Real Estate

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A fiduciary relationship is basically defined as the duty to deal with a client in _________________. a) trust and confidentiality b) trust and neutrality c) trust and impartially d) none of the above

A: trust and confidentiality

In a time-share freehold, owners acquire a) undivided interests in the property as tenants in common. b) a renewable periodic tenancy from for a portion of a year. c) a pro rata share of a leased fee. d) a tenancy in severalty for a portion of a year.

A: undivided interests in the property as tenants in common.

An option agreement is considered a/an __________________________. a) unilateral contract b) bilateral contract c) illegal in most states d) loan flipping

A: unilateral contract

In the context of agency law, the legal difference between an owner representation agreement and a buyer representation agreement is the client. the commission amount. fiduciary duties. regulatory approvals.

Two of the financial rewards that investments offer are income and tax benefits. negative leverage and appreciation. appreciation and taxation. positive leverage and prestige.

Executed Contract

A contract where all parties have fully preformed all of the terms, promises and obligations within the contract

A lender charges 6% interest on a $300,000 loan. What is the interest for the first year? a) $18,000 b) $20,000 c) $300,000 d) $400,000

A: $18,000

The sales price on a property was 300,000. The total commission on the property was 6%. This 6% was split between the listing broker and the selling broker. The listing broker was entitled to 2.5% and the selling broker was entitled to 3.5%. How much commission, expressed in dollars, was earned by the listing broker? a) $7,500 b) $7,800 c) $8,000 d) $9,000

A: $7,500

Ethics ________________generally deal with corporate values and guiding principles. a) codes b) indicators c) trusts d) none of the above

A: codes

A _____________________involves three parties a) deed of trust b) mortgage c) certificate of sale d) none of the above

A: deed of trust

A contract is an exchange of promises between two or more parties to ______________. a) do or refrain from doing an act b) not have any other contracts with others c) enter into a lawsuit d) seek the advice of real estate brokers

A: do or refrain from doing an act

If you are an independent contractor, the business ________________________. a) does not withhold taxes from your wages b) withholds SECA taxes from your wages c) withholds FUTA taxes from your wages d) withholds Medicare from your wages

A: does not withhold taxes from your wages

A promissory note must always specify the _________. a) dollar amount b) full legal description of the property c) buyer's broker and listing broker d) title company that will insure title

A: dollar amount

As long as the senior(s) stay in their home, they __________________________. a) don't have to pay the loan back b) only have to pay back 20% of the loan c) only have to pay back 30% of the loan d) only have to pay back 3% of the loan

A: don't have to pay the loan back

If a person dies intestate and there are no legal heirs, then the property reverts to the state through_________________ a) escheat b) a will c) trust d) monitoring

A: escheat

Singh finds a suitable location and starts verbal negotiations with the owner. Sing tells the owner of the complex that Bob is desperate to lease something right away. Bob brings a lawsuit against him_______________________________________. a) for divulging confidential client information b) being truthful c) being loyal d) being faithful

A: for divulging confidential client information

The fact that a creditor may release its lien to allow the property to be sold does not necessarily mean that the creditor has or will____________________ a) forgive the deficiency b) give permission for the property to be sold c) Both a and b d) Neither a nor b

A: forgive the deficiency

The________ transfers title to the ________via a deed a) grantor, grantee b) grantee, grantor c) lessor, lessee d) lessee, lessor

A: grantor, grantee

A group of licensed real estate professionals have a team captain, team associates and licensed and unlicensed assistants. This is known as a ____________________________. a) group investment organization b) real estate investment rust c) team concept d) syndicate

A: group investment organization

_________________are usually secured by real property and allow a borrower to access funds using a checkbook or ATM. A Credit limit is established and usually there are no additional fees associated with accessing the account. These lines of credit bear a lower interest rate than credit cards and some banks base the monthly payments on the actual amount that you use. a) home equity loans b) take-out loans c) participation loans d) package loan

A: home equity loans

An Initial Escrow Account is also known as a/an ____________________. a) impound account b) loan underwriting account c) trust account d) supply account

A: impound account

The plat map method for describing real property is often described as a_______________ a) lot and block method b) lot and subdivision method c) block and subdivision method d) all of the above

A: lot and block method

Real property also includes a________________________ if it is owned by the same person who owns the land upon which the structure is situated. a) manufactured structure b) cooperative c) both a and b d) neither a nor b

A: manufactured structure

Through the use of ___________________a firm will want to analyze the current conditions of the market and anticipate future growth or decline a) market research data b) prorations c) special warranty deeds d) tender

A: market research data

The pre-approval process will be: a) more detailed than the pre-qualification process b) less detailed than the pre-qualification process c) the same as the prequalification process d) none of the above

A: more detailed than the pre-qualification process

When both parties agree to terminate the agency this is referred to as______________. a) mutual agreement b) mutual acceptance c) meeting the minds d) court appointed termination

A: mutual agreement

One of the main purposes of the Dodd-Frank Act and the formation of the LE and CD forms was to make sure the borrower at closing is informed of possible: a) negative amortization of the debt b) the total interest that is paid during the loan c) service agreements that for the loan the borrower is signing up for d) the effective annual interest rate (APR) of the loan

A: negative amortization of the debt

When real property is held in a land trust, who controls the property? a) The trustor b) The trustee c) The beneficiary d) The mortgagee

C: The beneficiary

A lifetime or overall cap limits: a) The time in which the loan can be converted to a fixed rate b) The periodic adjustment c) The interest rate increase over the lifetime of the loan d) Negative amortization

C: The interest rate increase over the lifetime of the loan

VOE stands for: a) vented only status b) verification only entry c) verification of employment d) verification only existing

C: Verification of Employment

When modifications are made to a listing, it is a wise to: a) notify lending company b) notify the lender c) edit the listing input and check for accuracy d) all of the above

C: edit the listing input and check for accuracy

A wraparound mortgage is not a secured debt unless ________________ a) it is recorded b) perfected by state law c) either a or b d) neither a nor b

C: either a or b

Commercial banks are: a) state chartered b) federally chartered c) either a or b d) neither a nor b

C: either a or b

During the installment period, the vendee has _________________________to the property to possess and enjoy the property. a) clear title b) clouded title c) equitable title d) warranty title

C: equitable title

A ____________serves the all-important filtering role between your computer and the internet to prevent viruses a) Analog Terminal Adapter b) PDA c) firewall d) wafer filter

C: firewall

Sue works for a brokerage that is a franchise. What type of fee might the brokerage most likely charge her? a) desk fee b) administrative fee c) franchise fee d) equipment fee

C: franchise fee

Sales less Cost of Goods Sold = ____________________________ a) gross profits b) gross multiplier c) gross sales d) net sales

C: gross sales

In a short sale the _______agree/s to accept less than the mortgage amount owed by the borrower/homeowner a) title company b) structural inspector c) lender/lenders d) escrow company

C: lender/lenders

Points are usually charged on the _________________________. a) sale prices b) down payment c) loan amount d) none of the above

C: loan amount

A _________________________will not allow a borrower to pay off a loan early. The borrower will be prohibited from paying off the loan early. a) acceleration clause b) alienation clause c) lock-in-clause d) granting clause

C: lock in clause

When an owner leases her property, she temporarily relinquishes the right to a) transfer the property. b) encumber the property. c) occupy the property. d) maintain the property.

C: occupy the property.

The Morgans` purchased a home. Included in the purchase was a refrigerator, washer, dryer and cook range. By including the appliances with the real property, this mortgage could be considered a/an: a) open end mortgage b) blanket mortgage c) package mortgage d) graduated payment mortgage

C: package mortgage

Pre-paid costs are costs: a) paid by the lender upfront b) paid by the seller under the listing agreement c) paid by the borrower prior to the first loan payment d) that can be paid after closing

C: paid by the borrower prior to the first loan payment

Zoning, building codes, and environmental restrictions are forms of local land use control known as a) master planning. b) preemption. c) police power. d) concurrency.

C: police power

Some legitimate housing counselors may charge small fees, but fees that amount to thousands of dollars are likely a sign of___________________________. a) declining property values b) increasing property values c) potential fraud d) government intervention

C: potential fraud

A ______________________is where a homeowner`s equity is gradually depleted by a series of payments from the mortgage holder to the homeowner. Thus, a reverse annuity mortgage increases in size as the annuity payments continue. a) participation mortgage b) take-out mortgage c) reverse annuity mortgage d) package mortgage

C: reverse annuity mortgage

There is only so much given land on the earth. More land cannot be manufactured or created. This is referred to as _________________________________ a) immovable b) regression c) scarcity d) progression

C: scarcity

Most states have ________laws on the procedures for handling trust accounts. a) no b) very unclear c) strict d) none of the above

C: strict

The Closing Disclosure (CD) is likely to be prepared and delivered by: a) the agent of the buyer b) the agent of the seller c) the lender to the borrower d) the escrow company to the borrower

C: the lender to the borrower

The broker has _________banking days from the time they receive funds to turn into the principal broker. a) one b) two c) three d) five

C: three

All monies held for others must be deposited into a: a) general savings account b) general checking account c) trust account d) revolving credit account

C: trust account

A drifter secretly lives in an abandoned shack on a large ranch property. After twenty years, the person makes a claim of ownership to the shack and the land immediately surrounding it that he had cleared. This claim will likely be upheld through adverse possession. upheld because of the length of possession. declined through the doctrine of prior appropriation. declined because possession was secretive.

A house sold for $250,000. The seller paid a brokerage commission of six percent, legal fees of $600, and had other closing costs of $1,500. What are net proceeds from the sale? $235,000. $234,000. $233,500. $232,900.

A property is being appraised by the cost approach. The appraiser estimates that the land is worth $30,000 and the replacement cost of the improvements is $95,000. Total depreciation from all causes is $10,000. What is the indicated value of the property? $135,000. $130,000. $125,000. $115,000.

A rental house has a weekly income of $200 a week. How much does that convert to as annual income? a) $8,900 b) $8,950 c) $9,400 d) $10,400

D: $10,400

Under the ECOA the creditor must give you notice that tells a person the specific reasons for their rejection. The applicant must request this within ____________ days of being rejected. a) 10 days b) 20 days c) 30 days d) 60 days

D: 60 Days

Within _______________of a property management agreement termination, the property manager must disburse all funds to the parties entitled to the funds. a) 10 days b) 20 days c) 30 days d) 60 days

D: 60 days

For a mobile home space or floating home the landlord must give each tenant a minimum of ________written notice to increase the rent. a) 20 days b) 25 days c) 45 days d) 90 days

D: 90 days

When a person applies for credit, a creditor may not: a)

D: All of the Above

A short sale can have advantages to the lender such as: a) A short sale is usually less costly than a foreclosure thus minimizing losses. b) Can minimize legal fees c) The lender doesn't have to deal with property maintenance issues should the property become bank owned. d) All of the above

D: All of the above

An example of a recorded documents that might affect title would be: a) A notice of lis pendens b) An easement c) A deed d) All of the above

D: All of the above

The Commissioner may deny a new real estate license or suspend an existing license of a person who has failed to meet financial obligations. Which of the following would be an example of this? a) Failed to pay a state guaranteed loan b) Failed to pay child support c) Failed to make payments for state taxes d) All of the above

D: All of the above

The income statement is also known as a/an: a) Profit and loss statement b) Earnings statement c) Operation statement d) All of the above

D: All of the above

A town is replacing a sidewalk that serves five homes. The length of the sidewalk is 200 feet. Mary`s property has 38 feet of front footage. If the cost of the project to be paid by a special assessment is $30,000, what will Mary`s assessment be? $6,000. $5,700. $789. $1,579.

If a property's vacancy rate is significantly lower than market rates, it may be a sign that the manager needs to lower rental rates. raise rental rates. find better tenants. improve management quality.

Which of the following is a disadvantage of storing files electronically? a) Power outages could prohibit access b) Paper files will have to be scanned to be able to store them electronically c) Software to manage data electronically can be expensive and personnel will need to be trained on its use d) All of the above

D: All of the above

The Federal Coastal Zone Management Act assists coastal states in developing and implementing programs for managing their coastal lands. It is also known as: a) CZM b) CZMA c) FCZ d) Both a and b

D: Both a and b

Which of the following describes a purchase money mortgage financing arrangement? A bank gives a buyer a senior mortgage loan that fully covers the cost of purchasing the property. The buyer gives the seller a mortgage and note as part of the purchase price of the property. A land trust holds title to the property while the buyer makes periodic installment payments to the seller. The seller uses the purchase money obtained from the buyer's mortgage loan to repay the seller's outstanding loan balance.

Hazard insurance is $ 300 per year. How much is the daily rate? a) $ 1.12 b) $ .83 c) $ .23 d) $ .98

B: $ .83

The sales price on a property was $200,000. The commission was 6%. What was the commission expressed in dollars? a) $10,000 b) $12,000 c) $15,800 d) $16,250

B: $12,000

Convert 79% to a decimal. The answer is___________________. a) .079 b) .79 c) .0079 d) .00079

B: .79

What is the difference between a variance and a nonconforming use? a) A variance, once granted, is unconditional and permanent. b) A variance is granted by the zoning board if the owner has a justifiable reason. c) A nonconforming use is allowed if the owner requests it in advance of building. d) A nonconforming use violates current zoning, but a variance does not.

B: A variance is granted by the zoning board if the owner has a justifiable reason.

The period between one rate adjustment and the next is called: a) Conversion period b) Adjustment period c) Standard rate period d) Marginal life period

B: Adjustment period

A tenant without a lease has been sending the landlord monthly rent checks, and the landlord continues to accept the payments. What kind of leasehold estate exists? a) Estate for years. b) Estate from period to period. c) Estate at will. d) Estate at sufferance.

B: Estate from period to period.

A property manager must disburse earned management fees from the client`s trust account _______________________________unless a different schedule of disbursement is specified in the property management agreement, and may only disburse such fees if sufficient funds are available. a) at least each week b) at least once each month c) at least quarterly d) at least yearly

B: at least once each month

A broker tells residents in a neighborhood that a religious group has just purchased a home in their area and wants to make a retreat out of the home. The broker tells homeowners in the neighborhood they should consider selling, as their property prices may drop. This is an example of ________________. a) steering b) block busting c) redlining d) all of the above

B: block busting

Unlike tenants in common, joint tenants a) own distinct portions of the physical property. b) cannot will their interest to a party outside the tenancy. c) may own unequal shares of the property. d) cannot encumber their interest to outside parties.

B: cannot will their interest to a party outside the tenancy.

The practice of using mixed trust account funds with that of the brokerage`s regular checking account funds is called ____________. a) commingling b) conversion c) life estate d) an encumbrance

B: conversion

A landowner has the right of subjacent support which is the support from the_______________ a) underlying earth under the landowner's property b) land adjacent to the landowner's property c) mineral and oil rights d) both a and c

B: land adjacent to the landowner's property

In a mortgage, this clause is called a/an_____________________________. The purpose of this clause is to clarify the interest or title that is being transferred. a) rider clause b) mortgage clause c) alienation clause d) granting clause

B: mortgage clause

The court proceeding that generally settles a decedent`s estate is called a) testate. b) probate c) escheat. d) distribution

B: probate

____________________________is defined as knowingly making a false statement about a material fact. a) Intentional concealment b) Puffing c) Concealment d) Intentional misrepresentation

D: Intentional misrepresentation

A _________________can be any negotiation where the seller gives the buyer something. a) buyer concession b) seller concession c) property exchange d) none of the above

B: seller concession

_________________is when a broker is representing just the seller or just the buyer. a) universal agency b) single agency c) dual agency d) general agency

B: single agency

Licensees should be sure to include the verbiage in the Purchase and Sale Agreement _____________________when dealing with a short sale a) escrow company must take lesser amount b) subject to all underlying lien holder approval c) both listing broker and buyer's broker must take less than half the commission d) an appraiser must take half of their normal appraisal fee

B: subject to all underlying lien holder approval

Typically, _________________________loans are for persons with blemished or limited credit histories. a) conforming b) subprime c) conventional d) government

B: subprime

Closing documents are usually signed at ______________. a) the lender's office b) the escrow company c) the seller's home d) none of the above

B: the escrow company

______________________________________________________________published a Consumer Advisory in April 21, 2009 entitled "Consumer Tips for Avoiding Mortgage Modification Scam and Foreclosure Rescue Scams" a) the attorney general of the united states b) the office of Comptroller of Currency(OCC) c) the office of the bureau of land management(BLM) None of the above

B: the office of Comptroller of currency(OCC)

Before changing a business location the principal broker must notify___________________ in writing. a) the ADA b) the real estate commissioner c) the Federal Housing Authority d) all of the above

B: the real estate commissioner

Banks and mortgage lenders usually do not set the interest rates. To a very large degree, those rates are set by _________________________who buys these loans. a) the Fed b) the secondary market c) the primary market d) state Attorney General

B: the secondary market

A rental house has monthly gross income of $1,200. A suitable gross income multiplier derived from market data is 14.1. What estimated sale price (to the nearest $1,000) is indicated? $169,000. $102,000. $203,000. $173,000.

Ralph Roberts buys a small office building as an investment and participates actively in the management and operation of the building. This is an example of syndication. equity investment. direct investment. illiquidity.

The basic intent of zoning ordinances is to establish the basis for public ownership of land for the common good. establish subdivision rules and regulations. specify usage for every parcel within the zoning authority's jurisdiction. restrict development in unincorporated areas.

The conditions of an escrow agreement cannot be met and the related transaction cannot be completed. In such a case, the escrow agent levies a fine against the defaulting party. assigns his or her fiduciary responsibilities to the seller's broker. returns funds to the buyer. cancels the sale contract and destroys the transaction documents.

The difference between what a borrower has to pay to purchase a property and the amount a lender will lend on the property is the mortgage insurance coverage amount. lender's profit margin. buyer's down payment. origination fee.

If the radius is 20 feet, what is the square feet of the circle? a) 1112 b) 1200 c) 1256 d) 1450

C: 1256

One mile equals __________ rods. a) 110 b) 220 c) 320 d) 5280

C: 320

_________ may hold title to property in a trust a) Groups only b) Individuals only c) Both A and B d) Only children

C: Both A and B

Liens are ______________ encumbrances a) physical b) homestead c) financial d) encroachment

C: Financial

A certain legal description contains the phrase, "...northwesterly along Erie Road to the POB...". What kind of description is this? a) Plat survey. b) Government grid. c) Metes and bounds. d) Rectangular survey.

C: Metes and bounds.

Which of the following would be consideration in the legal sense? a) personal property b) a promise c) a dollar amount d) all of the above

D: all of the above

The word amortize means to ____________________. a) charge illegal high interest rates b) dispose of property c) hold property as sole ownership d) bring to death

D: bring to death

In some cases, you cannot use your________________ housing stock to secure a debt. a) condominium b) planned unit development c) townhome d) corporative

D: corporative

The escrow officer is responsible for ensuring that the ______is recorded. a) purchase and sale agreement b) escrow instructions c) certification d) deed

D: deed

An instrument in which a mortgagor (i.e. the borrower) voluntarily conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure is called a/an; a) notice of default b) deed in lieu of foreclosure c) a trustees deed d) foreclosure by court action

D: deed in lieu of foreclosure

A/an__________________________in a mortgage or deed of trust provides for the cancellation of the lender`s interest when the debt has been paid in full. a) acceleration clause b) alienation clause c) prepayment clauses d) defeasance clause

D: defeasance clause

Under the TRID Rules, real estate licensees: a) must fill out the LE application for the client b) advise clients on establishing legal requirements c) must deliver LE Forms to their client d) have no responsibilities, but are suggested to know required regulations

D: have no responsibilities, but are suggested to know required regulations

Fixed liabilities are over a time period greater than: a) 2 months b) 3 months c) 6 months d) one year

D: one year

_____________________involves analyzing situations and finding solutions to issues that come up. a) underwriting b) loan application analysis c) truth in lending d) problem solving

D: problem solving

The lot and block system of legally describing property is used for a) farm properties. b) any property in an unit incorporated area. c) properties where metes and bounds is not acceptable. d) properties in a subdivision.

D: properties in a subdivision.

All new construction and modifications must be ______________________. a) inspected by a HUD inspector b) inspected by a lead-based paint inspector c) inspected by an asbestos abatement inspector d) readily accessible to individuals with disabilities

D: readily accessible to individuals with disabilities

Bill manages a strip mall. What type of property manager is he? a) residential b) office c) industrial d) retail

D: retail

How long must real estate records be retained in Oregon? a) one year b) three years c) four years d) six years

D: six years

In a cooperative, real property is owned only by a) the individual unit owners. b) the individual unit owners and the cooperative association. c) the cooperative developer. d) the corporate entity of the cooperative association.

D: the corporate entity of the cooperative association.

Lenders may take the index and add a few extra percentage points known as: a) the convertible index b) the percentage index c) the amortized index d) the margin

D: the margin

Offeree

The party accepting the offer

Optionee

The party that has the right of the option is the optionee in an option agreement.

A construction boom in a market is an indication that prices have been increasing. have been declining. have been in equilibrium. have exceeded supply.

An adverse possessor must be able to successfully demonstrate that he or she has been openly possessing and claiming the property without the owner's consent. occupying the property without an occupancy permit. using the property intermittently and without permission over a period of years. building a permanent structure on the property.

Federal regulation in advertising requires email advertisers to give recipients an option to discontinue receiving emails from such advertiser. This legislation is called the CAN-SPAM Act. the Truth-in-Advertising Act the Telephone Consumer Protection Act the Email Advertising Prohibition Act, or EAPA.

How is an intentional misrepresentation penalized? License discipline, fines, and possible incarceration. License discipline and fines, but no incarceration. License discipline only. Fines only.

In addition to income, credit, and employment data, a mortgage lender requires additional documentation, usually including an appraisal report. a criminal record report. a subordination agreement. a default recourse waiver.

In making dollar adjustments in the sales comparison approach, the appraiser adds value to a comparable that is inferior to the subject property. adds value to the subject property if it is inferior to a comparable. subtracts value from a comparable that is inferior to the subject property. subtracts value from the subject property if it is inferior to a comparable.

Ivan owned a 1/4 acre lot. He wanted to construct a 120' x 80' tennis court on the lot. What approximate percentage of the lot will be left over, if any, when he has completed the construction? 12% 88% 3% 15%

The seller has not paid the property taxes of $5,700 for the year. Closing is on Jan 2nd. How much will the seller owe for taxes? a) $ 19.88 b) $ 22.87 c) $ 15.83 d) $ 2865.23

D: $ 2865.23

The loan amount was $450,000. Three points were charged on the loan amount. What was the dollar amount of points charged? a) $3,000 b) $6,000 c) $9,500 d) $13,500

D: $13,500

A parcel of land is 900 feet x 90 yards. The parcel of land sells for $39,000 per acre. What is the total price of the parcel? a) $259,000 b) $210,222 c) $217,620 d) $517,800

D: $217,620

A buyer obtains an 80% loan on a $300,000 sale price. What is the loan amount? a) $200,400 b) $210,000 c) $220,000 d) $240,000

D: $240,000

The closing date is August 15th and the seller has already paid the property taxes which were $7,000. At closing, the seller is entitled to a credit for the amount of tax covered from Aug. 15th through June 30th. The same amount will be a debit for the buyer. How much will the buyer owe the seller for property taxes? a) $2,222.50 b) $2,345 c) $2,700 d) $6,301.04

D: $6,301.04

The price of the property was $329,000. The buyer was making a 20% down payment. The lender charged two points on the loan. What is the down payment expressed in dollars? a) $411,111 b) $404,900 c) $398.100 d) $65,800

D: $65,800

The buyer's new loan is $410,000 and the interest rate is 8%. The closing date is May 23rd. How much prepaid interest will the buyer's lender require them to pay at closing? a) $219.99 b) $501.40 c) $605.90 d) $728.88

D: $728.88

The annual interest on a loan was $20,000. The loan amount was $400,000. What is the interest rate? a) 3.5% b) 3.8% c) 4.5% d) 5%

D: 5%

1 mile = ____ a) 2,222 feet b) 3,200 feet c) 1,760 feet d) 5,280 feet

D: 5,280 feet

If the radius is 40 feet, what is the square feet of the circle? a) 2229 b) 3324 c) 4324 d) 5024

D: 5024

If the index is 5% and the margin is 2%, the interest rate on the ARM loan is: a) 8% b) 9% c) 3% d) 7%

D: 7%

A property that is now worth $600,000 has depreciated 4% per year for the past 4 years. How much was it worth 4 years ago? a) 600,000 b) 651,041.66 c) 678,169.39 d) 706,425.41

D: 706,425.41

A buyer qualifies for a loan for $188,000 or a $233,000 priced home. What is the loan to value ratio? a) 70% b) 78% c) 50% d) 80%

D: 80%

Private mortgage insurance must be obtained for all Loan-to-value ratios (LTV`s) over_______________________. a) 50% b) 60% c) 75% d) 80%

D: 80%

When a tenant acquires a leasehold estate through a lease, what does the property owner acquire? a) A freehold estate for years b) A reduced leasehold estate. c) A defeasible estate. d) A leased fee estate.

D: A leased fee estate.

When choosing a closing date on the purchase and sale agreement, it is best that the real estate licensee: a) contact the lender to determine a realistic date b) give the lender a realistic date to get the Closing Disclosure Form completed c) allow a number of days that can easily be met for the CD form from the lender d) All answers are correct.

D: All answers are correct

_________________ firms are required to keep records for income tax purposes. a) Only property management firms b) Only service business c) Only production business d) All firms

D: All firms

Syndicates may be organized as which of the following: a) Trust b) Joint Venture c) Corporation d) All of the Above

D: All of the Above

A good facility should: a) Promote efficient business operations b) Present your business in a good light c) Allow for future business growth d) All of the above

D: All of the above

A person other than the seller, signed a listing agreement. Which of the following might have the authority to sign the listing agreement? a) Attorney-in-fact b) Personal representative of an estate c) A guardian for a minor d) All of the above

D: All of the above

Budgeting is necessary for every company. These tasks include what? a) Keeping the budget on track b) Financial analysis c) Reporting to upper management d) All of the above

D: All of the above

Conditions which might affect a local property management firm might be: a) The cost of money (interest rates) b) The number of licensees entering or exiting the business c) Changes in demography d) All of the above

D: All of the above

John was planning to move to another real estate brokerage. He wanted to find out some further information about the reputation of the principal broker of the brokerage he was considering. Where might John be able to find this information? a) Title or escrow person b) Other licensees c) Mortgage professionals d) All of the above

D: All of the above

Recording of a deed serves what purpose? a) Give constructive notice to the public b) Establishes priority of the deed c) Identifies proof of ownership d) All of the above

D: All of the above

The law does not require that a licensee`s _________________________________be posted on the advertising. a) phone number b) address of real estate license c) real estate license number d) All of the above

D: All of the above

The principal broker may also responsible for ___________ his or her licensees and for the adherence to all federal, state and local laws. a) the actions of b) the paperwork generated by c) ensuring compliance with local, state and federal real estate laws of d) All of the above

D: All of the above

When photographing a property one should consider: a) Avoiding negative photographic areas b) Avoiding rooms with clutter c) Photographing on sunny days if possible d) All of the above

D: All of the above

Which of the following could be part of property development? a) Purchasing of land b) Subdividing of land c) Construct buildings d) All of the above

D: All of the above

Which of the following is a document that creates an agency relationship? a) Purchase and sale agreement where agency is disclosed b) Listing agreement c) An agency disclosure pamphlet d) All of the above

D: All of the above

Which of the following is a duty the property manager has to a landlord? a )Maximize profits b) Financial accounting c) Ensure the operations are within the constraints of the law and the lease agreements. d) All of the above

D: All of the above

Which of the following is a duty the property manager has to a landlord? a) Maximize profits b) Financial accounting c) Ensure the operations are within the constraints of the law and the lease agreements. d) All of the above

D: All of the above

Which of the following is a way in which a lease can be terminated? a) Destruction of the property b) Condemnation c) Illegal use of the property d) All of the above

D: All of the above

Which of the following items might be covered on the Oregon Department of Environmental Quality website? a) Projects and Programs b) Public Notices c) Laws and Regulations d) All of the above

D: All of the above

Which of the following would be a common provision in a lease? a) Payment of rents b) Use of the premises c) Maintenance d) All of the above

D: All of the above

Which of the following would be a concern for an owner who is leasing retail property? a) tenant mix b) parking c) accessibility d) All of the above

D: All of the above

Which of the following would be an advantage to storing files electronically? a) Electronic files can be accessed by multiple users at one time from their personal computers. b) There is greater security with electronic files if passwords are managed correctly c) Less prime office space is taken up when files are managed electronically d) All of the above

D: All of the above

Which purpose might a wetland serve? a) Erosion Control b) Wildlife Habitat c) Flood Control d) All of the above

D: All of the above

ALTA is an acronym for ________________________________ a) American Land Torrens Association b) American Loan Title Association c) American Lien Title Association d) American Land Title Association

D: American Land Title Association

Unintended dual agency could potentially happen in all of the following circumstances except: a) A visitor to an open house b) A call from a "For Sale" sign in a yard c) A potential buyer contracting you form a website d) An agreement, in writing, between from the broker and signed by the buyer and seller agreeing to dual agency

D: An agreement, in writing, between from the broker and signed by the buyer and seller agreeing to dual agency

The amount of general property taxes imposed on property is based on____________ a) The tax rate b) The assessed value of the property c) The rate set by the governor d) Both a and b

D: Both a and b

Fair, Isaac and Company develops: a) sub-prime lending products b) title insurance c) government loans d) FICO credit scores

D: FICO credit scores

FAP is an acronym for: a) Foreclosure Alternative Pricing b) Foreclosure Assignment Pricing c) Foreclosure Assignment Program d) Foreclosure Alternatives Program

D: Foreclosure Alternatives Program

On the Loan Estimate Form the category Services You Cannot Shop For are costs for services provided by businesses in behalf of the lender or mortgage broker. These are costs are chosen by the lender, but are paid by the borrower at closing. An example of such expenses would NOT include: a) appraisal fee and appraisal management company fee b) government funding fee (such as a VA or USDA guarantee fee) c) Credit report fee d) Homeowners insurance agent

D: Homeowners insurance agent

When a joint tenant dies, what happens to the tenant`s interest in the estate? a) It passes to the decedent's heirs, who become joint tenants. b) It passes as a tenancy in common to the decedent's heirs. c) The joint tenancy terminates and becomes a tenancy in common with the decedent's heirs and the surviving tenants as co-owners. d) It passes to the surviving joint tenants.

D: It passes to the surviving joint tenants.

John leased a property from Sue. Should Sue have provided a seller`s property disclosure statement to him? a) Yes, if the lease is greater than 30 days b) Yes, if the lease is greater than 90 days c) Yes, if the lease is greater than 1 year d) No, the law does not include leased property

D: No, the law does not include leased property

To qualify in Oregon State for a real property tax deferral for disabled citizens or senior citizens, an application must be made: a) Every year b) Every 2 years c) Every 3 years d) Only once

D: Only once

Which is NOT one of the following benefits of storing and maintaining accurate records? a) Records and be uses as a risk management tool for the brokerage should a dispute arise b) Provides a resource for accessing past transactions c) Can be used in the event of a state audit d) Takes up square footage in a facility to store the data

D: Takes up square footage in a facility to store the data

Page 1 of the Closing Disclosure (CD) Form shows the loan costs. Which of the following is not a loan cost? a) Loan principal and interest monthly amount b) Private mortgage insurance (if required by the lender) c) Total PITI loan requirements (if required by the lender) going into an escrow account for principal, interest, property taxes, and homeowner insurance d) The insurance agent for the homeowners' policy

D: The insurance agent for the homeowners policy

The loans exempt from the TRID rules would NOT include the following: a) Home Equity Lines of Credit or HELOCS secured by a home b) Mortgages on mobile homes or other "movable" dwellings that are not permanently attached to real estate/land c) Reverse mortgages on homes d) The purchase of a condominium

D: The purchase of a condominium

Voidable Contract

A voidable contract is a contract which may appear to be valid and has all of the necessary elements to be enforceable, but has some type of flaw which could cause one or both of the parties to void the contract. It is legally binding, but could become void. If there is an injured party involved, the injured party or the defrauded party must take action, otherwise the contract is considered valid.

D: The purchase of a condominium

Katelyn rents an apartment for one year. What rights has she acquired under the leasehold? a) The right to exclude everyone from the premises. b) The right to encumber the fee interest. c) The right to sell the premises. d) The right to possess and use the premises.

D: The right to possess and use the premises

Which of the following is true regarding master planning and zoning? a) The aggregate of zoning ordinances is the master plan. b) A master plan eliminates the need for zoning ordinances. c) Master planning is a county-level function; zoning is limited to the city level. d) Zoning ordinances are a primary means of keeping land use in harmony with the master plan.

D: Zoning ordinances are a primary means of keeping land use in harmony with the master plan.

Which of the following would not be an example of a broker: a) a real estate broker acting for a seller to sell a home b) an investment counselor who invests other people's money c) a financial planner who advises other persons on the best investment opportunities d) a closing agent

D: a closing agent

The premium for title insurance is; a) a monthly fee b) a biannual fee c) an annual fee d) a one- time, non-reoccurring fee

D: a one- time, non-reoccurring fee

All of the below are Anti-Trust violations which could be common in the real estate industry except __________________________________________. a) price fixing b) imbalance in commission splits c) conspiracy to boycott with the intent of eliminating competition d) agreeing to hold an open house for another broker

D: agreeing to hold an open house for another broker

An ________________management company is concerned with assuring the owner that they will get the maximum return for the land. a) residential b) office c) industrial d) agricultural

D: agricultural

A broker owes a client and a customer the following duties: a) to deal honestly and fairly b) to account for all monies handheld c) to disclose any material facts d) all of the above

D: all of the above

A person may not, for profit, induce or attempt to induce any other person to sell or rent any dwelling by representations regarding the entry or prospective entry into the neighborhood of a person or persons of____________________________ a) a particular race or color b) religion c) sexual orientation d) all of the above

D: all of the above

A property must pass some tests before considering its highest and best use. These might include: a) maximal productivity physical possibility b) financial feasibility c) legally allowable d) all of the above

D: all of the above

An appraisal is ______________________________. a) estimate of value b) often used when property is sold c) often used when property is re-financed d) all of the above

D: all of the above

Any amendment or addendum to the property management agreement must be in writing and include: a) identifying code b) the date of the amendment c) the signature of the property manager and the signatures of all owners who signed the initial property management agreement. d) all of the above

D: all of the above

Budgeting is necessary for every company. These tasks include: a) keeping the budget on track b) financial analysis c) reporting to upper management d) all of the above

D: all of the above

Common components of a CMA are: a) number of bedrooms and bathrooms b) days on the market c) year built d) all of the above

D: all of the above

Earnest money can be in the form of ____________. a) cash b) check c) a promissory note d) all of the above

D: all of the above

ODVA is prohibited from financing: a) Bare land b) commercial property c) vacation homes d) all of the above

D: all of the above

Prior to issuing a policy for title insurance, a title company will search the public records for: a) leins b) unpaid taxes c) judgments d) all of the above

D: all of the above

Remedies for violations of TILA would include: a) Civil penalties b) Criminal penalties c) Right of rescission d) All of the above

D: all of the above

The Equal Opportunity Credit Act forbids considering _________ when granting a loan: a) race b) religion c) sex d) all of the above

D: all of the above

The Oregon UETA law applies to electronic records and signatures relating to business transactions. It does not apply to____________________________. a) wills b) codicils c) some trusts d) all of the above

D: all of the above

The Truth in Lending Act (TILA) is a United States federal law designed to protect consumers in credit transactions by ____________________. a) requiring clear disclosure of key terms of the lending arrangement and all costs. b) promoting the informed use of consumer credit by requiring disclosures about its terms, and costs associated with borrowing c) requiring the credit terms and interest rate must be stated be a certain manner in the advertisements of loans. d) all of the above

D: all of the above

An individual which is found guilty of an Anti-trust violation may be fined up to a) $1,000,000 b) $200,000 c) $175,000 d) $100,000

A: $1,000,000

The closing date is Sept. 3rd and the seller has already paid the property taxes which were $6,045. At closing, the seller is entitled to a credit for the amount of tax covered from March 30th through July 1st. The same amount will be a debit for the buyer. How much will the buyer owe the seller for property taxes? a) $1,511.10 b) $2,345.45 c) $2,366.50 d)$2,485.16

A: $1,511.10

Bill bought a property five years ago for $175,000 and sold it this year for 20% more than he paid for it. What did he sell it for? a) $210,000 b) $330,000 c) $3310,000.50 d) $400,000.85

A: $210,000

If a driveway is 54 feet long, 15 feet wide and 4 inches deep, and is going to be poured at a cost of $30 per cubic yard of concrete, what would be the total cost of the concrete? a) $297 b) $300 c) $540 d) $600

A: $297

The amount of the homestead exemption is ________ for an individual debtor and __________ if two or more co-owners are debtors a) $40,000, $50,000 b) $60,000, $80,000 c) $70,000, $$90,000 d) $100,000, $150,000

A: $40,000, $50,000

When considering payment history, the following factors are taken into consideration: a) collections b) foreclosures c) lawsuits d) all of the above

D: all of the above

If a circular water tank with a diameter of 20 feet was 4 foot tall, how many cubic feet of water could it hold? a) 1,256 b) 1,344 c) 2,444 d) 2,550

A: 1,256

The FHA became a part of the Department of Housing and Urban Development`s (HUD) Office in______________. a) 1965 b) 1968 c) 1974 d) 1990

A: 1965

The annual interest on a loan was $10,000. The loan amount was $300,000. What is the interest rate? a) 3% b) 4% c) 5% d) 6%

A: 3%

If a person believes that their property should not be included in the foreclosure process, they must file their reasons with the court within ______after the publication a) 30 days b) 60 days c) 90 days d) 1 year

A: 30 days

1 acre = _________________________ a) 43,560 square feet b) 48,111 square feet c) 23,900 square feet d) 5,280 square feet

A: 43,560 square feet

If a tenant is ____________late in paying rent, the landlord is allowed to issue a 144-hour notice to pay or vacate. a) 5 days b) 10 days c) 20 days d) 30 days

A: 5 days

In 2019 an ARM loan had an interest rate of 4.5%. In 2020 the index rate was 3.5% and the margin was 3%. The ARM had a periodic cap of 1%. What was the new rate for 2020? a) 5.5% b) 6.5% c) 7.5% c) 8.5%

A: 5.5%

_______________________is acquired personally by a party. It could be gained from a seller, buyer, other parties or by an inspection of a property. a) Actual notice b) Constructive notice c) Malicious notice d) contingency notice

A: Actual notice

CLUE is an acronym for __________________________________. a) Comprehensive loss Underwriting exchange b) commercial loss underwriting exchange c) comprehensive loss uniform exchange d) compensation loss underwriting exchange

A: Comprehensive loss Underwriting exchange

GNMA is an acronym for: a) Government National Mortgage Association b) Government Non-conforming Mortgage Association c) Government National Market Association d) Government Non-conforming Market Association

A: Government National Mortgage Association

A deceased person who dies without leaving a will is said to have died: a) Intestate b) Testate c) Insolvent d) Solvent

A: Intestate

_____________________ disposes the assets and estate of two people, often married couples or partners a) Joint will b) Holographic will c) Oral will d) Pourover will

A: Joint will

__________________________________is a real estate transaction where the proceeds of the sale will not generate sufficient funds to pay the debt(s) secured by the property (and the seller is unable to pay this difference) a) short sale b) foreclosure c) deed in lieu of foreclosure d) lease back

A: Short sale

_______________also establishes the necessary disclosures required for advertising that refers to certain credit terms. a) TILA b) RESPA c) FBI d) DOJ (Department of Justice)

A: TILA

_________________________is the income on which tax is paid. a) Taxable income b) Gross income c) Tax credit d) Tax deductions

A: Taxable income

Only those uses that are, or may be, legally allowed_________________________. This may exclude uses that are not, and unlikely to become, allowed by zoning, uses forbidden by government regulations, and uses that might be prohibited by deed restrictions or covenants. a) are potential highest and best b) are able to be sold c) are able to be transferred d) are able to pay taxes

A: are potential highest and best

An ____________is anything of value owned by a firm. a) asset b) liability c) accounts payable d) mortgage

A: asset

By aligning your PR campaign with the goal of______________________, you can build consumer confidence and trust. a) attracting repeat business b) making the most profits c) making the highest gross revenue d) None of the above

A: attracting repeat business

Each office should have a _________________________the purchase and sale of real property by their licensed affiliates. a) detailed policy for b) policy prohibiting c) a policy promoting d) none of the above

A: detailed policy for

The market where borrowers and loan originators negotiate terms and conditions of a mortgage directly is referred to as a _______________________. a) primary market b) secondary market c) buyer's market d) seller's market

A: primary market

The name as licensed by the state of Oregon or registered business name of the ____________or property manager must be prominently displayed, and conspicuous on all advertising. a) principal broker b) broker d) closing agent d) title company

A: principal broker

Who could place a cease and desist order on a company found guilty of Anti-Trust violations? a) private citizens b) FTC c) ATF d) Real Estate Department of Licensing

A: private citizens

An express contract is a contract in which all elements are specifically______________. a) stated in words b) created in the actions of the parties c) stated in writing only d) stated verbally only

A: stated in words

By_________________________________, you can build visibility and can increase your client base. a) targeting a pool of potential buyers b) having knowledge of the religious composition of neighborhoods c) having knowledge of the age composition of residents in a neighborhood d) Both b and c

A: targeting a pool of potential buyers

With respect to the management of funds, property management, almost more than any other real estate activity, involves _____________________________________________. a) management of numerous funds b) disbursements and deposits of funds c) detailed bookkeeping d) all of the above

D: all of the above

A purchase and sale agreement is what type of contract? a) unilateral b) bilateral c) express d) both b and c

D: both b and c

The sellers withdrew their counteroffer before it was accepted by the purchaser. The sellers: a) can only legally do this if the buyers agree b) cannot legally do this c) can only legally do this if the commissioner agrees d) can legally do this

D: can legally do this

A __________________________is one in which there is a building improvement or structure that was occupied before any sales activity and that is at least partly residential in nature. a) townhome b) cooperative c) planned unit development d) conversion condominium

D: conversion condominium

Any licensee that is a __________________must not disclose confidential information from one party to another, unless specific written permission has been given. However, the licensee is obligated to disclose any facts material to the transaction. a) single agent for the buyer b) single agent for the seller c) universal agent d) dual agent

D: dual agent

Mutual Agreement

All parties involved in the contract must agree to and accept the contract and its components. All parties must recognize and acknowledge that an agreement has been made and duly accepted (offer and acceptance, or meeting of the minds).

This brokerage insurance does not cover intentional misrepresentation or illegal acts whereby the licensee had knowledge of the wrong doing. What type of insurance is this called? a) auto insurance b) brokerage hazard insurance c) long term like insurance d) errors and omissions insurance

D: errors and omissions insurance

A broker must maintain confidential information from or about the seller except under subpoena or court order, ___________________________________. a) for 2 years after termination of the agency relationship b) for 3 years after termination of the agency relationship c) for 4 years after termination of the agency relationship d) even after termination of the agency relationship

D: even after termination of the agency relationship

Assignment

An assignment of a contract is when the interests of the original party (the assignor) are transferred to another party (the assignee). In general, an assignment will generally be permitted unless there is an express prohibition against assignment in the contract. The new party, (the assignee) assumes primary responsibility for the performance of the contract and the original party (the assignor) incurs secondary responsibility for the contract.

With this lease the tenant pays a flat monthly amount and the landlord pays for all of the operating costs. What type of lease is this? a) net lease b) net net lease c) net net net lease d) gross lease

D: gross lease

The purchase or transfer of real property often involves many terms and conditions as well as pricing. Because of this, the need for having these agreements _______________is essential. a) recorded b) reviewed by the Oregon real estate agency c) reviewed by the commissioner d) in writing

D: in writing

If a person realizes a profit or incurs a loss, this suggests they are in business for themselves and they may be a/an ____________________. a) part time employee b) full time employee c) independent contractor d) none of the above

D: independent contractor

A loan amount in the $875,000 range would be considered a ________ loan. a) convertible b) delinquent c) predatory d) jumbo

D: jumbo

Which of the following is NEVER a duty of a property manager: a) collect rents b) maintain property c) screen tenants d) maintain records on tenant's religion preferences

D: maintain records on tenant's religion preferences

A __________________________captures the most newsworthy information about your firm and can persuade key media contacts to write a story and mention your business favorably. a) billboard b) booth at a mall c) newsletter d) one-page press release

D: one-page press release

If gross income on a property is $75,000, net income is $30,000 and the cap rate is 8%, the value of the property using the income capitalization method is $625,000 $375,000 $3,750,000 $937,500

Loan applicant Taylor has an annual gross income of $76,000. How much will a lender allow Taylor to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 30%? $2,160 $1,900 $1,215 $4,433

One of the major risk areas in fulfilling a listing agreement is finding a buyer who turns out to be unqualified. exceeding the authority of the agreement. showing the property without the presence of the owner. cooperating with other licensees.

One of the property manager's fundamental responsibilities is obtaining construction loans for the principal. financial reporting to the principal. finding a buyer for the property. maintaining good standing in a managers' professional association.

The guardian for a mentally incompetent party enters into an oral contract with another party to buy a trade fixture on behalf of the incompetent party. This contract does not meet validity requirements. is possibly valid and enforceable. must be in writing to be valid. is valid but unenforceable.

Janet, the listing broker for the Browns, did not disclose that the roof leaked to the buyers because she thought it was confidential information. What was the correct thing for Janet to do? a) disclose the leak, only with permission from the sellers b) disclose the leak, only if the buyers ask c) do not disclose the leak, as it is confidential information d) the leak must be disclosed as it is a material defect

D: the leak must be disclosed as it is a material defect

RESPA was first passed in _____________ and was established to protect consumers during residential real estate financing transactions. a) 1964 b) 1974 c) 1978 d) 1985

B: 1974

Convert .28 to a percentage. The answer is ________________. a) 2.8% b) 28% c) .028 d) 280%

B: 28%

The subdividing of land relates to_____________________________. a) 3 or more parcels b) 4 or more parcels c) 5 or more parcels d) 6 or more parcels

B: 4 or more parcels

The Agency will provide a property manager with written notice at least ___________ business days before conducting a compliance review. a) 3 b) 5 c) 10 d) 20

B: 5

The commission earned on a sales was $15,000. The sale price was $300,000. What was the commission percentage rate? a) 4.5% b) 5% c) 5.5% d) 6%

B: 5%

If the diameter of a circle is 80 feet, what is the square footage? a) 3,500 square feet b) 5,024 square feet c) 6,001 square feet d) 7,004 square feet

B: 5,024 square feet

An ARM had an index rate of 4%. The margin was 1.5%. What was the ARM rate? a) 4% b) 5.5% c) 6.5% d) 7%

B: 5.5%

A work shop was 12` x 24` with a ceiling height of 9`. Find the cubic yards: a) 110 cubic yards b) 96 cubic yards c) 144 cubic yards d) 214 cubic yards

B: 96 cubic yards

The Federal Water Pollution Control Act is also known as the _____________ a) Federal Water Act b) Clean Water Act c) Both a and b d) Neither a nor b

B: Clean Water Act

The brokerage must notify the Real Estate Agency of all trust accounts. This notification must be on a form approved by the____________________________. a) attorney general b) Commissioner c) governor d) bank

B: Commissioner

CMA is an acronym for: a) Compete Market Analysis b) Comparative Market Analysis c) Comparative Median Analysis d) Conservative market Analysis

B: Comparative Market Analysis

___________________occurs when the landlord causes a major interference with the tenant`s possession of the property. An example would be failure to fix a broken toilet and sink. a) Actual eviction b) Constructive eviction c) Default eviction d) Illegal eviction

B: Constructive eviction

Adjustments to the comparables should be used: a) Never b) For each comparable used if needed c) Only comparable with different square footage d) Only when the comparable has a yard created by a landscape architect

B: For each comparable used if needed

Which of the following is NOT one of the three basic skills needed for effective delegation? a) Trust b) Insubordination c) Communication d) Honesty

B: Insubordination

Executive Order (EO) # 11063 from 1962 was amended by EO # 12259 in 1980 and signed by President ____________. a) Gerald Ford b) Jimmy Carter c) Richard Nixon d) George Bush

B: Jimmy Carter

A list of all properties subject to foreclosure is prepared in_______ of each year for accounts with property taxes three years delinquent a) September b) July c) March d) February

B: July

_________________________ is an agency where a property owner hires a broker to procure a tenant for their property: a) Tenant representation b) Landlord representation c) Customer representation of the tenant d) none of the above

B: Landlord representation

____________________in a condominium complex are common areas that are reserved for the use of one unit or more a) General common elements b) Limited common elements c) Liability common elements d) Insured common elements

B: Limited Common elements

Which of the following is most likely not a reason why people own rental property? a) Capital gain b) Liquidity c) Tax advantages d) Leverage

B: Liquidity

A plat includes a final __________and the descriptions, locations, specifications, dedications, and information concerning a subdivision a) contract b) map c) escrow d) copy of the title insurance policy

B: Map

______________________the owner`s profits should always be kept in mind. a) Minimizing b) Maximizing c) Sharing d) Both a and c

B: Maximizing

_____________________is defined as the failure to use ordinary or standard care a) Puffing b) Negligence c) Concealment d) Misrepresentation

B: Negligence

Which of the following is NOT an allowable fee that a landlord can charge a tenant? a) Late rent payment b) Normal wear and tear c) Either a or b d) Neither a nor b

B: Normal wear and tear

An offer to purchase a property made by a buyer is just that, an offer. When does it become a contract? a) Usually within one year of the offer b) Only when an offer is fully acknowledged (all parties have agreed and signed and no other changes have been made) and all parties have initialed and agreed to any prior changes that an offer becomes a contract c) When it is recorded d) none of the above

B: Only when an offer is fully acknowledged (all parties have agreed and signed and no other changes have been made) and all parties have initialed and agreed to any prior changes that an offer becomes a contract

The ___________________facilitates public debate on key issues of forest management a) Forest Marshal b) Oregon Board of Forestry c) State Environmental Control Board d) State Agriculture Control Board

B: Oregon Board of Forestry

Payment caps limit_____________________________________: a) The amount that the interest rate can change over the life of the loan b) The monthly payment increase allowed c) The conversion time d) Which index can be used

B: The monthly payment increase allowed

Betty, with XYZ Real Estate, has informed her principal broker she will be moving to ABC Realty Investments. She wants to take her listings to ABC Realty. Can she do this? a) Yes, they are her listings b) Yes, but only if she gets permission from the principal broker at XYZ Real Estate c) No, she can never take a listing from one brokerage to another even if the listing is cancelled and relisted d) Yes, only is she gets the permission of ABC Realty Investments

B: Yes, but only if she gets permission from the principal broker at XYZ Real Estate

An employer may be required to make reasonable modifications for person with disabilities as long as these modifications do not impose ______________on the business. a) a cost b) an undue hardship c) any changes for equipment d) none of the above

B: an undue hardship

An encumbrance is an interest or right that a person has on _______________property a) their own b) another person's c) both a and b d) Neither a nor b

B: another person's

A ___________________is when one or both of the parties fails to perform according to the terms and conditions of the contract. a) full performance of contract b) breach of contract c) rescission of contract d) cancellation

B: breach of contract

A complaint filed with the FTC on Anti-trust could result in an extensive investigation and a ______________________________________could be placed upon the person or firm in violation. a) contract order b) cease and desist order c) CERLA order d) Charter order

B: cease and desist order

A property manager must record the transfer of any funds from a _________________ account or security deposits account by a check, by written proof of transmittal or receipt retained in the property manager`s records. a) general account b) client's trust account c) general savings account d) all of the above

B: client's trust account

All monies deposited in the trust account cannot be mixed with any operational expenses for the brokerage. This practice is called ____________________ and is illegal. a) conversion b) comingling c) reconciliation d) a receipt and disbursement journal

B: comingling

All monies deposited in the trust account cannot be mixed with any operational expenses for the brokerage. The practice is called ____________________ and is illegal. a) conversion b) commingling c) reconciliation d) a receipt and disbursement journal

B: commingling

Principal broker, Jane, used money from the brokerage trust account to pay for her administrative assistant. Jane would be guilty of___________________________. a) commingling b) conversion c) steering d) red-lining

B: conversion

Affiliates can learn from hearing how more experienced agents are handling certain situations with a _______________________. a) private office design b) cubicle office design c) counter office design d) occupational office design

B: cubicle office design

All non-refundable _________ must be specified in the lease. a) ordinances b) deposits c) agencies d) liens

B: deposits

A ____________addendum is commonly used with the purchase of residential real estate when the buyers are not paying cash for a property. a) feasibility b) financing c) title contingency d) extension

B: financing

Oregon's type of recording is called a race-notice statute meaning the ______________________________. a) last to record has lien priority b) first to record has lien priority c) all recordings have the same lien priority d) only recordings that are government have any lien priority

B: first to record has lien priority

A __________________________provides for periodic payments resulting in the loan being repaid in its entirety by the end of the mortgage without the need for a balloon payment. a) partially amortized mortgage b) fully amortized mortgage c) interests only mortgage d) none of the above

B: fully amortized mortgage

The relationship between the principal broker and their affiliated licensee is the best example of______________ broker agency. a) specific b) general c) universal d) guardian

B: general

This is a type of fixed-rate mortgage where the payment increases gradually from an initial low base level to a desired, final level. Payments increase in steps each year until the installments are sufficient to amortize the loan: a) interest only mortgage b) graduated payment mortgage c) take-out mortgage d) reverse mortgage

B: graduated payment mortgage

Taxable income is _______________________certain tax deductions. a) net income minus b) gross income minus c) net income plus gross income d) none of the above

B: gross income minus

FHA _____________________________________mortgages on single family and multifamily homes including manufactured homes. a) guarantees b) insures c) makes direct d) all of the above

B: insures

In order for a PC to access the internet, it needs to connect to a/an__________________. a) internet navigation agency (INA) b) internet service provider (ISP) c) internal service analysis (ISA) d) internal outlet provider (IOP)

B: internet service provider (ISP)

When evaluation methods aren`t clear and methodical, there is the potential for _________from employees. a) prorations b) lawsuits c) encroachments d) all of the above

B: lawsuits

Leasehold estates carry _________ interest than a freehold estate. a) more b) less c) the same d) a certain percentage of

B: less

__________________means the amount, expressed in dollars, specified in the listing agreement, at which the seller is willing to sell the real property through the listing broker. a) total commission b) listing price c) assessed value d) tax value

B: listing price

The ____________________provides an estimate of the settlement costs and names of all required service providers. a) good fairness estimate b) loan estimate c) closing disclosure d) HUD 1 statement

B: loan estimate

John tried to pay off his loan early. He was prohibited from doing so. What clause prohibited him from doing this? a) satisfaction of mortgage b) lock-in-clause c) aliénation clause d) acceleration clause

B: lock-in-clause

A single unit of land that is created by a subdivision of land is called a______________ a) tract b) lot c) common area d) partition

B: lot

When originating a loan, lenders will usually charge a ______ rate for an ARM as opposed to a fixed rate mortgage. a) higher b) lower c) amortized d) none of the above

B: lower

The escrow agent usually __________________________for the buyer and the sellers to sign closing documents. a) makes an appointment at the same time b) makes separate appointments c) Either a or b d) Neither a nor b

B: makes separate appointments

The value or price of a home: a) never has an effect on the qualifying process b) may have an effect on the qualifying process c) only has an effect on the qualifying process if the buyers are from a foreign country d) none of the above

B: may have an effect on the qualifying process

The effective income minus operating expenses = _____________________. a) gross income b) net income c) operating income d) expense income

B: net income

After conventional loans are originated, they are typically sold to the _______________. a) primary market b) secondary market c) federal reserve d) either a or b

B: secondary market

A borrower may rescind the loan within three days of signing mortgage loan papers. If the time has already passed, and the lender has filed a foreclosure action against the borrower, then the borrower has _____________________from discovery to rescind the loan based upon the lender`s violations of the Truth in Lending Act. a) two years b) three years c) five years d) six years

B: three years

A licensee had a duty to deal honestly and in good faith. To whom did he have that duty? a) to his client's only b) to all principals in the transaction c) escrow d) title

B: to all principals in the transaction

The term _______________________refers to a two-story architectural style often used in early condominiums. a) cooperative b) townhouse c) conventional d) margin

B: townhouse

Which of the following is an example of blockbusting? An agent shows a minority home buyer properties located in a neighborhood where there are no other minority home owners. An agent persuades a minority home buyer to avoid looking in a neighborhood where there are no minority home owners. An agent persuades a family to put their house on the market because ethnic minority families are beginning to move into the neighborhood. An agent persuades a minority home buyer to buy a property located in an area where most of the home owners belong to minority groups.

Which of the following is true of a contract for deed transaction? At the end of the contract period, the vendee receives equitable title, provided all required periodic payments have been made. The vendee has no right to possess or occupy the property during the contract period. At the end of the contract period, the vendor conveys legal title, provided the vendee has fulfilled all obligations. The vendor may cancel the contract at any time before the final payment has been received.

Which of the following is true of the connection between compensation and the agency relationship? An agreement to give and receive compensation creates an agency relationship. If an agency relationship exists, the principal must provide valuable consideration to the agent. The relationship is independent of any compensation arrangement. If an agency relationship exists, the agent is entitled to compensation.

A buyer qualifies for a $105,000 loan at a loan to value ratio of 80%. What is the maximum that the buyer can qualify for? a) $95,000 b) $100,500 c) $131,250 d) $134,800

C: $131,250

The property sold for $400,000 with a 6% commission. How much was the total commission? a) $18,000 b) $20,000 c) $24,000 d) $38,000

C: $24,000

A property was sold and the buyer`s loan amount was 334,650. There was one point charged on the loan. What was the dollar amount of the points? a) $2,222 b) $3,121 c) $3,346.50 d) $4,229

C: $3,346.50

In most states, a minor is a person who is under the age of ¬¬¬______. a) 16 b) 17 c) 18 d) 21

C: 18

The Truth in Lending Act (TILA), was enacted in _____________. a) 1955 b) 1958 c) 1968 d) 1975

C: 1968

The Agency will provide a property manager with written notice of a mail-in audit at least __________________________before required information and documentation must be provided to the Agency. a) 10 days b) 15 days c) 30 days d) 60 days

C: 30 days

The landlord has ______________after termination of the rental agreement to refund all deposits due. a) 10 days b) 20 days c) 30 days d) 45 days

C: 30 days

If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a ____________________________from the mortgage holder. a) Form 1010 or a similar statement b) Form 1020 or a similar statement c) Form 1098 or a similar statement d) Form 1099 or a similar statement

C: Form 1098 or a similar statement

Agency by Estoppel is also known as_________________________________. a) Tell the potential buyer that the lowest price the seller is accept is $519,000. b) Tell the potential buyer that the lowest price the seller will accept is $400,000 so that the commission will be greater c) Tell the potential buyer to make a solid good offer d) none of the above

C: Tell the potential buyer to make a solid good offer

A landlord may be able to avoid paying taxes on the sale of a rental property if they sell it and reinvest the money in another property called a______________________ a) Like-Kind Exchange b) 1031 Exchange c) both a and b d) neither a nor b

C: both a and b

Agencies responsible for the enforcement of the fair housing laws are: a) state agencies only b) federal agencies only c) both a and b d) neither a nor b

C: both a and b

Federal law covers any real property on___________________________________. a) federally-owned housing b) federally financed housing c) Both a and b d) Neither a nor b

C: both a and b

The home financed through ODVA must____________________________ a) be the veteran's primary residence b) be purchased in Oregon c) both a and b d) neither a nor b

C: both a and b

A listing agreement will state the duration of time the listing will be in effect. This is known as the: a) Date of the purchase and sale agreement b) date of procurement c) expiration date d) date of execution

C: expiration date

An estate at will a) cannot be terminated. b) is terminated only if so stated in the lessee's last will and testament. c) terminates on the death of lessor or lessee. d) terminates on the date specified in the lease agreement.

C: terminates on the death of lessor or lessee.

Lien priority is established by ______________________,with some exceptions. a) the commissioner b) Oregon State c) the date of recording d) the date that the purchase and sale agreement was written

C: the date of recording

A farmer wants to net at least $5,000/acre on the sale of his 300-acre property. If he allows for 10% commissions and closing costs, and to allow for negotiating room, he wants to get 95% of the listing price as the selling price, what should his listing price be per acre? $5,750 $5,882 $4,250 $5,848

A home sells for $322,600 in Primm County. Here, transfer taxes are set at $1.00 per $500 of the sale price. Title insurance runs $450, and the attorney costs $550. The agent's commission is 7%, and the mortgage balance is $210,000. Annual real estate taxes are estimated to be $4,000, half of which will have to be charged to the seller. If the seller pays all of these expenses, what will she net at closing? $86,873 $88,371 $81,372 $86,372

A homeowner goes bankrupt and the lender forecloses on her residence. In the foreclosure sale, the proceeds are insufficient to pay off the loan, and the court orders other property sold to cover the shortfall. This action is called a(n) strict foreclosure. suit for specific performance. equity foreclosure judgment. deficiency judgment.

A licensee performing a comparative market analysis must be careful to use the term "market value" whenever possible in the report. show a low suggested selling price to avoid a complaint of misrepresenting the value. include the results of a certified appraisal in the analysis. avoid creating a false impression that the licensee is a certified appraiser.

A lien holder can change the lien priority of a junior lien by agreeing to change the date of recording. lower the amount of the claim. cancel the lien. subordinate the lien.

A person wishes to convey any and all interests in a property to another without assurance of the property's marketability. This party would most likely use which of the following types of deed? A sheriff's deed. A special warranty deed. A partition deed. A quitclaim deed.

A property has sold for $127,000. The listing agreement calls for a commission of 7%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 40% share from his broker? $4,445 $3,556 $2,667 $1,778

A property has sold for $380,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 40% share? $4,445. $3,556. $2,667. $4,940.

A property is being appraised by the cost approach. The appraiser estimates that the land is worth $40,000 and the replacement cost of the improvements is $175,000. Total depreciation from all causes is $27,000. What is the indicated value of the property? $148,000 $228,000 $162,000 $188,000

A property owner agrees to pay a broker an open-ended commission as the difference between the sale price and a net amount, provided the owner receives a minimum amount of proceeds from the sale at closing. This is an example of a(n) exclusive right-to sell agreement. exclusive agency agreement. open listing. net listing.

A property owner gives Deanna permission to cross his property as a shortcut to her kindergarten school bus. One day the property owner dies. What right was Deanna granted originally, and will it survive the owner's death? A personal easement in gross, which continues after the owner's death. An easement by prescription, which continues after the owner's death. A license, which continues after the owner's death. A license, which terminates upon the owner's death.

A sale contract stipulates that a buyer is to pay the seller`s transfer tax expenses. This practice is not customary in the area. In this case, the buyer and seller must amend the contract before closing. the contract is voidable, since the seller must pay the expense. the buyer may pay or not pay the expense, at his or her option. the buyer must pay the expense.

How many sections are there in a township? One. Six. Twelve. Thirty-six.

How much time does a seller have to accept a buyer`s offer? Forty-eight hours from the time of the offeror's signing of the offer. Twenty-four hours from the time of the offer's delivery to the seller. Within 24 hours following the stated expiration. A reasonable time, or until the expiration date on the offer.

If a borrower obtains an interest-only loan of $200,000 at an annual interest rate of 6%, what is the monthly interest payment? $1,200 $600 $500 $1,000

If a particular loan falls under Regulation Z`s right of rescission provision, the lender has the right to change the terms of the loan within a certain period. the lender has the right to accelerate repayment of the loan because of a change in the borrower's credit status. the borrower has the right to pay off the loan ahead of schedule with no penalty. the borrower has a limited right to cancel the transaction within a certain period.

If a property owner has the right to redeem his or her property after a tax sale, the owner has a legal right of rescission. an equitable right to acquire title. a right of homestead exclusion. a statutory right of redemption.

If a salesperson has worked on a completed transaction that involved a listing agent, a selling agent, and several subagents for each of these, from whom will the salesperson receive any compensation that is due? The listing agent. The selling agent. The seller. The employing broker.

Jake does not use any part of his principal residence as a home office. Which of the following is true of the tax treatment of this property? The owner may deduct the property's interest and principal from ordinary income. The owner may depreciate the property and deduct depreciation expenses from ordinary income. The owner can deduct any capital gain when the property is sold. The owner may be able to avoid capital gain tax when the property is sold.

Lynne just bought a house. She paid $187,500, for it, even though it had been listed at $195,000. An adjoining property owner, Ken, had tried to buy the property for $185,000, but had been refused. He now offers Lynne $190,000 for the house. Lynne is interested, so she hires an appraiser. The appraiser returns an estimate of value of $200,000. Which of these numbers can be called the market value? $187,500. $190,000. $195,000. $200,000.

Maria plans to mulch the flower area around her house. The house measures 40' x 30', and she figures she'll mulch an area 8' in width to form a big rectangle all around the perimeter. What is the square footage of the resulting mulched area? 64 SF 2,576 SF 1,824 SF 1,376 SF

Sam Gough wants to rent out his home, but wants to exclude families with children because of his belief that they cause damage. Under what conditions would federal fair housing laws allow Gough to rent on these terms? The owner has a consistent no-children policy in all his rental properties. The owner can prove that costs to repair damage caused by previous tenants with children exceeded the tenants' security deposit. It is a single-family house that is part of a federally-designated planned unit development. It is a single-family house, and the owner owns only one other rental home in addition to his own residence.

The federal law that produced the Do-Not-Call list and related protections is referred to as the Solicitation Regulation Act. Telemarketing Prohibition Act. CAN-SPAM Act. Telephone Consumer Protection Act

The first step in the appraisal process, regardless of the appraisal method, is to identify the highest and best use of the property to be appraised. collect and analyze property data. estimate the value of the land as if it were vacant. define the appraisal problem and the purpose of the appraisal.

The formula for determining taxable income produced by an income property is gross income minus expenses plus land and building depreciation. gross income minus expenses minus land and building depreciation. gross income minus building depreciation plus land depreciation. gross income minus expenses minus building depreciation.

The standard E & O policy covers damages resulting from failure to disclose an environmental condition. antitrust violations. mishandling of earnest money deposits. negligence, error or omission in carrying out professional services.

The standard of care and competence that a principal can expect from an agent is generally that which is specified in the agency agreement. necessary to earn the promised compensation. necessary to procure a customer. comparable to that of other practitioners in the area.

To reduce risks inherent in reporting transaction progress to a client, the licensee should make reports orally only, never in writing. leave progress reporting to the inspectors and other experts. advise the client that it is company policy to make no progress reports until the contingency period is over. avoid speculative statements in all reports

What is "vacancy" in real estate market economics? A property that has no owner-occupant The total number of properties of a certain type that are on the market at a given time The absence of certain types of users in a given market area The total existing space of a certain type that is unoccupied at a given time

What is a loan-to-value ratio? The percentage of a lender's portfolio that is composed of mortgage loans. The ratio of borrowed principal plus total interest to the appraised value of the collateral property. The ratio of a lender's return on a mortgage loan to the value of the collateral property. The fraction of the appraised value of the property offered as collateral which the lender is willing to lend.

What kind of real estate users are most concerned with neighborhood quality, access to services, property amenities, and quality of life in their demand for real estate? Retail Office Industrial Residential

When the market for an item has achieved market equilibrium, which of the following statements is true? New suppliers will enter the market and drive the price down. Demand will slowly taper off, driving the price down. Unmet demand for the item is directed toward demand for some other item. Supply and demand are equal, and price and value are equal.

Licensed real estate property manager

an individual who holds an active real estate property manager's license

Vendee

is the buyer that makes payments to the seller on an installment contract.

A borrower of a $50,000 interest-only loan makes annual interest payments of $3750. What interest rate is the borrower paying? 7.5% .75% 3.75% 8.5%

A broker signs a listing agreement to sell a home for $200,000. An immigrant couple are interested in the house and ask the agent the price. The agent states the price as $210,000. According to the fair housing laws, such an action is illegal, because the agent changed the terms of the sale to discourage this particular couple. illegal, because the agent violated the listing agreement. legal, because the quoted price increase did not exceed 10% of the listing price. legal, because the increased price does not necessarily exclude the couple.

A buyer makes an offer to purchase a house, and the seller accepts the offer. However, before the salesperson can inform the buyer of the seller's decision, the buyer delivers a written notice that she is opting out and cancelling the agreement. At this point, which of the following is true? The contract has been legitimately cancelled and is null and void. The seller must give the buyer an opportunity to make a new offer. The buyer must perform under the terms of the contract The seller must notify the buyer in writing that the buyer is in default.

A buyer signs an earnest money agreement and gives it to the broker who showed her the property she is buying. After leaving the broker`s office, she reconsiders and decides she prefers a different property. How long does she have to take back her offer? Until the seller communicates acceptance of the offer. Until the earnest money deposit check is cashed. She can take it back at any time, but must forfeit the earnest money. She cannot take it back until after the expiration date of the offer.

A home appreciated 2 2/3% one year, then 5 1/5% the next year, then 7 1/4% the third year. What was the average appreciation over the 3-year period expressed as a decimal? 5.04% 15.24% 7.56% 4.8%

Although a listing broker may delegate listing tasks to an employed licensee, the broker may not delegate the authority to obtain and distribute compensation. provide cooperating brokers with information about the property. advertise the property. inspect the property for hazardous substances.

An agent is operating as a disclosed dual agent on a transaction. In this case, the agent may not represent one party's interests to the detriment of the other. must operate without a listing agreement. must be obedient and loyal to both parties. must require that the principals refrain from disclosing any material facts to him.

Commercial fire and hazard insurance policies usually require coverage to equal at least 80 percent of the property's replacement value. reproduction value. original cost. depreciated basis.

Competing brokers in a county seat agree on a standard commission rate for principals within the county. This is a possible violation of fair trade and anti-trust laws. the Statute of Frauds. contract law. the Uniform Commercial Code.

How does the position of an independent contractor licensee (IC) differ from that of an employee licensee? The IC is responsible for his or her own taxes; the broker does not withhold. The IC must obtain his or her own training; it is not provided by the broker. The employee is not entitled to company benefits. The IC must abide by all office meeting schedules.

Lee had to report his home office depreciation for the tax year. He has a 2,500 SF home and a 500 SF office area. Lee paid $280,000 for his home, and he figures the land portion carries about 25% of that value. If Lee depreciates on a 39-year basis, how much can he write off for his home office depreciation per year? $1,077 $1,436 $5,384 $2,108

Lenders use an income ratio in qualifying to insure a borrower has the earning power to make the loan payments. compare a borrower's earnings to the borrower's short-term debt. identify the highest possible interest rate that the borrower can afford. quantify the borrower's assets to the fullest extent.

Public land use planning strives to balance which of the following potentially conflicting interests? Individual property rights and the public's interest. Public policy makers and community business leaders. Tenant occupancy specifications and construction contractors. Individual property owners and municipal planning agencies.

The act that required federally-related appraisals to be conducted by a certified appraiser is known as The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The Uniform Standards of Professional Appraisal Practice Act (USPAPA). The Appraisal Foundation Authorization and Reform Act (AFAR). The Federal Institution for Regulation and Enforcement of Appraisal Act (FIREAA).

The major organizations operating in the secondary mortgage market are Fannie Mae, Freddie Mac, and Ginnie Mae. Fannie Mae, GMAC, and MGIC. Freddie Mac, FHA, and VA. Fannie Mae, Freddie Mac, and the Federal Reserve.

The meaning and salient characteristics of the agency relationship should be disclosed to the client prior to completing a listing agreement. prior to or upon completion of an offer. upon the initial contact with the person. prior to showing properties.

The practice of redlining is specifically prohibited by The Home Mortgage Disclosure Act. The Real Estate Settlement Procedures Act. The Civil Rights Act of 1866. The Americans with Disabilities Act.

The statute of limitations requires that parties to a contract who have been damaged or who question the contract`s provisions must act within a statutory period. must select a specific, limited course of action for recouping their losses. must arbitrate prior to taking court action. must wait a statutory period before they may take legal action.

Three leading agencies charge identical commission rates for brokering office properties in Phoenix. Based on this information alone, which of the following is true? There is insufficient evidence of anything other than a normal business practice. The brokers have engaged in legal collusion. The brokers have allocated the Phoenix market. The brokers have illegally fixed prices.

When a broker enters into a listing agreement, the broker has agreed to accept which of the following? Fiduciary and contractual obligations with the client. Fiduciary relationships with client and customer. Contractual obligations with cooperating brokers. Fiduciary obligations with the customer.

When a property owner combines two adjacent properties to create a single property with a higher value than the sum of the values of the two separate properties, the applicable principle of value is called assemblage. accretion. progression. subdivision.

When getting tenants efficiency of marketing activities can be measured in terms of cost per tenant prospect generated per lease. number of ads produced per marketing dollar. dollars expended per square foot of vacant space. percentage of reserves expended on marketing.

When homebuyer Henry pledges his newly purchased home as collateral for a mortgage loan, the evidence of the pledge is the trust deed or mortgage. promissory note. loan commitment. loan receipt.

Which of the following is a common risk relating to the agency relationship? Failing to inform and disclose properly. Failing to take a personal interest in a transaction. Acting as an exclusive agent without an oral agency agreement. Forgetting to record the listing agreement.

Which of the following is true of easements in general? They involve the property that contains the easement and a non-owning party. They apply to a whole property, not to any specific portion of the property. They only involve the legal owner of the property. They may require a specific use, but cannot prohibit one.

Yard of Pizza has a percentage lease on its 1,800 SF space in Lincoln Shops. The terms are $1.40 / SF / month rent plus 1.75% of the store's gross income. If monthly sales averaged $41,500 last year, how much annual rent did Yard of Pizza pay last year? $38,955 $43,420 $30,240 $21,525

Contract

A contract is an exchange of promises between two or more parties to do or refrain from doing an act

Lawful Objective

A legal contract cannot require any party knowingly break the law. If so, the contract is usually void. Also known as a legal purpose.

Minor

A person who is under the age of 18 in most states

____________________________ must directly supervise all licensees who act as counselors. a) A principal broker b) The commissioner c) Both a and b d) Neither a nor b

A: A principal broker

If the comparable has less of something then there should be: a) An adjustment in the form of an increase to the comparable b) An adjustment in the form of a decrease to the comparable c) No adjustment since it is understood that all properties are unique d) An adjustment to the site in the form of an increase

A: An adjustment in the form of an increase to the comparable

The Oregon ______________________is responsible for forest policy within the state of Oregon a) Board of Forestry b) Board of Agriculture c) Environmental Impact Board d) Committee of Forestry

A: Board of Forestry

President _____________________signed the Taxpayers Relief Act of 1997 into law. a) Clinton b) Obama c) Trump d) Carter

A: Clinton

A ____________________________________________is a data base comprised of insurance claims from various insurance companies. a) Comprehensive Loss Underwriters Exchange b) Comprehensive Limited Underwriters Exchange c) Comprehensive Liability Underwriters Exchange d) Complete Loss Underwriters Exchange

A: Comprehensive Loss Underwriters Exchange

When describing real property using the metes and bounds method- this method uses the measurement and direction of each boundary line. This is also called the _____________________________ a) Course and bearing of each boundary line b) Compass bearing only of each boundary line c) Township of each boundary line d) Range line of each boundary line

A: Course and bearing of each boundary line

ECOA is an acronym for: a) Equal Credit Opportunity Act b) Equal Credit official Act Equal c) Credit Origination Act d) Economic Credit Opportunity Act

A: Equal Credit Opportunity Act

FIRPTA is an acronym for ________________________________________. a) Foreign Investment in Real Property Tax Act b) Foreign Impound in Real Estate Tax Act c) Fair Investment of Real Property Tax Act d) Foreign Investment in Real Profit Tax Act

A: Foreign Investment in Real Property Tax Act

If you are an independent contractor the business may be required to give you a____________________________, to report what it has paid to you. a) Form 1099-MISC, Miscellaneous income b) Form W-2 c) Form W-9 d) Form W-10

A: Form 1099-MISC, Miscellaneous income

What kind of taxes and insurance might a borrower expect to pay on their property? a) general property tax b) taxes for special assessment, if any c) hazard insurance d) all of the above

A: General property tax

GRM stands for __________________________________. a) Gross rent multiplier b) Gross return multiplier c) General Reserve Multiplier d) General Reserve Market

A: Gross Rent Multiplier

_________________is making non-factual or extravagant statements and opinions to enhance the desirability of a property. a) Puffing b) Negligence c) Concealment d) Misrepresentation

A: Puffing

RESPA is an acronym for: a) Real Estate Settlement Procedures Act b) Real estate Security Procedures Act c) Real Estate Security Procurement Act d) Real Estate Settlement Procurement Act

A: Real Estate Settlement Procedures Act

RDP is an acronym for: a) Registered Domestic Partner b) Registered Deferment Program c) Remainderman Deferment Program d) Real Delivery Program

A: Registered Domestic Partner

___________________________requires that records be kept on all real estate activity. a) The Oregon Real Estate Agency b) Oregon Attorney General c) HUD d) Oregon Fair Housing Department

A: The Oregon Real Estate Agency

Which of the following would be defined as real estate as opposed to real property? a) Wells, driveways, and signs on a parcel of land. b) Mobile homes temporarily parked on a parcel of land. c) Timber that has been cut and is lying on a parcel of land. d) Business equipment an owner or tenant has placed on a parcel of land.

A: Wells, driveways, and signs on a parcel of land.

Sales comparison approach, also known as the market data approach is usually used for residential property and also used to value the land portion only, when valuing using the cost approach. Similar properties are compared to the site property. Additions and subtractions called ______________________are made to the site property for greater or less amenities. a) adjustments b) comparables c) like kind properties d) site properties

A: adjustments

Universal brokers are granted the power to handle ________affairs of the principal. a) all of the b) most of the c) none of the d) certain specific affairs

A: all of the

The income approach, also known______________________________, is usually used for income producing properties. a) as the capitalization method b) as the cost in place method c) as the quantity survey method d) as the square food method

A: as the capitalization method

An address known as the street address and not the legal address a) common address b) seller's mailing address c) both of the answers d) neither of the answers

A: common address

Cash receipts from property management activity in Oregon must be in duplicate form and must be___________________________. a) consecutively numbered b) stored for at least 10 years c) given to the Commissioner d) given to the Agency

A: consecutively numbered

As a real estate professional, care must be taken not to advise your client that the _______will automatically be forgiven in a short sale a) debt b) certification identification number c) dividends d) none of the above

A: debt

A tenancy at will can usually be terminated by a) either party giving proper notice. b) either party without notice. c) a sublease, with the lessor's approval. d) an assignment by the lessor.

A: either party giving proper notice.

______________________authorize a neutral third party, often referred to as an escrow agent or closing agent, to close a transaction as per the terms and conditions of the contract between the parties. a) escrow instructions b) directions from the commissioner c) lender instructions d) structural inspector instructions

A: escrow instructions

The escrow officer and broker are responsible for ensuring that all necessary loan documentation has arrived at the _____________. a) escrow office b) seller's home c) structural inspector's place of business d) department of licensing

A: escrow office

When economic conditions are very good, _____________may be a positive managerial move. a) expansion b) contraction c) static growth d) closing a business

A: expansion

A feasibility study should be performed by a qualified individual who has ___________. a) expertise in the industry b) familiarity with arbitrage c) familiarity with foreign exchange students d) none of the above

A: expertise in the industry

Each brokerage will want to have a____________. This account handles the income and operating expenses that belong to the brokerage. a) general account b) trust account c) time certificate of deposit d) none of the above

A: general account

Usually the lender for a new construction project will ______________________________ before any loans are granted. a) insist on being placed in first position b) insist on being in second position c) insist that all construction is complete d) insist that all construction is complete and that the final certificate of occupancy has been obtained

A: insist on being placed in first position

In most cases, you can deduct all of your home mortgage _____________________. a) interest b) payment c) insurance d) none of the above

A: interest

Neither the buyer nor the seller are obligated to sign the extension for closing If the seller or the buyer chooses not to extend the closing date, then the transaction___________________ a) is now dead b) is automatically extended for one week c) is automatically extended for ten days d) is automatically extended for thirty days

A: is now dead

This is a penalty charged by the lender when payments from the borrower are received late: a) late payment penalty b) late submission penalty c) late arrears penalty d) late alienation penalty

A: late payment penalty

If a common element such as a patio, garage or storage closet is limited to use by a specific condominium unit owner, it is then a ________________common element. a) limited b) general c) shared d) none of the above

A: limited

A mortgage involves a relationship between which two parties? a) mortgagee, mortgagor b) trustee, trustor c) trustee, beneficiary d) truster, beneficiary

A: mortgagee, mortgagor

With a __________________the tenant pays a base monthly rent plus some of the expenses. a) net lease b) gross lease c) percentage d) ground

A: net lease

An escrow agent acts as a ____________________ party. a) neutral third b) republican c) democratic d) independent

A: neutral third

Loans which do not have prepayment penalties are often referred to as_______________ a) open mortgages b) adjustable rate mortgages c) interest only mortgages d) open amortization

A: open mortgages

The purpose of a/an ____________________ is to have the brokerage( or if the operating report is for an individual licensee) is to track the operations of the firm or individual. a) operating report b) staff c) performance d) feasibility

A: operating report

A property manager should manage each property with the ______________ objectives in mind. a) owner's b) tenant's c) property manager's d) none of the above

A: owner's

Non-judicial foreclosure is conducted only when a ___________________exists in a deed of trust/mortgage a) power of sale clause b) partial release clause c) blanket release clause d) power of attorney clause

A: power of sale clause

A seller must be provided a copy of the listing agreement __________after they have signed the it. a) right after signing b) within 10 days c) within 20 days d) within 25 days

A: right after signing

USDA Section 52 loans are primarily used to help low-income individuals to purchase homes in ______________. a) rural areas b) urban areas c) both a and b d) neither a nor b

A: rural areas

With a mortgage, a document called a _______________________________is used to release the mortgage when it has been paid off. a) satisfaction of mortgage b) deed of reconveyance c) deed of title d) satisfaction of sub-agency

A: satisfaction of mortgage

Most saving and loan banks have been reorganized into _____________________. a) saving banks b) commercial banks c) credit unions d) Household banks

A: saving banks

Search Engine Optimization, also known as SEO is used to attract ____________to a website. a) search engines b) hackers c) security d) none of the above

A: search engines

In a land contract the vendor is the ______________________. a) seller b) buyer c) closing agent d) bank

A: seller

Adjustments for differences in comparables should be made to: a) the comparable b) the site c) both the site and the comparable d) adjustments are not allowed

A: the comparable

Employment, inflation and the stock and bond market are examples of: a) the general state of the economy b) the secondary market c) the doctrine of laches d) none of the above

A: the general state of the economy

A retired couple has just bought a retirement home with a pier on a large lake. In this case the retirees` water rights extend to a) the high water mark of the body of water at the shoreline. b) the low water mark of the body of water at the shoreline. c) the center of the lake. d) the end of the pier.

A: the high water mark of the body of water at the shoreline.

Who normally orders an appraisal? a) the lender b) the buyer c) the title company d) the closing agent

A: the lender

If a joint tenant sells his or her interest to an outside party, a) the new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner. b) the joint tenancy continues with the new owner as the third joint tenant. c) the joint tenancy terminates and all owners become tenants in common. d) the joint tenancy terminates and the owners must create a new joint tenancy to include the new owner.

A: the new owner becomes a tenant in common with the other owners, who continue to hold a joint tenancy with each other and a tenancy in common with the new owner.

An item may be considered personal property as opposed to real property provided that a) the owner intended to remove it after a period of time. b) it can be removed without altering the appearance of the structure. c) it is unnecessary to the physical integrity of the structure. d) the owner installed it at some time after acquiring the real property.

A: the owner intended to remove it after a period of time.

An estate from period-to-period will continue as long as a) the tenant makes, and landlord accepts, regular rent payments. b) the term specified in the lease. c) the period is less than a year. d) the landlord has not sold the property.

A: the tenant makes, and landlord accepts, regular rent payments.

Mortgage bankers fund loans with ______________________. a) their own capital b) capital from others c) Either a or b d) Neither a nor b

A: their own capital

Sue and Bob own a home in a neighborhood where many of the properties and structures are lacking attention and in need of repair. The neighborhood diminishes the value of their property. This is known as the____________________ a) theory of regression b) theory of progression c) lien theory d) theory of Lis Pendens

A: theory of regression

The Closing Disclosure (CD) Form must be received by the consumer: a) three days before closing b) three business days before closing c) ten days before closing d) ten business days before closing

A: three days before closing

A property owner leases 60 acres of agricultural land for a renewable period of 5 years. In the context of real estate rights, this lease represents a(n) a) transfer of a portion of the bundle of rights. b) encroachment on the bundle of rights. c) conveyance of the complete bundle of rights. d) encumbrance of the tenant's rights.

A: transfer of a portion of the bundle of rights.

A basic responsibility of a landlord is to provide leased space at market rental rates. deliver a habitable property. keep the rental space freshly painted. refrain from entering the leased space at any time during the lease term.

A broker obtains an exclusive listing to sell a house, but after two months, he abandons the listing because the seller is too demanding and hot-tempered. What can the seller do in this situation? Have the licensee's license revoked for negligence. Sue the broker for money damages. Sign a listing agreement with another broker and force the first broker to pay the commission. Force the broker to perform the contract without compensation.

A home is located in a neighborhood where homeowners on the block have failed to maintain their properties. This is an example of curable external obsolescence. incurable economic obsolescence. functional obsolescence. physical deterioration.

A homeowner bought a house five years ago for $150,000. Since then, the homeowner has spent $3,000 to pave the driveway and has added a central heating/airconditioning system at a cost of $4,000. What is the homeowner`s adjusted basis if the house is sold today? $156,000. $157,000. $144,000. $145,000.

AMC Bank discovers, in considering buyer Bob's application for a mortgage loan, that Bob has borrowed the down payment from an uncle and has to repay that loan. Bob should expect that AMC Bank will refuse the application. adjust the applicant's debt ratio calculation and lower the loan amount. increase the loan amount to enable the borrower to pay off the loan to the relative. require the borrower to make payments to an escrow account for repayment of the relative's loan.

An implied agency relationship may be deemed to exist if the parties do not disavow an express contract that has expired. the parties act is if there is a contract. an offering party does not receive written notice that the offer has been rejected. the parties promise to perform their part of the agreement if the other party performs.

An owner agrees to pay a broker for procuring a tenant unless it is the owner who finds the tenant. This is an example of a(n) exclusive right-to sell agreement. exclusive agency agreement. open listing. net listing.

Audrey wants to take a vacation. To do so, she authorizes an agent to conduct the operations of one of her business enterprises. The kind of agency she has established is limited. general. universal. special.

If Okapi, Inc., a company that markets its sports clothing worldwide, moves into Stevensville and hires 100 employees, it is reasonable to expect that the town will experience an immediate rise in the demand for industrial real estate, but no other changes in the real estate market. an increase in demand for all types of real estate. a housing boom, but no other changes in the real estate market. an immediate increase in the prices for industrial and office real estate, but no impact on the residential market.

If a borrower`s monthly interest payment on an interest-only loan at an annual interest rate of 6% is $500, how much was the loan amount? $72,000. $100,000. $120,000. $50,000.

If the price of an item is increasing, one can usually assume that demand for the item is decreasing in relation to supply of the item. demand for the item is increasing in relation to supply of the item. supply of the item is increasing. demand for the item and supply of the item are increasing.

In a buydown, the lender lowers the interest rate on a loan in exchange for a prepayment of principal. the borrower pays additional interest at the onset in order to obtain a lower interest rate. the lender requires the borrower to buy down the price of the property by increasing the down payment. the borrower pays the lender additional funds to buy down the term of the loan.

Jose recently obtained a 90% loan on his $410,000 home, and he had to pay $6,150 for points. How many points did he pay? 1.4 points 1.67 points 2.48 points 1.5 points

Maria borrows $100,000 and pays two points for the loan. How much does she pay in points? $200. $2,000. $1,200. It depends on the interest rate.

On Wednesday, Fred offers to sell his property to Jack for $275,000, with the offer to remain open until 5 p.m. the next day. On Thursday morning, Sally offers Fred $280,000 for the property and Fred accepts. At 1 p.m. on Thursday afternoon, Jack accepts. Which of the following is true of this situation? The acceptance by Sally creates a contract and terminates Fred's offer to Jack. Fred has entered into contracts with both Jack and Sally to sell the same property. Fred's acceptance of Sally's offer is invalidated by Jack's acceptance, because Fred's offer to Jack was made prior to Sally's offer to Fred. No contract has been created because it is impossible to have two valid sale contracts for the same property.

The Keegans obtain a fixed-rate amortized 30-year loan for $280,000 @ 6.25% interest. If the monthly payments are $1,724, how much interest do the Keegans pay in the second month of the loan? $1,748.33 $1,456.95 $1,458.33 $1724.00

The only clause that is actually required in a deed is the habendum clause. granting clause. reserving clause. tenendum clause.

The price for any product is a function of four fundamental determinants of value. These are durability, feasibility, mobility, and location. desire, utility, scarcity, and purchasing power. popularity, recognizability, promotion, and rebate. fungibility, costs, convenience, and uniqueness.

The purpose of the statute of frauds is to invalidate certain oral contracts. require certain conveyance-related contracts to be in writing. nullify oral leases and listing agreements. eliminate fraud in real estate contracts.

The right to encumber a property means that the owner can sell the property to an encumbered party. pledge the property as collateral for debt. lease the property. assign the bundle of rights to another.

The village of Goodsprings has an annual budget requirement of $8,000,000 to be funded by property taxes. Assessed valuations are $400,000,000, and exemptions total $25,000,000. What must the tax rate be to finance the budget? 2.00% 2.13% 1.32% 21.33%

What is the purpose of residential zoning? To increase home values in a neighborhood. To regulate the density of dwellings in the residential zone. To prevent families from residing in commercial and industrial sites. To maximize intensity of usage.

Tenants must be given first opportunity to purchase the unit that they reside in. They must be given at least ______days to reject the offer a) 30 b) 60 c) 90 d) 120

B: 60

______________________________is a failure to disclose a material fact out of ignorance when the broker should have known otherwise. a) Puffing b) Negligent misrepresentation c) Concealment d) Misrepresentation

B: Negligent misrepresentation

Which of the following is true of a tenancy in common? a) The co-owners must be related b) The owners enjoy an indivisible interest c) The tenants must acquire their interests at the same time d) The tenants must pay equal amounts for their interest in the estate

B: The owners enjoy an indivisible interest

The short sale process usually takes ____________than a normal real estate transaction a) a much shorter amount of time b) a much longer time c) the same amount of time d) none of the above

B: a much longer time

The approval process for development of multiple properties in an area includes submission of a) a covenant of restriction. b) a plat of subdivision. c) a court order. d) a developer's pro forma.

B: a plat of subdivision.

An employee should be considered reliable and ________________________by all their managers and co-workers. They take responsibility for their behavior, even if the behavior has negative results. a) punctual b) accountable c) transferable d) likeable

B: accountable

A licensee is a/an ___________for their principal broker. a) co-partner b) agent c) partner d) none of the above

B: agent

Due-On-Sale clause is also referred to as a/an ____________________________. a) acceleration clause b) alienation clause c) granting clause d) lock-in clause

B: alienation clause

Unlike most conventional loans, FHA-insured loans require ________________________________for a down payment. a) larger down payment b) very little down c) greater amount of cash and always a co-signer d) higher reserves

B: very little down

A veteran must apply for a Certificate of Eligibility to find out how much the VA will guarantee in a particular situation. how long an individual served in the military. the maximum loan amount an approved lender can give to veterans. how much of a loan the VA will guarantee. whether a lender is approved to issue VA-guaranteed loans.

In executing a condominium lease, a tenant has acquired a temporary transfer of legal title. a limited freehold interest in the air space of her unit. a temporary possessory interest. a title conveyance in exchange for rent.

The Federal Reserve`s Regulation Z applies to which loans? All loans. All loans secured by real estate. All loans secured by a residence. All loans over $25,000.

The Uptons carry a $140,000 property insurance policy which covers 75% of the replacement cost of their insurable property, valued at $190,000. They have an 80% co-insurance requirement in the policy. If the family incurs a $150,000 loss, what if any amount will the Uptons recover? $159,999 $140,625 $140,000 $187,500

The principle underlying depreciation from physical deterioration is that eventually, a property loses all of its value. a property loses a portion of its value each year because of economic obsolescence. a property loses the same increment of value each year over the economic life of the property. the value lost to depreciation is incurable.

Two parties enter into a contract for deed agreement. In this form of agreement, title is conveyed to the buyer, but the seller retains possession for a stipulated time period. the buyer contracts to pay all cash at closing in exchange for the deed. the seller retains legal title while the buyer makes partial payments until the contract is fully executed. the buyer immediately acquires legal title and takes possession.

Which of the following accurately describes the act of foreclosure? A court-ordered acceleration of loan payments. The final step in a bankruptcy filing. A proceeding to enforce a lien by forcing the sale or transfer of a secured property. A proceeding to take equitable title to a property that was liened as security for a mortgage loan.

Which of the following activities is a licensed salesperson allowed to engage in? Accept a listing that is in an associate's name. Accept a commission directly from the MLS. Offer a property for lease on behalf of the employing broker. Sign a contract with a management company on behalf of a client.

Which of the following contracts can be assigned to another party? An exclusive listing agreement. A personal services agreement. A contract for the sale of undeveloped land. An employment contract between a broker and a salesperson.

Any person who violates the subdivision and partition rules commits a Class ___ felony a) A b) B c) C d) D

C: C

Which of the following would be considered community property? a) Property acquired before marriage b) A motorcycle bought after the marriage with separate property funds c) Income derived from community property d) A mother's heirloom wedding ring gifted to the wife after her wedding

C: Income derived from community property

Lisa is representing Jill, a potential buyer for a property. Lana is representing another buyer for the same property and Don is representing another buyer for the same property. Lisa, Jill and Don all work for the same principal broker. Is this legal? a) no, because they all work for the same principal broker b) no, because this is always a conflict of interest c) yes, and the principal broker becomes a disclosed limited agent d) yes, with the commissioner's permission

C: yes, and the principal broker becomes a disclosed limited agent

A borrower obtains a 30-year, fully amortizing mortgage loan of $50,000 at 8%. What is the principal balance at the end of the loan term? $2,000. $50,000. $220. Zero.

A construction contractor executes a contract with a buyer. In the agreement, the contractor promises to complete construction by November 20. This promise can be construed as an option. mutual consent. a meeting of the minds. valuable consideration.

Among the items that normally must be disclosed in a sale contract or its addenda is/are the buyer's financial capability. buyer's source of funds for the down payment. seller's acceptable price range. agency relationships and property condition.

An investor bought 4 oversized lots in order to subdivide. He paid $70,000 for the lots. After subdividing, the investor was able to sell each lot for $23,000. Excluding commissions and closing costs, what per cent profit did the investor realize? 0% 45% 23.9% 31.4%

If an apartment contains a refrigerator that is not included in the lease, the lessee is required to buy it from the landlord. the landlord is required to remove it. the lease is invalidated because of an incomplete property description. the property manager does not have to maintain it.

If there is a significant undersupply of homes in a market, construction will tend to increase. This is an example of supply outstripping demand. demand outstripping value. consumer optimism. the market tending toward equilibrium.

Mr. King wants to offer 100 acres of his property for sale. Since the property is landlocked, he will have to put in a driveway to the road that will run across his remaining property. What kind of easement will he have to grant? An easement in gross. A commercial easement. A personal easement. An easement appurtenant.

On two adjacent properties, there is an easement that allows property A to use the driveway that belongs to property B. Here, property A is said to be which of the following in relation to property B? a) Subservient estate. b) Servient tenement. c) Senior tenant. d) Dominant tenement.

One of the major risk areas in advertising a listed property is that an advertisement will describe the property in excessively glowing terms. fail to appear at the same time in all available media. omit any mention of the owner's main selling points. make a substantial misrepresentation.

The primary tax benefit in owning a non-income property such as a residence is depreciation of improvements. appreciation of land. a deduction for costs of operating the property. a deduction for mortgage interest.

The purpose of a deed restriction is to enable an owner to specify the form of ownership in which a property may be held. how long a property must be owned before it can be legally transferred. what groups of people are legally excluded from future ownership of a property. how a property may be used and what improvements may be built on it.

Tina is buying Terrell`s house for $187,500. The broker`s commission, to be paid by the seller, is 6%. How much will Terrell pay the broker? $31,250. $2,625.00. $4,725. $11,250.

Under what circumstance may a property listed for sale with a brokerage be advertised without identifying the broker? When the salesperson is an out-of-state licensee. When the ad is restricted to the brokerage's website. When the advertisement is a silent ad. Never.

What kind of interest does the buyer acquire once a real estate sale contract is signed by the principal parties? Legal title. Lienholder interest. Reversionary interest. Equitable title.

Which of the following best describes the documentary stamp tax? A transfer tax based on the price of the property being conveyed. A tax a title company must pay in order to examine title records in the recorder's office. A tax collected by attorneys and paid to the state when transfer documents are prepared. A tax on stamps used to certify the authenticity of a conveyance.

Which of the following business entities is generally prohibited from brokering real estate? Sole proprietorship. Partnership. Corporation for profit. Non-profit corporation.

A bankruptcy will remain on your credit score for: a) 2-3 years b) 6 months - 1 year c) will always be on your credit score d) 7-10 years

D: 7-10 years

Neighboring tenants are important. They might: a) Aid in increasing traffic b) Aid in decreasing traffic c) Use your services d) All of the above

D: All of the above

When involved in a short sale, a licensee should advise their client: a) about how the short sale process works b) to seek legal c) to seek tax advice d) all of the above

D: all of the above

Novation

In the first instance, novation is the substitution of a new party into a contract. The original party is relieved of any obligation for the contract. Novation can also be the substitution of original contractual terms for new contractual terms if both parties agree to the new terms.

Executory contract

Is a contract where the terms, obligations and promises have not yet been performed

Written Contract

Oregon State law which requires that all real estate contracts be in writing. This is required by the Statute of Frauds.

Doctrine of Laches

States that a court has determined that a contract is unenforceable due to needless delay or neglect in filing a claim even though the statute of limitations may not have expired.

Buyer's Agency Agreement

States that the broker represents the buyer and that the buyer has an obligation to that agent for commission during term of the agreement

Exclusive Agency Sale and Listing Agreement

The broker does not earn the listing portion of the commission if the seller produces a sale

Lessor

The landlord

Compensatory Damages

The most common remedy for a breach of contract, given that there was not a liquidated damages clause, is compensatory damages. This compensates the other party for the financial loss they incurred because of a breach of contract. The amount awarded is usually intended to place the non-breaching party in a financial position they would have been placed in if the breaching party had performed as per the terms of contract.

Optionor

The property owner who grants the option is called the optionor in an option agreement.

Records and property management records

a complete and adequate documentation of the management of rental real estate.

Banking day

each day a bank is required to be open for the normal conduct of its business but does not include Saturday, Sunday, or any legal holiday under ORS 187.010.

Consideration

in law refers to something of value given by one party in exchange for something of value from the other party to the contract. The consideration does not have to be in monetary form. It could be a promise to do or refrain from doing something, a promissory note, items of personal property, a service etc.

Express Contract

is a contract in which all elements are specifically stated in words. This may be written or oral

Offeror

the party making the offer

Implied Contract

an agreement which is found to exist based on the circumstances when to deny a contract would be unfair and/or result in unjust enrichment to one of the parties. It is created by the actions, rather than by written or oral agreement of the parties

Real estate broker

an individual who engages in professional real estate activity and who holds an active license as a real estate broker.

Counter Offer

When one of the parties makes a change to the original offer. Legally, it is considered a revocation of the original offer

Vendor

is the seller who receives payments from the buyer on an installment contract.

Rescission

is when a contract is cancelled and both parties are returned to their original position.

To avoid unnecessary risk, the secondary market requires loans that they buy meet the standards of ________________ which are set by the secondary markets. a) uniform underwriting b) just certification c) common title vesting d) none of the above

A: uniform underwriting

A bilateral contract is one in which both parties promise to do something in exchange for the other party's performance. both parties receive equal consideration. two parties agree to perform a service together. both parties promise to do something if the other party performs first.

A homeowner wants to insulate the new recreation room in her basement. She has been told that 3" of insulation would do the job. The walls are all 9' high and respectively measure 13', 13', 18', and 18' in length. How many rolls will she need if each roll measures 3" x 2' x 50'? 6 56 5 9

A homeowner`s residence has an assessed valuation of $140,000, and a market value of $170,000. The homestead exemption is $25,000. Tax rates for the property are 7 mills for schools; 3 mills for the city; 2 mills for the county; and 1 mill for the local community college. What is the homeowner`s tax bill? $1,495 $1,820 $1,150 $2,210

A legal description of a property is one which accurately identifies the boundaries of the property as distinct from all other properties. accurately describes the location and dimensions the lot and improvements on the property. is accepted by a licensed surveyor as suitable for inclusion in a survey of the property. is written by an attorney licensed to practice real estate law in the state in which the property is located.

A lender lends money to a homeowner and takes legal title to the property as collateral during the payoff period. They are in a title-theory state. lien-theory state. state allowing land trusts. state where hypothecation is illegal.

A licensee risks violating antitrust law by being present at a conversation where the setting of commission rates is discussed. being present at a discussion of antitrust laws. charging a commission rate that happens to be the same as that charged by another firm. cooperating with another firm to do market research.

A licensee sells 5/6 of an acre for $28,000, and receives a 6% commission. If she splits with her broker 50-50, what did she receive per square foot? $.023 / SF $.046 / SF $.037/ SF $.002 / SF

A moratorium on new construction is an example of local government influencing the real estate market, regardless of demand. the natural result of demand exceeding supply in a local market. government promotion of the free market concept in the local real estate market. a government policy that aims to restrain a trend of rising prices in the local real estate market.

A multiple listing authorization gives a broker what authority? To list the owner's property in a multiple listing service. To sell several properties for the owner at once. To represent both seller and buyer, if necessary, in selling the property. To delegate the listing responsibilities to other agents.

A notable weakness of the sales comparison approach to value is that there may be no recent sale price data in the market. the approach is not based on the principle of substitution. the approach is only accurate with unique, special purpose properties. sale prices cannot be compared, since all real estate is different.

A principal discloses that she would sell a property for $500,000. During the listing period, the house is listed and marketed for $530,000. No offers come in, and the listing expires. Three weeks later, the agent confides to a customer that the seller would have sold for less than the listed price. Which of the following is true? The agent has violated the duty of confidentiality. The agent has fulfilled all fiduciary duties, since the listing has expired. The agent is violating the duties owed this customer. The agent has created a dual agency situation with the customer.

A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $60,000, vacancy and credit losses of $3,000, and operating expenses of $20,000. Using a capitalization rate of ten percent, what is the indicated value (to the nearest $1,000)? $370,000. $400,000. $570,000. $600,000.

To be enforceable, a contract for the conveyance of real estate must be acknowledged by witnesses. be written. be recorded. have an expiration date.

A structural pest inspector will inspect the following: a) the systems of a home b) the tax assessment c) the title report d) all of the above

A: the systems of a home

A power of sale clause in a deed of trust allows: a) the trustee to sell the property should the borrower default b) Grants the borrower a 90 day grace period for late payments c) allows the borrower to sell the property after foreclosure d) none of the above

A: the trustee to sell the property should the borrower default

The value or price of a property may affect: a) the type of loan needed by the buyer b) the type of closing agent that must be needed c) the type of title insurance company which will insure the property d) the decision to have the property inspected by a structural inspector

A: the type of loan needed by the buyer

In contrast to a tenancy in common, in a joint tenancy a) there is a single title to the property. b) there are as many titles to the property as there are co-owners. c) title is held by a trustee. d) co-owners who are married hold separate titles.

A: there is a single title to the property.

A ________________________indemnifies the insured against losses against defects on the title of real property. a) title insurance policy b) closing affidavit c) Lis Pendens d) homeowners insurance policy

A: title insurance policy

Both the seller and real estate licensees are prohibited from disclosing any information related_______________________ a) to HIV illness b) noise problems c) septic information d) structural defects

A: to HIV illness

Farmland used primarily to make a profit from farming may be assessed based on its agricultural value rather than its value at highest and best use. The reason for this is that: a) to encourage farming in Oregon State b) to allow the municipalities' greater revenue c) encourage urban growth d) to discourage farming in Oregon State

A: to encourage farming in Oregon State

All security deposits are required to be kept in a _____________________by the landlord or an authorized representative of the landlord. a) trust account b) general checking account c) savings account d) equity line of credit account

A: trust account

Those brokerages that do have trust accounts for earnest money deposits may not want to combine these with property management funds. a) trust accounts b) general account c) checking accounts d) saving accounts

A: trust accounts

When converting percentages to decimals move the decimal point______________. a) two places to the left b) two places to the right c) three places to the left d) four places to the left

A: two places to the left

When converting decimals to a percentage move the decimal point________________________________________. a) two places to the right b) two places to the left c) three places to the left d) four places to the left

A: two places to the right

A/an _____________contract is a contract which cannot be enforced in a court of law. a) unenforceable b) unilateral c) bilateral d) written express

A: unenforceable

To be marketable, title must be insured free of undisclosed defects and encumbrances. abstracted by an attorney. guaranteed by a title certificate.

To complete the sales comparison approach, the appraiser averages the comparable values. weights the comparables. identifies the subject's value as that of the middle value of the comparables. identifies the subject's value as that of the nearest comparable.

To create an enforceable option-to-buy contract, there must be an exchange of a promise to sell and a promise to buy. valuable consideration and a right to buy. valuable consideration and a promise to buy. a down payment and a post-dated contract for sale.

Among the essential elements of a management plan is consideration of the competitive market for the property. the property manager's career goals. the property owner's net worth. the management firm's income goals.

A certain item is to be prorated between a buyer and seller. If no outside party is concerned, which of the following statements is true? The item must be prorated and recorded as a debit to one party and a credit to the other party for the same amount. The item must be prorated and recorded as a debit to one party; the remainder is recorded as a credit to the other party. The party who is owed money receives a credit for the entire item and a debit for the prorated amount. The party who owes money receives a debit for the portion owed and a credit for the portion that is not owed.

A homeowner defaults on his mortgage loan. In the subsequent foreclosure action, the lender takes title to the liened property directly instead of initiating a court-ordered public sale. This is an example of strict foreclosure. judicial foreclosure. non-judicial foreclosure. deed in lieu of foreclosure.

A square parcel of land that was 480` on one side would contain ________ acres a) 5.29 acres b) 7 acres c) 8.2 acres d) 4 acres

A: 5.29 acres

The base of a triangle is 30 feet and the height of the triangle is 40 feet. What is the area of the triangle? a) 600 square feet b) 300 square feet c) 1200 square feet d) 1800 square feet

A: 600 square feet

1 square mile = ______________________ a) 640 acres b) 120 acres c) 420 acres d) 320 acres

A: 640 acres

What is the basic definition if a real estate syndicate? a) Any form of organization which allows two or more investors to participate in the ownership of an interest in real estate b) A trust in severalty c) An ownership in severalty d) All of the above

A: Any form of organization which allows two or more investors to participate in the ownership of an interest in real estate

When using the appropriative rights for water, a/an ________________ must be granted a) Application b) Court order c) Lis pendens d) Contract for default

A: Application

An advantage of forming an S Corporation is _____________________ a) avoiding double taxation b) that it is a tax advantage when there are more than 100 shareholders c) not all shareholders must agree to choose the Corporation S form. d) all of the above

A: Avoiding double taxation

A warranty deed carries the highest form of protection for the buyer (grantee). It also creates the __________for the grantor a) highest form of protection for the grantor b) greatest liability c) least amount of liability d) Both a and c

B: greatest liability

Section #36 is located in the _______________corner of a township a) northeast b) southeast c) northwest d) southwest

B: southeast

In a contract for deed, the seller is the ____________ and the buyer is the __________ a) vendee, vendor b) vendor, vendee c) lessee, lessor d) mortgagor, mortgagee

B: vendor, vendee

The escrow agent who is acting as the agent for both the buyer and the seller is a ________________who protects the interests of each party to the transaction a) neutral third party b) dual agent c) both a and b d) neither a nor b

C: both a and b

The escrow agent has a fiduciary responsibility to_______________, requiring that he/she protect the interests of each party and take certain precautions in performing his duties a) the buyer b) the seller c) both parties d) the lender

C: both parties

When converting square inches to square feet, ____________________ a) multiply by 144 b) multiply by 27 c) divide by 144 d) divide by 27

C: divide by 144

The cost of the owner`s title insurance policy is usually based upon: a) the size of the lot of the property b) the age of the house on the property c) the cost of the property d) the loan amount

C: the cost of the property

An easement is a right of one party to use the real property that is ________ by another party a) licensed b) certified c) terminated d) owned

D: owned

A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $30,000, vacancy and credit losses of $1,500, and operating expenses of $10,000. Using a capitalization rate of 9%, what is the indicated value (to the nearest $1,000)? $206,000 $167,000 $222,000 $180,000

A real estate sales contract, to be enforceable, must contain a legal description of the property. be written on a form approved by the state bar association. be acknowledged by three witnesses. be recorded within three days to be enforceable.

A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold? Real estate tax lien. Federal income tax lien. Judgment lien. Mortgage lien.

A tenant obtains a full-service lease where the landlord agrees to pay all operating expenses in exchange for an additional $5.00 rent per square foot. Another term for this lease is a(n) gross lease. proprietary lease. exchange lease. full service net lease.

After five years of owner-occupancy, Simon Wilson sells his principal residence for a gain of $150,000, and the next month buys another principal residence that costs more than the adjusted sale price of the old home. Which of the following is true of the treatment of the tax on gain? There is no taxable gain. It must be paid in the year of the sale. The homeowner may choose to pay it or defer it. Tax is due on the difference between the cost of the new home and adjusted basis of the old one.

Agent Gerry has executed an exclusive buyer broker agreement with the Andersons. The agent subsequently places an offer with Melinda, the exclusive selling agent for the Lincolns, to buy their lakefront property. The offer contains provisions for the Lincolns to pay the brokerage commission, which the Lincolns agree to. Given this set of circumstances, Gerry owes the full set of fiduciary duties to the Andersons. the Lincolns. Gerry's broker. Melinda's broker.

Alexis is buying Jack's house. The closing date (day belongs to seller) of the sale transaction is September 1 (day 244 of the year). Her loan has a monthly payment of $577.84, with $525 going to interest in the first month. At closing, Alexis must pre-pay interest for the period of Sept. 2-Sept. 30. Use the 365-day method for prorating. What is her prepaid interest amount? $507.50 $525.00 $543.10 $558.58

An agency relationship may be involuntarily terminated for which of the following reasons? Condemnation of the property. Mutual consent. Full performance. Renewal of the agent's license.

An agent does not like a particular minority buyer, and is very short with the person, refusing to engage in lengthy conversation or show him any properties. A second minority party visits the office the next day. The agent is very forthcoming, and shows the person five prospective properties. This agent could be liable for providing unequal services. steering. misrepresentation. nothing; both parties were minorities, and therefore no discrimination occurred.

An agent enters into a listing agreement with a homeseller, but then becomes too busy to professionally fulfill the terms of the agreement. To solve the dilemma, the agent assigns the agreement to another licensee in the office. Which of the following is true about this situation? The agent cannot assign the listing agreement. The new listing agent acquires the full set of fiduciary duties owed to the client. The new broker has to split any commission that results with the assigning broker. The original broker has to disclose the assignment to the seller.

An investor paid $80,000 for a lot and $600,000 to have an apartment building constructed on it. He has depreciated the property for the past 10 years on a 39-year straight-line schedule. If he sells the property this year and realizes $780,000, what is his capital gain? $253,846 $274,000 $100,000 $179,000

An owner transfers title to a property to a buyer in exchange for a motorcycle. This is an example of voluntary alienation. involuntary liquidation. hypothecation. 1031 exchange.

As a component of real estate value, the principle of substitution states that if two similar properties are for sale, a buyer will purchase the cheaper of the two. if one of two adjacent homes is more valuable, the price of the other home will tend to rise. if too many properties are built in a market, the prices will tend to go down. people will readily move to another home if it is of equal value.

Chad owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Chad takes an annual cost recovery expense of $7,000. The property has a monthly gross income of $1,650 and monthly operating expenses of $600. Chad`s taxable income from this property will be taxed at a rate of 30%. What is the tax liability for the year? $1,680 $5,940 $2,100 $7,000

Christie is buying John`s house. The closing date (day belongs to seller) of the sale transaction is September 1 (day 244 of the year). Existing hazard insurance of $350 has been paid by John through December 31. Use the 365-day method for prorating. What is Christie`s share of the existing hazard insurance already paid in full? $116.03. $117.99. $232.01. $233.97.

Elmo Gilmore owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Elmo takes an annual cost recovery expense of $5,000. The property has a monthly gross income of $1,500 and monthly operating expenses of $500. Elmo`s taxable income from this property will be taxed at a rate of 30%. What is the tax liability for the year? $2,100. $3,600. $3,900. $7,000.

Following the client`s recommendation, an agent conceals the availability of a property from an employed but pregnant and unmarried minority woman. This agent could be liable for discriminatory misrepresentation by omission. steering. violating fiduciary duty. nothing: an agent may show or not show any property at his or her discretion.

Void Contracts

A void contract is not a contract and has no effect in a court of law and cannot be enforced in a court of law. Most commonly, a void contract will be missing one or all of the essential elements needed for a valid contract. Neither party needs to take action to terminate it, since it was never a contract to begin with.

George Scott hires Shannon Lang to sell his house, with the condition that he will not be the first one in the neighborhood to sell to members of a certain ethnic group. What should Shannon do about this condition? Inform Scott that the condition is illegal and that she cannot comply with it. Note the condition on the listing agreement and have Scott initial it. Pretend that she did not hear the condition and proceed to market the property to all groups. Tell Scott that she will try to discourage members of that group from looking at the property, but that she cannot control cooperating brokers.

Highest and best use of a property is that use which is physically and financially feasible, legal, and the most productive. is legal, feasible, and deemed the most appropriate by zoning authorities. entails the largest building that zoning ordinances will allow developers to erect. conforms to other properties in the area.

How does the secondary mortgage market aid borrowers seeking a mortgage loan? It cycles funds back to primary lenders so they can make more loans. It issues second mortgages and sells them in the home equity market. It lends funds to banks so they can make more loans. It pays off defaulted loans made by primary mortgage lenders.

How is a lien terminated? Payment of the debt that is the subject of the lien and recording of the satisfaction. Transfer of the property that has the lien. Recording of another lien that is superior. Death of the lienor or lienee.

In assisting a buyer or seller to complete an offer to purchase, what should an agent do to reduce the risk of committing an unauthorized practice of law? Use a standard contract promulgated by a state agency or a real estate board. Observe ethical standards promulgated by real estate trade organizations. Offer legal advice only on points of the contract that the agent is absolutely certain about. Write contract terms that are fair to both buyer and seller.

In the Rectangular Survey System, a section contains how many acres? 640. 320. 160. 40.

In the cost approach, after estimating the value of the land and the cost of the improvements, the appraiser estimates depreciation, subtracts depreciation from cost, and adds back the land value. subtracts deterioration from cost, estimates land depreciation, and totals the two values. estimates depreciation of land and improvements and subtracts the total from original cost. estimates obsolescence and subtracts from the cost of land and improvements.

In which of the following contact situations would a seller`s agent be expected to disclose his agency relationships? The agent is showing the client's property to a prospective buyer. The agent tells an acquaintance at a party about the client's property. The agent answers questions about the client's property for a telephone caller responding to a newspaper ad. The agent is showing a potential buyer houses in a certain price range in the multiple listing book.

Jennifer owns a one-half interest in a condominium as a tenant in common with her business partner. If Jennifer has several heirs and dies without a will, the property will pass to the heirs by the laws of descent and distribution. escheat to the state. pass to the surviving spouse based on homestead law. pass to the surviving heirs according to the provisions of the will.

Julie is buying Florence`s house. The closing date (day belongs to seller) of the sale transaction is September 1 (day 244 of the year). The buyer`s loan amount is $78,750 (90%; 30 years @ 8%). The monthly payment on this loan is $577.84, with $525 going to interest in the first month. At closing, Julie must pre-pay interest for the period of Sept. 2-Sept. 30. Use the 365-day method for prorating. What is Julie's prepaid interest amount? $507.50. $525.00. $543.10. $558.58.

Kevin, who works for selling broker Paul, sells a house listed by listing broker Adams. The house sells for $325,000. The co-brokerage split between Paul and Adams is 50-50. Kevin is on a 65% commission schedule with Paul. If the total commission rate is 6.5%, what is Kevin`s commission? $6,866 $5,282 $10,563 $13,731

Mary Carboy buys a house from Jim Schmidt and at the same time obtains an option to purchase the adjoining vacant lot for $10,000 within one year. A few months later, Carboy informs Schmidt that she is ready to exercise her option, but finds that Schmidt has received an offer of $12,000 from another party. Schmidt states that he will accept the offer unless Carboy is willing to match the $12,000 offer. Which of the following is true of this situation? Schmidt must sell to Carboy for $10,000. Carboy must pay $12,000 or lose the property. Schmidt may sell to Carboy or the other party, but the price cannot exceed $10,000. If the other party delivers payment before Carboy does, the option is canceled.

One of the primary benefits of recording conveyances is to give evidence to the public that the new owner actually owns the property. What is another benefit of recording to the homeowner? Recording instruments establishes the title's marketability. Recording the deed prevents any future clouds on title. Recording prevents lienholders from illegal credit practices. Recording the deed of conveyance nullifies any and all claims of adverse possession.

Ownership of real estate can be transferred voluntarily or involuntarily. The three ways title can be transferred voluntarily are by grant, deed, and will. escheat, deed, and covenant. title certificate, will, and deed. sale contract, deed, and warrant of seizin.

Real estate sales agents are legally authorized to represent their employing broker in procuring clients and customers. act directly on a client's behalf to discharge the broker's listing responsibilities. negotiate and execute contracts for sale on behalf of the client. take on the listing responsibilities for other listings in MLS.

Six investors purchase a shopping center. One investor manages the tenants and another handles the marketing and leasing. Two investors manage accounting and finance, and the remaining two run the management office. This is a possible example of a general partnership. a limited partnership. a real estate investment trust. an investment conduit.

The Americans with Disabilities Act requires property managers to ensure that disabled employees have the same level of access to facilities that all employees have. hire the disabled whenever possible. remove all existing barriers to the free movement of disabled persons within the property, regardless of the cost. remodel the ground floor of the property in accordance with ADA standards if it was built before 1978.

The Equal Credit Opportunity Act prohibits a lender from refusing a loan because the borrower does not match the lender's target market. including income from self-employment in the borrower's qualifying income. requiring both spouses to sign the loan application form. refusing a loan because a borrower has a defective credit report.Which laws or regulations require mortgage lenders to provide an estimate of closing costs to a borrower and forbid them to pay kickbacks for referrals? The Equal Credit Opportunity Act. Truth-in-Lending laws. the Real Estate Settlement and Procedures Act. Federal Fair Housing Laws.

The Uniform Residential Landlord and Tenant Act generally does not apply to a hotel. a single-family residence. a unit in an apartment building that has fewer than ten units. a duplex in which the owner occupies one of the units.

The area of agent activity where there is the greatest risk of creating a false impression that the licensee is a certified appraiser is performing a comparative market analysis. writing property advertisements. presenting written offers. researching ownership documents.

The difference between a balloon loan and an amortized loan is an amortized loan is paid off over the loan period. a balloon loan always has a shorter loan term. an amortized loan requires interest-payments. a balloon loan must be retired in five years.

The fair housing law that first protected people against discrimination in housing based on race was the Civil Rights Act of 1866. Civil Rights Act of 1968. Executive Order 11063 of 1962. Title VIII amendment to the Fair Housing Act.

The loan officer at Sixth Fourth Bank tells Amanda she can afford a monthly payment of $1,000 on her new home loan. Assuming this is an interest-only loan, and the principal balance is $249,000, what interest rate is Amanda getting? 4.82% 5.03% 6.25% 3.69%

The type of deed that offers the grantee the fullest protection against claims to the title is the general warranty deed. special warranty deed. quitclaim deed. bargain and defend deed.

Three students rent a house together, and all three sign a one-year lease. Six months later, two students move out. Which of the following is true of the remaining rent obligation? The remaining tenant is responsible for the full rent obligation. The remaining tenant is responsible for one third of the rent obligation. The lease is cancelled due to abandonment. Therefore, the rent obligation is extinguished. The departing tenants have no further rent obligation.

To be valid, a valid contract must reflect a mutual understanding or agreement. use precise wording in a document. not be executable. be created only by an attorney.

To reduce the risk of committing an error or omission in the contracting process, it is a good idea to use a checklist of all items, contingencies, dates and responsibilities that must be met. delegate some of your responsibilities to the licensee who represents the other party in the contract. call the buyer and seller daily to check on progress. cut the list of necessary tasks down to a few essentials and concentrate on tracking those.

What a buyer has to pay at closing is equal to the excess of the buyer's debits over the buyer's credits. the excess of the buyer's credits over the buyer's debits. the excess of the seller's debits over the seller's credits. the excess of the seller's credits over the seller's debits.

What distinguishes a lien from other types of encumbrance? It involves a monetary claim against the value of a property. It lowers the value of a property. It is created voluntarily by the property owner. It attaches to the property rather than to the owner of the property.

What is a tax deed? A conveyance instrument for a property that is sold to enforce a tax lien. A document recorded in title records showing that property taxes have been paid. A notice to a homeowner that a tax lien has been entered against the property. A document that gives a municipal authority the power to collect an individual tax bill.

What is the role of the Veteran`s Administration in the mortgage lending market? It guarantees loans made by approved lenders. It insures loans made by approved lenders. It purchases loans made by approved lenders. It originates loans made by approved lenders.

When vacancies are declining in a real estate market, it is common for the market to experience rising prices. falling prices. falling construction activity. falling absorption.

Which laws or regulations prevent mortgage lenders from discriminating in extending credit to potential borrowers? The Equal Credit Opportunity Act. Truth-in-Lending laws. The Real Estate Settlement and Procedures Act. Federal Fair Housing Laws.

Which of the following correctly describes the flow of money and documents in a mortgage loan transaction? a) The borrower gives the lender a note and a mortgage in exchange for loan funds. The lender gives the borrower a mortgage and receives a note in exchange for loan funds. The borrower receives a note in exchange for a mortgage from the lender. The lender gives the borrower a note, loan funds and a mortgage.

Legally Competent Parties

A person or entity (such as a business, trust or corporation) must be legally competent. If the party is a business, the person representing the business must also be legally competent and have the authority to act for the business.

A lender charges 5% interest on a $200,000 loan. What is the interest for the first year? a) $10,000 b) $20,000 c) $300,000 d) $400,000

A: $10,000

A property with an assessed value of $400,000 is taxed at a rate of $2.50 per $100 of assessed value. What is the tax amount? a) $10,000 b) $14,400 c) $18,544 d) $21,600

A: $10,000

Bob bought a truck for his brokerage. The truck cost was $10,000. He put $4,000 down and received a loan for $6,000. The truck would show up under assets on the balance sheet for what amount? a) $10,000 b) $6,000 c) $5,000 d) $4,000

A: $10,000

The fine for the first offense of unlicensed professional real estate activity is_______________________________. a) $100 to $500 b) $300 to $600 c) $500 to $1,000 d) $2,000

A: $100 to $500

A two-story house measures 48` x 25` and costs $70 per sq. ft. to build. What is the construction cost of the house? a) $168,000 b) $178,000 c) $200,000 d) $204,000

A: $168,000

A 40 unit apartment building is being sold, with a closing date of April 23rd. 10 of the units pay $1,500 per month for rent and 30 of the units pay $1,700 per month rent. All of the tenants have paid their rent through April 30th. What is the share of rents that the seller will owe at closing? a) $17,600 b) $15,050 c) $8,090.50 d) $7,999.20

A: $17,600

The seller has not paid the property taxes and closing is on Nov 1st. The property taxes are $8,800. How much will the seller owe the buyer for taxes at closing? a) $2,932.80 b) $3,000.50 c) $2,555.50 d) $22,339.60

A: $2,932.80

How much is the tax exemption amount for the sale of a primary residence for a single person? a) $250,000 b) $500,000 c) $600,000 d) $700,000

A: $250,000

A property has a market value of $400,000. The assessment ratio is 80% and the assessment rate is 21 mills per $100 of assessed value. How much is the tax? a) $6,720 b) $11,440 c) $15,500 d) $19,620

A: $6,720

The Andersons` are selling their property and the transaction is closing on July 31st. The annual hazard insurance premium is $2,500 which provides coverage through the end of Oct 31st. What would be the refund to the sellers? Use a 360 day calendar for your calculations. a) $624.60 b) $676.90 c) $777.88 d) $799.50

A: $624.60

A 20 unit apartment building is being sold, with a closing date of April 23rd. 12 of the units pay $1,400 per month for rent and 8 of the units pay $1,700 per month rent. All of the tenants have paid their rent through April 30th. What is the share of rents the seller will owe at closing? a) $8,106 b) $8,100 c) $8,000 d) $7,106

A: $8,106

The Oregon Homestead exemption would apply to proceeds of a sale so long as they were used to purchase another residence within _______following the sale a) 1 year b) 2 years c) 3 months d) 6 months

A: 1 year

The value of the property is $322,330. The annual tax on the property is $4,000. What is the tax rate? a) 1.24% b) 1.3% c) 1.5% d) 1.6%

A: 1.24%

When reporting the sale of real property it is also the responsibility of the seller to report the sale on their individual IRS ____________ Form. a) 1040 b) 1099 c) W-2 d) 1031 exchange

A: 1040

Convert feet to miles. 73,570 feet = _______________miles a) 13.93 b) 14.01 c) 33.2 d) 13.88

A: 13.93

The Sherman Anti-Trust Act was enacted in__________________________. a) 1890 b) 1915 c) 1930 d) 1944

A: 1890

Closing is on September 25th. The seller has not paid the property taxes for the year. How many days will the seller owe for property taxes? a) 84 b) 85 c) 81 d) 101

A: 84

Which of the following is true of a cooperative? a) A cooperative may hold an owner liable for the unpaid operating expenses of other tenants. b) The owners have a fee simple interest in the airspace of their respective apartments. c) Owners may sublease their apartments even if they sell their stock in the cooperative. d) The proprietary lease is guaranteed to have a fixed rate of rent over the life of the lease term.

A: A cooperative may hold an owner liable for the unpaid operating expenses of other tenants.

When a private landowner grants an easement to the government, this is known as: a) A dedication easement b) A license c) Either of the above d) Neither of the above

A: A dedication easement

Which of the following is true of a homestead? a) A homestead interest cannot be conveyed by one spouse. b) A homestead interest cannot be passed to the children of the head of household. c) A homestead interest is a form of conventional life estate. d) A homestead is a primary or secondary residence occupied by a family.

A: A homestead interest cannot be conveyed by one spouse.

Negative Amortization on an ARM loan can happen because of: a) A payment cap b) A convertible clause c) A periodic cap d) A lifetime or overall cap

A: A payment cap

Researching the transfer of real property and any encumbrances, transfers or defects is known as: a) A title search b) A cloud on a title c) A title insurance d) A quiet title action

A: A title search

The index + the margin = a) ARM interest rate b) the ARM conversion fee c) the ARM prepayment penalty d) None of the above

A: ARM interest rate

The index + the margin = ___________________________________ a) ARM interest rate b) The ARM conversion fee c) The ARM prepayment penalty d) None of the above

A: ARM interest rate

In most states, transaction files must usually be kept: a) At the location where the brokerage is located b) At the department of Licensing c) At the licensee's home office d) None of the above

A: At the location where the brokerage is located

__________is the legal process in which a person or firm declares inability to pay debts a) Bankruptcy b) Partition suit c) Foreclosure d) none of the above

A: Bankruptcy

___________________is/are the behavior that a business follows in its daily dealings. a) Business ethics b) Statistics c) Trade secrets d) Project deadlines

A: Business ethics

a violation of any license law provision is a________________________. a) Class A misdemeanor b) Class B misdemeanor c) Class A felony d) Class B felony

A: Class A misdemeanor

Which of the following might be a reason for a landlord to have a graduated lease? a) Covers the expected increases for expenses of the landlord b) Covers the expected increase for expenses for the tenant c) Both a and b d) Neither a nor b

A: Covers the expected increases for expenses of the landlord

In Oregon, (DOR) is an acronym for: a) Department of Revenue b) Director of Revenue c) Department of Recording d) Director of Recording

A: Department of Revenue

To convert smaller units of measurement to a larger one ___________________ a) divide by the conversion b) multiply by the conversion c) add the conversion d) subtract the conversion

A: Divide by the conversion

EIN is an acronym for: a) Employer Identification Number b) Effective Identification Number c) Equity Identification Number d) Employer Interstate Identification number

A: Employer Identification Number

NEPA is administered by the ________________________ a) Environmental Protection Agency (EPA) b) Federal Trade Commission (FTC) c) Department of Justice (DOJ) d) Department of the Interior

A: Environmental Protection Agency (EPA)

___________ is the power of a state to take title to property for which there is no owner a) Escheat b) Eminent domain c) Police power d) condemnation

A: Escheat

____________________generally deal with corporate values and guiding principles a) Ethics codes b) Morals c) Situational ethics d) Mitigation

A: Ethics codes

The___________________________ assumes there is a ratio between the purchase price and the gross income the rental house produces. a) Gross Rent Multiplier b) Gross Return Multiplier c) General Reserve Multiplier d) General Reserve Market

A: Gross Rent Multiplier

HOA is an acronym for ____________________________ a) Homeowner's association b) Homeowner's affiliates c) Homeowner's affidavit d) Homeowner's appraisal

A: Homeowner's association

Estate at sufferance is a lease where the tenant is occupying the property __________________________. a) illegally and without the consent of the landlord b) with the permission of the landlord c) with permission of the landlord to not make rent payments until repairs are made d) with the permission of the landlord for the tenant to make lower rent payments while the tenant is disabled

A: Illegally and without the consent of the landlord

If an owner of real property dies intestate and has no legal heirs, what will happen to the property? a) It will escheat to the state or county. b) It will transfer to the decedent's executor. c) It will be divided equally among adjoining property owners. d) It will become a public easement.

A: It will escheat to the state or county.

Mortgages are usually foreclosed: a) Judicially b) Non-judicially c) Either d) Neither

A: Judicially

The property tax year starts on _______and continues through the following ______of the next year a) July 1st, June 30th b) January 1st, December 31st c) May 1st, April 30th d) September 1st, August 31st

A: July 1st, June 30th

LAN is an acronym for: a) local area network b) limited area networks c) linked area networks d) local area navigation

A: Local Area Network

_____________________means an Agency audit of a clients` trust account based on information and documents prepared by a property manager and mailed to the Agency. a) Mail-in audit b) Mail-in affidavit c) Mail-in deposition d) Mail-in conversion

A: Mail-in audit

With an ORVET loan the property must be located in________________________ a) Oregon b) The continental U.S. c) in an urban area d) anywhere

A: Oregon

Environmental laws in Oregon can be found at which website? a) Oregon Department of Environmental Quality b) Oregon Department of the Interior c) Oregon Real Estate Agency d) none of the above

A: Oregon Department of Environmental Quality

The _____________________specializes in providing assistance to first time buyers. a) Oregon bond program b) Oregon department of veterans affairs c) Oregon special assessment program d) Oregon rezones program

A: Oregon bond program

_____________________can include virtues like trust, loyalty and commitment, honesty and respect for one another, and avoiding conflicts of interest. a) Organizational values b) Organizational dedication c) Organizational accountability d) Organizational punctuality

A: Organizational values

The "four unities" required to create a joint tenancy include which of the following conditions? a) Parties must acquire respective interests at the same time. b) Parties must be residents of the same state at the time of acquiring the interest. c) Parties must be family members. d) Parties must have joint financial responsibility.

A: Parties must acquire respective interests at the same time.

A broker who drafts their own clauses in a purchase and sale agreement contract could most likely be accused of what? a) Practicing law without being an attorney b) Anti-Trust Violations c) Kickbacks d) Improper handling of earnest money

A: Practicing law without being an attorney

________________________________involves making sure the affiliates/employees have the tools necessary to do their job. a) Provisioning b) Leasing c) Impounding d) All of the above

A: Provisioning

In most cases, a builder or subdivider who is a real estate broker is regulated by the ________________________. a) Real Estate Agency b) The Attorney General c) Both a and b d) Neither a not b

A: Real Estate Agency

REIT is an acronym for: a) Real Estate Investment trust b) Real Estate Intrest Trust c) Real Estate Interim Trust d) Real Estate Income Trust

A: Real Estate Investment Trust

You are a listing agent. You meet a buyer who does not have representation and wants to purchase a property that you have listed. You do not want to be a dual agent. What should you do? a) Refer the buyer to another agent who can represent them b) Write up the offer as you would any other offer c) Explain to the buyer that they cannot purchase this property d) none of the above

A: Refer the buyer to another agent who can represent them

John has a listing. Mary is representing clients who want to make an offer on John`s listing. The seller is paying a 6% commission to be split as follows: 2.5% to the listing office and 3.5% to the office that procures the buyer. Since the seller is paying the commission, who can Mary represent? a) she can represent her client as a buyer's broker b) she cannot represent anyone since the seller is paying the commission c) both a and b d) neither a nor b

A: She can represent her client as a buyer's broker

The foundation for federal Anti-Trust laws is the ___________of 1890. a) Sherman act b) Clifton act c) FHA act d) executor act

A: Sherman act

This is an agency where a prospective tenant hires a broker as their agent to procure a rental or lease of a property. What is the name of this agency? a) Tenant representation b) Landlord representation c) Express agency d) Implied agency

A: Tenant representation

_______________________________is intended to promote accuracy and guard the privacy of the information used in consumer reporting. a) The Fair Credit Reporting Act (FCRA) b) The Family Credit Reporting Act (FCRA) c) The Federal Credit Reporting Act (FCRA) d) The Federal Credit Recording Act (FCRA)

A: The Fair Credit Reporting Act (FCRA)

______________________________________________administers and enforces federal laws and establishes policies that ensure all citizens of the US have equal access to the housing of their choice. a) The Office of Fair Housing and Equal Opportunity (FHEO) b) The Office of Federal Housing and Equal Opportunity (FHEO) c) The Office of Federal Housing and Effective Opportunity (FHEO) d) The Office of Fair Housing and Effective Opportunity (FHEO)

A: The Office of Fair Housing and Equal Opportunity (FHEO)

Which of the following happens when a leased property is sold? a) The buyer acquires title subject to the lease, which remains in effect. b) The lease is cancelled. c) The lease expires within thirty days unless renewed. d) A new lease is automatically executed.

A: The buyer acquires title subject to the lease, which remains in effect.

Adjustments for differences in comparables should be made to: a) The comparable b) The site c) Both the site and the comparable d) Adjustments are not allowed

A: The comparable

When a conversion takes place from an ARM to a fixed-rate, the interest rate is usually set at: a) The current rate for fixed mortgages b) 2% above the current rate for fixed mortgages c) The Treasury security rate d) The cost of funds to saving and loan institutions

A: The current rate for fixed mortgages

A broker made an error that did not benefit the seller (principal) and the seller had no knowledge of this error. Under the vicarious liability code: a) the principle is not liable for the error b) the principle is liable for the error c) may be liable for the error d) none of the above

A: The principle is not liable for the error

Real estate commissions are negotiated between: a) The seller and their broker b) Set by the MLS c) Set by a group of local brokerages d) Set by state law

A: The seller and their broker

The two major components of a comparable market analysis (CMA) are: a) The site and the comparables b) The building plans and the comparables c) The as-built drawings and the comparables d) None of the above

A: The site and the comparables

When each joint tenant has an equal interest in the property, this is known as ___________________________ a) the unity of interest b) the unity of title c) the unity of time d) the unity of possession

A: The unity of Interest

A lender changed the loan structure with a different loan product after issuing a Loan Estimate Form, what is the requirement under TRID rules? a) This would then trigger a new 3-day waiting period and a new LE b) It would terminate the original application by the borrower c) The borrower would be stuck with the new arrangement d) The real estate agent could become liable

A: This would then trigger a new 3-day waiting period and a new LE

________________requires that businesses with 15 or more employees may not discriminate in hiring or promotion, or job placement against an individual with a disability if the person is otherwise qualified to perform the job. They must also make reasonable accommodation for such an individual in the form of restructuring the job, modifying work schedules, acquiring or modifying existing equipment. a) Title I of the Americans with Disabilities Act b) Title II of the Americans with Disabilities Act c) Title III of the Americans with Disabilities Act d) Title IV of the Americans with Disabilities Act

A: Title I of the Americans with Disabilities Act

FEMA is a division of the _________________________________. a) U.S Department of Homeland Security b) The National Insurance Commission c) U.S. Department of the Treasury d) U.S. Department of the Interior

A: U.S Department of Homeland Security

___________________________________are payments to a mortgage broker by a lender for originating and processing a mortgage loan with a higher interest rate (called an above-par loan) than the lender would normally offer. a) Yield spread premiums b) Loan origination fees c) Points d) Both b and c

A: Yield spread premiums

All advertising falls under the direct supervision of__________________________. a) a broker's principal broker b) a broker's staff personnel c) the Commissioner d) the Attorney General

A: a broker's principal broker

The closing statement will specify the total amount the buyer will need to close the transaction (closing costs plus their down payment minus the amount of their earnest money). Most closing agents require this money be in the form of____________________. a) a cashier's check b) a personal check c) a money order d) a promissory note

A: a cashier's check

A break in the chain of title to a property results in a) a clouded title. b) a title plant. c) a lien of indeterminate ownership. d) a duplicate title.

A: a clouded title

A tenant continues to occupy an apartment after lease expiration without the consent of the landlord. This type of estate is called a) an estate at sufferance. b) a holdover estate. c) a canceled leasehold. d) a hostile leasehold.

A: an estate at sufferance.

Lenders might require an inspection of the property before granting a construction loan to be sure that work has not started before their lien is recorded. This is to ensure that __________________ a) a construction lien does not take priority over their lien b) that the work will be completed on a scheduled date c) no other lender has a loan on the construction project d) none of the above

A: a construction lien does not take priority over their lien

Real property, according to this section, includes___________________ a) a dwelling b) utilities c) furnishings d) appliances that are not built in

A: a dwelling

___________________________is a contract between the buyer and the seller of real property and a real estate broker or principal real estate broker where the broker has been authorized to act as an agent for the seller for compensation to offer the real property for sale and to find and obtain a buyer. a) a listing agreement b) a buyer service agreement c) a feasibility study d) title search

A: a listing agreement

Because of the detailed nature of property management, ____________________may not want to devote the time it takes to oversee and supervise affiliates who are performing property management activities. a) a principal broker b) a title officer c) the commissioner d) both b and c

A: a principal broker

The right to control land usage by zoning and eminent domain is an example of a public interest. a police interest. an encumbrance. an estate in law.

A: a public interest

A principal broker in Oregon is allowed store real estate records in _______________________, other than the main office of the principal broker or a branch office so long as certain criteria are met. a) a single location in Oregon b) multiple locations in Oregon c) a single location outside of the State of Oregon d) multiple locations outside of the State of Oregon

A: a single location in Oregon

A non-profit organization wants to erect an urgent care facility in a residential zone. Given other favorable circumstances, the local authorities may grant permission by allowing a) a special exception. b) an illegal nonconforming use. c) an easement. d) a license.

A: a special exception.

What is an identifying code? a) a unique series of letters and/or numbers assigned by a property manager to a property management agreement at the time the agreement b) a number assigned to the property manager by the IRS c) a number assigned to the property manager from the Property Management Institute d) a code that is assigned by the State or Oregon for property management

A: a unique series of letters and/or numbers assigned by a property manager to a property management agreement at the time the agreement

Capacity refers to the borrower`s: a) ability to repay the loan b) ability to own more then one home c) ability to have their income double within 10 years d) none of the above

A: ability to repay the loan

An implied contract is created by the____________ of the parties. a) actions b) verbal words c) written words d) none of the above

A: actions

_______________occurs when the landlord removes the tenant from the property. a) actual eviction b) constructive eviction c) Illegal eviction d) both b and c

A: actual eviction

The Loan Estimate and Closing Disclosure Forms were designed by the CFPB to provide consumers/borrowers with: a) additional information required under the Dodd-Frank Act b) information on lender loans c) protection from defaulting on loans d) payment if loans defaulted during their lifetime

A: additional information required under the Dodd-Frank Act

Recorded plats may be amended or changed by a/an _______________ a) affidavit of correction b) binding sales agreement c) dedication d) partitioning

A: affidavit of correction

A parent company owns both a lending company and an appraisal company. This is an example of a/an ______________________________. a) affiliated business arrangement b) lis pendens c) doctrine of laches d) none of the above

A: affiliated business arrangement

The purpose a/an _________________________________is to inform consumers that they are generally not required, with certain exceptions, to use the affiliate and are free to shop for other providers. a) affiliated business arrangement disclosure b) ARM disclosure statement c) servicing transfer disclosure statement d) initial escrow account statement

A: affiliated business arrangement disclosure

A licensee may use "team" or "group" to advertise if the team has at least one licensed broker and they all are_________________________________. a) affiliated with the same principal broker b) affiliated with different principal brokers c) licensed d) unlicensed

A: affiliated with the same principal broker

______________are those duties which a licensee owes to their clients, customers and other third parties. a) affirmative duties b) administrative duties c) Fiduciary d) none of the above

A: affirmative duties

The relationship between the broker and their principal is referred to as: a) agency b) equitable c) estoppel d) encumbrance

A: agency

Generally speaking, a lender will not consider a short sale without______________________ a) an actual bona fide offer b) first serving a notice of default c) first serving a notice of trustee's sale d) first having the sheriff's sale

A: an actual bona fide offer

If you receive benefits, such as insurance, pension, or paid leave, this is an indication that you may be________________________. a) an employee b) an independent contractor c) an employer d) none of the above

A: an employee

Sam had a lease to occupy an apartment with a term from Feb. 1st through July. 1st. At the end of the term, his landlord gave him proper legal notice to vacate. Sam paid no attention to the notice, stopped paying rent of any kind and still occupies the property on Nov. 1st. This is an example of__________________. a) an estate at sufferance lease b) periodic lease c) estate for years lease d) estate at will lease

A: an estate at sufferance lease

Sue has a lease for one year (an estate for years lease). The one year lease has expired and she is in the process of negotiating a new lease with the landlord. She continues to pay her rent according to the terms of the expired lease. This situation is now: a) an estate at will b) a life estate c) a periodic estate d) an illegal estate

A: an estate at will

A real property interest that includes the right to possess is considered a) an estate in land. b) a leasehold estate. c) a fee simple estate. d) the bundle of rights.

A: an estate in land.

When should you seek advice or assistance from your broker: a) anytime you feel you or your brokerage may be at risk b) only if you are a new licensee c) only if your client requests you do so d) only when there is a problem in escrow

A: anytime you feel you or your brokerage may be at risk

What might be most affected by drainage issues? a) basements, crawl spaces and foundation b) roofs c) eaves d) ridge beams

A: basements, crawl spaces and foundation

As easement appurtenant burdens one parcel of property for the ________ of another property a) benefit b) merger c) license d) conveyance

A: benefit

Ownership of personal property is transferred using a____________ a) bill of sale b) deed c) deed of trust d) mortgage

A: bill of sale

The builder or property owner must obtain a ______________________before starting new construction or major remodeling a) building permit b) license c) covenant d) all of the above

A: building permit

The landlord is required to provide trash cans and arrange for removal, ____________________________. a) but the tenant may be asked to pay for the service b) and the landlord must for this service c) only if in the verbal lease agreement d) none of the above

A: but the tenant may be asked to pay for the service

For most types of real property, the profit realized on a sale is considered a __________________________. a) capital gain b) capital loss c) deferred gain d) either a or b

A: capital gain

The highest bidder on the property, foreclosed through a mortgage will receive a ____________________. a) certificate of sale b) trustee's deed c) certificate of purchase d) certificate of loss

A: certificate of sale

A ____________________________uses only personal property as collateral. a) chattel mortgage b) blanket loan c) construction mortgage d) purchase money mortgage

A: chattel mortgage

The term ___________refers to a deed (title to real property) which has been recorded but includes unusual items that would give a reasonable person pause before accepting title a) cloud on title b) lis pendens c) standard coverage d) extended coverage

A: cloud on title

The practice of mixing trust account funds with that of the brokerage`s regular checking account funds is called ____________. a) commingling b) lis pendens c) life estate d) an encumbrance

A: commingling

To make sure that there are no major changes to the original loan proposal by the lender, the borrower can: a) compare the figures of the Closing Disclosure Form and whether they match the figures on the original Loan Estimate Form b) look to the prequalification statement by the lender c) talk with their real estate agent and compare notes d) look up the average loan rates for lenders in the area

A: compare the figures of the Closing Disclosure Form and whether they match the figures on the original Loan Estimate Form

_______________________________is the most common remedy for a breach of contract, given that there was not a liquidated damages clause. The amount awarded is usually intended to place the non-breaching party in a financial position that they would have been placed in if the breaching party had performed as per the terms of contract. a) compensatory damages b) specific performance c) rescission d) novation

A: compensatory damages

When a tenant rents an apartment, he or she is usually responsible for compliance with the rules and regulations of the building. payment for any alterations to the leased space. recording the lease in title records. occupying the premises throughout the lease term.

A: compliance with the rules and regulations of the building

The purpose of a ____________is to manage growth and land use in an organized fashion to benefit the city or the county and its citizens a) comprehensive plan b) unlawful detainer c) price fixing d) Truth in Lending Act

A: comprehensive plan

A ________________________is an interim loan covering construction and development costs, secured by a mortgage on the property financed. a) construction loan b) reverse mortgage loan c) participation loan d) home equity

A: construction loan

Which of the following is not one of the three main violations of the Anti-trust violations in the real estate industry? a) constructive eviction b) conspiracy to fix prices c) imbalanced commission splits d) conspiracy to boycott

A: constructive eviction

In general, lien priority is established by the______________________. The first to record has the highest priority a) date of recording b) highest dollar amount of the lien c) lowest dollar amount d) different in every county where it is recorded

A: date of recording

As a real estate professional, care must be taken not to advise your client that the _______will automatically be forgiven in a short sale. a) debt b) Certification identification number c) dividends d) none of the above

A: debt

A ______________________in a mortgage or deed of trust provides for the cancellation of the lender`s interest when the debt has been paid in full. a) defeasance clause b) subordination clause c) lock-in-clause d) prepayment penalty

A: defeasance clause

A person may ______________by using an installment sale. a) defer tax on a gain b) defer tax on a loss c) avoid income tax d) avoid capital gain tax

A: defer tax on a gain

Through________________, a manager is able to divide the work and allocate it to the subordinates. a) delegation b) subordination c) insubordination d) implication

A: delegation

When the landlord tells the tenant they have the right under a rental agreement to occupy the dwelling unit to the exclusion of others, and gives them the keys, this is known as: a) delivery of possession b) the right to vacate c) lawful detainer d) pay rent or vacate

A: delivery of possession

Within a brokerage, a situation may arise where one licensee that is affiliated with a brokerage is representing a seller and another licensee that is affiliated with the same brokerage is representing the buyer (in the same transaction). This situation is legal in Oregon State and the principal broker of the firm becomes a ____________________. a) disclosed limited agency or designated agency b) implied agency c) facilitator agency d) none of the above; buyer and seller must be represented by different firms

A: disclosed limited agency or designated agency

Jack had a meeting with the Browns, who had a residence in Eugene, OR. Mr. Brown lost his job and they were behind on their payments. The Browns asked Jack if a short sale was the best alternative for them. How should Jack respond? a) discuss their alternatives and suggest they seek professional legal and tax advice b) tell them a short sale will be the best thing for them and have better tax consequences than other alternatives c) tell them a short sale will bring them more net proceeds than other alternatives d) tell them they should not do a short sale and should walk away from the property and let it foreclose.

A: discuss their alternatives and suggest they seek professional legal and tax advice

Errors and omissions policies ___________ cover(s) illegal acts on the part of real estate brokers. a) do not b) usually c) always d) sometimes

A: do not

The "bundle of rights" refers to a set of rights a) enjoyed by the owner of a property. b) that is synonymous with the Bill of Rights. c) guaranteed to citizens by the Statute of Rights. d) specified in a deed or land contract.

A: enjoyed by the owner of a property.

Each party must be legally competent to contract. They must _________________. a) exist and be identifiable b) reside in the same state c) have an installment contract only d) have an unilateral contract only

A: exist and be identifiable

If the easement was for a specific period of time, and the time has lapsed, then the easement could be cancelled due to ________________ a) expiration b) abandonment c) written release d) merger of the dominant and servient properties

A: expiration

______________________is created by either an oral or written agreement between the principal and the broker. It indicates their express intent for this representational status. a) express agency b) implied agency c) estoppel agency d) none of the above

A: express agency

Placement of trust funds received by a property manager must be placed in a _____________________________________trust account. a) federally insured interest-bearing b) state insured bank account c) the broker's personal account d) none of the above

A: federally insured interest-bearing

Declarant means the person who_____________________ a) files a declaration b) receives a declaration c) any county worker who accepts a declaration d) none of the above

A: files a declaration

A _____________is an asset that is expected to serve the firm for many years. a) fixed asset b) current asset c) total asset d) asset protocol

A: fixed asset

An estate for years is a lease for a_____________________________. a) fixed period of time b) exactly one year c) exactly two years d) a person's lifetime

A: fixed period of time

The _____________is also crucial -- whether it points the way for employees to do business with integrity or just sets out some prohibitions that the corporation feels are not right. a) focus of a code b) area of situational ethics c) competition d) none of the above

A: focus of a code

Subprime loans carry a higher rate of interest than prime loans to compensate_______________. a) for increased credit risk b) the borrower c) for decreased credit risk d) the seller

A: for increased credit risk

__________________________________is when all of the parties have performed their obligations under a contract and a contract is discharged. a) full performance b) Partial performance c) Rescission d) Executory

A: full performance

The formula, net profit divided by total assets = return on assets. This financial ratio is used to measure how effectively assets are used to______________________. a) generate a return b) create liabilities c) turn inventory d) none of the above

A: generate a return

When a tenant fails to pay the rent as per the rental agreement, the landlord is required by law to________________. a) give notice to the tenant b) remove the tenant from the premises immediately c) call the sheriff immediately d) call the police immediately

A: give notice to the tenant

Of special interest to real estate brokers is the Oregon Department of Environmental Quality website "Calculate my Carbon Footprint", then click on_________________ a) housing b) clean air c) clean water d) wildlife

A: housing

A prepayment penalty can substantially _________________when refinancing a mortgage. a) increase the cost to the borrower b) decrease the cost to the borrower c) increase the cost to the lender d) none of the above

A: increase the cost to the borrower

To amortize a loan, the payments must be large enough to pay not only the _____ that has accrued but also to reduce the _______ owed. a) interest, principle b) title, interest c) balance, vesting d) certificate, business

A: interest, principle

In Oregon, the homestead exemption__________________ a) is automatic b) is granted by the state through an application process c) is granted by the county through an application process d) is granted by the city through an application process

A: is automatic

When there is more than one ___________on a property, the negotiations for a short sale become increasingly more difficult a) lender b) owner c) building d) easement

A: lender

Who holds title to the property in a title theory state? a) lender b) trustee c) seller d) borrower

A: lender

A lease agreement is an agreement where a property owner, a ____________allows a tenant, a____________________ to use the property for a specified period of time and for a specific amount of rent. a) lessor, lessee b) lessee, lessor c) vendor, vendee d) vendee, vendor

A: lessor, lessee

The property manager acts as a/an ____________between the tenant and the landlord. a) liaison b) fiduciary c) arbitrator d) escrow

A: liaison

The broker does not have a duty to investigate matters that are outside the scope of the real estate licensee`s expertise unless the ___________________________________. a) licensee agrees in writing to investigate a matter b) the seller specifically requests that he/she do so c) the buyer specifically requests that he/she do so d) none of the above

A: licensee agrees in writing to investigate a matter

The lender will file a complaint through the court and record a notice of _________________________. The complaint will state the amount of the debt, and reason that the default should allow the lender to foreclose on the property which was given as security for the loan. a) lis pendens b) parol evidence c) pay rent or quit d) retaliation

A: lis pendens

The Plat Law provides for the legal separation of property within Oregon. It is regulated by the __________________________where the property is located. a) local jurisdiction b) state jurisdiction c) local sheriff d) local police

A: local jurisdiction

The TRID forms must be used for all real estate transactions involving a(n): a) new closed-end consumer mortgage application b) new open-end consumer mortgage application c) a new home equity loan d) a new loan for a mobile home on rented land

A: new closed-end consumer mortgage application

Commercial facilities, such as factories, must comply with the ADA`s architectural standards for _________________ a) new construction b) old buildings c) historical registry buildings d) none of the above

A: new construction

Conventional loans are any loans which are ______________________________. a) non government loans b) VA loans c) FHA loans d) USDA loans

A: non government loans

In terms of the Non-Government Survey System Section #1 is located in the __________________ corner of a township a) northeast b) southeast c) northwest d) southwest

A: northeast

Unlike other investments, property ownership is_____________ a) not highly liquid b) is usually highly liquid c) always producing a higher return d) is never producing a higher return

A: not highly liquid

Some brokerages require their affiliates to add the brokerage to their auto insurance policy because___________________________________. a) of liability issues b) the principal broker will need to use the affiliates car for listing presentations c) the staff at the brokerage will need to use the affiliates car to deliver documents to the closing agent d) none of the above

A: of liability issues

When involved in a short sale, a licensee should not advise their client: a) of the credit implications of a short sale b) to see legal and tax advice c) on the latest communication with their lien holder d) that they will receive no net proceeds from the sale of the property on short sale

A: of the credit implications of a short sale

Funds may not be transferred from an escrow trust account to a brokerage`s trust account or vice versa without written permission ___________________________. a) of the principals b) from the escrow closing agent c) from the principal broker d) Commissioner

A: of the principals

A/an ______________________________________can also be used as an effective training tool with employees and independent contractors. It specifies behaviors that are and are not permissible. a) office policy and procedures manual b) letter from an escrow agent c) letter for a co-op broker d) none of the above

A: office policy and procedures manual

Office standards for both employees and independent contractors should be in writing in the form of a/an _______________________. a) office policy manual b) letter from the Commissioner c) informal memo from the principal broker, written every week d) a compilation of employee requests

A: office policy manual

Disclosed limited agency can be established_____________________________ a) only by written agreement b) only by verbal agreement c) by verbal or written agreement d) by the actions of the parties

A: only by written agreement

Filing for bankruptcy ___________________________foreclosure. a) only temporarily stops b) permanently stops c) never delays d) has no effect

A: only temporarily stops

An/an _______________________is a provision in a mortgage contract, in some states, that declares the mortgaged real estate may be used as security for future additional advances from the original lender, if the lender and borrower agree. All subsequent advances under this clause represent a claim on the property dating back to the time of recording the original mortgage. It is similar to an open line of credit. a) open-end mortgage b) closed end c) either a or b d) neither a nor b

A: open-end mortgage

Mortgage brokers, mortgage bankers, credit unions and banks are all part of the ____________________. a) primary market b) secondary market c) both a and b d) Neither a nor b

A: primary market

________________________________involves making sure the affiliates/employees have the tools necessary to do their job. a) provisioning b) leasing c) impounding d) all of the above

A: provisioning

Usually, the instructions for the handling of earnest money are stated is the _____________________________. a) purchase and sale agreement b) property management agreement c) Either a or b d) Neither a nor b

A: purchase and sale agreement

A __________________________________________mortgage is a home financing technique where the buyer borrows from the seller instead of, or in addition to, a bank. a) purchase money b) construction c) take-out d) blanket

A: purchase money

A buyer who did not have enough money for a down payment on a regular loan might desire a: a) purchase money mortgage b) an FHA loan c) A conventional loan d) an interest only loan

A: purchase money mortgage

A buyer is purchasing property for her sole ownership while involved in a pending divorce. What document might escrow want signed? a) quit claim deed signed by the other spouse b) writ of execution sighed by the other spouse c) unlawful detainer signed by the other spouse d) satisfaction of judgment signed by the other spouse

A: quit claim deed signed by the other spouse

The Oregon Real Estate Agency performs _______ audits of real estate brokerages, investigates matters reported by licensees and responds to complaints from the public. a) random b) monthly c) yearly d) none of the above

A: random

To be valid, a local zoning ordinance must a) reasonably promote community health, safety and welfare. b) comply with federal zoning laws. c) apply only to unique properties. d) published periodically in the local newspaper.

A: reasonably promote community health, safety and welfare.

A ______________ is a deed conveying title from the trustee back to the borrower, such as when the borrower pays off the loan that was secured by the real estate a) reconveyance deed b) warranty deed c) bargain and sale deed d) quit claim

A: reconveyance deed

The Civil Rights Act of 1968 expands the definition of discrimination to include not only race, but also national origin, color, and ______. a) religion b) military discharge status c) sexual d) disability

A: religion

Properties owned by _____________ may be exempt for general property taxes a) religious groups b) high tech companies c) medical manufacturing company d) real estate companies

A: religious groups

The formula net profit divided by equity = ____________________________. a) return on equity b) gross sales c) total sales d) liabilities

A: return on equity

The market that purchases loans from the primary loan originators is the: a) secondary market b) purchase money mortgage market c) ARM market d) interest rate adjustment market

A: secondary market

For you to take a home mortgage interest deduction, your debt must be __________________________. a) secured by a qualified home b) unsecured by a qualify home c) free and clear d) both b and c

A: secured by a qualified home

The covenant of _________states that the grantor owns the property being transferred and that the grantee will have peaceable possession a) seizen b) further assistance c) against encumbrances d) right to convey

A: seizen

Carissa and Robert acquire a condominium as tenants in common. In this circumstance, Carissa can a) sell her interest to a third party without the consent of Robert. b) use her interest in the estate to mortgage the entire estate. c) sell her interest only to Robert. d) sell encumber or transfer her interest only with the consent of Robert.

A: sell her interest to a third party without the consent of Robert.

Sonia buys a 4-bedroom condominium. As the new owner, she has the right to a) sell or mortgage the unit without impediment from individual owners of neighboring units. b) sell the interest in the physical unit separately from the interest in the common elements. c) prevent non-owners from using the unit owner's portion of the common elements. d) exclusively possess and use those portions of the common areas structurally or functionally necessary for the operation of the unit.

A: sell or mortgage the unit without impediment from individual owners of neighboring units.

A tenant in common can a) sell or transfer his interest without the consent of the other tenants in common. b) use his or her interest in the estate to encumber the entire estate. c) sell, encumber or transfer his or her interest only to the other tenants in common. d) sell, encumber or transfer his or her interest only with the consent of all the other tenants in common.

A: sell or transfer his interest without the consent of the other tenants in common.

Mrs. Harmon received an offer to purchase her property from Tom, the buyer`s broker. The offer has not yet been accepted. According to legal definition what would be the name of the status of Mrs. Harmon? a) seller b) buyer c) optionee d) optioner

A: seller

Real estate sales commissions are usually paid by the _________ a) seller b) buyer c) lender d) none of the above

A: seller

The _____________________is responsible for the representations in the seller`s disclosure statement. a) seller b) buyer c) closing agent d) Real Estate Agency

A: seller

The timing for selling can be extremely important and you may want to make sure the coordination of the closing of a property is tailored to your ________circumstances. a) seller(s) b) buyer c) personal d) principal broker's

A: seller(s)

A: seller(s)'

It is customary for the ________________________ to handle earnest money. a) selling broker and their principal broker b) listing broker and their principal broker c) the buyer d) the seller

A: selling broker and their principal broker

By contrast to a condominium, the owner of a cooperative owns a) shares in a corporation or association and a proprietary lease in a physical unit. b) a fee simple interest in a physical unit plus a tenancy in common in common elements. c) a tenancy in common in a physical unit and the common areas. d) a ground lease in the physical unit's pro rata share of land and a proprietary lease in the unit.

A: shares in a corporation or association and a proprietary lease in a physical unit.

A couple owns property as tenants by the entirety (married couples). Upon the death of one spouse, the estate passes to ________________________ a) the surviving spouse as a tenant in severalty (sole ownership). b) heirs according to the probate court c) the children of the deceased spouse d) the State of Oregon through escheat

A: the surviving spouse as a tenant in severalty (sole ownership)

As with any area of specialization in real estate, the managing of properties requires expertise. The principal broker or the licensee ______________________________. a) should ensure that they have the expertise to perform property management activities b) should not worry about their expertise since the Commissioner will oversee any property management activity c) should take a course called property management for beginners d) Both b and c

A: should ensure that they have the expertise to perform property management activities

Included in the Oregon Residential Landlord and Tenant Act are mobile homes, houseboats and other structures used as a_________________________. a) sleeping place b) recreational retreat c) storage unit d) office space

A: sleeping place

An income statement reports a firm`s income or loss for a_____________________. a) specific period of time b) a single moment c) always one month d) always one year

A: specific period of time

A fee or life estate is held by an individual. This form of estate is referred to as a(an) a) tenancy in severalty. b) tenancy by the entireties. c) absolute fee simple. d) legal fee simple.

A: tenancy in severalty.

Leasehold estates are considered less than freehold estates. The person holding the leasehold is referred to as the ____________________________. a) tenant, lessee b) landlord, lessor c) mortgagor, borrower d) mortgagee, lender

A: tenant, lessee

Treble damages for violations of Anti-trust laws would mean what? a) that the victim may recover treble (three times) their actual damages and reasonable attorney's fees b) that the victim may recover damages due to verbal (parol) evidence only c) that the victim may recover attorney fees only d) that the victim may recover two times their actual damages plus attorney fees

A: that the victim may recover treble (three times) their actual damages and reasonable attorney's fees

All contracts for real estate must be in writing according to _________________in Oregon a) the Statute of Frauds b) the Doctrine of Laches c) the Statute of Limitations d) Truth in Lending Act

A: the Statute of Frauds

When sending out a Loan Estimate (LE) Form to a loan applicant, the lender must make sure that: a) the borrower has signed for receipt of the form b) have a 3rd party sign for receipt of the form c) mail the form through the post office within 3 days d) require the borrower to come in and receive the form personally within 3 days

A: the borrower has signed for receipt of the form

All listings of the licensee belong to____________________________. a) the brokerage b) the Commissioner c) the licensee d) none of the above

A: the brokerage

Who usually pays for the lender`s title insurance policy? a) the buyer b) the seller c) the buyer's broker d) the seller's broker

A: the buyer

FHA will lend on condominiums if _______________________________. a) the condominium development has ben approved for FHA b) the condominium development has been approved for military housing only c) the condominium has at least 100 units d) the condominium development is located in Washington DC

A: the condominium development has ben approved for FHA

When taking a listing, a broker can use preprinted forms which are carbonless duplicate paper and produce a duplicate copy immediately. The disadvantage of this is: a) the copies may fade over time b) all multiple listing association prohibit this practice c) the carbonless duplicate paper is illegal in most states d) all of the above

A: the copies may fade over time

When a conversion takes place from an ARM to a fixed-rate, the interest rate is usually set at: a) the current rate for fixed mortgages b) 2% above the current rate for fixed mortgages c) the treasury security rate d) the cost of funds to saving and loan institutions

A: the current rate for fixed mortgages

In general, lien priority is established by_______________________. The first to record has the highest priority a) the date of recording b) the highest dollar amount c) the Agency d) Lis Pendens

A: the date of recording

A deficiency judgment is the difference between what is owed on the property and what proceeds have been received from_________________________________________. a) the foreclosure auction a) doctrine of laches c) both a and b d) neither a nor b

A: the foreclosure auction

The higher your credit score: a) the less risk you pose to creditors b) the more risk you pose to creditors c) is an indication that you have had many bankruptcies d) is an indication that you do not pay bills on time

A: the less risk you pose to creditors

The buyer legally owns the property when _______________________________. a) the loan has funded and recording numbers are made available b) the tax assessor has received all closing documents c) when the Commissioners has received all closing documents d) all of the above

A: the loan has funded and recording numbers are made available

Care should be taken when giving real estate notices. Using technology such as e-mail, e-sign and faxes may not be ____________________________________. a) the proof needed to document delivery and receipt b) legal c) of the Commissioner's standards d) of the Attorney General's standards

A: the proof needed to document delivery and receipt

A property manager may not deposit any funds received on behalf of an owner in ________________________________________________,or commingle any such funds received with personal funds of the property manager. a) the property manager's personal account b) a federally insured trust account c) either a or b d) neither a nor b

A: the property manager's personal account

In a net listing: a) the seller specifies the amount they would like to receive form the net proceeds of the sale b) the commission is expressed as a percentage of the list price c) the commission is expressed as a flat rate d) the commission is expressed as a percentage of the sales price

A: the seller specifies the amount they would like to receive form the net proceeds of the sale

All contracts for real estate must be in writing according to _________________in Oregon. a) the statute of frauds b) the doctrine of laches c) the statute of limitations d) truth in lending act

A: the statute of frauds

Sheriff`s sales will require either cash to be paid at the time of sale, or a substantial deposit, with the balance paid later that same day or___________________________. a) up to 30 days after the sale b) up to 60 days after the sale c) up to 90 days after the sale d) up to 120 days after the sale

A: up to 30 days after the sale

Deed restrictions place a limit on the ________of a property a) use b) taxes c) security d) all of the above

A: use

Death of a seller, in most states, during a listing agreement: a) usually cancels the listing b) passes to the designated heir(s) c) places the listing on hold until the courts decide d) goes to escrow

A: usually cancels the listing

Who is authorized to sign a listing agreement for the principal broker? a) usually the listing broker who is affiliated with the broker b) the unlicensed executive c) both of the above d) none of the above

A: usually the listing broker who is affiliated with the broker

Annual income divided by the capitalization rate = __________________. a) value b) rent multiplier c) income multiplier d) none of the above

A: value

In an installments contract the buyer which is known as the __________makes installment payments to the seller which is known as the __________. a) vendee, vendor b) vendor, vendee c) lessee, lessor d) lessor, lessee

A: vendee, vendor

Technology systems may make __________ locations as important as geographical location. a) virtual b) on site c) single d) official

A: virtual

Physical depreciation is a loss in value due to _________________________. a) wear and tear, damage or defects that are structural b) outside environment influences such as airport noise c) both a and b c) neither a nor b

A: wear and tear, damage or defects that are structural

Exclusive Right to Sell and Listing Agreement

Allows the broker to earn the listing portion of the commission if the seller produces a sale

Unenforceable Contracts

An unenforceable contract is a contract which cannot be enforced in a court of law. This could happen because the terms of the contract are ambiguous, or if one party has a voidable contract or if the Statute of Limitations has expired.

A buyer submits an offer to a seller and then dies in a car accident. Before learning of the buyer`s death, the seller accepts the offer. Which of the following is true? The seller can force the buyer's estate to go through with the purchase. The buyer's death terminated the offer. The seller must make a new offer with the same terms to the buyer's heirs. The buyer's heirs have the option of enforcing the contract.

A buyer will receive a water bill for an estimated $100 at the end of the month. At closing, the seller has used an estimated $43 in water. What should appear on the closing statement? A debit to the seller and credit to the buyer for $57. A debit to the seller and credit to the buyer for $43. A debit to the buyer and credit to the seller for $57. A debit to the buyer and credit to the seller for $43.

A contingency in a sale contract is a promise by buyer or seller to perform a specific action. a condition that, if unmet, renders the contract unenforceable. one of several alternative actions that buyer or seller may take to satisfy contract requirements. an optional, unilateral action that either party may take at the request of the other party.

A homeowner bought a house five years ago for $250,000. Since then, the homeowner has spent $2,000 to build a screened porch and has added a central air-conditioning system at a cost of $5,000. What is the homeowner`s adjusted basis if the house is sold today? $256,000 $257,000 $244,000 $245,000

A landlord generally has the right to enter the leased premises at any time without notice. for specified reasonable purposes. provided the tenant gives prior permission. only thirty days prior to lease expiration.

A landlord promises to compensate a broker for procuring a tenant, provided the broker is the procuring cause. This is an example of a(n) exclusive right-to rent agreement. exclusive agency agreement. open rental listing. net lease listing.

A lender offers the Greys two alternative loan packages for their $60,000 home equity application. One option is an interest-only loan for 5 years @ 6.5% interest with no points, and the second, a 6.25% interest-only loan for 5 years with 1 point to be paid at closing. Which loan will cost the Greys less total interest, and by how much? The first option, by $150. The second option, by 150. The second option, by $750. Both options charge the same amount of interest.

A lender who charges a rate of interest in excess of legal limits is guilty of redlining. usury. profit-taking. nothing; there are no legal limits to interest rates.

A licensed salesperson may work only for a client who has signed a listing agreement with a licensed broker. a single employing broker who has an active broker's license. a client who has signed an authorization agreement with a licensed salesperson. an employer who has an active or inactive broker's license.

A loan applicant has an annual gross income of $72,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 28%? $2,160. $1,680. $1,068. $840.

A principal instructs an agent to market a property only to families on the west side of the university campus. The agent refuses to comply. In this case, the agent has violated fiduciary duty. the agent has not violated fiduciary duty. the agent is liable for breaching the listing terms. the agent should obey the instruction to salvage the listing.

A property owner who is selling her land wants to control how it is used in the future. She might accomplish her aim by means of an injunction. a deed restriction. an easement. a land trust.

A property seller empowers an agent to market and sell a property on his behalf. The kind of agency represented is general. special. universal. no agency.

A salesperson, without an oral or written listing agreement, brings potential buyers to the seller. The seller says, "You can bring me buyers if you want, but I`m not paying you a commission." The salesperson then continues to direct buyers to the property. Which of the following is true about this situation? There is no agency relationship, and therefore the seller will owe no commission if one of the salesperson's buyers buys the property. An implied agency may have been created, with obligations to perform for both seller and agent. The seller and agent have an illegal, undisclosed agency relationship. The agent has an open exclusive agency listing with no commission agreement, and therefore owes no fiduciary duties to the seller.

A salesperson`s commission rate and structure is established by state regulation. competitive conditions. agreement with other brokers in the market. negotiations with the client.

A seller immediately accepts a buyer`s offer but waits ten days before returning the accepted document to the buyer. Meanwhile, the offer has expired. Which of the following is true? The buyer is bound to the contract since it was accepted immediately. The buyer has no obligations to the seller whatsoever. The buyer may not rescind the expired offer. The seller may sue for specific performance.

A town is rapidly growing, but all the buildable vacant lots in the most desirable area have already been occupied. In this case, it is likely that the price of existing homes in that area will stabilize, since the population must stabilize. will increase. will decline, since no further building can take place. will not show any predictable movement.

Agent Michael is showing his new listing to a buyer who informs him that he has just inherited five million dollars. Michael is now bound by fiduciary duty to keep the information in confidence. disclose the information to the buyer's agent. disclose the information to the seller. verify the buyer's statements before disclosing them to the client.

All investors desire their investments to increase in value. However, the degree of return is inversely related to the degree of risk. the more the investor stands to gain, the greater the risk that the investor may lose. investments requiring intense management have lesser returns. the more liquid an investment is, the greater the chances are that the investment will not appreciate.

Among the fiduciary duties imposed on a real estate agent is the requirement to refuse offers the agent knows will be unacceptable to the principal. present all offers to the principal regardless of their amount. advise the principal against accepting an offer that is below full price. advise a prospect that the principal will not accept the prospect's offer in order to elicit a better offer.

An encroachment is an easement that has not been recorded on the title of the burdened property. an unauthorized physical intrusion of one property into another. a right granted by a property owner to the owner of an adjoining property to build a structure that protrudes across the property boundary. a structure that does not comply with a zoning ordinance.

An item is said to be paid in arrears if it is normally paid on a monthly or yearly basis. at some time after the expense is incurred. only after it is billed. whenever it is incurred.

An office building investor sees a listing of an office building which is priced at $2 million. He loves the property, but he knows he needs to make a return of at least 8% to satisfy his partners. If the building is 25,000 SF, rents for $10/SF per year, has 5% vacancy, and annual expenses of $70,000, should he buy it? What is his return? No, since he will yield 2.00%. Yes, since he will yield 8.375%. Yes, since he will yield 8%. Yes, since he will yield 9.125%.

Bill Parsons paid $150,000 for a house to operate as a rental property, figuring that he could rent it out at a rate of $900 a month. In paying a price based on the property's ability to generate a desired future income, Parsons was motivated by the economic principle known as substitution. anticipation. supply and demand. utility.

Calculate how many acres are in the Southeastern ¼ of the Western ½ of the Eastern ½ of Section 9. 20 acres 40 acres 60 acres 5 acres

Cecily Longstreet believes a real estate agent has kept her from seeing a certain property for rent because she is a woman. What actions should she take if she wants legal satisfaction for her complaint? File charges of illegal discrimination with the police department that has jurisdiction over the local area. File a complaint with HUD and/or file suit against the offending parties in a state or federal court within the prescribed time period. Wait two years and then file a civil suit in federal court. Sue HUD for damages under the Civil rights Act of 1866.

Certain classes of property owner and types of property are exempted or immune from real property taxation in many areas. The protected categories usually include recreational properties. properties owned by a government agency. properties that comply with the Americans with Disabilities Act. properties occupied by single-parent families.

Compared to a stock portfolio, a real estate investment would be considered a riskier investment. a more management-intensive investment. a shorter-term investment. a more leveraged investment.

Cost recovery is allowed as a federal tax deduction on principal residences that do not have a home office. income properties. land. commercial properties owned by the federal government.

Emily has an interest-only home equity loan at an annual interest rate of 5.3%. If her monthly payment is $790, how much is the loan's principal balance (to the nearest $1,000)? $222,000 $179,000 $95,000 $146,000

Even after giving buyer and seller the required information about property condition disclosures, the licensee may still be subject to legal action for failing to detect customer misrepresentations. failing to disclose known adverse facts. relying on publicly available market information. advising the purchaser to exercise due diligence.

Fair housing laws are easily violated. An effective way for agents to minimize the risk of doing so is to deal only with consumers who do not belong to a protected class. obtain education in the content and intent of the laws. make sure there is always a witness present at all meetings with consumers. stay away from transactions involving public housing.

For a loan that is not backed by the Federal Housing Administration or Veterans Administration, and for which the borrower is making a down payment of less than 20%, the lender is likely to require the borrower to obtain a subrogation agreement. private mortgage insurance. a letter of credit. a co-signer on the note.

In the Rectangular Survey System, what are the dimensions of a township? One mile square. Six miles by six miles, or 6 miles square. Thirty-six miles square. The north and south boundaries are one mile apart; the east and west boundaries are indeterminate.

In the sales comparison approach, an adjustment is warranted if the buyer obtains conventional financing for the property. the seller offers below-market seller financing. a comparable is located in another, albeit similar neighborhood. one property has a hip roof and the other has a gabled roof.

Juan shows a customer a property that is listed by another brokerage firm. He obtains an offer that is $5,000 less than the listing price. How should Juan deal with this offer? Advise the buyer that the offer will be rejected. Present the offer to the seller at the earliest possible moment. Ask the listing broker to lower the listing price. Counter the offer.

Lots in the South Hyde subdivision are selling for approximately $.50 / SF. The Grandersons want to build a 2,500 SF home on a 1.5 acre corner lot. The custom builder can build the home for $135 / SF. What will the completed property cost the Grandersons? $359,170 $370,170 $32,670 $374,070

One of the strengths of the cost approach is that it takes into account the amount of money required to develop a similar property. is very accurate for a property with new improvements that represent the highest and best use. results in an actual price in dollars instead of an estimated value. reveals the owner's return on money invested in the cost of development.

One weakness of the cost approach for appraising market value is that builders may not pay market value for materials or labor. market value is not always the same as what the property cost. comparables used may not have similar quality of construction. new properties have inestimable costs and rates of depreciation.

Several buyers are competing for the last available home in a desirable new subdivision. One buyer calls the owner-developer directly on the phone and offers $20,000 over and above the listed price. The developer accepts the offer. At this point, the parties have a valid, enforceable sale contract on the home. the parties have completed a verbal, executory contract. the parties may not cancel their contract. the developer could not entertain other offers on the property.

The Equal Credit Opportunity Act (ECOA) requires lenders to extend equal credit to all prospective borrowers. consider the income of a spouse in evaluating a family's creditworthiness. discount the income of a person involved in child-rearing or child-bearing. specialize lending activity by geographical area for improved customer service.

The agency relationship is defined by the Realtor Code of Ethics. the laws of agency, or in some states, by statute. the law of real estate contracts. the agreement between a principal and an agent.

The assumability of an FHA-insured loan is unrestricted. limited by when the loan was originated. limited to owner-occupied properties. prohibited on all existing loans under current regulations.

The best comparable property for use in the sales comparison approach is the one that requires the most and largest adjustments. requires the fewest and smallest adjustments. sold most recently at the highest price. is located closest to the subject property.

The borrower in a mortgage loan transaction is known as the mortgagee. mortgagor. lienor. trustee.

The cost of constructing a functional equivalent of a subject property is known as reproduction cost. replacement cost. restitution cost. reconstruction cost.

The formula for calculating capital gain tax is the taxpayer's tax bracket multiplied by the sum of the beginning basis plus gain. the difference between amount realized and adjusted basis. the sum of net sale proceeds and capital gain. the difference between net sale proceeds and capital gain.

The formula for deriving a municipal jurisdiction's ad valorem tax base is the jurisdiction's annual budget times the tax rate. the total of all assessed values of properties minus exemptions. the total amount of ad valorem taxes required by the budget. the municipality's budget multiplied times the millage rate.

The reason lenders consider the loan-to-value ratio important in underwriting is that they don't want to lend borrowers any more money than necessary. they want to ensure there is more than enough collateral to cover the loan amount. borrowers can only afford to borrow a portion of the entire purchase price. the higher the loan-to-value ratio, the more profitable the loan.

The roof of a property cost $16,000. The economic life of the roof is 20 years. Assuming the straight-line method of depreciation, what is the depreciated value of the roof after 3 years? $16,000 $13,600 $18,400 $12,000

There is a lot of new construction going on in the town of Florence. Which of the following would most likely be the immediate effect on the real estate market? Demand increases and prices rise. Vacancy rises and prices fall. Absorption and vacancy decrease. Supply decreases relative to demand.

Property Manager

real estate licensee authorized to engage in management of rental real estate as defined in ORS 696.010(12).

Trust funds to be handled by a property manager are likely to include all of the following except rents collected from tenants. cash for the management firm's operating expenses. security deposits. capital contributions from the property owner.

Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists a seller in qualifying a potential buyer, may not tell a rejected loan applicant the reasons for the rejection. ask the buyer/borrower about his/her religion or national origin. ask the buyer/borrower to explain unconventional sources of income. use a credit report that has not been provided to the borrower.

Under the Uniform Residential Landlord and Tenant Act, if a lease does not state a clear expiration date, the lease is regarded as invalid. a tenancy from period-to-period. a tenancy at will. a tenancy for years.

Wayne and Leota obtain an insurance policy that protects them from liabilities and losses resulting from title defects. The kind of policy they bought is a homeowner's insurance policy. standard owner's title insurance policy. lender's title insurance policy. private mortgage insurance policy.

What are the three kinds of maintenance a manager has to carry out for a managed property? Constructive, deconstructive, and reconstructive Routine, preventive, and corrective Scheduled, planned, and improvised Emergency, elective, and optional

What does "base employment" refer to in the context of real estate demand? The lowest category of employment in terms of wages and desirability The number of persons employed in base industries in an area The number of persons employed on military bases in an area The labor pool available for employment in all industries in an area

What is a lien-theory state? A state in which a mortgagee holds legal title to a secured property. A state in which a mortgagee has equitable title to a secured property. A state that allows a real estate owner's creditors to record liens against the owner's property. A state in which a lien is considered as a conveyance.

What is co-brokerage? An owner agent and a buyer agent combine efforts to complete a sale. Outside brokers assist a listing agent in procuring a buyer. An owner or buyer lists with several brokers to complete a transaction. Agents from a single agency cooperate to generate listings for the broker.

What is rescission? The act of withdrawing an offer before it has been accepted. The act of declaring that a contract is no longer in effect for a given party. The act of declaring a contract unenforceable. The act of modifying the terms of an offer.

What is the role of the Federal Housing Authority in the mortgage lending market? It guarantees loans made by approved lenders. It insures loans made by approved lenders. It purchases loans made by approved lenders. It originates loans made by approved lenders.

When an investor has to pay a lender more to finance the investment than the investment property generates in income, the investor suffers from negative amortization. negative leverage. a reverse mortgage. a debt investment.

Which laws or regulations require mortgage lenders to disclose financing costs and annual percentage rate to a borrower before funding a loan? The Equal Credit Opportunity Act. Truth-in-Lending laws and Regulation Z. The Real Estate Settlement and Procedures Act. Federal Fair Housing Laws.

Which of the following are methods used by the Federal Reserve System to regulate the money supply? Selling securities, printing money, and controlling lending underwriting requirements. Buying securities, changing the discount rate, and controlling banking reserves. Printing money, changing interest rates, and selling T-bills. Controlling the prime rate, trading securities, and purchasing loans.

Which of the following circumstances is the most likely scenario for a ground lease? A developer wants to acquire a necessary parcel that separates two parcels she already owns. An owner-developer wants to retain ownership of the land portion of the improved real property. A fast food company wants to place a restaurant in an existing building without buying either land or improvement. A farmer wants to sell his property to a mining company.

Which of the following conditions is necessary for a customer to qualify as "ready, willing, and able" in the context of a commissionable transaction? The customer's offer must be accepted. The customer must be legally competent to undertake the transaction. The customer must have a commitment from a lender. The customer must have no business relationship with the agent.

Which of the following defines constructive notice? It is notice published in a newspaper. It is knowledge one could have or should have obtained. It is notice explicitly stated in a legal document. It is knowledge received or imparted through direct experience.

Which of the following is a dual agency situation? Two agents share the exclusive right to represent the same client on all transactions. One agent represents both sides in a transaction. A selling agent from one brokerage works with a listing agent from another brokerage to complete a transaction. One agent represents two sellers at the same time.

Which of the following is an executory contract? An expired lease. A sale contract before closing. A recorded sale contract. An option to buy after it is exercised.

Which of the following is true of a sublease? The subtenant takes over sole responsibility for performance of the original lease contract. The original tenant retains primary responsibility for performance of the original lease contract. It does not convey any of the leasehold interest. It conveys the entire leasehold interest.

Which of the following is true of an amortizing loan? The amount of annual interest paid is the same for every year of the loan term. Part of each periodic payment is applied to repayment of the loan balance in advance and part is applied to payment of interest in arrears. Except for any points that may be paid, the interest on the loan balance is usually paid in advance. The interest rate is reduced each year to maintain equal payments even though the outstanding loan balance is smaller.

Which of the following situations illustrates the principle of contribution? A homebuyer makes a down payment of 20% instead of the 10% the lender requires. A homeowner adds a third bathroom to a house and thereby increases the appraised value by $10,000. The appraised value of a house goes up by $20,000 over a two-year period because of the prices recently paid for other houses in the neighborhood. Because of a decline in mortgage interest rates, a homeowner in a certain market is able to list her house at a higher price.

Which of the following statements properly describes how to apply the income capitalization approach to appraisal? Apply a rate of return to the price paid for an income property. Divide the income a property generates by a rate of return. Estimate the amount of income a property must generate to return the capital amount invested in it. Estimate the rate of return a property owner receives from income generated by the property.

Which of the following statements properly describes the central concept of the sales comparison approach? Find the median price of recently sold comparable properties and add or subtract dollar amounts in the subject property to account for competitive differences. Make dollar adjustments to the sale prices of comparable properties to account for competitive differences with the subject. Find at least three comparable properties that are currently for sale and make dollar adjustments to the listing prices to account for competitive differences with the subject. Apply an appreciation factor to the price at which the subject property most recently sold and make dollar adjustments to account for competitive differences with comparable properties currently for sale.

Which regulatory entity/code establishes standards for an appraiser's methods, reporting methods and disclosures? Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) Uniform Standards of Professional Appraisal Practice (USPAP) National Association of Realtors®' Code of Ethics Federal Appraisal Regulation and Licensing Board.

Why do zoning authorities create different types of zones? To ensure that a variety of building structures are available in the community. To separate land uses so that they do not interfere with each other. To preserve high density land uses. To discourage industrial and commercial users from relocating.

The price of the property was $500,000. The buyer was making a 25% down payment.. What is the down payment expressed in dollars? a) $120,000 b) $125,000 c) $125,800 d) $200,000

B: $125,000

The price of the property was $500,000. The buyer was making a 25% down payment. The lender charged one point on the loan. What are the points on the loan expressed in dollars? a) $2,500 b) $3,750 c) $4,500 d) $5,000

B: $3,750

For additional offenses of the license law after the first offense, the fine is ______________________________per offense. a) $200 to $300 b) $500 to $1,000 c) $1,500 to $2,000 d) $3,000 to $5,000

B: $500 to $1,000

If the diameter of a circular driveway is 50 feet, what is the circumference? a) 150 food circumference b) 157 foot circumference c) 158 foot circumference d) 159 foot circumference

B: 157 foot circumference

During the redemption period following a property tax foreclosure, the delinquent taxpayer has the right of possession to the property. He/she can continue to reside in or retain the possession of the property as long as he/she does not damage or destroy the property. The length of the redemption period is _________? a) 1 year b) 2 years c) 3 years d) 4 years

B: 2 years

Marty wanted to purchase an FHA loan to rehabilitate a home for his primary residence. What kind of mortgage would he be most interested in obtaining? a) 203(b) b) 203(k) c) 208(b) d) 208(k)

B: 203(k)

A developer doesn`t need to register with HUD and is exempt if there are less than _____ lots in the subdivision a) 10 b) 25 c) 50 d) 100

B: 25

The inside of a structure measures 5 yards by 8 yards by 270 cubic feet. What is the volume in cubic yards? a) 270 b) 400 c) 500 d) 640

B: 400

How many square feet in an acre? a) 5,280 b) 43,560 c) 42,360 d) 53,360

B: 43,560

How many feet in one mile? a) 5,380 b) 5,280 c) 5,180 d) 6,000

B: 5,280

_________________is usually issued when a property was being used for a particular purpose prior to zoning or prior to a zoning change a) A variance b) A nonconforming use permit c) A buffer zone d) Bulk zoning

B: A nonconforming use permit

Barbara has leased on a month to month basis with her landlord. At the end of each month the lease renews itself unless either party give proper notice to the other party to terminate the lease. What type of lease does Barbara have? a) A life estate lease b) A periodic tenancy lease c) An estate at sufferance lease d) None of the above

B: A periodic tenancy lease

Who must sign the listing agreement? a) A least one of the owners b) All of the owners and the listing broker(s) c) The principle broker d) the title company

B: All of the owners and the listing broker(s)

Which of the following best describes a "fixture?" a) Any item of personal property positioned within the boundaries of a parcel of real estate. b) An item of personal property that has been converted to real property. c) An item of real property temporarily placed on land for the purpose of conducting a business. d) An item of personal property that has been left in one location for a period of six months.

B: An item of personal property that has been converted to real property.

Which of the following best describes the legal concept of personal property? a) Any item which is acquired in a fee simple sale transaction. b) Any item of property that is not definable as real property. c) Any movable property owned by an individual, partnership, or corporation. d) Any item that is not a natural item affixed to the earth.

B: Any item of property that is not definable as real property.

BIN is an acronym for: a) Budget Identification Number b) Business Identification Number c) Business Impound Number d) Business Impound Number

B: Business Identification Number

Lease Agreement

an agreement where a property owner allows a tenant to use the property for a specified period of time and for a specific amount of rent

The actual act of taking of private property for public use is done through ____________proceedings a) Foreclosure b) Condemnation c) Deed in lieu of foreclosure d) All of the above.

B: Condemnation

If there are often changes in the way a firm does business, the following office design would be preferable: a) Private office design b) Cubicle office design c) Counter office design d) None of the above

B: Cubicle office design

The NFIP program is administered by ____________________________________. a) Environmental Protection Agency (EPA) b) Federal Emergency Management Agency FEMA c) Department of Justice (DOJ) d) Federal Trade Commission (FTC)

B: Federal Emergency Management Agency FEMA

The Federal Reserve System is also known as the _______. a) Ginnie Mae b) Federal Reserve c) Freddie Mac d) Portfolio market

B: Federal Reserve

_________________________include savings and loan associations, local and regional banks, mortgage companies, finance companies, life insurance companies etc. a) Non-institutional lenders b) Institutional lenders c) Secondary lenders d) None of the above

B: Institutional lenders

When originating a loan, lenders will usually charge a ______ rate for an ARM as opposed to a fixed rate mortgage. a) Higher b) Lower c) Amortized d) None of the above

B: Lower

Many computer vendors include full or trial versions of ___________on a new Windows PC. a) Net Worth Software b) Microsoft Office c) Occupancy Software d) Bandwidth Software

B: Microsoft Office

Which of the following is not a requirement for a valid deed in most cases? a) Must be in writing b) Must be signed by the grantee c) Must be delivered d) Must describe the property being conveyed

B: Must be signed by the grantee

ODVA is an acronym for: a) Oregon Disability for Veterans Affairs b) Oregon Department of Veterans Affairs c) Office Recording of Veterans Affairs d) Office Department of Veterans Affairs

B: Oregon Department of Veterans Affairs

ODVA is an acronym for: a) Oregon Disability for Veterans Affairs b) Oregon Department of Veterans Affairs c) Office Recording of Veterans Affairs d) Office Department of Veterans Affairs

B: Oregon Department of Veterans Affairs

Adopting policies and procedures make little sense if there is not someone to monitor the adherence to these procedures. In its simplest form, it amounts to ensuring employees are doing what they are supposed to be doing and when they are to be doing it. This is a definition of: a) Mentoring b) Overseeing c) Negotiations d) Provisioning

B: Overseeing

Natural attachments and man-made attachments are considered to be_____________ a) personal property b) real property c) solely government property d) the previous owner's property

B: Real Property

SECA is an acronym for _____________________________. a) Self Employment Consideration Act b) Self Employment Contribution Act c) Self Employment Cooperative Act d) Site Employment Consideration Act

B: Self Employment Contribution Act

With a judicial sale, after the judgment has been entered, a writ will be issued by the court authorizing a _________________________sale. a) trustee's b) sheriff's c) bank sale d) borrower's

B: Sheriff's

__________________means the land on which construction or preparation is performed a) Preparation b) Site c) Subcontractor d) General Contractor

B: Site

When an estate has enough money to pay off all of the bills associated with the estate, it is said to be: a) Escheated b) Solvent c) Legal d) Procured

B: Solvent

Louis owned a boat and a house before marrying Barbara. While she was single, Barbara owned a new car. The two got married and bought a second home. As a wedding present, Barbara's father bought Louis a motorcycle. Under the law of community property, what property can Louis sell without his wife's consent or signature? a) The boat and house. b) The boat, house, and motorcycle. c) The second home and the motorcycle. d) The boat and motorcycle.

B: The boat, house, and motorcycle.

Which of the following best describes the physical boundaries of land? a) The surface of the earth and infinite space above the surface. b) The center of the earth and infinite space above the earth. c) The surface of the earth and all water and minerals on or below the surface to the center of the earth. d) The surface of the earth and the air rights above the surface to the point defined by local zoning.

B: The center of the earth and infinite space above the earth.

A disadvantage of joint tenancy is _________________ a) The property can be easily willed b) The property cannot be willed c) Avoid the cost and delay of probate proceedings d) Probate proceedings are more costly

B: The property cannot be willed

Which of the following describes a gross lease? a) The tenant pays a base rent plus some or all of the operating expenses. b) The tenant pays a fixed rent, and the landlord pays all operating expenses. c) The tenant pays a base rent plus an amount based on income generated in the leased space. d) The tenant pays a rent that increases at specified times over the lease term.

B: The tenant pays a fixed rent, and the landlord pays all operating expenses.

An owner of a parcel of land sold the mineral right to the land to another person. The mineral rights __________________ a) were personal property and are now real property b) were real property and are now personal property c) were not the owner's to give d) were personal property and remain personal property

B: Were real property and now are personal property

On the closing disclosure statement, the 1st mortgage, any subsequent mortgages and prepayment penalties would be: a) a cost to the buyer b) a cost to the seller c) prorated between the buyer and the seller d) None of the above

B: a cost to the seller

If a borrower defaults on a mortgage, the lender will have to go through ____________________________in a court of law where the property is located. a) non-judicial foreclosure b) a judicial foreclosure c) a supreme court d) none of the above

B: a judicial foreclosure

Homestead estates are examples of a) a conventional life estate. b) a legal life estate. c) an estate created by an owner's agreement. d) a fee simple absolute.

B: a legal life estate.

If the title to property was held by Tenancy by the Entirety, it would be held by _______________________________ a) a corporation b) a married couple or domestic partnership c) any unrelated individuals d) any of the above

B: a married couple or domestic partnership

The short sale process usually takes ____________than a normal real estate transaction. a) a much shorter amount of time b) a much longer amount of time c) the same amount of time d) none of the above

B: a much longer amount of time

An easement in gross benefits __________________________ a) adjacent land owner b) a person or company c) Either a or b d) Neither a nor b

B: a person or company

Real property is converted to personal property by a process called _________ or_____________ a) recorded severance or certified severance b) actual severance or constructive severance c) interim severance or temporary severance d) reciprocal severance or security severance

B: actual severance or constructive severance

The period between one rate adjustment and the next is called: a) conversion period b) adjustment period c) standard rate period d) marginal life period

B: adjustment period

Who must sign a Purchases and Sale Agreement? a) at least one buyer and at least one seller b) all buyers and all sellers c) all buyer and at least one seller d) all sellers and at least one buyer

B: all buyers and all sellers

The property manager acts as a liaison between the tenant and the landlord. However, the property manager most likely has ___________________________________. a) a customer relationship with both parties b) an agency relationship with just one of the parties c) an agency relationship with both parties d) none of the above

B: an agency relationship with just one of the parties

A ________________is a summary of the financial balances of a firm listed as of a specific date, such as the end of a financial year. a) uniform balance b) balance sheet c) income statement d) none of the above

B: balance sheet

On a partially amortized payment, usually the remaining balance is paid off with a __________________. a) promissory note b) balloon payment c) third mortgage d) payment equal to all of the prior payments

B: balloon payment

All notices must: a) be verbal or in writing b) be in writing c) posted in the office d) delivered via social media

B: be in writing

A Purchase and Sale Agreement (PSA) will specify the seller`s election of remedies if the ____________defaults. a) seller b) buyer c) mortgage lender d) title company

B: buyer

The real estate broker is employed by the buyer to act in the buyer`s best interest and the agent has a fiduciary responsibility to act in the buyer`s best interests and owes confidentiality, loyalty, full disclosure and dedication to purpose to the buyer. This is an example of ________________________________________. a) seller agency b) buyer agency c) dual agency d) facilitator agency

B: buyer agency

Any form of organization which allows two or more investors to participate in the ownership of an interest in real estate is known as a/an ______________________ a) syndicate b) common law dedication c) buffer d) annexor

B: common law dedication

Anti-Trust Laws and Unfair Business Practices are designed to promote the policy and practice of ____________________________________. a) cooperation b) competition c) improvements d) boycotts

B: competition

One of the best ways to prevent accusations from either party is to maintain ___________________on all aspects of the transaction. a) a summary only b) detailed concise documentation c) an abstract d) only forms that are important

B: detailed concise documentation

When a broker is representing both the buyer and the seller in the same transaction, this is known as______________. a) single agency b) disclosed limited agency c) no agency d) facilitator agency

B: disclosed limited agency

Affirmative duties are those duties which a licensee owes to their clients, customers and other third parties. Because the licensee owes duties to a party, it ______________________. a) establishes an agency relationship b) does not establish an agency relationship c) he/she must represent them d) he/she cannot represent them

B: does not establish an agency relationship

Having a reverse mortgage __________citizens from qualifying for the deferral program. a) prevents b) does not prevent c) may prevent d) both a and c

B: does not prevent

A contract is bilateral when _______________________________________. a) one party offer consideration b) each party offers consideration c) when there is no consideration d) none of the above

B: each party offers consideration

When making an offer to purchase a property, the buyer usually submits a good faith deposit called a/an _______________. a) lease clause b) earnest money c) marketing agreement d) marketable title

B: earnest money

A homeowner built a fence which was partly on his neighbor`s property. This would be considered a/an __________________________ a) mechanic's lien b) encroachment c) tax lien d) special assessment

B: encroachment

The right to pay off the debt prior to foreclosure in an installment sale is called a/an _____________________________________________. a) right of redemption b) equitable right of redemption c) right of option d) right of specific performance

B: equitable right of redemption

Making money is not wrong, but it is the manner in which some businesses conduct themselves that brings up the question of_________________________________. a) profits b) ethical behavior c) the bottom line d) knowledge

B: ethical behavior

An __________________________contract is a contract where all parties have fully performed all of the terms, promises and obligations within the contract. a) executory b) executed c) bilateral d) unilateral

B: executed

It the parties to the transaction cannot perform their obligations within the time stated in the agreement, then they need to sign an addendum extending the date of the deadline. This is known a/as an___________________________ a) closing affidavit b) extension of closing c) fiduciary responsibility affidavit d) totally new instructions for escrow form

B: extension of closing

A policy manual covers advertising, web sites and trade fairs. These are considered: a) internal communications b) external communications c) prohibitive communicaitons d) state communications

B: external communications

Real Estate brokers are prohibited from advertising or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status, or handicap. If they do this they are in violation of: a) neutral escrow laws b) fair housing act c) both a and b d) neither a nor b

B: fair housing act

FMV is an acronym for ______________________ a) fixed market value b) fair market value c) fair mortgage value d) fixed mortgage value

B: fair market value

_____________________________is the price a buyer will pay and a seller will accept for a property under reasonable and ordinary conditions. a) economic value b) fair market value c) cost d) Physical value

B: fair market value

With a high supply and low demand, prices tend to: a) rise b) fall c) remain stable d) none of the above

B: fall

A study that shows the viability of a business venture is called a ________________ study. a) appropriation b) feasibility c) rebate d) committee

B: feasibility

A property is secured by a mortgage that does not contain a "power of sale" clause. To foreclose, the lien holder will have to a) file a deficiency suit. b) file a foreclosure suit. c) file a suit to quiet title. d) obtain a quit claim deed.

B: file a foreclosure suit.

Drafts, bills of exchange, checks, bonds and promissory notes are examples of: a) a warranty deed b) financing instrument c) an alienation d) a foreclosure notice

B: financing instrument

These leases are sometimes straight, flat or fixed leases. They are called a__________________. a) percentage lease b) gross lease c) ground lease d) net lease

B: gross lease

The tenant leases the land and constructs a building on it. What type of lease is this? a) gross lease b) ground lease c) percentage lease d) net lease

B: ground lease

A licensee has a Disclosed Limited Agency agreement with a buyer and a seller to represent them both in one transaction. What is the status of the licensee`s principal broker in this situation? a) he/she is an attorney-in-fact b) he/she is also a disclosed limited agent c) he/she is a trustee d) he/she is a guardian

B: he/she is also a disclosed limited agent

The category Other Costs on the Closing Disclosure (CD) Form include: a) lender origination fees b) homeowner or condominium association fees paid at consummation c) property tax payments d) loan points on a loan

B: homeowner or condominium association fees paid at consummation

Principal broker, Joe, was holding earnest money for the Smith/Anderson transaction. The transaction was terminated and the parties could not come to agreement as to who owned the funds. Joe wanted to have the court decide the rightful owner of the funds. He filed a/an ___________________________________ with the court. a) lis pendens b) interpleader c) disposition d) unlawful detainer

B: interpleader

If a seller`s broker shows properties owned by another seller to a prospective buyer, the broker: a) is in breach of his/her fiduciary duty to the seller b) is not in breach of his/her fiduciary duty to the seller c) may be in breach of his/her fiduciary duty to the seller d) could be any of the above depending on the circumstances

B: is not in breach of his/her fiduciary duty to the seller

With a prepayment penalty, the borrower __________when paying off a loan early. a) is rewarded b) is penalized c) is prohibited d) none of the above

B: is penalized

Persons who have been declared by a court to be incapable of handling their own affairs are_________________________. a) allowed to enter contracts with a witness b) legally incompetent c) competent d) none of the above

B: legally incompetent

Dave was an employee at ABC Allied Structural. He never revealed trade secrets. He never spoke badly about the company in the presence of customers or to the public in general and he always followed the company policy manual. This was an example of: a) punctuality b) loyalty c) positive attitude d) all of the above

B: loyalty

When two or more computers are linked together this is called___________. a) general partnership b) networking c) redemption links d) installment links

B: networking

Licensees who perform property management and are affiliated with brokerages that do not have trust accounts should______________________________. a) open their own trust account for the deposits and disbursements of trust account funds b) not perform property management c) use their personal account for the deposits and disbursements of trust account funds d) ask their clients to open a trust accounts

B: not perform property management

Firms that have attractive decor and furnishings may project the image of being successful. Care must be taken that the furnishings are tasteful and the artwork will not________________. a) advertising the firm b) offend anyone c) Both a and b d) Neither a nor b

B: offend anyone

__________________means a written proposal executed by a buyer for the sale or lease of real property. a) value b) offer c) cost d) realization

B: offer

The party making the offer in a purchase and sale agreement is the ___________and the party accepting the offer is the _____________. a) offeror, lessee b) offeror, offeree c) offeree, offeror d) lessee, lessor

B: offeror, offeree

A buyer has signed a contract to purchase a property, but is uncertain of the condition of the title. Which of the following parties is legally responsible for knowing the condition of the title? The County Recorder. The seller's agent. The buyer. The mortgage lender.

In many cases, the taxpayer who has land situated in a disaster area and whose land is adversely affected by the disaster area may, _____________of each year, elect to defer the taxes levied on the land of the taxpayer for that year a) on or before February 1st b) on or before September 1st c) on or before November 1st d) on or before December 1st

B: on or before September 1st

If a/an ________________________________________has been requested, then a physical inspection of the property will be completed. a) lender policy b) owner's extended policy c) owner's standard policy d) All of the above

B: owner's extended policy

To divide land into two or three parcels of land within a calendar year is called a ________________________________ a) subdivision b) partition c) common area d) assessment

B: partition

The first grant to real property would most likely be in the form of a _________issued by the government a) graduated lease b) patent c) attachment lien d) none of the above

B: patent

The tenant pays a base amount and a percentage of gross income. What type of lease is this? a) gross lease b) percentage lease c) net lease d) net net lease

B: percentage lease

A PR for an estate is an acronym for a) private representative b) personal representative c) person of record d) none of the above

B: personal representative

"Just sign this now; we`ll fill in the blanks later" could be a sign of: a) a person who does not know the profession and needs to get assistances from others b) potential fraud c) a person who needs to get further information on the property to fill in the blanks d) a person who wants to help the homeowner avoid foreclosure

B: potential fraud

The clause in a deed of trust which allows the lender to take this foreclosure non-judicially is called a _____________________clause a) debt relief b) power of sale c) power of contract d) redemption of sale

B: power of sale

An assignment of a contract is when the interests of the original party (the assignor) are transferred to another party (the assignee). In general, an assignment will generally be permitted unless there is an express prohibition against assignment in the contract. The new party, (the assignee) assumes ________responsibility for the performance of the contract and the original party (the assignor) incurs ______responsibility for the contract. a) primary, primary b) primary, secondary c) secondary, primary d) neither party has responsibility

B: primary, secondary

The person who hires or appoints an agent to act on their behalf is called a: a) closing agent b) principal c) dual agent d) universal agent

B: principal

________________means the person who has permitted or directed a broker to act on their behalf. In a real property transaction, this generally means the buyer or the seller. a) attorney-in-fact b) principal c) remainderman d) rescission

B: principal

The _____________________________________is responsible for supervising the advertising of the brokerage as well as the individual advertising of affiliates. a) licensee b) principal broker c) Commissioner d) Oregon Real Estate Agency

B: principal broker

Who owns the listing at a brokerage? a) licensee that took the listing b) principal broker or brokerage c) the title company d) the mortgage company

B: principal broker or brokerage

Under landlord-tenant laws, landlords must treat tenants fairly and honestly. In a residential leasehold, this requirement would include a) insuring the tenant against loss of personal property. b) providing required building support and services. d) guaranteeing that a fair rent is being charged. d) insuring the property for the value of the leasehold.

B: providing required building support and services.

Title III of the Americans with Disabilities Act relates to ____________________________. a) retaliation of disabled persons b) public accommodations c) community property d) division of assets

B: public accommodations

When a seller offers financing to the buyer, this is known as a/an : a) ARM mortgage b) purchase money mortgage c) conventional loan d) jumbo loan

B: purchase money mortgage

The federal Civil Rights Act of 1866 prohibits all _________ discrimination in the sale or rental of property a) age b) racial c) sexual d) military discharge status

B: racial

The federal Civil Rights Act of 1866 prohibits all _________ discrimination in the sale or rental of property. a) age b) racial c) sexual d) military discharge status

B: racial

A principal broker must maintain a ledger of all trust account activity for deposits and disbursements called a ____________________________. a) ledger b) receipt and disbursement journal c) reconciliation d) conversion

B: receipt and disbursement journal

License __________________is the most severe penalty imposed by the Commissioner. a) suspension b) revocation c) reprimand d) progression

B: revocation

Allowing the buyer to take early possession of a property prior to closing involves: a) obtaining permission from the lender b) risk c) obtaining permission from the closing agent d) obtaining permission from the title company

B: risk

Janet, a licensee with XYZ Realty, has a listing with the Smiths and is the seller`s broker. Janet also has her own home listed for sale at the same time. Janet`s home is very similar to the Smith`s. In the course of performing an open house for the Smiths, Janet meets a potential buyer and suggests to the buyer that he should view her home and tells them that it is a better value and in a nicer neighborhood. Janet puts her own best interests before that of the Smiths because she wanted to sell her home first. This is an example of __________________. a) buyer agency conflict b) seller agency conflict c) dual agency conflict d) none of the above and Janet is not in conflict with agency

B: seller agency conflict

A real estate salesperson finds a buyer to a For Sale By Owner property. The home sells for $245,000, and the seller agrees to pay a commission of 3%. The salesperson is on a 65% commission schedule with her broker, who pays her 65% minus office expenses of $500. How much will the salesperson receive from this transaction? $4,778. $4,452. $4,278. $3,175.

Bob, a broker with ABC Realty, was a buyer`s broker for Mr. Garcia. Bob scheduled a time with Mr. Garcia to tour a group of homes. All of the homes that Bob chose to visit were in predominantly Hispanic neighborhoods and no other criteria was used. Bob felt that this was appropriate since Mr. Garcia was Hispanic. Bob is in violation of _____________which is illegal. a) blockbusting b) steering c) redlining d) age discrimination

B: steering

A licensee is an agent for their principal broker, and the principal broker is an agent for the principal (buyer or seller). When working with a the seller, the licensee is a/an_________________. a) agent b) subagent c) disclosed limited agent d) seller agent

B: subagent

Licensees should be sure to include this verbiage in the Purchase and Sale Agreement: _____________________when dealing with a short sale a) escrow company must take lesser amount b) subject to all underlying lien holder approval c) both listing broker and buyer's broker must take less than 1/2 the commission d) an appraiser must take 1/2 of their normal appraisal fee

B: subject to all underlying lien holder approval

A firm must not allocate expenditures for decor and furnishings at the expense of other items which may be___________________. a) cheap b) successful c) unsuccessful d) basic

B: successful

This is an agency where a prospective tenant hires a broker as their agent to procure a rental or lease of a property. a) buyer representation b) tenant representation c) facilitator representation d) non-representation

B: tenant representation

A person who dies leaving a will is considered______________________ a) intestate b) testate c) escheat d) having no heirs

B: testate

With a deed in lieu of foreclosure____________________________________obliged to proceed until a final agreement is reached. a) neither the borrower nor the lender is b) the lender is c) the borrower is d) the title company is

B: the lender is

In almost all real estate transactions: a) the lender's title polity is combined with the homeowner's policy b) the lender's policy is separate from the homeowners policy c) there is no homeowner's policy d) none of the above

B: the lender's policy is separate from the homeowners policy

A condominium owner`s share of maintenance and operations expenses are based on a) the unit's pro rata share of floor space. b) the unit's pro rata share of the property value as defined in the declaration. c) the number of shares the owner purchased in the condominium association. d) the assessed value of the condominium unit.

B: the unit's pro rata share of the property value as defined in the declaration.

Josh owns a home in a neighborhood where all of the homes are larger and nicer than his property. The neighborhood with nicer homes increases the value of Josh`s property. This is known as the____________________ a) theory of regression b) theory of progression c) lien theory d) title theory

B: theory of progression

TILA requires lenders to make certain disclosures on loans subject to the Real Estate Settlement Procedures Act (RESPA) within _______________ business days after their receipt of a written application. a) tow b) three c) five d) ten

B: three

There are ________________major national credit reporting agencies (CRAs) a) two b) three c) four d) five

B: three

There was no clause in the real estate contract that expressly stated that time was of the essence. The assumption is that: a) time is still of the essence b) time is not of the essence c) time is of the essence in certain contracts d) time is not of the essence in certain contracts

B: time is not of the essence

One or more contiguous lots or parcels in the same ownership is known as a _____________ a) subdivision b) tract c) common area d) partition

B: tract

In the Rectangular Survey System, a range is the area in between a) any row of sections in a township. b) two consecutive meridians. c) a principal meridian and a base line. d) a parallel and a meridian.

B: two consecutive meridians.

Bob bought a truck for his brokerage. The truck cost was $10,000. He put $4,000 down and received a loan for $6,000. Where would the truck show up on the firm`s balance sheet? a) under liabilities b) under assets c) under revenue d) under expenses

B: under assets

With a real estate contract, the buyer, who is known as the_______________, makes installment payments to the seller. a) vendor b) vendee c) mortgagee d) mortgagor

B: vendee

People with few or no assets usually have_____________________________ a) very complicated wills b) very simple wills c) complicated trusts d) none of the above

B: very simple wills

Higher limits for FHA loans are allowed in areas___________________________. a) with lower housing costs b) with higher housing costs c) where there are greater number of single family homes d) where there are a greater number of condominiums

B: with higher housing costs

When the sheriff has a court order to sell the property to pay off a judgment creditor(s), this is called a ___________________ a) Lis Pendens b) writ of execution c) power of sale d) non-judicial foreclosure

B: writ of execution

A broker receives an earnest money deposit from a buyer and signs the check over to the listing agent as a partial commission advance. What is wrong with this procedure? Nothing, provided the deposit clears the bank and doesn't bounce. The broker and the agent are guilty of price fixing. The broker has illegally converted security funds for business use. The agent may not be able to return the advance if the transaction falls through.

A certain investor wants an 11% return on investment from any real estate investment. A property priced at $360,000 has gross income of $60,000 and expenses of $22,000. Approximately how much too high or too low is the price of this property for the investor to obtain her desired return exactly? $1,000 overpriced. $8,000 underpriced. $15,000 overpriced. $16,000 underpriced.

A certified appraiser is one who has received certification by a licensed real estate school. the Appraisal Institute. the state in which the appraiser operates. the Appraisal Review Board.

A clause in a sale contract stipulates that the seller must provide evidence that the property is free of active termite infestation. On the day of closing, the buyer learns that inspection service did not provide the required written documentation. The buyer then proceeds to declare that the sale is off. Which of the following is true of this situation? The seller can sue for specific performance. The buyer will be in default, and liable for damages, if he does not complete the transaction. The buyer may be able to have the contract canceled. The contract is automatically void.

A court might grant an easement by prescription if a town needs to dig a trench across an owner's property to install a sewer line to a neighboring property, and the owner refuses permission. a property owner sells the front half of a lot and wants to continue using the driveway to access the rear of the lot. a trespasser has been using an owner's property for a certain period with the owner's knowledge but without permission. a property owner wants to prevent the owner of an adjoining property from building a an improvement that blocks her view.

A developer wants to develop a 16-acre subdivision. He figures that the streets and common area will take up about 30% of this overall area. If the minimum lot size is to be 12,000 SF, how many lots can the developer have on this property? 42 487 40 57

A distinctive feature of a promissory note is that it is not assignable. it must be accompanied by a mortgage. it is a negotiable instrument. it may not be prepaid.

A document certifying that a structure complies with building codes and is ready for use is referred to as a(n) inspection report. satisfaction bond. certificate of occupancy. user permit.

A homeowner borrows money from a lender and gives the lender a mortgage on the property as collateral for the loan. The homeowner retains title to the property. This is an example of intermediation. forfeiture. hypothecation. subordination.

A homeowner paid $185,000 for a house three years ago. The house sells today for $239,000. How much has the property appreciated? 23% 77% 29% 123%

A homeowner paid $200,000 for a house three years ago. The house sells today for $239,000. How much has the property appreciated? 8.4 %. 6.5 %. 19.5 %. 16.3 %.

A homeowner sold her house and had net proceeds of $265,000. Her adjusted basis in the home was $231,000. She immediately bought another house for $301,000. What was her capital gain? $265,000 $36,000 $34,000 None

A homeowner sold her house and realized a net proceeds amount of $210,000. Her adjusted basis in the home was $176,000. She immediately bought another house for $200,000. What was her capital gain? $10,000. $24,000. $34,000. None.

A homeowner`s total tax bill is derived by dividing the tax requirement by the tax base. multiplying each district's tax rate times the market value of the property. multiplying each district's tax rate times the taxable value of the property. averaging the tax rate for each tax district, and multiplying the average tax rate times the assessed value.

A homeseller signs a listing agreement with a broker then subsequently revokes the listing. Which of the following is true? The seller continues to have contractual obligations to the broker. The contract remains in full force until the expiration date. The broker may have a claim for marketing expenses expended during the listing term. The seller cannot sign a listing agreement with another broker.

A house is being appraised using the sales comparison approach. The house has three bedrooms, two bathrooms, and a patio. The appraiser selects a comparable house that has three bedrooms, 3 bathrooms, and no patio. The comparable house just sold for $200,000. A bath is valued at $7,000, and a patio at $2,000. Assuming all else is equal, what is the adjusted value of the comparable? $202,000. $207,000. $195,000. $205,000.

A joint venture may generally broker real estate if the co-venturers form a business trust. form a co-operative association. are properly licensed. are limited partners.

A lender determines that a homebuyer can afford to borrow $130,000 on a mortgage loan. The lender requires an 80% loan-to-value ratio. How much can the borrower pay for a property and still qualify for this loan amount? $138,000 $104,000 $162,500 $170,000

A lender is charging 2 points on a $60,000 loan. The borrower must therefore pay the lender an advance amount of $120 $300 $1,200 $3,000

A property has a net income of $150,000, interest payments of $105,000, principal payments of $30,000, and annual cost recovery of $7,000. The property`s tax rate is 28%. What is the property`s annual tax on income? $14,550 $40,040 $10,640 $2,240

A property that conformed with zoning ordinances when it was developed but does not conform to new ordinances is said to be an illegal special exception. a variance. a legal nonconforming use. unmarketable.

A prospective homebuyer submits a signed offer with the condition that the seller pay for the inspection at closing. The seller disagrees, crosses out the provision, then signs and returns the document to the buyer. At this point, assuming all other contract validity items are in order, the original offer is now an accepted offer, therefore a valid contract. an executable option. a counteroffer. an invalid offer.

A real estate sale contract is an executory contract until the completed sale transaction is recorded. the buyer and seller have agreed to all provisions and have signed the contract. all the obligations and promises are performed and the transaction is closed. the loan has been approved, the title insurance has been obtained, and the closing date is set.

A rental home has monthly gross income of $1,100. A suitable gross income multiplier derived from market data is 14.7. What estimated sale price (to the nearest $1,000) is indicated? $99,000 $162,000 $194,000 $173,000

A sale transaction closes on April 1, the ninety-first day of the tax year. The day of closing belongs to the seller. Real estate taxes for the year, not yet billed, are expected to be $3,150. According to the 365-day method, what should appear on the closing statement? A debit to the buyer and credit to the seller for $2,364.62 A debit to the buyer and credit to the seller for $785.34 A credit to the buyer and debit to the seller for $785.34 A credit to the buyer and debit to the seller for $2,364.62

A salesperson makes a listing presentation to a homeseller and obtains a signed listing agreement. The first thing the salesperson must now do is make a final pricing determination for the property. negotiate the commission with the client. complete the signing of the listing. explain the agency relationship to the client.

A school district`s tax rate is 10 mills. The school district`s required revenue from real estate taxes is $20,000,000. What is the tax base of the area? $20,000,000. $200,000,000. $2,000,000,000. $200,000,000,000.

A school district`s tax rate is 10 mills. The school district`s required revenue from taxes is $10,000,000. What is the tax base of the area? $10,000,000 $100,000,000 $1,000,000,000 $100,000,000,000

A seller contracts to sell a property that she does not own. The sale contract for this transaction is executable. must be in writing. is void. is illegal yet potentially enforceable.

A strength of the income capitalization approach is that it uses a rate of return that is required for all potential purchasers in a market. yields an accurate projection of investment income. uses a method that is also used by investors to determine how much they should pay for an investment property. can be used with any type of property in any market.

A subagent is the agent of the seller. the buyer. a broker who has an agency relationship with a client. the client's and the customer's agents.

Agent Peter has an open listing with Frank. Paul is Peter`s broker. Agent Perry`s customer buys Frank`s house. Patrick has a commission agreement with Frank. Who is most likely to be compensated in this scenario? Peter, since he has a written listing agreement. Paul, since he is Peter's broker Perry, since he found the customer. Patrick, since he has a commission agreement.

An agent informs a buyer that a provision in a contract is very commonplace. After explaining the clause, the agent assures the buyer that the clause does not mean anything significant. If something goes wrong with the transaction, the agent could be liable for violating duties owed a customer. misinterpreting the clause. intentional misrepresentation. practicing law without a license.

An agent is committing an act of discriminatory advertising by doing which of the following? Telling prospective buyers about the positive and negative aspects of a certain neighborhood. Telling a prospective seller that now would be a good time to put a property on the market. Advertising a property as available to individuals of a particular race. Telling a prospective buyer that the agent is too busy to show the buyer properties personally on a given day.

An apartment owner paid $500,000 for her complex 5 years ago. An appraiser at that time valued the land @ $100,000, but land has appreciated 25% over this period. The investor has used a 40-year straight-line depreciation method to depreciate the property. What is its current value using the cost approach? $437,500 $462,500 $475,000 $546,875

An investment property seller pays $14,000 in closing costs. These costs may be deducted from personal income. may be deducted from the property's income. may be deducted from the sale price for gains tax purposes. may be deducted from the adjusted basis for gains tax purposes.

An owner completes a sales contract on her property with a buyer. Before closing, the seller runs into financial trouble and assigns the contract to her principal creditor. The buyer cries foul, fearing the property will be lost. Which of the following is true? The buyer can sue the assignee to disallow the illegal assignment. The buyer can take legal action against the assignor. The assignor has completed a legal action. The sale contract is nullified.

An owner`s agent is showing a buyer a residential property for sale. The buyer notices water stains on the foundation walls and floor, and informs the agent. The appropriate course of action for the agent is to immediately contract to paint the ceiling. immediately contract to repair the roof. suggest the buyer make a lower-price offer. inform the seller.

As an economic product, real estate is distinguished by its homogeneity. its variety. the uniqueness of every parcel. its ability to appreciate in value.

At the closing of a mortgage loan the borrower pays off the note and receives clear title. the lender issues a firm loan commitment. the parties complete all loan origination documents and the loan is funded. the borrower's loan application is complete and the file closed.

Home buyer Janet pays $1,600 / month for the interest-only loan on her new house. The loan's interest rate is 6.75%. If she obtained a 75% loan, what was the purchase price? $313,333 $31,604 $379,259 $256,000

Homeowner Savannah owns the Southeastern ¼ of the Southwestern ¼ of the Northwestern ¼ of Section 4. How many acres is that property? 4 acres 40 acres 10 acres 8 acres

How does a constructive eviction occur? A landlord obtains a court order to force the tenant to vacate the leased premises. A court officer forcibly removes the tenant from the premises. A tenant declares a landlord in default and vacates the leased premises. A landlord declares a tenant in default and takes possession of the leased premises.

If commercial real estate rental prices are falling in a market, it is likely that demand has outstripped supply of space. the market is in equilibrium. the market is over-supplied. employment is increasing.

Statute of Frauds

requires all real estate contracts to be in writing. See written contract.

If property Alpha has a court-ordered easement across property Beta in order for Alpha to have access to a public road, the easement is a(n) easement by prescription. personal easement. easement by necessity. easement in gross.

Implied agency arises when an agent accepts an oral listing. a principal accepts an oral listing. a party creates an agency relationship outside of an express agreement. a principal agrees to all terms of a written listing agreement, whether express or implied.

In a deed of trust transaction, which of the following occurs? The beneficiary conveys title to a trustee in exchange for loan funds. The trustee conveys title to a beneficiary in exchange for loan funds. The trustor conveys title to a trustee in exchange for loan funds from the beneficiary. The trustee conveys title to a trustor in exchange for loan funds from the beneficiary.

In a graduated payment mortgage loan, loan funds are disbursed to the borrower on a graduated basis. the interest rate periodically increases in graduated phases. the loan payments gradually increase. the loan payments gradually increase and the loan term gradually decreases.

In accordance with the statute of frauds, leases in excess of one year must be recorded to be enforceable. oral leases are not enforceable. a five-year lease must be in writing to be enforceable. an unwritten lease is fraudulent.

In appraisal, loss of value in a property from any cause is referred to as deterioration. obsolescence. depreciation. deflation.

In deriving taxable income on an investment property, it is generally legal to deduct principal and interest payments from income. deduct principal payments from income. deduct interest payments from income. deduct principal and interest payments from income and capital gain.

In obtaining offers from a buyer, an agent must be careful to pursue only those offers which are at or near the listing price. balance the owner's price expectations with the buyer's opinion of value. avoid disclosing what price the owner will accept. avoid completing offers that are beneath market value.

In the Rectangular Survey System, a tier is defined by six consecutive sections of a township. two consecutive meridians. two consecutive parallels. a parallel and a meridian.

In the final step of an appraisal, the appraiser reconciles the value estimates derived by the various appraisal approaches by disregarding the high and low extreme results. averaging the results of all three approaches. weighing the applicability of the approaches and considering the quality of data supporting each approach. choosing the result that is closest to the average for properties in the immediate neighborhood.

In the market data approach, an appraiser chooses nearby comparables, adjusts the subject for differences, and estimates the value. gathers relevant price data, applies the data to the subject, and estimates the value. selects comparable properties, adjusts the comparables, and estimates the value. identifies the price previously paid, applies an appreciation rate, and estimates the value.

Mack is buying Roy's house for $500,000. Mack's loan amount is $325,000. He has agreed to pay 1.5 points at closing. How much will Mack pay for points? $450 $4,500 $4,875 $7,500

Melinda purchases a house and finances it. The lender in turn places a lien on Melinda's title. The lien in this mortgage transaction is evidence of debt incurred by a property owner. a promissory note granted by a property owner as security for a debt. the creditor's claim against the property as collateral security for the loan. the document required to clear clouded title.

Melissa is buying Raymond`s house. Melissa`s loan amount is $88,750. She has agreed to pay 2 points at closing. How much will Melissa pay for points? $157.50. $177.50. $1,775.00. $887.50.

Of the following actions, the only one which avoids any risk of committing unintentional misrepresentation is measuring and reporting property dimensions. describing properties and amenities. stating that a client should seek legal counsel. making statements about the presence or absence of hazardous substances.

Of the following potential influences on a local real estate market, which one would be considered local, rather than regional, national, or global? Changes in money supply Federal Reserve interest rates In- and out-migrations of major employers Trade imbalances with foreign trading partners

One distinguishing feature of real estate as an economic product is its easy convertibility to cash. its quick response to changes in supply-demand balance. its susceptibility to swings in the local economy. the easy substitutability of one item for another.

One of the agent`s fiduciary duties that continues even after a listing agreement expires is obedience. diligence. confidentiality. disclosure.

One of the parties to an agency relationship defaults, and the agreement terminates. Which of the following is true? All obligations are extinguished. Both parties must continue to perform all other obligations of the agreement. The defaulting party may have a financial consequence. The damaged party has no claim against the defaulting party.

Property managers have a ______ relationship with the property owner. non-binding partnership fiduciary subagency

Seller Frank receives an offer of $290,000 on a property he listed at $308,000. How much is the offer as a percent of the listing price? 87% 91% 94% 106%

The Wallaces, a minority family, would like to buy a home in a certain price range. Agent Ambrose shows the family all available properties in a neighborhood of families with similar backgrounds. Ambrose does not mention a number of homes in the family`s price range in other neighborhoods. This agent could be liable for blockbusting. providing unequal services. steering. nothing; his services were legal and acceptable.

The area of agent activity where there is the greatest risk of failing to maintain client confidentiality is trust fund handling. office management. the agency relationship. the closing process.

The classes protected against discrimination by the Fair Housing Act of 1968 are race only. religion and gender only. race, color, religion, and national origin. age and gender only.

The duties of a transaction broker or facilitator include a) preserving the confidentiality of information received from either party. helping the two parties achieve their respective objectives. disclosing material facts that affect the value of the property to both parties. choosing to obey the instructions of one party and informing the other party of the decision.

The essential elements of the metes and bounds system are parallels, base lines, and meridians. boundaries, distances, and a base line. reference points, angles, and distances. lot numbers, sections, and ranges.

The key consideration in granting a zoning exception known as a special exception is which of the following? Hardship Change of zones The public interest The use was legal prior to the new zone creation

The three overriding considerations of a lender`s mortgage loan decision are points, interest rate, and loan term. the location of the mortgaged property, the borrower's cash, and the amount of the borrower's equity. the ability to re-pay, the value of the collateral, and the profitability of the loan. the amount of the loan, the borrower's income, and the down payment.

The valuable consideration necessary to make a contract valid must be money. something tangible. something of value traded in exchange for something of value. something of equal value with whatever is received in exchange.

Title VIII of the Civil Rights Act of 1968 applies to the sale of all single-family residences. all privately owned single-family residences. privately owned single-family residences listed with a broker. privately owned single-family residences for sale by owner.

Two parties enter into a contract. The agreement fulfills all the requirements for a valid contract, with no disqualifying circumstances. Given this situation, it is still possible that the contract may be void. illegal. unenforceable. voidable.

Under federal fair housing laws, the owner of a ten-unit apartment building may legally advertise that the property is not available to anyone requiring wheelchair access. refuse to rent to aliens. require families without children to pay the same security deposit that families with children must pay. require tenants to move out when they become 62 years old.

What is a multiple listing? A listing shared by a listing agent and a selling agent. A listing that a listing agent delegates to a subagent. A listing that is entered in a multiple listing service to enable cooperation with member brokers. A listing that authorizes a listing agent to market more than one property for a seller.

What is the function of recording a deed? It makes the deed valid. It causes title to pass. It gives constructive notice of ownership. It removes all prior recorded encumbrances.

What is the purpose of an equalization factor in ad valorem taxation? It modifies a local tax rate to bring it into conformity with statutory tax rates. It changes the assessed value of an individual property to make it reflect the assessed values of other properties in the same neighborhood. It adjusts assessments in a locality to make them more consistent with an average level for the state or other higher level jurisdiction. It adjusts the amount of the homestead exemption in a certain area to make it proportionally equivalent to the average homestead exemption in other areas.

What is the role of Fannie Mae in the secondary mortgage market? It guarantees FHA-backed and VA-backed loans. It insures FHA-backed and VA-backed loans. It purchases FHA-backed and VA-backed loans. It originates FHA-backed and VA-backed loans.

What kind of agency is commonly created by a management agreement? Universal Specific General Vicarious

When must a Property Condition Disclosure Statement be used? With a newly-constructed single family home Immediately following the closing of any residential property Prior to the sale of an occupied 1-4 unit dwelling Prior to the closing of any commercial or residential re-sale

When must a listing agent disclose his or her agency relationship to prospective tenants or buyers? Immediately prior to the initial contact. Upon initial contact. Whenever substantive communication is made beyond casual conversation. Immediately following any offer executed by the customer.

Which laws or regulations require mortgage lenders to provide an estimate of closing costs to a borrower and forbid them to pay kickbacks for referrals? a) The Equal Credit Opportunity Act. Truth-in-Lending laws. the Real Estate Settlement and Procedures Act. Federal Fair Housing Laws.

Which of the following describes an encumbrance? A third party's right to encroach upon a property without the permission of the property owner. A third party's right to claim the sale proceeds of a property that has been mortgaged as collateral for a loan. A third party's interest in a real property that limits the interests of the freehold property owner. Another's right to acquire a freehold interest in a property against the property owner's wishes.

Which of the following entities can legally levy annual real property taxes? The Internal Revenue Service. A utility company. A tax district. A court of law.

Which of the following is an essential element of a valid contract for the sale of real estate? A valid blank form that the contract is written on. A habitable property. An offer and acceptance. A marketable title.

Which of the following is true of an eminent domain proceeding? It cancels the property owner's mortgage loan balance. It leaves the property owner with equitable title in place of legal title. It conveys legal title to the acquiring entity. It clouds the chain of title by canceling the original grant.

Which of the following laws or rulings extended discrimination to include gender, handicapped status, and family status? Executive Order 11063. the Civil Rights Act of 1968. the Fair Housing Amendments Act of 1988. Jones v Mayer.

Which of the following would be a non-material fact that would not have to be included in the Seller's Property Condition Disclosure form? A house has a leaking roof. A basement floods. A previous occupant died in the house. A previous occupant contaminated the house by manufacturing methamphetamine in the basement.

Why is real estate traditionally considered a relatively illiquid economic product? Its physical form is fixed. Real estate is defined as land, not water. It is often difficult to convert to cash. It cannot be moved.

When a single person has lived in the home as a main home two of the past five years and has not excluded any gain on the sale of another home in the past two years, the exemption is a total of ____________________________. a) $1000,000 of the gain. b) $150,000 of the gain c) $250,000 of the gain. d) $300,000 of the gain.

C: $250,000 of the gain.

Fred owns a lot measuring 80 ft. x 120 ft. The city puts in a new street on the front and the side of his house and assesses him 6 cents per square foot based on the area of this lot. His cost is what? a) $57.60 b) $67.50 c) $576.00 d) $675.00

C: $576.00

Linda owns a lot measuring 60 ft. x 150 ft. The city puts in a new street on the front and the side of his house and assesses her 8 cents per square foot based on the area of this lot. Her cost is what? a) $57.60 b) $67.50 c) $720.00 d) $875.00

C: $720.00

Tax foreclosure of real property can occur _______after the earliest delinquency date a) 6 month b) 1 year c) 3 years d) 4 years

C: 3 years

Your payment history accounts for ___ percent of your credit score: a) 50 b) 10 c) 35 d) 15

C: 35

Marsha sold her house this year for $400,000. She paid $700,000 two years ago. What was the percentage of her loss? a) 45 b) 44 c) 43 d) 41

C: 43

A building lot is 100 feet by 60 feet. What is the square footage of the lot? a) 600 b) 5,000 c) 6,000 d) 6,500

C: 6,000

If the Radius is 15 feet, what is the square feet of the circle? a) 620 square feet b) 625 square feet c) 707 square feet d) 720 square feet

C: 707 square feet

One square yard is equal to ________________ square feet. a) 3 b) 6 c) 9 d) 27

C: 9

Which of the following would be considered a property improvement? a) An alteration to land to make it more useful. b) An increase in the value of a property. c) A chicken coop permanently attached to land. d) A parcel of land that has passed a percolation test.

C: A chicken coop permanently attached to land.

ARM stands for: a) Appropriated rental mortgage b) Amortized rate mortgage c) Adjustable rate mortgage d) Affiliated rate mortgage

C: Adjustable Rate Mortgage

Monica grants her sister Alice an estate for as long as she lives. Her descendants, however, cannot inherit the estate. What kind of estate is it? a) An estate pur autre vie. b) An estate for years. c) An ordinary life estate. d) A legal life estate.

C: An ordinary life estate.

Real estate brokers compete with one another to obtain listings for sale. At the same time, they often cooperate with one another to secure buyers for those listings. This dual situation of competition and cooperation is unique to the real estate industry. It is also an area where ___________________violations can easily occur. a) truth-in-lending b) RESPA c) Anti-trust d) impounded

C: Anti-trust

ASP is an acronym for: a) Automated Service provider b) Area Service Provider c) Applications Service Provider d) Attachment Service Provider

C: Applications Service Provider

A party has just purchased a manufactured housing unit. When is this property considered real property? a) As soon as it is purchased b) As soon as it is constructed c) As soon as it is affixed to the ground. d) This form of property is considered personal property at all times.

C: As soon as it is affixed to the ground.

A CLUE report may: a) run with the property" b) "run with the person" c) Both a and b d) Neither a nor b

C: Both a and b

A Landlord Tenant Act can be: a) A federal law b) A state law c) Both a and b d) Neither a nor b

C: Both a and b

A common tool used to calculate an index is: a) Cost of funds to savings banks b) Treasury securities c) Both a and b d) Neither a or b

C: Both a and b

Another name for a Mechanic`s Lien is a __________________________ a) Materialman's Lien b) Construction Lien c) Both a and b d) Neither a nor b

C: Both a and b

Appurtenant easements are categorized as being either _____________ a) affirmative b) negative c) both a and b d) neither a nor b

C: Both a and b

Bancroft Bonding Act allows property owners to pay special assessments ________________ a) in a lump sum b) in installment payments c) Both a and b d) Neither a nor b

C: Both a and b

Housing qualifies as housing for older persons if___________________________ a) At least 80 percent of the dwellings are occupied by at least one person 55 years of age or older per unit. b) Policies and procedures that demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older are published and adhered to c) Both a and b d) Neither a nor b

C: Both a and b

If a person dies intestate with heirs, then the property will be given to the heirs according to the______________________________________ a) law of descent b) law of distribution c) Both a and b d) Neither a nor b

C: Both a and b

Real estate is_________________________________________ a) land b) anything that becomes attached to land c) Both a and b d) Neither a nor b

C: Both a and b

Some brokerages will not allow their affiliates to represent themselves on a transaction. This is because: a) it may involve liability b) errors and omissions insurance c) Both a and b d) Neither a nor b

C: Both a and b

Statute of Limitations

requires that lawsuits be filed within a certain period of time following a breach.

TILA does not apply to: a) Creditors who extend credit primarily for business, commercial, agricultural, or organizational purposes b) Student Loan Programs c) both a and b d) neither a nor b

C: Both a and b

The Uniform Commercial Code is also known as the ______________ a) the code b) UCC c) both a and b d) A lien

C: Both a and b

The property manager has a duty to the tenant to: a) Ensure the tenant has a safe and habitable dwelling b) Ensure the terms of the lease or rental agreement are carried out c) Both a and b d) Neither a nor b

C: Both a and b

Which of the following is a main purpose of RESPA? a) To inform home buyers as to the estimated and actual costs of settlement services. b) To eliminate unscrupulous practices that can increase the cost of settlement services c) Both a and b d) Neither a nor b

C: Both a and b

_______________________ laws regulate the sale of land for development a) Federal b) State c) Both a and b d) Neither a nor b

C: Both a and b

__________________________is a way to be released from a home loan and have the property transferred back to the lender a) Deed in lieu of foreclosure (DIL) b) foreclosure c) Both a and b d) Neither a nor b

C: Both a and b

Who chooses the title company that will insure the property? a) The buyer b) The seller c) Both the buyer and the seller d) The escrow agent

C: Both the buyer and the seller

____________________is the behavior that a business follows in its daily dealings. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer or among themselves. a) Rezoning b) Plattimg c) Business ethics d) Estoppel

C: Business ethics

If you are an independent contractor you may be able to deduct business expenses on Schedule _____of your income tax return. a) A b) B c) C d) D

C: C

A main concern with joint ventures is that they can restrict ______________ a) gross income b) hard money mortgages c) competition d) consumer credit

C: Competition

Which of the following agencies is in charge of the TRID Rules for borrower disclosure? a) Federal Trade Commission b) Federal Reserve c) Consumer Financial Protection Bureau d) HUD

C: Consumer Financial Protection Bureau

A __________________________is/are used to determine a list price for the property. a) comparative market analysis b) broker's price opinion c) Either a and b d) Neither a nor b

C: Either a and b

Default in a residential lease could be caused__________________________. a) by a tenant b) by a landlord c) Either a or b d) Neither a nor b

C: Either a or b

With a cost-of-living lease: a) The rent is tied to rises in the cost of living b) The rent goes up with general inflation c) Either a or b d) Neither a nor b

C: Either a or b

Which of the following types of leasehold estate lacks a specific term? a) Estate for years. b) Estate from period-to-period. c) Estate at will. d) Estate by the entireties.

C: Estate at will.

Two people own a house, each having an undivided equal interest. Which of the following best describes what each party owns? a) Fifty percent of the physical house and the land it rests on. b) One hundred percent of the home and the land. c) Fifty percent of the estate consisting of the indivisible whole of the real property. d) Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.

C: Fifty percent of the estate consisting of the indivisible whole of the real property.

Under what conditions can two individuals own a property as tenants by the entireties? a) If they so elect at the time of acquiring title. b) If they are blood relatives. c) If they are married. d) If they incorporate.

C: If they are married.

The Conspiracy to Boycott in real estate is: a) How commissions are determine b) How real estate companies are formed c) Illegal d) None of the above

C: Illegal

____________is an agency relationship created by the actions of the parties a) Estoppel agency b) lis pendens agency c) Implied Agency d) none of the above

C: Implied Agency

______________specifies that a portion of land be devoted to a specific purpose a) spot zoning b) bulk zoning c) Incentive zoning d) Protective zoning

C: Incentive zoning

Bill wanted to buy a building that he could lease out to tenants. His concerns were building features (ceiling heights and floor load capacity), access to transportation and environmental concerns. What type of building might he be considering buying? a) residential b) office c) industrial d) agricultural

C: Industrial

How does Planned Unit Development zoning vary from ordinary zoning? a) It applies only to office parks. b) It incorporates a number of different zones within a single property boundary. c) It requires that multiple tracts of land be developed according to a single design. d) It requires developers to obtain a separate building permit for every structure.

C: It requires that multiple tracts of land be developed according to a single design.

The last page of the Loan Estimate (LE) Form explains the servicing of the loan. Which of the following best describes this loan factor. a) It shows the date that the borrower must pay by b) It states the contact information for the lender's service department c) It states whether the loan will be serviced by the lender or a hired outside company d) It states the service responsibilities of the borrower's broker once the transaction is complete

C: It states whether the loan will be serviced by the lender or a hired outside company

To read directly about environmental laws, go to the Oregon Department of Environmental Quality website and click on _____________from their website a) Projects and Programs b) Public Notices c) Laws and Regulations d) News Releases

C: Laws and Regulations

Reconciliation mail-in review

means a review of a property manager's clients' trust account reconciliation information and documents for compliance with OAR 863-025-0028.

Which of the following life estates is created by operation of law rather than by the owner? a) Conventional life estate. b) Ordinary life estate. c) Legal life estate. d) Community property life estate.

C: Legal life estate.

Which of the following TRID time line requirements for a loan application and the Loan Estimate Form is correct? a) Lender has 3 days to deliver, the buyer/borrower has 30 days to accept b) Lender has 10 days to deliver, the buyer/borrower has 10 days to accept c) Lender has 3 days to deliver, the buyer/borrower has 10 days to accept d) There are no acceptance days required of the borrower to proceed with the loan

C: Lender has 3 days to deliver, the buyer/borrower has 10 days to accept

________________are when both parties to a contract agree in advance to a dollar amount that will compensate the other party in the event of a breach. a) specific performance b) non-specific performance c) Liquidated Damages d) Compensatory Damages

C: Liquidated Damages

Judicial foreclosures are processed through the courts. The lender will file a complaint and record a notice of_____________ a) mechanics lien b) writ of execution c) Lis Pendens d) none of the above

C: Lis Pendens

___________________________are the largest sellers of mortgage products for lenders. a) Commercial banks b) Savings banks c) Mortgage brokers d) Pension funds

C: Mortgage brokers

Littoral rights apply to which of the following? a) Boatable ponds entirely contained within the boundaries of an owner's property. b) Streams and rivers. c) Navigable lakes, seas, and oceans. d) Navigable streams and rivers.

C: Navigable lakes, seas, and oceans.

Mary owned a three bedroom, one bath house. She wanted to rent out one of the rooms. Upon John`s inquiry, Mary refused to rent to him because he was a male. Is Mary in violation of sexual discrimination? a) Yes, she refused John because he was a male b) Yes, because she refused John because he was white c) No, because this section does not apply with respect to sex distinction, discrimination or restriction if the real property involved is such that the application of this section would necessarily result in common use of bath or bedroom facilities by unrelated persons of opposite sex. d) None of the above

C: No, because this section does not apply with respect to sex distinction, discrimination or restriction if the real property involved is such that the application of this section would necessarily result in common use of bath or bedroom facilities by unrelated persons of opposite sex.

ORVET is an acronym for: a) Oregon Voluntary Estate Tax b) Oregon Value Estate Tax c) Oregon Veteran d) None of the above

C: Oregon Veteran

ORVET is an acronym for: a) Oregon voluntary estate tax b) Oregon value estate tax c) Oregon veteran d) none of the above

C: Oregon veteran

When a loan has an escrow account, this means that it is a(n): a) loan established under the escrow closing b) handled by an outside service c) PITI loan where payments for taxes and insurance go into an escrow account d) trustee is hired to help out the borrower during the life of the loan

C: PITI loan where payments for taxes and insurance go into an escrow account

RAM is an acronym for: a) Random Area Memory b) Random Assisted Memory c) Random Access Memory d) Revenue Assigned Memory

C: Random Access Memory

Riparian rights concern which of the following bodies of water? a) Lakes b) Seas and oceans. c) Streams and rivers. d) Navigable lakes.

C: Streams and rivers.

Which of the following is NOT considered to be a sufficient legal description on a deed? a) Recorded plat map b) Metes and Bounds description c) Street name and house number d) Government Survey

C: Street name and house number

The listing broker knows that the lowest amount that the seller would be willing to accept is $ 519,000 for their home. During an open house, a potential buyer visits and asks the listing broker "what is the lowest price that the seller will take for this home?" How should the listing broker respond? a) Tell the potential buyer that the lowest price the seller is accept is $519,000. b) Tell the potential buyer that the lowest price the seller will accept is $400,000 so that the commission will be greater c) Tell the potential buyer to make a solid good offer d) none of the above

C: Tell the potential buyer to make a solid good offer

In a community property state, Chad marries Stephanie. Prior to the marriage Chad owned an SUV. During the marriage, Chad bought a Buick, Chad and Stephanie bought a second property with money earned from Stephanie`s job, and each individual received a motorcycle from Stephanie`s uncle as a gift. What property is community property in this marriage? a) The SUV, the Buick, and the second property. b) The SUV, the Buick, the second property, and the motorcycles. c) The Buick and the second property. d) The Buick, the second property, and the motorcycles.

C: The Buick and the second property.

Prorations for taxes at closing are between: a) The closing agent and the lender b) The lender and the buyer c) The buyer and the seller d) The title company and the lender

C: The buyer and the seller

Page 1 of the Loan Estimate required information includes all the following EXCEPT: a) Notification of a Rate Lock b) Name of the lender and application ID # c) The name of the Broker and MLS # d) Any balloon payment at the end of the loan

C: The name of the Broker and MLS#

Which of the following would NOT most likely be included in an office policy manual? a) Compliance with local, state and federal laws b) Compensation (desk fee offices versus split commission structures or a combination of both) c) The religious composition of the firm's owners d) Brokerage office versus home office

C: The religious composition of the firm's owners

Which of the following is true of a joint tenancy? a) The tenants can determine the size of the share owned by each tenant. b) The size of the tenant's shares is determined by the amount of equity each has invested in the property. c) The tenants have an equal and indivisible ownership interest. d) There can be no more than two co-owners, and each has a fifty percent interest.

C: The tenants have an equal and indivisible ownership interest.

The disclosure of the TIP costs represent which of the following? a) The amount of each monthly payment that will be for taxes b) The percentage of each monthly payment that will be for taxes c) The total amount of interest that will be paid over the life of the loan d) The amount of sales and excise tax that will have to be paid

C: The total amount of interest that will be paid over the life of the loan

When an estate is held in a trust, which party holds legal title? a) The beneficiary. b) The trustor. c) The trustee. d) The grantor.

C: The trustee.

______________ law is a group of laws that addresses, and provides remedies for, civil wrongs not arising out of contractual obligations. a) Family b) Intellectual property c) Tort d) Lis Pendens

C: Tort

When an independent contractor gets hired by a firm, they will need to fill out a _______ form. This allows the firm to report federal income tax. a) W-2 b) W-4 c) W-9 d) W-10

C: W-9

If a lease does not state a specific ending date, when does it terminate? a) Immediately, since it is an invalid lease. b) After one year. c) When either party gives proper notice. d) Whenever the property is sold.

C: When either party gives proper notice

Homeowner Greg hired architect Mary to develop building plans for a new room addition. Greg did not pay Mary as agreed. Can Mary place a construction lien on the property? a) Yes, if her invoice was less than $10,000 b) Yes, if her invoice was less than $20,000 c) Yes d) No, because she was not a supplier or part of the construction crew

C: Yes

Can a non-licensed individual who performs certain property management functions be exempt from being licensed? a) No b) Yes, if given permission by their principal broker c) Yes, is they fall into the exempt category by Oregon statute d) Yes, if they are from out of state

C: Yes, is they fall into the exempt category by Oregon statute

If the duration of an owner`s rights in an estate is not determinable, the owner has a) a tenancy at sufferance. b) a leased fee simple estate. c) a freehold estate. d) a leasehold estate.

C: a freehold estate.

With a deed of trust foreclosure, the lender must first serve the borrower with__________________________. a) a notice of lis pendens b) a notice of the doctrine of laches c) a notice of default d) a notice to pay rent or quit

C: a notice of default

The purpose of _______________________is to determine the nature of the property owner`s interest in the property, whether the owner has the right to convey the property, and whether any others have claims against the property. a) a loan rider b) an insurance rider c) a title examination d) a title exclusion

C: a title examination

The highest bidder at trustee`s foreclosure sale, done through a deed of trust, will receive _______________________. a) a certificate of sale b) a certificate of entitlement c) a trustee's deed d) a certificate of purchase

C: a trustee's deed

Due-On-Sale clause is also referred to as a/an ________________________clause. a) defeasance clause b) subordination clause c) alienation d) prepayment penalty

C: alienation

When documentation that involves the sale of real property is placed in escrow, this means that: a) it will be submitted to a court of law b) the real estate brokers are no longer involved in the transaction c) an escrow agent, chosen by the parties, hold the documents until all of the terms and conditions of the purchase and sale agreement have been met d) the deed to the property will be delivered to the purchaser within three business days

C: an escrow agent, chosen by the parties, hold the documents until all of the terms and conditions of the purchase and sale agreement have been met

Real estate brokers compete with one another to obtain listings for sale. At the same time, they often cooperate with one another to secure buyers for those listings. This dual situation of competition and cooperation, which is unique to the real estate industry, can present many opportunities for_____________________________. a) imputed knowledge violations b) garnishment violations c) anti-trust violations d) forfeiture violations

C: anti-trust violations

One of the first processes for a buyer obtaining a loan is to submit a loan_____ to the lender. a) commitment b) progress report c) application d) a summary report

C: application

When should you ask an attorney to do a conflict of interest check? a) never b) before paying the bill c) as soon as possible d) only if you will be represented in the court room

C: as soon as possible

Assets = Liabilities + Net Worth is an equation for a: a) liquidity ratio b) income statement c) balance sheet d) cost of goods sold

C: balance sheet

Why aren`t wrap-around mortgages used more often? a) they are more expensive than conventional loans b) they buyer doesn't receive title until the loan is paid off c) because most mortgages contain a due-on-sale clause prohibiting the seller from doing a wrap-around mortgage d) Because the lending institutions must pay heavy fees on these loans

C: because most mortgages contain a due-on-sale clause prohibiting the seller from doing a wrap-around mortgage

Deed restrictions are also known as________________________ a) covenants b) conditions c) both a and b d) neither a nor b

C: both a and b

Independent contractors are responsible for paying; a) Self Employment Contribution tax (SECA) b) estimated tax payments during the year to cover tax liabilities c) both a and b d) neither a nor b

C: both a and b

Successful industries anticipate________________________________________. a) a need b) and attempt to fill this need as soon as it is possible c) both a and b d) neither a nor b

C: both a and b

The home financed through ODVA must____________________________. a) be the veteran's primary residence b) be purchased in Oregon c) both a and b d) neither a nor b

C: both a and b

The primary sources of revenue from a mortgage bank are: _________________. a) loan origination fees b) loan servicing fees c) both a and b d) neither a nor b

C: both a and b

The restrictions of the conservation easement, once set in place, "run with the land" and are binding on ____________owners of the property a) all future b) all current owners c) both a and b d) neither a nor b

C: both a and b

TRID forms replace which of the following disclosure forms: a) the HUD-1 form b) the final Truth-In-Lending disclosure form c) both of these forms d) neither of these forms

C: both of these forms

With a___________________________, the lender holds the amount paid for the items in a reserve account (also known as an escrow account or an impound account) until they are due to be paid. These items typically include principal, interest, taxes and insurance. a) participation mortgage b) home equity mortgage c) budget mortgage d) take-out

C: budget mortgage

Checks from the trust account must bear the words _____________________ and be pre-numbered. a) ledger b) savings account c) client's trust account d) equity line of credit

C: client's trust account

The accounting of all financial items in a transaction will normally be specified in: a) A testing statement b) a secondary market statement c) closing disclosures d) an assessment statement

C: closing disclosure

In peer-to-peer evaluations, workers evaluate their _________. a) customers b) clients c) co-workers d) The CEO of the firm only

C: co-workers

A broker will typically use a ________ to arrive at a value for the property a) competitive markup analysis b) competitive material analysis c) comparative market analysis d) comparative material analysis

C: comparative market analysis

_______________________________ means information communicated to a real estate licensee or the licensee`s broker by the buyer or seller of 1-4 residential units for a real estate transaction, including, but not limited to price, terms, financial qualifications or motivation to buy or sell. a) range information b) promissory information c) confidential information d) non-recourse information

C: confidential information

The term ___________in law refers to something of value given by one party in exchange for something of value from the other party to the contract a) liquidity b) locking in c) consideration d) hypothecation

C: consideration

The term ___________in law refers to something of value given by one party in exchange for something of value from the other party to the contract. a) liquidity b) locking in c) consideration d) hypothecation

C: consideration

Interest is the _______ of borrowing money. a) balance b) loan ration c) cost d) issuance

C: cost

Debt divided by shareholders equity = _________________________________. a) total liability b) total equity c) debt to equity ratio d) cost of goods sold

C: debt to equity ratio

In a deed of trust a document called a ______________________________is used to release the lien when it has been paid off. a) satisfaction of mortgage b) deed of title c) deed of reconveyance d) warranty deed

C: deed of reconveyance

The amount of down payment required will be: a) dependent upon the borrower's age b) dependent upon how many borrower's there are c) dependent upon the type of loan being purchased d) the amount of title insurance purchased

C: dependent upon the type of loan being purchased

___________________is when a broker is representing both the seller and the buyer in the same real estate transaction. a) facilitator agency b) seller agency c) disclosed limited agency d) buyer agency

C: disclosed limited agency

A _____________is a unique name used for a website. a) assumed name b) fictitious name c) domain name d) group name

C: domain name

If personal property taxes are not paid by the date shown on the delinquency notice, the tax collector may _______________ a) issue a warrant creating a judgment b) seize and sell the property c) either a or b d) neither a nor b

C: either a or b

To carry out a calculation it is easier to work with decimals rather than_______________________. a) fractions b) percentages c) either a or b d) neither a nor b

C: either a or b

If you receive extensive instructions on how work is to be done, this suggests that you are an____________________. a) employer b) independent contractor c) employee d) either a or c

C: employee

A _____________________________________is a mortgage that was recorded first and has lien priority over any other mortgages. a) second mortgage b) junior mortgage c) first mortgage c) both a and b

C: first mortgage

A Warranty deed covenant is an agreement between two or more persons, where either party states certain facts, or promises to perform or give something to the other, or to abstain from the performance of certain things. With this deed, the seller (grantor) makes________ covenants or promises to the buyer (grantee) a) no b) three c) five d) eight

C: five

The formula sales divided by total assets is called a sales to total asset ratio. This ratio indicates how efficiently the firm`s business generates sales on each dollar`s worth of assets. This ratio indicates how efficiently the firm`s business___________________. a) uses liabilities b) uses assets c) generate sales d) gross revenues

C: generate sales

A ____________________ will not allow a borrower from paying off a loan early. a) defeasance clause b) subordination clause c) lock-in-clause d) prepayment penalty

C: lock-in-clause

Generally, home ______________is any interest you pay on a loan secured by your home. a) mortgage payment b) mortgage annuity c) mortgage interest d) straight note

C: mortgage interest

The proration dates for the seller and buyer__________________ a) must be different by 30 days b) must to different by 60 days c) must match d) none of the above

C: must match

Whose responsibility is it to disclose the proximity of a registered or convicted sex offender when a property is listed? a) the seller b) the seller's broker c) no one, it is up to the buyer to investigate if they chose d) none of the above

C: no one, it is up to the buyer to investigate if they chose

Span of control refers to the ______________________of subordinates a manager or supervisor can directly supervise in an organization. a) skill level b) quality of workmanship c) number d) All of the above

C: number

If the borrower has a blanket mortgage on a subdivision, they would need a _________________________to be able to release individual lots, when they are sold, from the mortgage before the entire mortgage is paid off. a) second b) time is of the essence clause c) partial release clause d) severalty clause

C: partial release clause

The main aspect of the Loan Estimate form that protects the lender under the TRID rules is that it provides the lender with: a) information on the borrower b) specific regarding a credit report c) proves that the borrower received the LE form as required d) lists the expenses that the borrow must pay

C: proves that the borrower received the LE form as required

Once the condominium has been created, a disclosure statement, prepared by the creator of the condominium, is adopted and issued by the________________________. a) developer b) listing broker c) real estate agency d) condominium manager

C: real estate agency

A ____________________________is a professional who specializes in estimating the value of property. a) real estate broker b) closing agent c) real estate appraiser d) structural inspector

C: real estate appraiser

______________________is when a contract is cancelled and both parties are returned to their original position a) novation b) assignment c) rescission d) breach

C: rescission

A way for a bank to free up some of their money tied up in existing loans so they could make additional loans would be to: a) charge a lower interest rate on future loans b) charge a lower loan origination fee on future loans c) sell existing loans on the secondary market d) Pay less to the person originating the loan on future loans granted

C: sell existing loans on the secondary market

The date of possession is ________the closing date. a) always b) never c) sometimes d) none of the above

C: sometimes

When local governments levy a charge on the properties that are benefited by local improvement, this is known as a________________________________ a) general tax b) ad valorem tax c) special assessment tax d) all of the above

C: special assessment tax

The best example of _____________ would be a licensee who has taken a listing for a seller. a) universal agency b) general agency c) specific agency d) none of the above

C: specific agency

Credit scores of between 575 and 680 are considered to be: a) conforming b) prime c) sub-prime d) low risk

C: sub-prime

A tenant transfers a portion of the leasehold interest to another party. The instrument that accomplishes this transfer is a(n) a) deed. b) novation. c) sublease. d) reconveyance

C: sublease

After the construction is completed, a long term ________________loan may be acquired to pay off the remaining construction loan. a) participation b) Package c) take-out d) home equity

C: take-out

Mark signed a listing agreement at a bar with his real estate broker. Mark was seriously intoxicated and considered_______________. a) competent b) foolish for his actions c) temporarily incompetent d) a ward of the court

C: temporarily incompetent

Six people have identical rights in a property and enjoy an indivisible interest. However any of the owners may sell or transfer his/her interest without consent of the others. This form of ownership is a a) joint tenancy. b) homestead ownership. c) tenancy in common. d) estate in severalty.

C: tenancy in common.

In both a deed of trust and a mortgage, ___________________becomes the security for the loan. If the borrower defaults the lender will initiate foreclosure proceedings and take control of the property. a) the earnest money b) the down payment c) the property d) none of the above

C: the property

An affiliated licensee must submit all trust funds to their principal broker within ____________banking days of receipt, unless there are written instructions to the contrary. a) one b) two c) three d) five

C: three

Consummation occurs when the buyer/borrower becomes contractually obligated to: a) the seller b) to the mortgage broker c) to the creditor/lender on the loan d) continue with the escrow process

C: to the creditor/lender on the loan

A _______________is often used, for example, by a trustee in bankruptcy or foreclosure to sell real property of the debtor a) warranty deed b) a bill of sale c) trustee's deed d) reformation deed

C: trustee's deed

___________________________can be defined as the liability created by an action or non action by a person, working on behalf of him when he is responsible for all the action or inaction of such person within the limits of their association. a) lis pendens b) unlawful detainer c) vicarious liability d) reformation

C: vicarious liability

An easement could be terminated ____________________________ a) with the sale of the dominant property b) with the sale of the servient property c) with the written release from the dominate property owner d) with the written release from the servient property owner

C: with the written release from the dominate property owner

When a consumer submits a loan application to a lender, the lender must get the Loan Estimate form to that applicant: a) by registered mail within 10 days b) within 10 days c) within 3 business days d) within 3 calendar days

C: within 3 calendar days

A property manager must not engage in the management of rental real estate without a ___________________________________between the owner and the property manager. a) listing agreement b) disclosure agreement c) written, unexpired property management agreement d) recourse

C: written, unexpired property management agreement

A subordination clause allows another loan to have a higher priority, usually the first position, than the existing loan. Subordination is the act of _________________priority. a) taking b) making all priorities equaling c) yielding d) none of the above

C: yielding

A breach of contract is a termination of the contract by the mutual consent of the parties. financial damage suffered by a party because another party has nullified a contract provision. a lawsuit to force a party to discharge the contract. the failure of a party to perform according to the terms of the contract.

A conventional mortgage loan is one that is backed by the Federal National Mortgage Association. insured under Section 203(b) of the Federal Housing Administration loan program. guaranteed by the Government National Mortgage Association. not FHA-insured or VA-guaranteed.

A homeowner receives a tax bill that includes an amount for the library district, taxed at $1.00 per $1,000, and the fire protection district, taxed at $2.00 per $1,000. How much does the taxpayer have to pay for these two items if the property`s taxable value is $147,000? $1,567. $157. $1,410. $441.

A judge rules in favor of the creditor in a court proceeding and places a judgment lien against all the debtor`s assets, including his real property. This is an example of a(n) voluntary junior lien. involuntary superior lien. involuntary specific lien. involuntary general lien.

A sale transaction closes on July 4. The day of closing belongs to the seller. On January 1, the seller paid a hazard insurance premium of $375 for the calendar year. According to the 12-month/30-day method, what is the seller`s share of the insurance premium? $183.33. $187.50. $189.05. $191.67.

A sale transaction on rental property closes on December 16. The landlord received the December rent of $1,380 on December 1. Assuming the closing day is the buyer`s, and that the 365-day method is used for prorating, which of the following entries would appear on the settlement statement? Debit seller $667.74. Credit seller $1,380.00. Debit buyer $712.26. Credit buyer $712.26.

A seller received a rental payment of $900 in advance. At closing, the seller has earned only $320 of this rent. What should appear on the closing statement? A debit to the seller and credit to the buyer for $320. A debit to the seller for $580 and a credit to the buyer for $320. A debit to the seller for $320 and a credit to the buyer for $900. A debit to the seller and credit to the buyer for $580.

A tenant has an option-to-purchase agreement with the landlord that expires on June 30. On July 1, the tenant frantically calls the landlord to exercise the option, offering the apology that she was busy with a death in the family. Which of the following is true? Since options contain grace periods, the landlord must sell. The tenant loses the right to buy, but can claim the money paid for the option from the landlord. The landlord does not have to sell, but must renew the option. The option is expired, and the tenant has no rightful claim to money paid for the option.

Amy obtains a 75% LTV loan on her new $200,000 home with an annual interest rate of 6%. What is the first month's interest payment? $900 $250 $1,000 $750

An apartment building that recently sold for $400,000 had monthly gross rent receipts of $3,200. What is its monthly gross rent multiplier? 80 .01 110 125

An apartment building that sold for $450,000 had monthly gross rent receipts of $3,000. What is its monthly gross rent multiplier? 12.5 .01 .08 150

An office building lacks fiber optic cabling to accommodate the latest communications equipment. This is an example of physical deterioration. economic obsolescence. incurable depreciation. functional obsolescence.

Because a real estate investment can take a long time to sell, real estate investments are considered to be management intensive. insensitive to marketing. vulnerable to seller's markets. relatively illiquid.

Closing is on August 30th. The seller has paid the property taxes for the entire year. How many days of refund will the seller get for taxes. The tax starts July 1st. a) 83 b) 39 c) 53 d) 60

D: 60

Commingling is the practice of blending escrow funds on a number of properties in one escrow account. mixing socially with prospects at open houses or other marketing functions. allocating commission funds from a transaction for use in the agency's business. mixing escrow funds with the broker's operating funds.

Debra bought a home for $120,000, paying $24,000 down and taking a mortgage loan of $96,000. The following year she had a new roof put on, at a cost of $5,000. What is Debra`s adjusted basis in the house if she now sells the house for $150,000? $29,000 $96,000 $101,000 $125,000

Effective gross income is defined as the total of scheduled rents. the total of all rents and revenues generated by a property. potential gross income minus debt service and reserves. revenue from all sources minus losses from uncollected rents, vacancies, and evictions.

How does sharing the qualifying function with a lender protect a licensee? It guarantees that a buyer will have a loan. It reduces the chance of presenting an offer from an unqualified buyer. It relieves the licensee of his or her due diligence responsibilities. It allows the licensee to avoid asking embarrassing questions.

If a single-family resident has listed her property with a licensee, the Seller's Property Condition Disclosure form can be substituted by the licensee's material facts disclosure form. does not have to be completed prior to closing. can be completed by either the seller or the licensee. must still be completed according to local requirements.

If an agent has an exclusive listing to sell a property, and the property is then taken by eminent domain, what is the status of the listing? The seller's obligations under the listing are assigned to the agency that takes the property. It becomes a voidable contract. The commission clause of the agreement is canceled. It may be terminated against the agent's will.

In a lien-theory state, what kind of interest does a mortgage lender have in the liened property? A possessory interest. A tenancy-by-mortgagee interest. A legal interest in a pro rata share of the property. An equitable interest.

One of the strengths of the sales comparison approach is that it takes into account the subject property's investment value. reveals the profit margin of the builder or developer of the subject property. discovers the underlying value of the subject property apart from the influence of competing properties. takes into account the competitive value of specific amenities of the subject property.

Regarding contracts and forms, once written and signed they cannot be changed except by a lawyer. real estate licensees may alter forms but not contracts. whoever originates them can make changes without the risk of unauthorized practice of law. the principals may make changes as long as they sign or initial each change.

The Wildes have purchased a $740,000 home. The land is worth 25%, and they insure the improvements @ 75% of their replacement value. If the Wildes suffer damage estimated at $500,000, and they have an 80% co-insurance clause, what will their recovery be from the policy? Zero $531,915 $500,000 $468,750

The city of Stevensville has declared a moratorium on new construction. If demand is increasing, what will be the likely effect on real estate prices in the area? Prices level off. Prices continue to follow the trend that preceded the moratorium. Prices fall. Prices rise.

The debt ratio formula used to qualify borrowers is total debt divided by debt payments. gross income divided by assets. gross income divided by debts. debt payments divided by gross income.

The degree of authority granted by a residential brokerage listing agreement generally allows the agent to create contractual obligations for the client. negotiate the selling price between client and customer. hire inspectors, and other individuals to prepare the property for marketing. market, sell and show the property.

The essential foundation of the agency relationship consists of mutual respect, compensation, and confidentiality. diligence, results, and compensation. service, marketing, and respect. good faith, trust and confidence.

The intensity of land usage generally refers to what? The number of residential building lots per acre. The number of people per square mile. The number of building permits issued per year within a zoning jurisdiction. The area of a commercial or industrial facility in relation to the size of the site.

To avoid violating the Real Estate Settlement Procedures Act, parties who are providing services to the buyer or seller in a transaction must be paid before the closing date for any service they provide. inform the closing agent of the cost of their services at least one week before the closing date. receive payment only from the funds held in escrow, not directly from buyer or seller. disclose in writing any business relationships they have with other parties involved in the transaction.

Vijay enters into a lease for his new store. The provisions of the lease require Vijay to pay the operating expenses of the premises such as janitorial and repair expenses. This is an example of a gross lease. percentage lease. land lease. net lease.

Waldo is buying Marianne`s house. The closing date (day belongs to seller) of the sale transaction is September 1 (day 244 of the year). Current Year real estate taxes are $1,100 (will be billed to buyer next year). Use the 365-day method for prorating. What is Marianne`s share of the real estate taxes? $364.66. $367.67. $732.33. $735.34.

What is "absorption?" The amount of new space that is added to available space over a period of time. The number of houses that are built over a period of time. The amount of space that is occupied at any given time. The number of available units that become occupied over a period of time.

What is one of the purposes of a lawsuit to "quiet title"? To force the grantor to defend the title against a third party claim. To terminate a co-ownership estate when one co-owner is unwilling. To keep the owner's name out of the title records. To have an encumbrance removed if the lienholder cannot prove its validity.

The homestead exemption applies to: a) single family homes b) condominiums c) manufactured homes d) all of the above

D: all of the above

What is the difference between market value and market price, if any? There is no difference. Market value is a broker's estimate; market price is a precise number derived by a licensed appraiser. Market value is an average price derived from comparable sales; market price is a price based on the cost of creating the property. Market value is an estimate; market price is the price at which a property sold.

What is the function of a note in a mortgage or trust deed financing arrangement? It is the lender's security instrument in the collateral property. It is evidence of ownership of the mortgage or trust deed. It contains the borrower's promise to maintain the value of the property given as collateral for a loan. It is evidence of the borrower's debt to the lender.

When the terms of the mortgage loan are satisfied, the mortgagee may retain any overage in the escrow account. may inspect the property before returning legal title. may be entitled to charge the borrower a small fee to close the loan. may be required to execute a release of mortgage document.

Which of the following actions is allowed under federal fair housing laws? A broker, following the instructions of the seller, advertises the property as for sale to Christian families only. A home seller, acting without a broker, places a "for sale-- mature, single men only" sign in front of the house. The owner of four rental houses advertises one of the properties for rent to married couples, no children, no pets. The owner of a duplex who resides in one of the units refuses to rent the other unit to a non-Christian.

Which of the following defines actual notice? It is notice published in a newspaper. It is knowledge one could have or should have obtained. It is notice explicitly stated in a legal document. It is knowledge received or imparted through direct experience.

Which of the following is true regarding the assignability of an option? It is assignable only if the contract specifically allows assignment. It is never assignable. It is assignable only if the option is exercised. It is always assignable unless the contract prohibits assignment.

Which of the following may associate his or her name or title with the term "Realtor®"? Any active or inactive broker in the country. Any duly licensed, active agent or broker. Any member in good standing in a properly chartered real estate trade organization. Only members of the National Association of Realtors®.

Which of the following statements properly describes the central methodology of the cost approach to appraisal? Apply a depreciation factor to the reported actual cost of acquiring and improving the subject property. Estimate the cost of building the improvements on the subject property. Estimate the land value and add to this the actual cost of the improvements adjusted for competitive differences with similar properties. Add the estimated land value and cost of improvements and subtract the accrued depreciation of the improvements.

Why do communities require building permits? To promote development. To establish the basis for an inspection. To promote certificates of occupancy. To ensure that improvements comply with codes.

The closing date is Mar 30th and the seller has already paid the property taxes which were $6,045. At closing, the seller is entitled to a credit for the amount of tax covered from April 1st through July 1st The same amount will be a debit for the buyer. How much will the buyer owe the seller for property taxes? a) $2,222 b) $2,345.45 c) $2,366.50 d) $1,527.89

D: $1,527.89

A corporation found guilty of Anti-Trust violations could be fined up to_______. a) $100,000 b) $1,000,000 c) $5,000,000 d) $100,000,000

D: $100,000,000

A property has a market value of $700,000. The assessment ratio is 90%. The tax rate is 2%. How much is the property tax amount? a) $10,200 b) $10,400 c) $10,555 d) $12,600

D: $12,600

A buyer obtains an 80% loan on a $200,000 sale price. What is the loan amount? a) $200,400 b) $210,000 c) $220,000 d) $160,000

D: $160,000

A brokerage office building is purchased by the owners of the brokerage. It is worth $400,000. If the building had a $140,000 mortgage on it, the asset on the balance sheet would be: a) $140,000 b) $260,000 c) $360,000 d) $400,000

D: $400,000

The sales price on a property was $800,000. The commission was 6%. What is the commission expressed in dollars? a) $20,000 b) $30,000 c) $45,800 d) $48,000

D: $48,000

The annual interest on a loan was $40,000. The annual percentage rate was 7%. What was the loan amount? a) $200,000 b) $350,000 c) $400,000 d) $571,429

D: $571,429

The buyer`s new loan is $600,000and the interest rate is 5%. The closing date is May 22nd. How much prepaid interest will the buyer`s lender require them to pay at closing? a) $550 b) $600 c) $650 d) $750

D: $750

What portion of a section is ten acres? a) 1/8 b) 1/16 c) 1/32 d) 1/64

D: 1/64

If a business is found to be in violation of an Anti-Trust Act the courts may order supervision for a period of up to______________________________. a) 6 months b) 1 year c) 6 years d) 10 years

D: 10 years

The seller has paid the taxes of $ 3,000 for the entire year. Closing is May 30th. What is the seller`s refund for taxes? a) $85.02 b) $55.98 c) 105.05 d) 249.90

D: 249.90

One cubic yard equals ______ cubic feet. a) 3 b) 9 c) 12 d) 27

D: 27

FHA currently requires a minimum down payment of ________________. a) 2% b) 2.5% c) 2.75% d) 3.5%

D: 3.5%

One Township equals _______ sections. a) 24 b) 28 c) 32 d) 36

D: 36

For our calculations, we used _______ as the number of days in a year a) 365 b) 364 c) 370 d) 360

D: 360

If a property management agreement is terminated, the property manager must suspend management activity pursuant to the terms of the management agreement. What is the longest period of time the property manager has to return all monies to the parties? a) 10 days b) 20 days c) 30 days d) 60 days

D: 60 days

In a month-to-month lease, the landlord can raise the rent after providing __________________notice. a) 10 days b) 20 days c) 30 days d) 90 days

D: 90 days

If an index rate did not change, and the payment on the loan increased, this was caused by: a) A decrease in the margin b) A change in Treasury Securities c) A change in the lifetime cap d) A carry over

D: A carry over

Which of the following is NOT a document that creates an agency relationship? a) A property management agreement b) Buyer's agency agreement c) Listing agreement d) A seller's property disclosure statement

D: A seller's property disclosure statement

A licensed property manager is only authorized to engage in the management of rental real estate and is not authorized to engage in other professional real estate activity such as ________________________________________. a) the purchase of real estate b) the sale of real estate c) exchanges of real estate d) All of the above

D: All of the above

An example of an item covered by a typical home warranty insurance policy might be what? a) Water heater b) Cooking stove c) Dishwasher d) All of the above

D: All of the above

Counseling involves advising and guiding to assist others in make informed real estate decisions, rather than_____________________________________. a) assisting them in any negotiations in a transaction b) assisting them in selling their property c) assisting them in buying property d) All of the above

D: All of the above

Employee performance evaluations are designed to ________________________. a) provide employees with the opportunity receive feedback on their work b) giving praise and suggestions for performance improvement c) opportunity for employees to express their career goals d) All of the above

D: All of the above

Firms that have employees must: a) withhold federal withholding tax b) pay their portion of Social Security and Medicare premiums c) Pay federal unemployment tax(FUTA) d) All of the above

D: All of the above

In which of the following ways does delegation help subordinates? a) Allowing them the opportunity for growth b) Showing them they have an important role to play on the team c) Relating to them they have responsibility d) All of the above

D: All of the above

Notebook computers have the advantage of: a) Allowing employees to get data when in the field b) Perform sales presentations off-site c) Allowing employees to work from their home d) All of the above

D: All of the above

Oregon`s statutes on property management with respect to licensure and property management activity are extensive. These laws serve which of the following purposes: a) To specify requirements for the management of rental real estate b) To protect owners and tenants of rental real estate c) To encourage real estate property managers to comply with the applicable statutes and rules through education d) All of the above

D: All of the above

Private companies that serve a public purpose may be able to take land through eminent domain. Examples might include: a) Public utility company b) Railroad c) Water company d) All of the above

D: All of the above

The determination of fair market value is important for various reasons. Which of the following would be an important reason to determine fair market value? a) When a property is being taken by the government through condemnation b) When a property is being sold c) When a home is being re-financed d) All of the above

D: All of the above

The main objective of a feasibility study is to determine whether a certain plan is: a) Feasible b) Profitable c) Worth pursuing d) All of the above

D: All of the above

When granting a loan, the lender will consider: a) borrower's collateral b) borrower's ability to repay the loan c) borrower's credit reputation d) All of the above

D: All of the above

Which of the following could be a cloud on a title? a) A judgment b) A name being misspelled on a deed c) A lien that was satisfied, but not property recorded d) All of the above

D: All of the above

Which of the following would be considered an ethical principle? a) Professionalism b) Accountability c) Avoidance of harassment and discrimination d) All of the above

D: All of the above

Which one of the following governmental agency might be involved with violations of the Equal Opportunity Credit Act? a) FTC b) Comptroller of the currency c) Federal Deposit Insurance Corporation d) all of the above

D: All of the above

Which one of the following might be another source for a lender? a) pension fund b) private individual c) Real Estate Investment Trust (REIT) d) All of the above

D: All of the above

Which of the following information on the Closing Disclosure Form could trigger a new escrow procedure and then starting over with a new Loan Estimate Form? a) Changing a fixed loan to an adjustable rate loan by the borrower and lender b) An increase in the effective Annual Percentage Rate (APR) c) Adding a pre-payment penalty to the loan d) All of these would trigger a new 3 day period and starting over

D: All of these would trigger a new 3 day period and starting over

____________is a specific lien placed against property of a defendant in a lawsuit for money damages. The attachment arises when it may be necessary to protect the creditor against the removal of the defendant`s property before a judgment is decided a) A mechanic's lien b) A homestead exemption c) A satisfaction of lien d) An attachment

D: An attachment

A premium for a lender`s policy was issued on March 31st, 2020 and paid for by the buyer. When would the next policy premium to due from the buyer? a) In one month b) In six months c) In one year d) Another premium is not due

D: Another premium is not due

The Andersons hired a contractor to paint their home on Elm Street. They did not pay the contractor and the contractor placed a construction lien on the Anderson`s home on Elm Street, without their permission. This is an example of a ____________________ lien a) specific b) involuntary c) voluntary d) Both a and b

D: Both a and b

The Uniform Settlement statement, also known as a __________________________is a detailed list of all costs and credits associated with a real estate transaction. a) Closing Disclosure Statement b) balance sheet c) closing statement d) Both a and c

D: Both a and c

Transaction paperwork is required by state law. Without it, the principal broker cannot_______________________________________. Brokerages should clearly define when paperwork must be turned in and also if missing paperwork is detected, when this must be submitted. a) perform their supervisory role (which is also a state law) b) afford a file reviewer c) comply with state law d) Both a and c

D: Both a and c

A municipality wants to build a sewage treatment facility which will require the acquisition of several parcels of privately owned land. What legal power enables the municipality to buy the necessary properties, even against the owners' wishes? a) Estoppel. b) Escheat. c) Alienation. d) Eminent domain.

D: Eminent domain.

Which of the following categories of costs is not a loan cost? a) Origination Charges b) Services the Borrower Did Not Shop For c) Services the Borrower May Shop For d) escrow fees

D: Escrow fees

A landowner conveys a parcel of property with the provision that the land cannot be developed for retail purposes. The new owner immediately begins to develop a retail shopping outlet, the grantor finds out and takes the property back. What kind of estate did this landowner convey? a) Fee simple absolute. b) Life estate with reversion. c) Life estate with condition subsequent. d) Fee simple defeasible.

D: Fee simple defeasible.

Estate for years is a lease for a____________ a) exactly 1 year b) exactly 3 years c) exactly 5 years d) fixed period of time

D: Fixed period of time

When a tenant in common dies, what happens to the tenant`s interest in the estate? a) It is divided equally among the surviving tenants in common. b) The surviving tenants must buy the interest from the deceased tenant's heirs or sell their interests to the heirs. c) It becomes a joint tenancy. d) It passes by probate to the deceased tenant's heirs.

D: It passes by probate to the deceased tenant's heirs.

______________are the most common type of encumbrance a) Encroachments b) Deed restrictions c) Conditions d) Liens

D: Liens

NFIP is an acronym for: a) National Flood Income Program b) National Flood Income Response c) National Flood Insurance d) Response National Flood Insurance Program

D: National Flood Insurance Program

A creditor refuses to consider regular alimony and child support when evaluating a borrower`s income. Under ECOA this is: a) allowable if a person is legally divorced b) always allowable c) allowable if disclosed by the lender d) never allowable

D: Never allowable

The seller has paid the hazard insurance of $295 for the year. The buyer is obtaining their own new policy. Closing is June 15. How much will be buyer owe the seller for hazard insurance? a) $ 154.10 b) $ 145.50 c) $ 160.75 d) Nothing. No proration necessary

D: Nothing. No proration necessary

OS is an acronym for: a) Overlying System b) Option System c) Operating Sisco d) Operating system

D: Operating system

The main purpose of Anti-Trust Laws are to do what? a) Promote interstate trade b) Prevent Fraud c) Promote Ethical Business Practices d) Promote the policy and practice of competition

D: Promote the policy and practice of competition

Which of the following loan programs would be considered conventional financing? a) FHA b) VA c) Oregon Veterans' loan d) Seller Financing

D: Seller financing

The _________________requires that certain types of contracts be in writing and that they must be signed (acknowledged) by all of the parties that will be bound to the contract. a) statute of limitations b) Statute fo Dedication c) Statute of Tender d) Statute of Frauds

D: Statute of Frauds

John`s contractor placed a lien on his property for non-payment of work completed and recorded it on September 5, 2020. Prior to this lien is a 1st mortgage recorded November 1, 2018, a second mortgage recorded Jan 10, 2019 and an home equity line of credit. Which lien would take be top priority? a) The 1st mortgage would take priority since it was recorded first b) The home equity line of credit would take priority since it is not a mortgage c) The 2nd mortgage would take priority since it was recorded first d) The construction lien would take priority even though it was recorded last

D: The construction lien would take priority even though it was recorded last

Who does an appraiser work for? a) the borrower b) the seller c) the closing agent d) the lender

D: The lender

If a municipality exerts its power of eminent domain against a certain property owner, what happens? a) The owner must pay higher property taxes or give up the property. b) The owner must cede an easement without receiving any compensation. c) The municipality annexes the property. d) The owner must sell the property in exchange for market-value compensation.

D: The owner must sell the property in exchange for market-value compensation.

To make a successful claim of adverse possession, the adverse possessor must satisfy which of the following criteria? a) The possession must have been concealed, without permission, and for a statutory period of time. b) The possession must have been unconcealed, for the necessary length of time, and without permission. c) The possession must be with intent, secretive, notorious and hostile. d) The possession must be open, without permission, for the statutory period of time, and within the number of permitted intervals.

D: The possession must be open, without permission, for the statutory period of time, and within the number of permitted intervals.

Upon closure of a real estate brokerage, the principal broker must: a) return their license b) return the licenses of all affiliates c) remove the office signage d) all of the above

D: all of the above

The vendee (buyer) in an installment sale agreement may have some advantages if the seller is supplying the financing. Which of the following is not an advantage to the buyer? a) Lower closing costs due to lower loan origination fees b) May obtain financing that they normally could not qualify for with conventional financing. c) Because the vendee(buyer) only has equitable title and not legal title, the vendee is not traced to a title on the property. This might allow the vendee to purchase other properties. d) The seller holds the title to the property until the entire amount is paid off

D: The seller holds the title to the property until the entire amount is paid off

To qualify for a veteran`s property tax exemption, the veteran must meet all of the following criteria except: a) A veteran must reside on the property b) The veteran must have served either 90 consecutive days during wartime, prior to February 1, 1955, or 210 consecutive days after that date, unless discharged sooner because of a service-related injury or illness. c) The veteran must also be certified as being at least 40% disabled. If the disability is not service related, the veteran must have income below set limits and the exemption is for a lower amount than if the disability was service related. The veteran must apply for the exemption by April 1st each year in order to claim the exemption for the next coming tax year. d) The veteran must not be single and must have a spouse or children living with him/her.

D: The veteran must not be single and must have a spouse or children living with him/her.

What responsibilities does a real estate licensee have regarding the TRID rules for loan applications? a) Filling out the forms with the buying client b) Going over the Loan Estimate Form issued by the lender with the buying client c) Explaining the ramifications to the seller d) There are no requirement rules, but the real estate licensee should be familiar with the rules.

D: There are no requirement rules, but the real estate licensee should be familiar with the rules.

A waterfront homeowner has just died. What will become of the water rights the owner enjoyed while living in the home? a) They revert to the state when the property is sold. b) They are extinguished. c) They are a personal right belonging to an individual owner, not attaching to the real property. d) They transfer with the property when the property is sold.

D: They transfer with the property when the property is sold.

A homeowner is very upset over a drone that a neighbor flies over his house. He takes his case to court to end this possible violation of rights. Does he have a case, and on what basis? a) No. The neighbor is not physically on his property. b) No. The drone is in the air, so he cannot exercise any surface rights. c) Yes. The owner has the right to stop encroachments. d) Yes. The drones infringe on his air rights.

D: Yes. The drones infringe on his air rights.

The last page of the Closing Disclosure (CD) Form shows the contact information for: a) the lender b) settlement agent c) borrower's broker d) all are shown

D: all are shown

A broker is a person who: a) is employed by another person b) has the authority to act for that person c) has the authority to exercise some discretion while acting for another person d) all of the above

D: all of the above

A general lien usually attaches to ________of the debtor`s property a) a specific parcel b) personal property c) real property d) all of the above

D: all of the above

A license is different from an easement in that an easement is_________________ a) created in writing b) irrevocable c) permanent d) all of the above

D: all of the above

A short sale can have advantages to the lender such as: a) A short sale is usually less costly than a foreclosure thus minimizing losses b) can minimize legal fees c) the lender doesn't have to deal with the property maintenance issues should the property become bank owned d) all of the above

D: all of the above

A transaction file should include: a) all document in the transaction b) notes c) closing statements d) all of the above

D: all of the above

Factors which affect price are: a) interest rates b) supply and demand c) the economy d) all of the above

D: all of the above

Greater weight is given to the comparable properties that: a) Have had recent sales b) Have close proximity c) Have similar amenities d) all of the above

D: all of the above

In most states, there are four requirements for a listing agreement to be enforceable. They are: a) the listing must be in writing and it must identify the property to be sold b) the listing must be signed by the licensee and the seller(s) c) Its must state the compensation for the broker and a promise to pay the broker d) all of the above

D: all of the above

It is important to understand your clients to determine: a) If you are meeting their needs b) their objectives c) understand demand d) all of the above

D: all of the above

Real estate contracts are also known as ____________________________. a) installment contracts b) land contracts c) contracts for deeds d) all of the above

D: all of the above

Real property transaction means a transaction regarding real property where an broker is employed by one or more of the principals to act on their behalf. It includes: a) listing agreements b) buyer service agreements c) purchase and sale agreement d) all of the above

D: all of the above

Recording of a deed serves what purpose? a) give constructive notice to the public b) establishes priority of the deed c) identifies proof of ownership d) all of the above

D: all of the above

Some encumbrances can _________affect title to a property. a) adversely b) positively c) have no d) all of the above

D: all of the above

Some lenders will accept a deed in lieu of foreclosure because: a) accepting the deed may be easier b) less expensive c) faster than going through the foreclosure process d) all of the above

D: all of the above

The following individuals may engage in the management of rental real estate, unless they are exempt: a) a licensed real estate broker, under the supervision of a licensed principal real estate broker b) a licensed principal real estate broker c) a licensed property manager d) all of the above

D: all of the above

When should you seek the advice of your principal broker? a) when you are unfamiliar with a form b) when you have questions about the handling of earnest money c) when you are unfamiliar with a new or existing real estate law d) all of the above

D: all of the above

Which of the following is a duty imposed on a principal broker under disclosed limited agency? a) avoid advocating on behalf of one client b) avoid disclosing or using confidential information from each party without written permission c) If it is determined that though a licensee, confidential information has been disclosed, the principal broker must disclose the violation to the violated client in writing d) all of the above

D: all of the above

Who may compensate the buyer`s broker? a) the buyer b) the seller c) a combination of the buyer and the seller d) all of the above

D: all of the above

Last minute negotiations between the buyer and seller will pose a significant risk to: a) the lender by delaying closing or starting over b) the buyer by delaying closing or starting over c) the seller of delaying closing or starting over d) all parties to a real estate loan and the real estate transaction

D: all parties to a real estate loan and the real estate transaction

For a real estate contract to be valid and enforceable in court it must contain certain elements. Which is not an element for an enforceable real estate contract? a) consideration b) lawful purpose c) mutual agreement d) all persons must reside in the same state

D: all persons must reside in the same state

A broker must provide a copy of a real estate agency disclosure pamphlet ______________________each represented party. a) within 2 days of meeting b) within 3 days of meeting c) within 5 days of meeting d) at first contact with

D: at first contact with

Damage to a property due to floods could cause: a) damage or erosion of soil around a foundation b) damage or erosion to a hillside c) neither d) both

D: both

Ann wanted to sell her property and have the new buyer assume the mortgage. The lender prohibited this. What kind of clause may have prevented this? a) due-on-sale clause b) alienation clause c) acceleration clause d) both a and b

D: both a and b

If overall costs and inflation are rising, look for a related increase in sales. If they are not rising, then this is an indicator that the firm`s prices_____________________. a) are not keeping up with costs b) too low c) to high d) both a and b

D: both a and b

Jane, the seller , requested her broker, Dave, to relate some confidential information to the buyers. What should Dave do? a) get the request in writing b) present the confidential information to the buyers c) not honor the request because it is confidential information d) both a and b

D: both a and b

John, a broker for XYZ Realty LLC, has a listing with Mr. and Mrs. Brown for their property on Lynnwood Place in Tigard, OR. Mr. and Mrs. Brown would be considered: a) the principles b) the sellers c) the broker d) both a and b

D: both a and b

The Mobile Home Park law regulates the subdividing and sales of lots in certain existing manufactured and mobile home parks and is regulated by _________________________. a) local jurisdictions b) state jurisdictions c) federal jurisdictions d) both a and b

D: both a and b

The property manager has a duty to the landlord to maximize their profits, financial accounting of the operations and to ensure the operations are __________________________________. a) within the constraints of the law b) within the constraints of the lease agreement c) dominated by the wishes of the tenant d) both a and b

D: both a and b

____________________is the difference between the assets and liabilities of the firm. a) net worth b) equity c) renewal d) both a and b

D: both a and b

A ____________________________________is commonly used for the development of commercial projects. The lender may offer a lower interest rate or a lower down payment in return for interest paid by the borrower and an agreement to own part of the business or receive partial profits earned by the business. a) participation loan b) blanket loan c) shared appreciation loan d) both a and c

D: both a and c

A buyer`s broker is representing the buyer solely and receives compensation from the seller. This situation is: a) legal in most states b) illegal in most states c) legal as long as the buyer's broker states who he represents d) both a and c

D: both a and c

Understanding the financial aspects of a business consists of learning about__________ a) accounting b) sociology c) ratios d) both a and c

D: both a and c

An option to buy contract is what type of contract? a) unilateral b) bilateral c) express d) both and c

D: both and c

In a planned unit development (PUD) each housing lot ________________________. a) owned by the PUD b) is owned by the homeowner c) is sold separately d) both b and c

D: both b and c

A broker must get approval, in writing, from _______________ to be a dual agent. a) buyer only b) seller only c) closing agent d) both the buyer and the seller

D: both the buyer and the seller

Failure to act within the time required in a contract constitutes a ________________. a) felony b) misdemeanor c) lis pendens d) breach

D: breach

Open space with half cubicles are often referred to as a ___________. a) counter design b) occupational design c) private design d) bull pens

D: bull pens

The gross income minus bad debt and the vacancy factor = _____________________. a) net income b) yearly income c) monthly income d) effective gross income

D: effective gross income

Jack, a developer of a subdivision, has a blanket mortgage including a partial release clause. He wants to sell one of the parcels. What would Jack ask of his lender to be able to sell one of the parcels? a) partial release clause b) partial satisfaction c) partial reconveyance deed d) either b or c

D: either b or c

Which of the following is NEVER a duty of a property manager: a) collect rents b) maintain property c) screen tenants d) maintain records on tenant's religious preferences

D: maintain records on tenant's religious preferences

A license is considered an___________ to the property a) encumbrance on b) interest in c) ownership right in d) none of the above

D: none of the above

Conventional loans are __________________________________. a) FHA loans b) VA loans c) USDA loans d) not government loans

D: not government loans

Agency by Estoppel is also known as_________________________________. a) implied agency b) express agency c) written agency d) ostensible agency

D: ostensible agency

A single unit of land that is created by a partition of land is called a____________ a) lot b) tract c) common area d) parcel

D: parcel

Among other provisions, the Superfund Act (CERCLA) and Superfund Amendment and Reauthorization Act of 1986 provided that a) large development projects undergo an environmental impact survey immediately after completion of construction. b) industrial users of real estate comply with air quality standards. c) the EPA would give financial help to homeowners to remedy any hazardous situation resulting from radon, asbestos, or lead-based paint. d) parties responsible for improper disposal of hazardous waste could be charged for the cleanup costs.

D: parties responsible for improper disposal of hazardous waste could be charged for the cleanup costs.

If a subdivision cannot qualify for a certificate of exemption, the Real Estate Agency must issue a _________________________before any selling of the property occurs. a) certificate of eligibility b) certificate of occupancy c) certificate of lis pendens d) public report

D: public report

The document used to create a lien used for personal property is a _________________ a) note b) mortgage c) deed of trust d) security agreement

D: security agreement

_____________reviews require an employee to rate their own job performance, usually against a list of provided criteria a) CEO b) Direct supervisor c) peer d) self-assessment

D: self-assessment

Who must report the sale of real property to the IRS? a) seller b) escrow agent c) buyer d) seller & escrow agent

D: seller & escrow agent

An interest only payment is also referred to as a _________________. a) fully amortized payment b) partially amortized payment c) bi-monthly payment d) straight note payment

D: straight note payment

The distinguishing feature of a leasehold estate is a) ownership of an interest by a tenant. b) temporary ownership of the full bundle of rights in a property. c) unlimited ownership of one right in the bundle of rights in a property. d) that the estate is limited by a lease term.

D: that the estate is limited by a lease term.

When a married couple files a joint return and each spouse has lived in the home as a main home two of the past five years and has not excluded any gain on the sale of another home in the past two years,______________________________________. a) the exemption is a total of $100,000 b) the exemption is a total of $200,000 c) the exemption is a total of $250,000 d) the exemption is a total of $500,000

D: the exemption is a total of $500,000

There may also be some tax advantages from ____________for a conservation easement a) general property taxes b) special assessment taxes c) Oregon income taxes d) the federal IRS

D: the federal IRS

A property profile details report would reveal information about all EXCEPT: a) if the property is owner occupied b) sales history c) mortgage history d) the names of the tenants who are leasing the property

D: the names of the tenants who are leasing the property

While a one-year lease is in effect, the tenant dies of a sudden illness. In this situation, a) the lease automatically terminates. b) the tenant's estate has the option of canceling the contract. c) the landlord can record a lien against the leased fee interest. d) the tenant's estate is still obligated under the lease.

D: the tenant's estate is still obligated under the lease.

The parties involved in determining price are usually the seller and: a) the closing agent b) structural inspector c) the mortgage banker d) their real estate broker

D: their real estate broker

John had a residential listing which was located about 2 miles from where a convicted sex offender lived. What should John disclose to a potential buyer? a) the address where the convicts sex offender lives b) the names and address of all sex offenders in a 2 mile radius of the listing c) the names and address of all sex offenders in a 5 mile radius d) there is no obligation on the part of a person licensed to disclose to a potential purchaser of residential property the proximity of a convicted sex offender

D: there is no obligation on the part of a person licensed to disclose to a potential purchaser of residential property the proximity of a convicted sex offender

With a deed of trust, the trustee has the power to sell the property at auction known as a: a) open auction b) barrier action c) certified sale d) trustee's sale

D: trustee's sale

What government agency offers foreclosure avoidance counseling? a) HUD b) EPA c) DOJ d) FBI

HUD

Valid Contracts

If a contract has all of the required elements, it is usually a valid and enforceable in a court of law.

Majority

Persons 18 years old or older

Management of rental real estate

Representing the owner of real estate in the rental or lease of the real estate and includes but is not limited to: (A) Advertising the real estate for rent or lease; (B) Procuring prospective tenants to rent or lease the real estate; (C) Negotiating with prospective tenants; (D) Accepting deposits from prospective tenants; (E) Checking the qualifications and creditworthiness of prospective tenants; (F) Charging and collecting rent or lease payments; (G) Representing the owner in inspection or repair of the real estate; (H) Contracting for repair or remodeling of the real estate; (I) Holding trust funds or property received in managing the real estate and accounting to the owner for the funds or property; (J) Advising the owner regarding renting or leasing the real estate;(K) Providing staff and services to accommodate the tax reporting and other financial or accounting needs of the real estate; (L) Providing copies of records of acts performed on behalf of the owner of the real estate; and (M) Offering or attempting to do any of the acts described in this paragraph for the owner of the real estate; or (b) Representing a tenant or prospective tenant when renting or leasing real estate and includes but is not limited to: (A) Consulting with tenants or prospective tenants about renting or leasing real estate; (B) Assisting prospective tenants in renting or leasing real estate; (C) Assisting prospective tenants in qualifying for renting or leasing real estate; (D) Accepting deposits or other funds from prospective tenants for renting or leasing real estate and holding the funds in trust for the prospective tenants; (E) Representing tenants or prospective tenants renting or leasing real estate; and (F) Offering or attempting to do any of the acts described in this paragraph for a tenant or prospective tenant.

Conditional Release of Listing

Rescinds the contract with some conditions

Lessee

The tenant

Buyer's Agreement No Agency

This contract states the broker does not represent the buyer, even though they may be performing brokerage services for the buyer

Full Performance

When all the parties have preformed their obligations under a contract then a contract is discharged. This is known as full performance

Liquidated Damages

When both parties to a contract agree in advance to a dollar amount that will compensate the other party in the event of a breach, this is considered liquidated damages. This amount must be set forth in writing. There are two important points to remember about liquidated damages: (1) limits the amount the injured party can collect, (2) limits the damages due to the injured and the amount specified.

Bilateral Contract

When each party offers consideration. In such a contract, a promise is exchanged for a promise, and both parties are obligated to preform

Breach of contract

When one of both of the parties fails to preform according to the terms and conditions of the contract

Branch office

a business location, other than the main office designated under ORS 696.200 (1), where professional real estate activity is regularly conducted or that is advertised to the public as a place where such business may be regularly conducted. and Model units or temporary structures used solely for the dissemination of information and distribution of lawfully required public reports shall not be considered branch offices. A model unit means a permanent residential structure located in a subdivision or development used for such dissemination and distribution, so long as the unit is at all times available for sale, lease, lease option or exchange.

security deposit

a conditionally refundable payment or deposit of money, however designated, the primary function of which is to secure the performance of a rental or lease agreement or any part of a rental or lease agreement.

Audit trail

a documented history of a financial transaction by which the transaction can be traced to its source

Security Deposits account

a federally insured clients' trust account labeled as "Clients' Trust Account — Security Deposits" on all bank records and checks that is established and maintained by a property manager, acting in a fiduciary capacity on behalf of an owner under a property management agreement, for depositing, holding and disbursing security deposit funds.

competitive market analysis

a method or process used by a real estate licensee in pursuing a listing agreement or in formulating an offer to acquire real estate in a transaction for the sale, lease, lease-option or exchange of real estate. The objective of competitive market analysis is a recommended listing, selling or purchase price or a lease or rental consideration. A competitive market analysis may be expressed as an opinion of the value of the real estate in a contemplated transaction. Competitive market analysis may include but is not limited to an analysis of market conditions, public records, past transactions and current listings of real estate.

Registered business name

a name registered with the Real Estate Agency under which the individual registering the name engages in professional real estate activity.

Employee

a non-licensed individual employed by a property manager for wages or a salary.

Owner

a person or persons who own rental real estate that is managed by a property manager.

Cure noncompliance

a property manager's acts that resolve the property manager's failure to comply with statutory and rule requirements.

Sole Practitioner

a real estate broker conducting professional real estate activity not in conjunction with other real estate brokers or principal real estate brokers and who, prior to January 1, 2010: (a) Acquired three years of active experience as a real estate broker; or (b) Acquired three years of active experience as a real estate salesperson

Real estate property manager

a real estate licensee who engages in the management of rental real estate and is a licensed real estate property manager, a principal real estate broker or a real estate broker who is associated with and supervised by a principal real estate broker.

Identifying code

a unique series of letters and/or numbers assigned by a property manager to a property management agreement at the time the agreement is signed by the parties and used on all transactions and records to reference the agreement. A property manager may use a supplemental unique series of letters and/or numbers on transactions and records if the property manager establishes a clear audit trail to a specific property management agreement and to the original identifying code.

Property management agreement

a written contract for the management of rental real estate between a real estate property manager and the owner of the rental real estate.

When a brokerage opens a trust account, they must notify the financial institution, in writing,_______________________________. a) that the account is for the purpose of holding funds that belong to others b) to combine the trust account with the brokerage's general account c) that all affiliates of the firm are authorized as signers on the account d) All of the above

a: that the account is for the purpose of holding funds that belong to others

Emancipated Minors

also have the right to enter into valid and binding contracts. An emancipated minor generally is a person who is under 18 and has a court-issued declaration of emancipation, is on active duty in the armed forces, or is or has been married.

Mail-in audit

an Agency audit of a clients' trust account based on information and documents prepared by a property manager and mailed to the Agency.

Compliance Review

an Agency review of a property manager's records and procedures for the purpose of educating the property manager on statutes and rules.

Investigation

an Agency-initiated investigation of a property manager that may result in administrative actions against the licensee.

Bank account

an account in this state established by a property manager for receiving, holding and disbursing trust funds in a bank as defined in ORS 696.010(3).

sufficient funds or sufficient credit balance

an amount of funds on an owner's ledger or a tenant's ledger that is equal to or greater than the amount of a planned disbursement from a clients' trust account or a security deposits account but which must not include any security deposits in a security deposits trust account that are required to be held pending the termination of a rental agreement. Only funds belonging to the owner or tenant on whose behalf the disbursement is planned may be considered in determining if there are sufficient funds or a sufficient credit balance.

Principal real estate broker

an individual who holds an active license as a principal real estate broker

Real estate licensee

an individual who holds an active license as a real estate broker, principal real estate broker or real estate property manager.

Nonlicensed individual

an individual: (a) Who has not obtained a real estate license; or (b) Whose real estate license is lapsed, expired, inactive, suspended, surrendered or revoked.

Bank

any bank or trust company, savings bank, mutual savings bank, savings and loan association or credit union that maintains a head office or a branch in this state in the capacity of a bank or trust company, savings bank, mutual savings bank, savings and loan association or credit union.

compensation

any fee, commission, salary, money or valuable consideration for services rendered or to be rendered as well as the promise thereof and whether contingent or otherwise.

Professional real estate activity

any of the following actions, when engaged in for another and for compensation or with the intention or in the expectation or upon the promise of receiving or collecting compensation, by any person who: (a) Sells, exchanges, purchases, rents or leases real estate; (b) Offers to sell, exchange, purchase, rent or lease real estate; (c) Negotiates, offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate; (d) Lists, offers, attempts or agrees to list real estate for sale; (e) Offers, attempts or agrees to perform or provide a competitive market analysis or letter opinion, to represent a taxpayer under ORS 305.230 or 309.100 or to give an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation, except when the activity is performed by a state certified appraiser or state licensed appraiser; (f) Auctions, offers, attempts or agrees to auction real estate;Buys, sells, offers to buy or sell or otherwise deals in options on real estate; (h) Engages in management of rental real estate; (i) Purports to be engaged in the business of buying, selling, exchanging, renting or leasing real estate; (j) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate; (k) Assists or directs in the negotiation or closing of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate; (l) Except as otherwise provided in ORS 696.030 (1)(L), advises, counsels, consults or analyzes in connection with real estate values, sales or dispositions, including dispositions through eminent domain procedures; (m) Advises, counsels, consults or analyzes in connection with the acquisition or sale of real estate by an entity if the purpose of the entity is investment in real estate; or (n) Performs real estate marketing activity as described in ORS 696.600.

Real Estate Contracts

are also known as installment contracts, land contracts, or contracts for deeds. The buyer which is known as the vendee, makes installment payments to the seller, which is known as the vendor. During these installment payments the vendor retains the deed to the property. The deed transfers to the vendee when the entire purchase price has been paid. During the installment period, the vendee has equitable title to the property to possess and enjoy the property.

Legal Description

can be obtained from the last deed and supplied by the title company, is not the same as the street address. It is one of the three ways of legally describing property.

Option Agreement

creates a right to buy, sell, lease or use a property for a set price and for a set period of time. The property owner who grants the option is called the optionor and the party that has the right of the option is the optionee. The optionor is bound by the contract to keep the option open for a certain period of time and must honor the option should the optionee decide to exercise this option. The optionee, is not obligated to exercise their option.

Clients trust account

federally insured bank account labeled as "Clients' Trust Account" or "Client Trust Account" on all bank records and checks that is established and maintained by a property manager, acting on behalf of an owner under a property management agreement, for depositing, holding and disbursing funds received by the property manager on behalf of an owner, including application fees and application screening fees that is subject to the provisions of ORS 696.241.

Inactive

in the context of a real estate licensee, that the license has been returned to the agency to be held until the licensee reactivates the license or the license expires or lapses.

Expired

in the context of a real estate licensee, that the license has not been renewed in a timely manner, but may still be renewed.

Specific Performance

is a legal action where the court orders the party who breached the contract to perform according to the contract. In the circumstance of a Purchase and Sale Agreement, the seller would be obligated to sell the property as promised and deliver the deed to the buyer and the buyer would be obligated to purchase the property as promised. Specific performance as a remedy may not always be possible.

Unilateral Contract

is a one-sided contract in that only one party has an obligation to perform under the contract. One party offers consideration in order to induce an act another party.

Time is of the essence

is a phrase often used in contracts which says: the specified time and dates in this agreement are vital and thus, mandatory, and is important. Therefore, any delay, even slight, will be grounds for canceling the agreement.

Real estate

leaseholds and licenses to use including, but not limited to, timeshare estates and timeshare licenses as defined in ORS 94.803, as well as any and every interest or estate in real property, whether corporeal or incorporeal, whether freehold or nonfreehold, whether held separately or in common with others and whether the real property is situated in this state or elsewhere.

Associated with

to be employed, engaged or otherwise supervised by, with respect to the relationship between: (a) A real estate broker and a principal real estate broker; (b) A licensed real estate property manager and a principal real estate broker; or (c) A licensed real estate property manager and another licensed real estate property manager.

Real Estate

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