Module 4 - Real Estate Practices

A purchaser gives $20,000 as earnest money to a real estate broker. He instructs the broker to deposit the money in an interest-bearing account because the transaction may not close in escrow for a year. Under these circumstances, the: 1) funds must be deposited in a federally insured interest-bearing account, provided both parties to the transaction give their written consent. 2) interest that accrues must be paid to the purchaser since he was the party that requested the money be placed in an account. I only II only Both I and II Neither I nor II

I only

The phrase "time is of the essence" is generally found in a purchase and sale agreement a listing agreement a deed a closing statement

a purchase and sale agreement

All written offers are to be tendered to the seller within 3 business days promptly within five calendar days within 48 hours

promptly

At the time the seller accepts the buyer's offer, the question of the disposition of forfeited earnest money is a matter for negotiation between the principal broker and seller. the principal broker and buyer. the buyer and seller. the buyer, seller, and all principal brokers involved in the transaction.

the principal broker and selle

Records of a principal broker for professional real estate activity conducted in Oregon must be retained 1) for a minimum of six years. 2) within the state of Oregon. I only II only Both I and II Neither I nor II

Both I and II

Which of the following acts would be grounds for suspension, revocation, or reprimand of a real estate licensee? 1) Making a false promise likely to persuade a purchaser, even though no purchaser acts to his detriment as a result of the promise 2) Making a material misrepresentation to a prospective purchaser even though the purchaser did not buy the property I only II only Both I and II Neither I nor II

Both I and II

Which of the following constitutes engaging in professional real estate activity as defined by Oregon law? 1) A person who, for a fee, rents real estate owned by others to the public 2) A person who, for a fee, assists owners only in procuring prospective tenants for the owners' rental property I only II only Both I and II Neither I nor II

Both I and II

Which of the following statements about two or more real estate property managers who are in business together is correct? 1) The managers may have equal supervisory control over the property management activity of the firm. 2) The managers must establish office policies. I only II only Both I and II Neither I nor II

Both I and II

Property management agreements may be negotiated and signed by a 1) real estate property manager. 2) real estate broker associated with a principal real estate broker. 3) non-licensed employee of a principal real estate broker. I only I and II only II and III only I, II and III

I and II only

Which activities are prohibited under ECOA? 1) Discounting the reliability of public assistance income for loan qualification purposes. 2) Requiring both spouses to obligate themselves jointly to a loan, even when one spouse can qualify on their own. 3) Asking a prospective borrower if they intend to become pregnant. 4) Considering the credit scores of a minority individual who is applying for a real estate loan for qualification and rate purposes. 1 and 3 only 1, 2, and 3 3 only All of the above

1, 2, and 3

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

A and B

OREGON;Which one of the following people is required by Oregon law to have a real estate license? A college student receiving free rent while acting as resident manager of the duplex the student lives in. A man selling his personal rental property. A son selling his grandmother's property under a power of attorney. A housewife who receives a finder's fee for soliciting prospects for her brother, who is a licensed real estate broker.

A housewife who receives a finder's fee for soliciting prospects for her brother, who is a licensed real estate broker.

Which of these best describes a "net listing"? A listing in which the commission is composed of more than one component beyond the usual commission split. Any listing promoted exclusively over the internet, email, or other electronic media. A listing in which the commission is the excess between the sale price and some other agreed upon price. Any fraudulent or inaccurate listing designed to inflate the price of another listed property.

A listing in which the commission is the excess between the sale price and some other agreed upon price.

OREGON; Which of the following are subject to the Oregon Administrative Rules governing advertising? A) Business cards B) Telephonic greetings C) Email communications D) Yard signs C only B and C only A and D only A, B, C, and D

A, B, C, and D

The Civil Rights Act of 1968 prohibited discrimination in housing based on which of the following? Race Religion National origin All of the above

All of the above

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

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

Dennis and Steve apply to rent a condominium in Bend, Oregon. Which of the following statements is true? Dennis and Steve may not be discriminated against based on their sexual orientation under federal anti-discrimination laws. Dennis and Steve may not be discriminated against based on their sexual orientation under Oregon anti-discrimination laws. Dennis and Steve can be discriminated against because Federal Fair Housing does not protect against discrimination based on sexual orientation. Dennis and Steve can be discriminated against because of the owner's religious beliefs.

B

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

B and C

Jones v. Alfred H. Mayer Company prohibited discrimination in public housing. discrimination in private housing. 1 only 2 only Both 1 and 2 Neither 1 nor 2

Both 1 and 2

OREGON;Under the Real Estate Agency's Administrative Rules, a licensee could be assessed a civil penalty if the licensee conducts professional real estate activity: A) while his or her license is on inactive status. B) after his or her license has expired. B only A only Both A and B Neither A nor B

Both A and B

OREGON;When the Real Estate Commissioner registers a branch office, the registration is issued: A)at the written request of the managing principal broker. B) in the same name that the main office is registered in. Both A and B A only B only Neither A nor B

Both A and B

Torts are generally remedied by which legal procedure? Action for specific performance. Civil action. Trial for crimes committed. Action for reformation.

Civil action. A tort action is a civil action. However, there is an interrelationship between torts and crimes. Most crimes involve torts, but not all crimes are torts. A licensee whose conduct is found to be a civil tort in the area of real estate brokerage will most likely be subject to disciplinary action by that state's real estate authority.

Broker Basil works for Principal Broker Karen. Basil listed Anna's house. Buyer Mary called Basil and asked to see the listing. Basil showed Anna's house to Mary and she decided to make an offer. Basil wrote the offer for Mary. Broker Basil is in a ____________ relationship with Seller Anna. Disclosed limited agency Single agency

Disclosed limited agency

Which best describes blockbusting? Advising a buyer that the house they have chosen to look at is located in a Spanish speaking neighborhood. Refusing to show white buyers properties in largely non-white neighborhoods. Advising a buyer that you will show all properties meeting their parameters regardless of a neighborhood's racial makeup. Encouraging property owners to either sell or rent their property by claiming that the character of the neighborhood is changing due to the entry of a protected class into the neighborhood.

Encouraging property owners to either sell or rent their property by claiming that the character of the neighborhood is changing due to the entry of a protected class into the neighborhood.

Jennifer, a principal broker, has entered into a buyer agency agreement with John and Sharon Brown. Which of the following best describes the type of relationship between Jennifer and the Browns? Agency coupled with an interest. Fiduciary. Customer. Third party.

Fiduciary.

All of these are reasons why it is important to handle problems early or even pay a large amount of money to settle issues, EXCEPT: It is required by law. It keeps people from getting even more upset. Settlement is usually less of a hassle than litigation. Litigation can be more expensive than a settlement.

It is required by law.

All of the following are true about an "As Is" clause EXCEPT: It protects the seller against fraudulent representations. It does not protect the seller against failure to disclose known adverse property conditions. The seller is selling the property "As Is" except for express written representations or disclosures regarding a specific component or item. It does not limit the buyer's right to implied new home warranties that may exist under Oregon law.

It protects the seller against fraudulent representations.

Which is NOT an alternative dispute resolution method found in the standardized real estate sale agreement? Mediation. Litigation. Arbitration. Small claims court.

Litigation. Litigation is not an alternative dispute resolution method. The alternatives to litigation to settle disputes are small claims court, mediation, and arbitration.

Fair housing law allows or requires landlords to do which of the following with respect to persons with disabilities? Impose additional deposits to compensate the owner for costs associated with making modifications to accommodate a disabled person. Modify a No Pets policy to allow for a guide dog. Refuse to rent to tenants with disabilities so long as there is already have a policy already in place to reject applicants with disabilities. Locate disabled persons in a specific section of an apartment complex so that it is more convenient to manage the facility.

Modify a No Pets policy to allow for a guide dog.

Which of the following is an example of steering? Not showing properties to a buyer in certain areas of a city based upon the licensee's assumed perceptions of the buyer's racial preferences. Showing a buyer only the neighborhoods that the buyer indicates they are wanting to live in when the licensee knows them to have very few minorities. Encouraging a seller to sell because a particular minority group is moving into the neighborhood. Refusing to sell an insurance policy to a homeowner because of the racial composition of a neighborhood.

Not showing properties to a buyer in certain areas of a city based upon the licensee's assumed perceptions of the buyer's racial preferences.

Which court case created the separate but equal doctrine that allowed legalized racial discrimination? Brown v. Board of Education Jones v. Alfred H. Mayer Co. Shelley v. Kraemer Plessy v. Ferguson

Plessy v. Ferguson

What is it called when a lender tries to make money at the expense of the customer by offering loan products with significantly worse terms or higher costs than similarly qualified customers? Predatory lending. Actuary lending. Subprime lending. Profitable lending.

Predatory lending.

Which of the following do NOT have to comply with the Americans with Disabilities Act of 1990? Real Estate offices Residential housing Movie theaters Motels

Residential housing

Which of the following classes is NOT protected under the Equal Credit Opportunity Act (ECOA)? Sexual orientation. Receipt of public assistance income. National origin. Marital status.

Sexual orientation.

Which one of the following is NOT a federal guideline to help licensees avoid risks when advertising real estate for sale or lease? Handicap: No exclusions or limitations based on handicap. Race, color, or national origin: No discriminatory limitation/preference may be expressed. Source of Income: No income preference may be designated. Familial status: No preference or limitation based upon family size or nature.

Source of Income: No income preference may be designated.

Mary Jo listed Wendy's house. Don and Justin each notified Mary Jo that they had offers on her listing. Justin and Don represent different clients but work under the same principal broker. What should Mary Jo do? Present the first offer and if it is rejected, then present the second offer. Submit both offers to the seller at the same time. Present only the highest offer and not mention the lower offer. Tell Justin that Don's offer will be delivered, and that his offer will only be delivered if it's for a higher price than Don's.

Submit both offers to the seller at the same time.

What is the name of the federal department that has created a set of guidelines for ethical advertising with respect to the sale or lease of real estate? The Federal Communications Commission The Justice Department The Department of Housing and Urban Development The Federal Trading Commission

The Department of Housing and Urban Development HUD has rules, regulations, and guidelines to assist newspapers, advertising agencies, real estate licensees, mortgage brokers and all others that use advertising with respect to the sale, rental, or financing of real estate

Which of the following is true about a broker advertising a client's property for sale? The advertisement does not need to have the name of the broker or principal broker. The advertisement should include the name of the broker and principal broker. The broker must advertise listings only in the name of the principal broker. The advertisement can be in only in the broker's name.

The advertisement should include the name of the broker and principal broker.

Marc, a buyer, is represented by Jeff, a broker. Jeff will receive his commission for the house he sold Marc from the seller. In this fact situation, which statement is true? Under agency law, if Jeff is to be paid a fee for the transaction, the fee will have to come from the buyer. The payment of a real estate commission does not by itself create an agency relationship. Jeff is a subagent of Seller Sam because his offer of compensation is through the multiple listing service. Jeff is the agent of the person paying his commission.

The payment of a real estate commission does not by itself create an agency relationship.

A licensee should attempt to minimize liability exposure by developing __________ for risk management. a plan an in-office task force a risk-blaming technique a team of lawyers

a plan

The duty to protect a client's confidential information: requires the licensee to place all case files in a bank safety deposit box as required by state law. is necessary in order to prevent trust fund mismanagement. continues after the agency relationship has terminated. is only until the transaction closes and the licensee is paid a commission.

continues after the agency relationship has terminated.

The rules for real estate advertising activity over the internet are in addition to the general Oregon Administrative Rules governing real estate advertising. different from Oregon Administrative Rules that control all real estate advertising. controlled by Oregon Administrative Rules that control all real estate advertising. exempt from Oregon Administrative Rules but controlled by ICANN.

controlled by Oregon Administrative Rules that control all real estate advertising.

A risk situation that can occur when the same licensee represents two or more principals that are negotiating with each other in the same transaction is called a: dual agency. multiple agency. double agency. net agency.

dual agency.

Usually the best way to control an active complaint is through early communication. documenting all disclosures made. a working relationship with a lawyer. good recordkeeping.

early communication.

Familial status includes families in the process of adopting a child. Both of the above marital status. Neither of the above

families in the process of adopting a child. AND PREGNANT

A criminal penalty for violating RESPA's anti-kickback, referral fees, and unearned fees provisions could cost a licensee fines of up to $10,000 and imprisonment for up to one year. a fine of $5,000 for each violation. a prison term of three years or longer. a federal real estate license revocation.

fines of up to $10,000 and imprisonment for up to one year. Criminal penalties result in fines of up to $10,000 and imprisonment for up to one year.

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

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

Recordkeeping is a good example of _____. risk encapsulation risk shifting risk anticipation risk control

risk anticipation

When a real estate sale agreement is signed by a buyer and given to the seller's broker with an earnest money deposit, the buyer's broker must deliver the earnest money deposit check to their principal broker before delivering the sale agreement to the seller's broker. the agreement is not binding on either the buyer or seller until it is signed as written by the seller AND the seller's acceptance of the offer is communicated to the buyer or buyer's broker. the agreement becomes a binding as soon as it is delivered to the seller. the buyer cannot revoke the offer before it is signed by the seller.

the agreement is not binding on either the buyer or seller until it is signed as written by the seller AND the seller's acceptance of the offer is communicated to the buyer or buyer's broker.

Foreclosure is a remedy available to the seller's agent. the buyer's agent. the lender who holds a mortgage or trust deed. the real estate brokerages

the lender who holds a mortgage or trust deed.

All of the following are part of a reasonable risk shifting strategy, EXCEPT: directing the client to seek professional advice relating to matters outside of the licensee's expertise. advising the buyer to have a home inspection, even in the case of new construction. purchasing Errors and Omissions Insurance. using only open-source software in the office.

using only open-source software in the office.

Broker Nina and Broker Vesta work for Principal Broker Griffin. Vesta is working with Marlin, who is interested in purchasing a property in McMinnville. Nina's client, Cody, is also looking to purchase a property in McMinnville. A very well priced property has recently been listed by a competing brokerage. Nina and Vesta present the property to their buyers and both Cody and Marlin are interested in making an offer on the property. Broker Vesta is in a ____________ relationship with Buyer Marlin. Disclosed limited agency Single agency

Single agency

Mary hired Broker Justin to find a ready, willing, and able buyer to purchase her home using an exclusive right to sell listing agreement. A few weeks before the expiration of the listing agreement, but prior to any sale, Mary decided to cancel the listing agreement. Which of the following statements is true? Mary can cancel the listing but can be sued for damages if the listing agreement provides for damages. Mary can cancel the listing but can be sued by Justin for specific performance. Mary cannot cancel the listing agreement before the expiration date. Mary would have to sell her residence at the listed price if Justin later found a buyer ready, willing and able to buy at the listed price.

Mary can cancel the listing but can be sued for damages if the listing agreement provides for damages.

OREGON;Ocean Shores Realty is a registered real estate business that engages in the development and marketing of new homes on the Oregon coast. Ocean Shores must register a branch office in order to: A) use a model home as a sales office in a subdivision where the model home is offered for sale at all times. B) use a temporary sales structure to display brochures with sales information regarding the project. Both A and B A only B only Neither A nor B

Neither A nor B

Redlining is best defined as: Charging a higher interest rate to an individual who is a member of a minority group. Refusing to make mortgage loans or issue insurance policies based upon racial, ethnic, religious, or national-origin composition of a neighborhood. Discrimination based on religious belief. Considering any of the seven protected classes when appraising a property.

Refusing to make mortgage loans or issue insurance policies based upon racial, ethnic, religious, or national-origin composition of a neighborhood.

In which of the following situations may an Oregon principal broker pay a listing finder's fee? A licensed Oregon real estate property manager for professional real estate activity which involved the lease-option of real estate A real estate broker previously licensed with the principal broker who earned the fee prior to transferring his license A real estate broker associated with another principal broker A licensed Oregon real estate property manager for professional real estate activity which involved the sale of real estate

A real estate broker previously licensed with the principal broker who earned the fee prior to transferring his license

Who of the following is required by Oregon law to have a real estate license? A college student receiving free rent while acting as resident manager of the fourplex he lives in A son selling his mother's property under power of attorney A woman who receives a finders' fee for soliciting buyers for her sister, who is licensed A property owner selling his investment property

A woman who receives a finders' fee for soliciting buyers for her sister, who is licensed

A listing agreement between a principal broker practicing alone and seller is terminated by: A) death of either party. B) bankruptcy of either party. C) destruction of the property. C only Both A and B A, B, and C B only

A, B, and C

A listing agreement: A) creates a fiduciary relationship. B) is an employment contract C) should contain all the responsibilities of the agent and the owner. A, B, and C B only Both B and C only Both A and B only

A, B, and C

An offer to purchase is terminated by: A) rejection by the offeree. B) a counter offer. C) revocation by the offeror. A, B, and C B only Both A and C Both B and C

A, B, and C

Principal brokers must supervise which of the following activities of affiliated licensees? A)Completion of a listing agreement B)Completion of a property management agreement C)Lease/option of the licensee's personal residence A and B only C only A, B, and C B only

A, B, and C

Private transactions by Oregon real estate licensees are covered by the license law if the licensee is: A) the seller. B) the purchaser. C) a limited partner who holds an ownership interest equaling more than 5% and actively participates in the negotiations. C only Both A and B only A only A, B, and C

A, B, and C

The Americans with Disabilities Act of 1990 along with the Fair Housing Act provide for the following with respect to persons with disabilities: A) It is unlawful to refuse to rent to someone with a disability. B) It is unlawful to restrict persons with a disability to a specific part of an apartment complex or neighborhood. B) It is unlawful to not make reasonable accommodations or modification for those persons with disabilities. A, B, and C B only C only Both A and B only

A, B, and C

Title VIII of the Civil Rights Act, the Fair Housing Act, applies to: A) a single-family home owned and sold by private individuals who own more than three such dwellings. B) multiple-family units containing six apartments, with an owner that occupies one of the residences. C) a single-family unit that is owned by the broker selling it. Both A and B A, B, and C Both A and C C only

A, B, and C

Under Oregon law, what duties does a real estate licensee who is representing the seller have to an unrepresented purchaser? A) honest dealing and disclosure B) account for money received on behalf of the seller C) reasonable care and diligence A, B, and C Both B and C A only Both A and B

A, B, and C

A proposal to auction real estate: should include the terms of the sale including minimum starting bid. must be reduced to a written, signed agreement. includes terms set by the seller prior to the auction. All of the above

All of the above

Oregon's agency disclosure law applies to residential property. commercial property. industrial property. All of the above

All of the above

Real estate brokers who market farms, ranches, and other natural resource properties must: A) be experienced and knowledgeable in these types of real estate. B) be knowledgeable about the type of farm, forest, or other natural resource operations carried out on the real estate. C) determine what, if any, implements, tools, irrigation, and other equipment will be sold with the real estate. A only A and C only Both B and C only All of the above

All of the above

What duties does a real estate licensee who is representing the seller have to an unrepresented purchaser under Oregon law? Honest dealing and disclosure Account for money received on behalf of the seller Reasonable care and diligence All of the above

All of the above

Which of the following clients' trust funds may be placed by a property manager into a federally insured interest-bearing account? Tenants' rent payments A non-refundable cleaning fee paid by the tenant Coins removed from a clothes dryer at the site of the rental unit All of the above may be placed in a federally insured interest-bearing account

All of the above

Which of the following statements are true? A) Real estate licensees may not engage in sales of manufactured structures under their real estate licenses if the manufactured structure retains its classification as personal property. B) The assessor must treat a manufactured structure as real property where the manufactured structure and underlying land are owned by the same person. C) The Vehicle Code exempts real estate licensees from motor vehicle dealer licensing requirements when dealing with manufactured structures considered and taxed as real property Both A and C only B only Both B and C only All of the above

All of the above

proposal to auction real estate: must be reduced to a written, signed agreement. should include the terms of the sale including minimum starting bid. includes terms set by the seller prior to the auction. All of the above

All of the above

Regarding closing procedures, which of the following is true? Principal real estate brokers cannot close their own clients' transactions. All transactions must be placed in escrow. To have a transaction placed in escrow, a principal broker must provide his own instructions to the escrow agent. All parties to the transaction must grant written permission to deposit funds or papers into escrow.

2 only

Oregon law requires that principal brokers keep adequate records of all professional real estate activity for not less than __________ after the date of the transaction. 10 years 2 years 6 years 1 year

6 years

The period of time that signed copies of listings, deposit receipts, earnest money receipts and other contracts must be maintained is 7 years 5 years 4 years 6 years

6 years

A person can work as a secretary in a real estate office without obtaining a real estate license. That secretary can legally perform which of the following functions? 1) Transmit information from a multiple listing to a phone prospect if no one else is in the office 2) Verify the accuracy of listing information supplied by a broker by checking the records at the county tax office I only II only Both I and II Neither I nor II

II only A licensee is required to conduct professional real estate activity. The secretary could verify listing information but would not be allowed to give information about the listing to the public.

Which of the following is correct about listing agreements? 1) The buyer must be given a copy upon request. 2) A copy of a listing agreement must be kept with the principal broker. I only II only Both I and II Neither I nor II

II only keyword Buyer. Buyers aren't entitled to the listing agreement

When a real estate broker transfers to a different principal broker: A) the real estate broker may take all of his existing listings with him to the new office. B) the real estate broker's license must be returned to the Real Estate Agency to be reissued to the new principal broker. A only B only Both A and B Neither A nor B

Neither A nor B

A branch office registration is necessary to use a 1) model unit, available for sale, in a subdivision for promotion of interest in the development. 2) temporary structure for dissemination of information. I only II only Both I and II Neither I nor II

Neither I nor II

A real estate licensee is representing both the seller and buyer under a disclosed limited agency agreement. Under Oregon's agency disclosure law, the licensee may 1) reveal to the buyer, without the seller's permission, that the seller will accept a price lower than the listing price. 2)reveal to the seller, without the buyer's permission, that the buyer will pay a price higher than the offering price. I only II only Both I and II Neither I nor II

Neither I nor II

Mary is a real estate broker associated with principal broker Larry. Tom is also a principal broker. Mary procured a sale for Tom's listing. Tom expressed his appreciation by directly paying Mary a $200 bonus. Which of the following statements is true concerning this situation? 1) This is acceptable as long as Mary receives her commission from principal broker Larry. 2) This is acceptable as long as principal broker Larry is notified by principal broker Tom. I only II only Both I and II Neither I nor II

Neither I nor II

Once an Oregon licensee has established a single agency relationship with the seller or the buyer 1) the relationship may not be changed to disclosed limited agency representation. 2) the broker's commission may only be paid by the party with whom the broker has the relationship. I only II only Both I and II Neither I nor II

Neither I nor II

Under Oregon real estate license law, funds in a principal broker's clients' trust account can be subject to 1) attachment on a claim against the principal broker. 2) execution on a claim against the principal broker. I only II only Both I and II Neither I nor II

Neither I nor II

Which of the following statements about the Oregon property condition disclosure law and the agency disclosure law is true? 1) The property disclosure law applies to all property within the State of Oregon. 2) The agency disclosure law is limited to the sale of residential property. I only II only Both I and II Neither I nor II

Neither I nor II

A competitive market analysis (CMA) is best described as an alternative to an appraisal. an opinion of the value of real estate as of a particular date. a process used by a licensee in pursuing a listing agreement or formulating an offer to acquire real estate for a buyer.

a process used by a licensee in pursuing a listing agreement or formulating an offer to acquire real estate for a buyer. A CMA is not an opinion of value. It is a representation of the marketplace as it relates to recommending a listing price or helping a buyer determine an offering price.

An Oregon principal real estate broker may act as an escrow agent without obtaining an escrow license under no circumstances. only under two conditions: the parties are not charged a separate fee for the service, and the transaction was handled by the principal broker. if requested to do so by either the buyer or the seller in writing, and if the other party agrees, also in writing. only if requested in writing to do so by another principal broker.

only under two conditions: the parties are not charged a separate fee for the service, and the transaction was handled by the principal broker.

The court case of McLain v. New Orleans Real Estate Board determined that a conspiracy to fix real estate commissions has an effect on interstate commerce because: corporate brokerage offices aren't always in the same state as local brokerages. the property could be in a different state than where the buyer is located. out-of-state mortgage lenders or insurers could be involved in the real estate transaction. the forms used in the transaction come from out-of-state printing companies.

out-of-state mortgage lenders or insurers could be involved in the real estate transaction. McLain v. New Orleans Real Estate Board,

Based on what you know about antitrust laws, which phrase does not belong with the others? Group boycott. Blockbusting. Tying arrangement. Sherman Antitrust Act.

Blockbusting.

The ABC Brokerage Firm specializes in rental properties. The firm 1) elicits the race of persons who make telephone inquiries in order to facilitate matching the prospect with apartments in neighborhoods of the caller's race. 2) requires families with children to pay an extra fee for a cleaning deposit, which is not required for tenants without children. Which of the practices, if any, is unlawful under the federal Fair Housing Act? Both 1 and 2 2 only 1 only Neither 1 nor 2

Both 1 and 2

It is a violation of the Real Estate License Law for a licensee to prepare a competitive market analysis for real estate: A) contingent upon reporting a predetermined value. B) in which the licensee had an undisclosed interest. Both A and B A only B only Neither A nor B

Both A and B

The federal Fair Housing Law prohibits: A) blockbusting. B) representing, as a means of sexual discrimination, that a dwelling is not available for sale or rent when in fact the dwelling is available. B only Both A and B A only Neither A nor B

Both A and B

Which of the following statements is/are true regarding timeshares? A)Timeshare interests in real property are real estate. B)Persons offering to sell timeshares in Oregon are subject to the real estate licensing laws and administrative rules. B only A only Both A and B Neither A nor B

Both A and B

A broker associated with a principal real estate broker was asked by a property owner to prepare a competitive market analysis for the owner's residence. Under Oregon law, which of the following statements about a competitive market analysis are true? 1) A fee may be charged for providing a competitive market analysis. 2) The analysis may not be contingent upon reporting a pre-determined value. I only II only Both I and II Neither I nor II

Both I and II

A person who holds an inactive real estate license 1)may not engage in professional real estate activity. 2)must disclose the fact that he has a license when buying or selling property on his own account on at least the first written document of agreement. I only II only Both I and II Neither I nor II

Both I and II

A real estate principal broker is required by the Oregon license law to do which of the following? 1) Notify the bank at which he maintains a clients' trust account in writing that the account is for the purpose of holding funds belonging to others and keep an acknowledged copy of the notice in the broker's records 2) Identify to the Real Estate Agency the name of the bank, account number, and name of account for each clients' trust account the broker maintains I only II only Both I and II Neither I nor II

Both I and II

A real estate property manager may 1)have trust accounts and separate bookkeeping systems for each of his offices. 2) place rental collections on property he owns in his personal account. I only II only Both I and II Neither I nor II

Both I and II

An Oregon real estate broker associated with a principal broker may, upon proper complaint, be brought to a hearing concerning whether his license should be suspended or revoked when he 1) displays a 'for sale' sign on a property without written consent of the owner. 2) conducts property management in his own name. I only II only Both I and II Neither I nor II

Both I and II

If an active Oregon real estate broker associated with a principal broker sells property he owns completely, as an individual, 1) the law requires the licensee to reveal his license status to the purchaser before the offer is accepted. 2) the licensee must turn the funds over to the principal broker to be deposited into a neutral escrow depository in Oregon or into the principal broker's clients' trust account. I only II only Both I and II Neither I nor II

Both I and II

Oregon real estate license law restricts brokers associated with principal brokers from 1) bringing a lawsuit against a seller for payment of commission. 2) directly accepting a finder's fee from a principal broker with whom the broker is not licensed. I only II only Both I and II Neither I nor II

Both I and II

Real estate broker Jackson, who is associated with a principal real estate broker, hires an unlicensed personal assistant to help him with daily tasks that take up a great deal of Jackson's time. Who would be held responsible if the assistant discussed the terms of a sale with a prospective buyer? 1) Jackson 2) The principal broker I only II only Both I and II Neither I nor II

Both I and II

Three principal brokers formed a firm under which they conducted their real estate activity. Under Oregon law, which of the following statements about the supervision of the activities of the firm is true? 1) The principal brokers may delegate certain duties to a specific principal broker, for instance, one principal broker may be responsible for the training of new licensees. 2) All three principal brokers share equal responsibility for the conduct of the licensees employed by the organization. I only II only Both I and II Neither I nor II

Both I and II

Which of the following is true of a personal representative of a deceased person's estate who wishes to sell some of the real estate included in the estate? 1) He can advertise the property without a real estate license. 2) He can negotiate the sale of the property without a real estate license. I only II only Both I and II Neither I nor II

Both I and II

Which of the following types of transactions, among others, are included under Oregon's agency disclosure statutes? 1)Exchanges of real property 2)Options to purchase real property I only II only Both I and II Neither I nor II

Both I and II

n Oregon, non-disclosure of a disclosed limited agency by a broker could result in 1) the broker losing his license. 2) contract rescission. I only II only Both I and II Neither I nor II

Both I and II

A principal broker authorizes a real estate broker associated with her to guarantee personally a profit from land purchased and held one year before sold. What is the effect if the real estate broker acts on this authorization? No disciplinary action of the principal broker would be taken, since such guarantees are void by law. No disciplinary action of the principal broker would be taken, since the real estate broker actually made the guarantee. Only the principal broker is subject to disciplinary action, since he is responsible for the real estate broker's actions. Both the principal broker and the real estate broker are subject to disciplinary action for the guarantee.

Both the principal broker and the real estate broker are subject to disciplinary action for the guarantee.

A nonlicensed personal assistant to an Oregon broker associated with a principal real estate broker could legally perform which of the following activities? 1) Install signs and lock boxes on listed properties 2) Prepare and submit advertising to a newspaper as long as the broker reviews it I only II only Both I and II Neither I nor II

I only

A principal broker is required to deposit earnest money into a clients' trust account. However, he may deposit the money into a federally insured interest-bearing account only if 1) he has written approval from the purchaser and the seller. 2) interest earned is credited to the purchaser. I only II only Both I and II Neither I nor II

I only

A principal real estate broker may share his commission with 1) a cooperating principal real estate broker under an oral agreement. 2) the seller's attorney. I only II only Both I and II Neither I nor II

I only

A real estate broker associated with a principal broker who hires an unlicensed person to work as a personal assistant could legally 1)pay the assistant a salary. 2)share a commission with the assistant. I only II only Both I and II Neither I nor II

I only

Albert Brown, an Oregon licensee, wants to put a 'for sale' sign on property belonging to Timothy and Debbie Sanford. He can only do so 1) with written authorization from the Sanfords. 2) after notifying the local multiple listing service that the property is for sale. I only II only Both I and II Neither I nor II

I only

If an Oregon real estate broker associated with a principal broker makes an intentional misrepresentation to a client, the broker and his principal broker may 1) have their licenses suspended or revoked. 2) be subject to monetary fines by the Real Estate Agency. I only II only Both I and II Neither I nor II

I only

If the branch office of a real estate firm maintains a separate clients' trust account, it must also 1) maintain a separate bookkeeping system. 2) file the original copy of each listing agreement, earnest money receipt, and closing statement with the main office within 60 days of the transaction. I only II only Both I and II Neither I nor II

I only

Oregon law allows the principal brokers of a real estate firm to delegate 1) the area of management responsibilities among its principal brokers, 2) responsibility for conduct of associated licensees based on the percentage of ownership in the organization held by each principal broker. I only II only Both I and II Neither I nor II

I only

The failure on the part of the real estate broker to place deposit money in the custody of his principal broker is 1) contrary to license law. 2) in violation of contract law. I only II only Both I and II Neither I nor II

I only

The license of an active Oregon real estate broker who is associated with a principal broker 1) must be renewed before the expiration date to remain active 2) must be displayed in the office of the principal broker under whom the broker is licensed I only II only Both I and II Neither I nor II

I only

Under Oregon's agency disclosure law 1)prior to entering into a listing agreement a real estate licensee must give an Initial Agency Disclosure Pamphlet to the seller. 2)a seller is prohibited from paying a buyer's single agent's commission. I only II only Both I and II Neither I nor II

I only

A licensee would be in violation of ORS 696, the Real Estate License Law, for failing to inform a prospective purchaser that the 1) property is not zoned for the current use, and the licensee knew of the zoning problem. 2) seller would consider selling the property for less than the listed price. I only II only Both I and II Neither I nor II

I only WHY ONLY #1? Because saying the seller "might" sell it for less is ok

A broker must maintain which of the following documents that pertain to his professional real estate activity? 1) Copy of a receipt issued by the broker in acceptance of a promissory note from a cooperating broker 2) Copy of a narrative appraisal report issued by the broker 3) Earnest money agreement in the completed sale of a property III only I and III only II and III only I, II and III

I, II and III

Brooks, a real estate broker, sold a property without notifying his principal broker. Brooks gave part of the commission directly to Simpson, a real estate broker associated with another firm, because they had worked together to complete this sale. Which of the following statements is correct regarding the situation? 1) Brooks does not have the right to receive commissions directly. 2) Simpson may not legally keep the money Brooks gave him. 3) Brooks has violated his duty to his principal broker. I and II only I and III only II and III only I, II and III

I, II and III

Which of the following must be deposited in a clients' trust account or neutral escrow? 1) Earnest money deposits 2) Collected rents to be prorated at closing 3) Sales proceeds yet to be disbursed I only II only II and III only I, II and III

I, II and III

A principal broker may place clients' trust funds into an interest-bearing account only if 1) the interest earned on the account is not credited to the broker. 2) all parties who have an interest in the funds give their written permission. I only II only Both I and II Neither I nor II

II only

Under the Oregon Real Estate License Law, which of the following documents must be provided to both the buyer and seller in a transaction? 1) The listing contract if the selling broker was also the listing broker 2) A closing statement if the broker performed the closing I only II only Both I and II Neither I nor II

II only

Which of the following acts requires a real estate license in Oregon? 1) Negotiation between a buyer and a seller for the sale of a mobile home located on a rental space in a mobile home facility 2) Acceptance of a listing to sell a farm I only II only Both I and II Neither I nor II

II only

Which of the following statements concerning a real estate property manager managing non- residential real property is true? 1) The property manager must place all funds accepted by him into a federally insured clients' trust account. 2) The property manager must maintain an owner's ledger account for each owner of managed property. I only II only Both I and II Neither I nor II

II only

With his principal broker's permission and supervision, a real estate broker could do which of the following according to the Oregon real estate license law. 1) Manage an office for 120 consecutive days 2) Close a transaction I only II only Both I and II Neither I nor II

II only

An Oregon resident may engage in real estate without a license if 1) he only negotiates one transaction each year for another person for compensation. 2) he deals in estate property as an appointed executor of the estate. I only II only Both I and II Neither I nor II

II only A license is required to engage in real estate activity for another individual for a fee. An unlicensed individual who is an appointed executor of an estate is exempt from this requirement.

The best way for a licensee to deliver the Initial Agency Disclosure Pamphlet when a property inquiry is made by email is attached to the reply email. by US Mail. by personal delivery if the broker ever meets the customer face-to-face. by scheduling an appointment for the customer to come to the office to receive it.

attached to the reply email.

Broker James knows that his client, Mr. Smith, will sell his house for $25,000 less than the listed price. Mr. Smith did not give Broker James authorization to repeat this information. When approached by the agent of Buyer Bill, who inquired if there was any room for negotiation, Broker James replied, "There's probably $25,000 wiggle room." In so doing, Broker James violated his fiduciary duty of accounting. care. disclosure. confidentiality.

confidentiality.

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

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

Which is NOT a way to keep up-to-date with changes in real estate law and practices? Subscribe to state real estate licensing division e-mail newsletters. Take real estate continuing education courses. Wait until another real estate agent talks about law changes and then listen in on the conversation. Read pamphlets published by the local real estate agent association.

Wait until another real estate agent talks about law changes and then listen in on the conversation.

VAMA is a combined attempt by the government and the private sector to 1) affirm a public commitment to fair housing and to provide REALTORS® with fair housing training and education. 2) to adopt fair housing affirmative marketing and advertising procedures. 3) to promote equal opportunity within the real estate industry. 4) to avoid racial tensions in neighborhoods. 1, 2, and 3 only 1, 2, 3, and 4 1 and 2 only 1, 2, and 4 only

1, 2, and 3 only

"Risk control" is most like which phrase? Nip the problem in the bud. Stop pointing fingers. The buck stops here. What comes around goes around.

Nip the problem in the bud. Risk control means addressing an issue when it first arises by attempting to find a solution as soon as possible.

Broker Ellen and Broker Jeff work for Principal Broker Carter. Ellen listed Manna's property. Jeff's buyer, Professor Gotz, made an offer to purchase Manna's property. Broker Jeff is in a ____________ relationship with regard to Buyer Professor Gotz. Disclosed limited agency Single agency

Single agency

If there is a legal problem in a real estate transaction, the principal broker should recommend an attorney to the client. suggest that the client hires an attorney. ask the title company to provide legal advice to the client. hire an attorney for the client.

suggest that the client hires an attorney.

A lender must notify a loan applicant in writing within __________ of the completed credit application if the credit has been denied. 14 days 5 business days 30 days 45 days

30 days

All rental units in buildings of _____ or more units built after 1991 are required to meet disabled person accessibility standards as defined by HUD. 2 3 4 5

4

A property is sold for $500,000 but the transaction is contingent upon the property appraising for at least the purchase price. The lender's appraisal is for only $475,000. Which of the following is true? A) The transaction can be terminated because the property did not appraise for the sale price. B) The seller and buyer can agree to renegotiate the purchase price to the appraised value of $475,000. C) The seller can force the buyer to specifically perform at the agreed-to price of $500,000. D) The seller can keep the buyer's earnest money as liquidated damages. A and B only A only C and D only A, B, C, and D

A and B only

Which of the following apply to Oregon? A) Must follow at a minimum the Federal Fair Housing Law. B) Cannot discriminate based on marital status. C) Cannot discriminate against source of income. D) Cannot discriminate because of sexual orientation. A only A, B, and C only A and C only A, B, C, and D

A, B, C, and D Oregon must follow the stricter of Federal law or State law

Which of the following are included in a typical listing agreement? A) a description of the property B) the seller's obligation to pay a commission C) a termination date D) safety clause B and C only A, B, C, and D A, B, and C only A and B only

A, B, C, and D Among other things, a typical listing agreement includes a description of the property, a commission payment clause, a listing termination date, and a safety clause to let the seller know that a commission will be owed if the seller, for the time specified after the expiration date, sells the property to anyone introduced to it during the term of the agreement.

A listing agreement between a principal broker and a seller automatically terminates by A) the death of either party B) bankruptcy of the seller C) destruction of the property A only A and C only B and C only A, B, and C

A, B, and C

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

A, B, and C only

A exclusive right to sell listing contract does which of the following: A) authorizes the principal broker to offer the property for sale. B) guarantees that the principal broker will find a buyer who will pay full list price. C) authorizes the principal broker to accept an earnest money deposit from a buyer. D) authorizes the principal broker to seek assistance in securing a sale from other brokers. A, C, and D only A, B, C, and D B and D only A and D only

A, C, and D only

A licensee representing a buyer should do which of the following with respect to representing his buyer? A) Prepare a CMA on the property the buyer is interested in making an offer on B) Refuse to show the buyer a For Sale by Owner property if the seller refuses to pay a commission C) Advise the buyer that severe structural problems revealed in an inspection report may justify termination of the transaction D) Prepare an offer for the buyer per the buyer's instructions A, C, and D only A and C only A, B, C, and D A and D only

A, C, and D only

An oral agreement to sell a parcel of residential real estate for a commission is A) enforceable. B) unenforceable. C) contrary to the statute of frauds. D) voidable by the seller. A only B only D only B and C only

B and C only

OREGON;The secretary of a licensed principal broker in a real estate office does not have a real estate license. The secretary can legally perform which of the following functions? A) Provide information on a company listing to a phone prospect if no one else is in the office. B) Verify the accuracy of listing information supplied by an agent by checking the records at the county assessors office. B only A only A and B Neither A nor B

B only

Which of the following is NOT a true statement about buyer representation? Buyer agency can only be formed by written agreement. Buyer broker representation may be in writing, but is not required to be in writing. Buyer broker representation may be implied. Buyer broker representation may be express.

Buyer agency can only be formed by written agreement.

OREGON;In order for a real estate brokerage to engage in the practice of real estate it must: A) post a $25,000 performance bond. B( not be a subsidiary of a corporation. C) be registered with the Real Estate Agency in the name of a real estate principal broker. D) file the name with the Secretary of State Business Registry if an assumed business name is to be used. C and D only B only A and B only A, C, and D only

C and D only

It is improper for a licensee who is representing a seller to A) tell a buyer that a house has a leaky roof. B) reveal that a house has drainage problems during the winter. C)tell a buyer that the seller will take less than the listed price. C only A and B only B only Neither A, B, nor C

C only

When a broker prepares a real estate sale agreement for a buyer, all of the following statements are true EXCEPT: the buyer must sign and initial each page where indicated. the forms must be completed as directed by the buyer. a copy of the signed offer must be given to the buyer within 24 hours of the time the buyer signed the offer. only the form approved by the broker's principal broker can be used.

a copy of the signed offer must be given to the buyer within 24 hours of the time the buyer signed the offer.

Damages awarded to place an injured party in the same position as before a contract was entered into are actual damages. punitive damages. promissory damages. nominal damages.

actual damages. The measure of damages is to place the injured party, as far as monetary compensation is possible, in the same position as if the contract had been fully performed. These damages are often referred to as actual damages.

A listing agreement that gives only one broker the right to sell a property during the listing period but reserves the owner the right to sell it without paying a commission is illegal. an exclusive right to sell listing. a one-party listing. an exclusive agency listing.

an exclusive agency listing

Under Oregon's agency disclosure law, a real estate licensee representing the seller must give an agency disclosure pamphlet to a prospective buyer at first contact with the buyer if there is no reasonable cause to believe the buyer is already being represented. when the buyer signs a real estate sale agreement. only if the licensee initiates the contact with the buyer. not later than ten days after the buyer contacts the licensee.

at first contact with the buyer if there is no reasonable cause to believe the buyer is already being represented.

A licensee is allowed to fill in the blanks of a preprinted, standardized form at the direction of a principal to the transaction, such as the seller or buyer. when the buyer or seller missed filling in some of the blanks. when required to do so by federal real estate law. after the closing of escrow.

at the direction of a principal to the transaction, such as the seller or buyer.

A principal real estate broker can act for both parties in a transaction with the knowledge and consent of both. can act for only one party in a transaction. can act for both parties in a transaction if licensed for a minimum of one year. must remain neutral.

can act for both parties in a transaction with the knowledge and consent of both.

Determining the value of a property by analyzing similar sales of like-properties is called the: home appraisal arrangement. comparative market method. mirror marketing effect. residential transaction process.

comparative market method

The buyer broker should assist the buyer with all of the following during the closing process stage of buyer representation, EXCEPT: giving advice to the buyer on how to hold title. assisting the buyer in evaluating issues that may arise during the closing process. evaluating the results of the property inspection. assisting the buyer in removing contingencies.

giving advice to the buyer on how to hold title.

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

holding an open house for a listing of the principal broker

When the time is of the essence clause is inserted into a contract to purchase real estate punctual performance of the terms is required by the seller only if the buyer's offer is conditional. the buyer and seller cannot voluntarily extend the time limits set in the contract. punctual performance of the terms is required only by the party who inserted the clause. punctual performance of the terms is required by both the buyer and seller.

punctual performance of the terms is required by both the buyer and seller.

RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for __________ involving a federally related mortgage loan. point discounts special HELOC percentage rates legal counsel referrals of settlement service business

referrals of settlement service business RESPA prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan.

The clause in a listing agreement that allows the listing broker to receive a commission if the owner, within a specific period after the listing expires, sells to a person who was introduced to the property during the listing period is known as the hadendum clause. activation clause. post expiration kick-in clause. safety clause.

safety clause.

Brown v. Board of Education held that school segregation could provide equal education. school integration violated the 13th Amendment. the educational system can remain segregated. separate education could not be equal education.

separate education could not be equal education.

If broker Kristi is aware broker Mary Jo has an exclusive listing that is about to expire, Kristi may: secure a purchase and sale agreement from a buyer and withhold the presentation of the offer until the expiration of Mary Jo's listing. solicit an exclusive listing agreement after the expiration date. place her sign on the property in anticipation of the listing's expiration. persuade the owner to immediately sign the listing with her.

solicit an exclusive listing agreement after the expiration date.

In a real estate transaction, the amount of earnest money deposit is determined by: real estate law. the agreement of the parties. the rules of the local MLS. a minimum of 3.5% of the sales price.

the agreement of the parties.

If a loan application is turned down because of the appraisal the applicant can reapply for the loan and will automatically get approved a second time. the applicant has the right to request a copy of the appraisal. the lender is required to have two additional appraisals and average those results to determine value. it is reasonable to assume that redlining has occurred.

the applicant has the right to request a copy of the appraisal.

The liquidated damages agreed to in a real estate transaction usually consist only of not more than 2% of the buyer's down payment. the earnest money deposit agreed to by the buyer and seller. up to 10% of the transaction price but not less than 2% of the buyer's down payment. the amount of earnest money deposit that is left after the listing broker's expenses are reimbursed by the seller. The liquidated damages agreed to in a real estate transaction usually consist only of the earnest money deposit agreed to by the buyer and seller.

the earnest money deposit agreed to by the buyer and seller.

The fair housing poster does NOT have to be displayed in the personal home of a real estate licensee. a real estate brokerage office. the rental office of an apartment building. the model home of a subdivision.

the personal home of a real estate licensee.

Redlining refers to encouraging a home owner to sell because of a particular ethnic group moving into a neighborhood. providing an Asian buyer factual information about the racial composition of a neighborhood based upon the couple's desire to live in a neighborhood where there are other Asians. the refusal of a lender to make loans in certain geographical areas for reasons other than the qualification of the applicants and the value of the pledged collateral. discouraging buyers from considering certain neighborhoods because of its ethnic composition.

the refusal of a lender to make loans in certain geographical areas for reasons other than the qualification of the applicants and the value of the pledged collateral.

Typically, the principal broker earns the commission when an escrow has been opened. the seller accepts an offer. the sale has closed. a ready, willing, and able buyer has been found.

the sale has closed

An individual could be compensated for being injured in a car accident under criminal Law. contract Law. liability Law. tort Law.

tort Law. Tort law would allow the injured party to be compensated for the injury by requiring the party causing the accident to pay damages.

To avoid potential risks concerning the permitted practice of racial tipping, a licensee may not: discourage buyers from considering certain neighborhoods based upon assumed buyer preferences. spreading rumors about ethnic minorities moving into the neighborhood. volunteer information regarding the racial, religious or ethnic composition of any neighborhood to the licensee's client. refuse to make mortgage loans or issue insurance policies in specific geographical areas.

volunteer information regarding the racial, religious or ethnic composition of any neighborhood to the licensee's client.

The requirement to give a seller's property disclosure applies to the sale of commercial property. a three-plex that the seller never occupied and the buyer will use as a rental. a house that was acquired by a financial institution through foreclosure. a manufactured dwelling and the land it is situated on that the buyer will occupy.

a manufactured dwelling and the land it is situated on that the buyer will occupy.

OREGON;Which of the following is NOT a license type in Oregon? broker. principal broker. designated broker. property manager.

designated broker

If the seller makes a counter offer, the buyer cannot respond with a counter offer back to the seller. must respond with a counter offer back to the seller with the terms that are objectionable. is still obligated to the original offer for a set time after rejecting the seller's counter-offer. is relieved of their original offer.

is relieved of their original offer.

OREGON;All of the following are true about a principal broker licensee except: must have completed additional course work and pass the principal broker exam. must supervise other licensees and cannot engage in real estate activity as an individual. can engage in real estate activity as an individual. must have had three or more years of real estate experience to become a principal broker.

must supervise other licensees and cannot engage in real estate activity as an individual.

Bruce agreed to buy Justin's real property for $600,000. Both Bruce and Justin signed the real estate sale agreement and Justin's broker deposited $18,000 as earnest money with West Coast Escrow. Justin was unable to provide marketable title, so Bruce demanded the return of his earnest money from West Coast Escrow. West Coast Escrow must: divide the earnest money in half and return one-half to Bruce and one half to Justin. return the earnest money to Bruce after West Coast deducts the commission due to the broker. forward the entire amount to Justin. return the entire amount to Bruce.

return the entire amount to Bruce.

Which one of the following phrases does NOT create a potential antitrust liability? "This is the rate every firm charges." "The multiple listing service will not accept less than a 120-day listing." "No one else will cooperate unless you accept the listing on these terms." "I promote all of my listings."

"I promote all of my listings."

A listing agreement is: A) an employment contract. B) a purchase contract. C) an option to sell. B only Both A and C A only Neither A, B, nor C

A only

A real estate broker who hires an unlicensed personal assistant could legally: A)pay the assistant a salary. B)pay the assistant based on a share of commission monies received. B only A only Both A and B Neither A nor B

A only

A real estate licensee must: A) present all written offers to the seller. B) present all oral offers to the seller. C) deliver to the seller any earnest money received. C only A, B, and C A and B only A only

A only

Which of the following are specialized areas of real estate activity that require additional training? A) Commercial real estate B) The sale of a mobile home placed permanently upon land included in the sale. A only B only Both A and B Neither A nor B

A only

Which of the following persons involved in real estate activities are required to obtain an Oregon real estate license? An attorney rendering services as an attorney at law A person rendering his services in the negotiation for transfer of an interest in real estate A personal representative of a deceased person, when acting under a will A registered engineer rendering his engineering services

A person rendering his services in the negotiation for transfer of an interest in real estate

There are exemptions to licensing under the Oregon Real Estate Law, but which of the following is required to be licensed? A Department of Veterans' Affairs employee selling foreclosed homes A person who, for a fee, markets rental property and collects rent A person performing professional real estate activity under a court order A general partner who engages in a real estate transaction for a limited partnership

A person who, for a fee, markets rental property and collects rent

A principal broker may 1) have trust accounts and separate bookkeeping systems for each of his offices. 2) place rental collections on property he owns in his personal account. I only II only Both I and II Neither I nor II

Both I and II

Within how many days must a broker notify the Real Estate Agency of an address change using the Agency's eLicensing system? 3 days 10 calendar days 30 weekdays 5 banking days

B only

"The conditioning of the sale or purchase of one product to the sale or purchase of another product" describes which antitrust violation? Price fixing. Group boycott. Tying arrangement. Price gouging.

Tying arrangement.

When advertising his/her personally owned listed real property, an Oregon broker must: (check all that apply) A) disclose his/her license status in writing. B)do so under the supervision of the principal broker. C)offer the property for below market value.

A & B

Which of the following statements about listing agreements is NOT true? A listing agreement in Oregon is limited to 180 days duration. A copy of the listing agreement must be kept with the principal broker. Each listing agreement shall state a definite expiration date. The seller should always be given a true legible copy of the listing.

A listing agreement in Oregon is limited to 180 days duration.

An Oregon licensee is working with an out-of-state buyer in the purchase of a home in Oregon. The licensee has not met the buyer; their only contact has been by telephone. They have discussed what type of property the buyer wants and the price range the buyer can afford. At what point in time must the licensee provide a copy of the Initial Agency Disclosure Pamphlet required by Oregon administrative rule? As soon as the licensee and the buyer began discussions over the buyer's housing needs and finances, the licensee should have immediately sent the disclosure pamphlet to the buyer. The licensee can wait to give to the buyer the pamphlet until they meet face-to-face. The licensee does not need to give the pamphlet to the buyer unless she has a contract to represent the buyer. The first mention that the licensee is required to make of the pamphlet is in the earnest money agreement the buyer signs.

As soon as the licensee and the buyer began discussions over the buyer's housing needs and finances, the licensee should have immediately sent the disclosure pamphlet to the buyer.

Kathryn is holding an open house for one of her listings. When should she give an agency disclosure form to visitors to the open house? Immediately upon entering the home. At first contact after determining whether the guest is not represented by another licensee. There is no need to give an agency disclosure to any visitor to an open house. Once a visitor signs a buyer representation agreement.

At first contact after determining whether the guest is not represented by another licensee.

According to Oregon real estate license law, a principal real estate broker must: (check all that apply) a) instruct the escrow company to disburse the commission monies directly to the listing and buyer brokers (should NOT have been checked) B) review and initial all advertising of affiliated licensees before use. C)maintain a definite place of business.

B & C

Under the Oregon Real Estate License Law, which of the following documents must be provided to both the buyer and the seller in a transaction? A)The listing contract if the selling broker is also the listing broker. B)A closing statement if the broker performed the closing. B only Both A and B A only Neither A nor B

B only

Which of the following statements concerning requirements of an Oregon principal broker's clients' trust account is false? Clients must be notified of the account number and name of the bank in which the trust funds are deposited. The bank at which the clients' trust account is open must be notified that the account is maintained for money belonging to clients. A branch office may maintain a separate clients' trust account as long as a separate bookkeeping system is maintained for the branch office. The Real Estate Agency must be notified of the bank, account number and name of account of all of the clients' trust accounts.

Clients must be notified of the account number and name of the bank in which the trust funds are deposited.

What was the main reason the Sherman Antitrust Act was passed by Congress in 1890? To outlaw agreements among industry members to drive a competitor from the industry. Too many preprinted forms contained predetermined commission rates or listing periods. Concerns about putting too much economic power in the hands of a few large businesses. For preventing a conspiracy to fix real estate commissions that could have an effect upon interstate commerce.

Concerns about putting too much economic power in the hands of a few large businesses.

An unlicensed personal assistant to a real estate broker could legally do which of the following? Discuss the terms of a sale with a seller. Discuss information about property listed by the real estate broker. Obtain verification of sewer connection for a listed house from the city public works office at the client's request. Deliver documents to a buyer.

Deliver documents to a buyer.

An Oregon real estate license must be held by a person who performs which of the following acts? 1) Take a listing from a real property owner with the expectation of receiving a commission 2) Charge a consultation fee to a seller for advice on marketing real property 3) Receive a commission for selling a mobile home located on a rental space in a mobile home facility I only II only I and II only I, II and III

I and II only A real estate license is required to take a listing from a real property owner with expectation of commission and to charge a consultation fee to a seller for advice on marketing a real property. However, a real estate license would not be required to receive commission for selling a mobile home from a mobile home facility. This is because a mobile home is not considered real property.

A licensed property manager may authorize 1) another licensed property manager to supervise her property management activity in her absence. 2) an unlicensed bookkeeper to supervise in her absence. I only II only Both I and II Neither I nor II

I only

Tom, an Oregon sole proprietor principal broker, is closing his office and moving to another state. According to Oregon real estate license law, what is Tom required to do with his real estate records? Take the records with him to his new location and keep them for six years. Find a place in Oregon to store the records for the six-year requirement. Tom is free to dispose of the records as long as he places his license on inactive status. Tom must send his records to the Real Estate Agency for storage.

Find a place in Oregon to store the records for the six-year requirement.

A real estate broker associated with a principal broker received from a cooperating broker an offer to purchase a property. He also received earnest money in the form of a certified check made out to his principal broker's firm. What should the real estate broker do with the check? Deposit the check in the real estate broker's Clients' Trust Account Endorse the check and forward it to the cooperating broker Give the check to his own principal broker as soon as possible Forward the check to the cooperating broker with the offer to purchase

Give the check to his own principal broker as soon as possible

Several brokerages get together to discuss a problem they all face. There is a new "discount" brokerage in town and it is quickly taking business away from them. The brokerages agree to try to limit the exposure of the discount broker and not show homes listed by the discount broker. What kind of antitrust action does this situation illustrate? Price fixing Group boycotting Tying arrangement Collusion

Group boycotting

Real estate broker Jones convinced Seller Smith to sign an exclusive right-to-sell listing with Jones' principal broker even though Jones knew there was an outstanding exclusive right- to-sell listing on the property. Jones told Smith that Smith should call the first broker and cancel that listing. Which of the following statements is true regarding this situation? Jones' actions put him in jeopardy of having action taken against his license by the Real Estate Commissioner. This is legal because a listing is an employment agreement, not a contract. This is legal, but unethical. Jones' principal broker is within his rights to keep the listing as long as he agrees to share the commission with the first broker.

Jones' actions put him in jeopardy of having action taken against his license by the Real Estate Commissioner.

Regarding group boycotts, what have courts decided? MLS systems must accept all submissions. Licensees cannot conspire to drive out competitors. MLS and other organizations cannot have requirements of members. Licensees can attempt to drive business away from discount brokers if they are ruining the economic stability of the marketplace.

Licensees cannot conspire to drive out competitors. Park v. El Paso Board of Realtors

The first contact between Louise, the listing licensee representing the seller, and Susan, the purchaser took place in the office. Under Oregon law, which of the following statements is true regarding this situation? Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. Louise may give Susan a copy of the Initial Agency Disclosure Pamphlet. Louise does not need to provide a copy of the Initial Agency Disclosure Pamphlet to Susan if Susan waives her right to disclosure. Louise is under no obligation to provide a copy of the Initial Agency Disclosure Pamphlet to Susan unless Louise agrees to become a buyer's agent for Susan.

Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. KEYWORD MUST

Broker Brian lists Sarah's property. Buyer Jason contacted Broker Brian and asked to be represented as a buyer for Sarah's property. Broker Brian wrote an offer for Buyer Jason but failed to disclose to Seller Sarah and Buyer Jason that he represents both of them in the same transaction. Which fiduciary duty did Broker Brian violate by not disclosing his dual agency? Obedience Loyalty Care Accounting

Loyalty

Non-licensed employees of a property manager may perform all of the following activities except Collect rents from tenants Negotiate and sign property management agreements with owners Negotiate and sign rental agreements with tenants Check tenant references

Negotiate and sign property management agreements with owners

A real estate broker associated with a principal broker participating in a real estate transaction is allowed to accept compensation directly from the: A) buyer. B) seller. Both A and B B only A only Neither A nor B

Neither A nor B

A real estate broker associated with a principal broker may legally 1) accept a finder's fee directly from another real estate broker. 2) pay a finder's fee to a neighbor for referring a buyer. I only II only Both I and II Neither I nor II

Neither I nor II A real estate broker associated with a principal broker may neither accept a finder's fee directly from another real estate broker nor pay a finder's fee to a neighbor for referring a buyer. Brokers are prohibited from directly receiving any fee from any real estate activity from any person other than the principal broker under whom that broker is licensed. Likewise, Brokers are prohibited from sharing any portion of commission monies received with any unlicensed person for any purpose. Any fee sharing agreement with a licensed individual is implemented with the authority of and paid by the principal broker.

Under Oregon law a real estate broker associated with a principal real estate broker may 1) employ a licensed personal assistant. 2) supervise real estate brokers in a branch office. I only II only Both I and II Neither I nor II

Neither I nor II Under Oregon law, a real estate broker working as an agent of his principal real estate broker may neither employ a licensed personal assistant nor supervise real estate brokers in a branch office. Such responsibilities fall onto the principal broker himself.

Which is NOT a part of proving an intentional misrepresentation? No corrective action was taken after the deception. Actual damages resulted because of the misrepresentation. A misleading statement was made that was relied on by complainant. There was an intent to deceive.

No corrective action was taken after the deception. The tort of intentional misrepresentation is an active fraud that requires the alleging and proving all of the following elements: False representation of material fact Intent to deceive Misleading statement relied on by the complainant Actual damages resulted

In a usual listing agreement, the broker is authorized to find a purchaser and bind his client to a contract convey the real property listed find a purchaser and accept a deposit promise a buyer that any offer on the listed terms will be accepted

find a purchaser and accept a deposit

An earnest money agreement is: a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer. a legally enforceable contract immediately upon the signature of the seller. a promise to perform. an option to buy, which the purchaser may accept or reject.

a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer.

A real estate broker associated with a principal broker is allowed to accept a commission directly from which of the following? The seller The buyer T he escrow agent None of the above

None of the above

Robert Mosher owns Mosher Real Estate Mart, Inc., a registered business name which conducts professional real estate activity in Oregon. He is required to hold an active principal broker's license. an active real estate broker's license. an active sole practitioner broker's license. None of the above

None of the above You can own a business and not be licensed if you are not conducting real estate

Which of the following statements regarding real estate auctions is FALSE? An auctioneer/broker licensed in another state cannot conduct a real estate auction in Oregon without first obtaining a valid Oregon real estate license. A real estate auction can consist of one parcel of real estate to several parcels In an auction, purchasers openly bid against each other in an attempt to buy property Oregon has separate auctioneer licensing requirements for anyone desiring to hold a real estate auction

Oregon has separate auctioneer licensing requirements for anyone desiring to hold a real estate auction

A licensee mentions to a fellow licensees from other brokerages at lunch one day, "Despite the declining economy, I'm thinking about keeping my rates at 6%." This conversation provides the foundation for an action involving: Price fixing. Collusion. Group boycotting. Tying arrangement.

Price fixing.

Which action by a real estate broker associated with a principal broker would NOT be a violation of Oregon license law? Accepting a bonus directly from a seller Promising a buyer that a property would appreciate in value Paying a finder's fee to an unlicensed person for referring a seller or buyer Providing a comparative market analysis in the pursuit of a listing. Providing a comparative market analysis (a CMA) in pursuit of a listing would not be a violation of Oregon license law. Directly receiving a bonus from a seller, promising a buyer that a property would appreciate in value and directly paying a referral fee to an unlicensed person would all be violations of Oregon License Law,

Providing a comparative market analysis in the pursuit of a listing.

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

Rent or lease the licensee's own real estate A real estate broker associated with a principal broker may still act as his own landlord and rent or lease his own real estate to a tenant.

A real estate broker associated with a principal real estate broker may do which of the following activities without supervision? Engage in property management if the real estate broker has held a real estate license for a minimum of five years Set up a property management business if the principal real estate broker agrees Lease-option the real estate broker's own property Rent or lease the real estate broker's own real estate

Rent or lease the real estate broker's own real estate Cannot Lease-option the real estate broker's own property because it involves a potential sale

roker Sam listed Tom's house for sale. Mary came into Sam's office and asked him to find a house for her. She agreed to pay him a finder's fee for his services. He showed her Tom's house, which she purchases. Sam did not mention to Tom or Mary that each of them were paying him for his services. In this situation: Sam's relationship to Mary complies with Oregon license law since she was not paying a commission, Sam has performed his duties in compliance with the law of agency. Sam may collect money from Tom, but not from Mary. Sam has violated Oregon license law and may lose his license.

Sam has violated Oregon license law and may lose his license.

Which of the following statements regarding real estate exchanging is TRUE? Only commercial or industrial properties are candidates for exchange. A Licensee's duty to a client in an exchange transaction is to give tax advice Real estate exchanging is not considered professional real estate activity in Oregon. The same disclosures are required and the same Oregon laws and administrative rules apply and the same responsibilities are placed upon the licensee in an exchange transaction

The same disclosures are required and the same Oregon laws and administrative rules apply and the same responsibilities are placed upon the licensee in an exchange transaction

What should a licensee do to safely dispose of documents that contain personal information? Donate the documents to a local charity for fundraising purposes. Shred or burn the documents. Throw the documents into the trash. Leave them for the next tenant when the licensee moves offices.

Shred or burn the documents.

In a real estate transaction, the amount of the earnest money deposit is determined by The broker A minimum of 5% of the sales price Real Estate License Law The agreement of the parties to the contract

The agreement of the parties to the contract

An Oregon principal real estate broker wants to place a booth in the local shopping mall to display information on listings. The booth will be regularly staffed by licensees. Which of the following statements about requirements is true of this situation? The booth needs to be registered as a branch office. As long as the booth is open for less than six months it will not need to be registered as a branch office. T he booth does not need to be registered as a branch office. The law prohibits the use of such informational displays.

The booth needs to be registered as a branch office.

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

associated broker

Which of the following statements concerning a property manager's clients' trust funds is FALSE? The receipt must be recorded on the appropriate owner's ledger account and appropriate tenant's ledger account. The deposit must be made within five banking days after the date of receipt of the funds included in the deposit. The deposit must be accompanied by a bank deposit receipt identifying each payment of funds included within the deposit. The deposit may be made into an interest-bearing account without the prior written authorization of the owner of the property managed.

The deposit may be made into an interest-bearing account without the prior written authorization of the owner of the property managed.

What is a good risk anticipation procedure if a client needs assistance on matters that are outside of the licensee's areas of expertise or beyond the scope of their license? Give the client the best advice possible based on the licensee's personal experiences. Ignore the client's request for help. Learn the unknown topics so the client doesn't have to seek a third party for advice. Use a written disclaimer to advise the client to seek a competent professional for advice or services.

Use a written disclaimer to advise the client to seek a competent professional for advice or services.

Which of the following best describes earnest money? The commission that will be paid to the broker The money deposited by the purchaser with the broker or seller to pay for the preliminary title report The money deposited by the purchaser at the time of signing the offer to purchase The legal consideration necessary for a valid contract

The money deposited by the purchaser at the time of signing the offer to purchase

If a seller does not provide the buyer with a property condition disclosure the buyer may cancel the transaction at any time prior to closing of the transaction. up to seven days prior to closing of the transaction. at no time after the offer is accepted. up to ten days prior to closing of the transaction.

at any time prior to closing of the transaction.

If a buyer makes an earnest money deposit and later forfeits the deposit, what is the disposition of the forfeited earnest money? The real estate broker and the seller must negotiate the disposition of forfeited earnest money at the time they complete a listing agreement or earnest money agreement. The real estate broker and the seller must always equally divide the forfeited earnest money between them. The seller is always entitled to the full amount of the earnest money deposit. The real estate broker is always entitled to the amount of the broker's expenses incurred, and the seller is entitled to the balance of the forfeited earnest money.

The real estate broker and the seller must negotiate the disposition of forfeited earnest money at the time they complete a listing agreement or earnest money agreement.

A prospective buyer must be given an Initial Agency Disclosure Pamphlet by the real estate licensee at first contact. as soon as the prospective buyer's specific real property needs or financial information is discussed. at any time as long as it is given before closing. only when the buyer signs an earnest money agreement.

at first contact.

Shortly after the close of escrow, Jones, the seller, learned that the buyers, Mr. and Mrs. Brown, were the stepfather and mother of Jones' real estate broker, that the Browns were acting on behalf of the broker, and that an escrow for resale of the same property had been opened at a $25,000 higher sales price before the Jones to Brown escrow was closed. Jones filed a complaint with the Real Estate Agency. Which of the following is true regarding this situation? After an administrative hearing, the Commissioner would discipline the broker for not disclosing the relationship and would award money damages to the seller. Since the seller got his asking price, there is no basis for a complaint. The real estate law does not cover a situation of this kind and the Commissioner has no jurisdiction. The seller could sue the broker in civil court for the amount of the profit realized on the resale of the property and the broker is subject to disciplinary action by the Commissioner.

The seller could sue the broker in civil court for the amount of the profit realized on the resale of the property and the broker is subject to disciplinary action by the Commissioner.

Which of the following statements is FALSE concerning an inactive real estate broker involved in a lease option of his personally-owned real estate? The transaction must be supervised by a principal real estate broker. The real estate broker must deposit all funds received in the transaction into a neutral escrow depository. The real estate broker must maintain a transaction file on the transaction as if the transaction were being handled by a principal real estate broker. The real estate broker must disclose the broker's license status to the other party to the transaction.

The transaction must be supervised by a principal real estate broker. because the broker is inactive and not involved with a principal broker

Broker Jones left Principal Broker Adams and went to work for Principal Broker Brown. What happens to the listings obtained by Jones while he was licensed with Adams? The listings automatically terminate Jones takes the listings with him to his new office They remain with Principal Broker Adams They transfer to Principal Broker Brown

They remain with Principal Broker Adams

If a brokerage will only take a listing if the seller agrees to use the brokerage's partner escrow service, this is called _____. tying arrangement price fixing group boycotting collusion

Tying arrangement A tying arrangement has been defined by the Supreme Court as the conditioning of the sale or purchase of one product to the sale or purchase of another product.

All of the following are examples of a tort, EXCEPT: When a licensee knows there is a water problem in a basement but tells a buyer there isn't. When a licensee conceals a non working electrical outlet from the home inspector by moving furniture in front of it. When a licensee refuses to advertise a property according to the terms agreed to in the listing contract. When a licensee is negligent in his inspection of a property and misses obvious evidence of a sinkhole.

When a licensee refuses to advertise a property according to the terms agreed to in the listing contract. When a licensee refuses to advertise a property under the terms specified in the listing contract is an example of a breach of contract. It is NOT an example of a tort.

Scott, a broker for Parson's Realty, is representing a buyer who wants to make an offer on a $450,000 house on Country Club Lane using a promissory note as earnest money. His buyer wants to make the note payable 20 days after the seller's acceptance so that all the inspections can be done before redeeming the note. Scott should advise his buyer that promissory notes cannot be used when making an offer. advise his buyer to make the note payable at closing. advise his buyer that the note should be made payable at seller's acceptance. advise his buyer that promissory notes should be made payable within 10 days of the seller's acceptance

advise his buyer that the note should be made payable at seller's acceptance.

If a principal real estate broker or property manager places trust funds in an interest-bearing clients' trust account the funds of one client cannot be deposited in the same account with the funds of another client. all parties having an interest in the funds must give approval. the interest earned may not be kept by the sole practitioner or principal broker or property manager. the interest earned must be given to the person who tendered the funds.

all parties having an interest in the funds must give approval.

Oregon's agency disclosure law restricts real estate licensees to the representation of sellers only. allows real estate licensees to represent both the seller and the buyer. applies to sellers and buyers of residential property only. relieves buyers and sellers from the responsibility of protecting their own interests.

allows real estate licensees to represent both the seller and the buyer.

The Oregon Real Estate Commissioner may revoke the license of a real estate licensee for acting in the dual capacity of agent and undisclosed principal in any transaction. acting for more than one party in a transaction without the knowledge and written permission of all parties for whom he acts. failure to deliver promptly a completed copy of any purchase agreement or offer to buy or sell real estate to the purchaser and to the seller. any of the above reasons.

any of the above reasons.

A prospective buyer should be given a copy of the offer anytime after the seller's acceptance as soon as the prospective buyer signs the offer at least 3 days after the seller's acceptance at least 5 days prior to closing

as soon as the prospective buyer signs the offer

in Oregon, a disclosed limited agency representation means either the seller or the buyer is represented by one or more licensees associated with a principal real estate broker. both the buyer and the seller are represented by one or more licensees associated with a principal real estate broker. the principal broker has no responsibilities to any party to the transaction. the principal broker can disclose price and term information to either party without obtaining permission from the parties.

both the buyer and the seller are represented by one or more licensees associated with a principal real estate broker. KEYWORD BOTH

A purchaser who gives a seller five days to accept his offer must await the seller's approval or disapproval before offering to deposit earnest money. only becomes obligated if the offer is accepted before the listing agreement expires. can withdraw the offer at any time during the five days if it has not been accepted by the seller. must also deposit earnest money at least equal to 5% of the offered amount.

can withdraw the offer at any time during the five days if it has not been accepted by the seller.

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

collect a commission for the lease of an owner's real estate.

Which of the following statements about listing agreements for residential properties is incorrect? The listing agreement is a contract for sale of real estate The listing must be in writing to be enforceable. All listing agreements must contain a definite termination date All advertising of a listed property by a broker must be submitted to the principal broker for review and approval before use

equal housing opportunity.

A valid contract of sale has been executed by both buyer and seller. Until closing the buyer has defeasible title reversionary rights equitable title title

equitable title

A provision in a contract to buy real estate stated, "This contract shall be terminated if the buyer does not sell his home at 24 Highland Drive within 30 days." This is an example of a contingency waiver covenant safety clause

contingency

Oregon license law provides that a person may renew an inactive real estate license only after taking an examination on current real estate matters once, for a three-year term not more than twice, each time for two years every two years indefinitely

every two years indefinitely

Oregon law provides that a person may renew an inactive real estate license once, for a three-year term. not more than twice, each time for two years. only after taking an examination on current real estate matters. every two years indefinitely.

every two years indefinitely.

A principal real estate broker hired a number of part-time employees to show property, pass out brochures, quote prices, and state terms of the sale of real property in a development. A real estate broker was on site to fill out all of the earnest money agreements. The employees did not sign documents. Under these circumstances, the employees must be real estate licensees. principal real estate broker is not in violation since a licensee filled out and signed the documents. employees could legally quote prices and terms as long as they did not fill out the forms. broker is not in violation as long as the employees were paid on an hourly basis.

employees must be real estate licensees.

A property manager must open and maintain at least one clients' trust account unless each month the owner instructs the property manager to deposit all collected funds directly into the owner's personal bank account. except if the owner instructs the property manager in writing to deposit all collected funds directly into the owner's personal bank account. for the deposit of funds received on behalf of owners of property managed under property management agreements. unless all funds collected for an owner by the resident manager of a rental complex are immediately deposited into the personal bank account of the resident manager.

for the deposit of funds received on behalf of owners of property managed under property management agreements.

A parcel of real property has subdivision restrictions placed against it in 1940. These deed restrictions prohibit the sale of the property to anyone other than members of the Caucasian race. By the term of these deed restrictions, they are to expire in 2040. These deed restrictions are valid until 2040. only valid if the owner agrees valid because they were filed prior to 1964 invalid

invalid

An earnest money receipt is signed by both the buyer, Lori Unruh, and the sellers, Leo and Evelyn Robertson. But the transaction falls through because Evelyn Robertson refuses to sign the deed conveying title. The broker handling the transaction: is entitled to a full commission. is entitled to half of the commission specified in the listing agreement. must transfer the earnest money from the clients' trust account to a neutral escrow agent. has violated a fiduciary obligation to Unruh.

is entitled to a full commission.

Under Oregon's agency disclosure law, a seller's single agent may accept a commission only from the seller has no obligations to buyers is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement may not cooperate with a buyer's single agent

is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement

Under Oregon's agency disclosure law, a seller's single agent may accept a commission only from the seller. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement. has no obligations to buyers. may not cooperate with a buyer's single agent.

is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement.

An unlicensed personal assistant who engages in activity which requires a license is subject to civil fines by the Real Estate Commissioner. could legally share in a commission with the employing licensee. is shielded from actions by the Real Estate Commissioner by labor laws. is exempt from the License Law if the personal assistant's compensation is in the form of a salary.

is subject to civil fines by the Real Estate Commissioner. An unlicensed personal assistant who engages in activity which requires a license is subject to civil fines by the Real Estate Commissioner. Just because they are not licensed and registered with the OREA does not mean they are shielded from actions by the Real Estate Commissioner.

If a seller accepted an offer but changed the date of possession and initialed that change: the buyer would be bound by the contract and unable to withdraw his offer it would become a counteroffer subject to acceptance by the buyer the transaction automatically will close on the date of possession. the offer becomes a counteroffer and if the buyer did not accept, he would lose his deposit

it would become a counteroffer subject to acceptance by the buyer

A listing broker receives authority to accept an earnest money deposit in the listing agreement closing documents Administrative Rules and Regulations earnest money agreement

listing agreement

Under Oregon law, a principal real estate broker may perform the duties of an escrow agent without obtaining an escrow license only if the closing is for the parties in a transaction handled by the principal broker and if the parties are not charged a separate fee for the escrow services. whenever requested to do so by another broker. if the broker charges a fee for the escrow services. under no circumstances.

only if the closing is for the parties in a transaction handled by the principal broker and if the parties are not charged a separate fee for the escrow services.

It is legal for a principal real estate broker to place clients' trust funds in an interest-bearing account in Oregon with only the written approval of the person from whom the funds were received. only if the account is federally insured. as long as the licensee does not receive interest on the account. under no circumstances.

only if the account is federally insured.

Oregon's agency disclosure statutes require a seller's agent to provide a copy of the disclosure to the seller within five days of the seller signing the listing agreement. prior to entering into the listing agreement. before the seller signs any earnest money agreements. within a reasonable time after the seller signs the listing agreement.

prior to entering into the listing agreement.

Real estate agents who prepare statements of comparable sales or statements of property value can consider all factors that affect value except: local zoning laws and restrictions. whether building permits were issued for property renovations and improvements. race, color, religion, national origin, sex, handicap, and familial status. the historic sales data of the property.

race, color, religion, national origin, sex, handicap, and familial status.

A particular savings & loan association has blocked out certain regions of the community where it will not place loans because of ghetto conditions. This represents a practice known as relocating redlining steering warehousing

redlining

When a real estate broker asks a principal real estate broker to terminate their business relationship, the principal real estate broker must send an acknowledgment of transfer to the receiving principal broker without delay send a performance appraisal report to the Real Estate Agency Records Section. send the broker's license to the Real Estate Commissioner without delay do both A and B above.

send an acknowledgment of transfer to the receiving principal broker without delay

If a note is taken as an earnest money deposit, the note should be payable upon the seller's acceptance within 72 hours of closing at closing on the first banking day after buyer takes possession

upon the seller's acceptance

The period of time that signed copies of listings, deposit receipts, earnest money receipts and other contracts must be maintained is one year. two years. three years. six years.

six years.

Trust account records must be maintained for one year. three years. six years. ten years.

six years. he REA requires a principal broker to maintain records of all professional real estate activity for six years.

All listing agreements entered into by Oregon licensees must require that the seller allow the principal broker to distribute the listing through the multiple listing service be exclusive listings require the seller to notify the principal broker of the seller's intention not to renew the listing at the expiration date state a definite expiration date

state a definite expiration date

In the event the Real Estate Agency revokes a principal real estate broker's license, the licenses of the brokers associated with the principal broker are automatically suspended. held by the Real Estate Agency for thirty days. transferred. reviewed by a hearing committee at the Real Estate Agency.

suspended.

If an agent intends to advertise a property by way of a virtual tour the agent must get the approval of the principal broker before posting the virtual tour a virtual tour is an exception to principal broker supervision the agent need not specify the methods of advertising to the seller

the agent must get the approval of the principal broker before posting the virtual tour

The maximum amount of commission on a real estate transaction is determined by: the federal Truth in Lending Act. Oregon agency law. the broker's contract with the seller. the National Association of REALTORS®.

the broker's contract with the seller.

The amount of commission a principal broker must pay a broker from a real estate transaction is determined by the earnest money agreement the employment agreement between the principal broker and the broker the MLS the listing agreement

the employment agreement between the principal broker and the broker

Under Oregon law, if a principal real estate broker establishes an independent contractor relationship with an associated real estate broker: the real estate broker is not required to have his personal transactions supervised by the principal broker. the listings obtained by the real estate broker may be transferred if the real estate broker moves to another principal broker's office. the principal broker must supervise the real estate broker's real estate activities to conform to the Oregon Real Estate License Law and administrative rules. the principal broker is not responsible for reviewing the real estate broker's advertising.

the principal broker must supervise the real estate broker's real estate activities to conform to the Oregon Real Estate License Law and administrative rules.

Under the Oregon agency disclosure law, "disclosed limited agency" occurs when the seller and buyer are represented by the same principal broker the seller is represented by one licensee and the buyer is represented by another licensee who is not licensed to the same real estate business only the seller is represented by a licensee only the buyer is represented by a licensee

the seller and buyer are represented by the same principal broker

According to Oregon administrative rules, if a sole proprietor real estate principal broker dies which of the following statements is false? The sole proprietor broker's listing agreements must be transferred to the Real Estate Commissioner for the purpose of winding up the affairs of the sole proprietor broker. Listing agreements in which there are no outstanding offers or earnest money receipts must be terminated upon the death of the sole proprietor broker. The Real Estate Commissioner may issue a temporary license to the executor of the sole proprietor broker's estate and that executor will be subject to the Oregon real estate license laws and administrative rules. The holder of a temporary license must not enter into any new listing or sales agreements.

the sole proprietor broker's listing agreements must be transferred to the Real Estate Commissioner for the purpose of winding up the affairs of the sole proprietor broker.

After a broker's agency relationship with an Oregon principal broker is terminated, the broker's license, if it is not reissued, revoked or suspended, will become an inactive license within five calendar days. fifteen business days. twenty business days. thirty calendar days.

thirty calendar days.

Which of the following types of discrimination is NOT covered by the federal Fair Housing Law? race religion sex transgender

transgender

George has been looking for a property manager for his rental properties. Real estate agent Marcus has the experience to manage George's properties and is willing to give George a discount on the property management fee if George agrees to list his rental properties only with Marcus' brokerage when George wants to sell. This arrangement is called a: tying arrangement. VOW. group boycott. price fix.

tying arrangement.

As defined by Oregon administrative rule, 'first contact' between a licensee and a buyer occurs as soon as the licensee gives any information about a listed property to a buyer. when a buyer executes an earnest money agreement. when the licensee and the buyer discuss the buyer's specific real property needs or financial situation. only when the licensee and the buyer meet face-to-face.

when the licensee and the buyer discuss the buyer's specific real property needs or financial situation.

Where no time for acceptance by the offeree is stipulated in an offer, the offer will lapse in 24 hours will lapse after a reasonable time will lapse in 48 hours will not lapse; it must be revoked by the offeror

will lapse after a reasonable time