

d.

A non-licensed assistant working for a property manager may do all the following EXCEPT: a. negotiate leases and collect rent. b. receive and disburse funds in the brokerage trust account. c. verify tenants' credit. d. sign the management agreement.

a.

A principal broker may have a separate clients' trust account for each branch office, provided the branch office: a. also maintains a separate bookkeeping system in the branch office. b. transfers the funds to the main office clients' trust account within 5 business days from receipt of funds. c. branch offices may not maintain a separate clients' trust account. d. none of the answers shown.

b.

A principal broker remains responsible for a licensee's activity until: a. the licensee affiliates with another principal broker. b. the agency receives notice through the e-License system that the licensee has inactivated her license. c. all her pending transactions have concluded. d. the end of the business day in which the licensee requests termination of the relationship.

b.

A principal real estate broker has a financial interest in a company engaged in the construction of new homes. The principal broker is negotiating the sale of the new homes his company has built. At what minimum percentage of interest in the company would he be required to disclose in writing, in the sale agreement, that he is licensed and representing himself as a seller? a. Any percentage b. 5% c. 25% d. 50%

b.

A real estate broker associated with a principal real estate broker may do which of the following activities without supervision? a. Set up his own property management business b. Rent or lease the licensee's own real estate c. Lease-option the licensee's own real estate d. Sell the licensee's own real estate

d.

A real estate licensee has a duty in every transaction in which he is involved to conduct an independent investigation of: a. the property. b. the buyer's financial condition. c. both the property and the buyer's financial condition. d. neither the property nor the buyer's financial condition.

b.

A real estate property manager license enables its holder to do all of the following EXCEPT: a. work under the supervision of a principal real estate broker. b. advise the owner as to the marketing of the owner's investment property. c. collect rents from an owner's tenants. d. accept referral fees from another property manager.

d.

An Oregon principal broker can enter into a cooperative transaction with a person, even though he knows that that person's broker license: a. is suspended. b. has been revoked. c. is inactive. d. none of these.

b.

If an Oregon deed is recorded naming "Alfred Johnson and Barbara Johnson, husband and wife" as grantees, but Alfred and Barbara Johnson are, in fact, unmarried, the title so conveyed is held by Alfred and Barbara Johnson as: a. tenants in the entirety. b. tenants in common. c. joint tenants. d. tenants in severalty.

d.

Interest accrued on an interest-bearing clients' trust account may not be directly paid to the: a. seller. b. principal real estate broker. c. purchaser. d. associated broker.

d.

The Real Estate Agency will audit a broker's files: a. only with a mail in notice sent by the Agency. b. at least annually. c. at least every 6 years. d. any time they think there may be an issue.

b.

The buyers tell their agent that they plan to operate an accounting service out of their new home. Their agent shows a house to them that has a large, private den that would make an ideal office for their business. Although he is not aware of any zoning or private restrictions that would prohibit operating an accounting service out of a home in this area, the agent would be obligated to: a. personally verify whether there are any zoning or private restrictions affecting the buyers' intended use of the property. b. suggest that the buyers check on the zoning and review the restrictive covenants, if any. c. ask the seller and listing agent whether they are aware of any restrictions against operating a business out of the home. d. order a title report before the buyers even make an offer to buy the house.

a.

The offer stated the earnest money was not to be deposited until after acceptance. The offer was accepted. In this case the transaction records would show the funds were deposited within how many days? a. 3 business days b. 3 days c. 5 days d. 5 business days

c.

The principal broker must notify the Oregon Real Estate Agency within: a. 30 days of opening a clients' trust account. b. 20 days of closing a clients' trust account. c. 10 days of opening or closing a clients' trust account. d. the agency does not require notification of opening or closing client trust accounts.

b.

The seller has accepted an offer on his home. The offer is subject to the buyer obtaining a loan. The buyer is now in the process of qualifying for a loan. The listing agent for the property has just received another written offer for the property from a second buyer. The listing broker should: a. return the offer to second buyer, as he would be engaging in interference with a contract if he submitted the offer to the seller. b. immediately submit the offer to the seller. c. hold the offer until it is determined that the first buyer cannot qualify for the loan. d. return the offer to the second buyer, since he is the listing agent and therefore cannot accept an offer directly from a buyer.

d.

The state gives permission to a nonriparian owner of a farm to use water from a nearby lake. The owner has received this right under which of the following concepts? a. Eminent domain b. Estoppel c. Percolation d. Appropriation

c.

To be recorded, a deed must: a. be signed and acknowledged by the grantee. b. be dated. c. have consideration stated. d. all of these.

c.

Two individuals accumulate real property in severalty while they are single. After they are married, this property: a. must be changed to tenancy in common. b. becomes joint tenancy property. c. remains as their separate property. d. cannot be disposed of without the consent of the other.

b.

Under the Oregon Real Estate Agency's Administrative Rules and Regulations, a tenant's rental agreement, among other things, must include all of the following EXCEPT: a. the address of the property being rented. b. the property manager's telephone number. c. the address of the property manager. d. the rent.

c.

Writing checks on behalf of an owner before a check has cleared in a clients' trust account, thus using other client's money is: a. commingling. b. allowed. c. conversion. d. reconciliation.