Oregon Real Estate Brokerage

A buyer assumes the existing mortgage. Mortgage payments of $280 per month are due on the first of the month and include interest at 7.2% per annum for the preceding month. The principal balance after the August 1 payment was $35,800. If closing is on August 6, what is the amount of interest that will be credited to the buyer, using a 365-day year and holding the buyer responsible for the day of closing? $22.64 $26.18 $32.96 $35.31

$35.31 correct. Seller owes for 5 days. 5 x 7.2% x 35,800) ÷ 365 = $35.31

A buyer purchases a property on which a first mortgage will be placed at 13% interest per annum in the amount of $36,000. Settlement is to be April 3, and the first payment will be due June 1. How much interest will be charged to the buyer at settlement to adjust interest through April 30? (In figuring your answer, use a calendar of 365 days.) $80 $324 $359 $594

$359 correct. Days adjusted = 28. ( 28 x 13% x 36,000) ÷ 365 = $359.

Prepare a closing statement using the following data. Work out any prorations on the basis of the actual number of days involved. You may round each proration to the nearest dollar. Spencer will assume the Walsh's trust deed. They pay 9.5% interest on the trust deed. Their payments are $420.07 due on the first day of each month, and include interest through the last day of the previous month. After the July payment the balance on the trust deed was $35,462.92. The lending institution agreed to Spencer's assumption of the trust deed, but will require the buyer to pay an assumption fee of 2% of the balance. The fee will be collected at closing. The sales price is $94,500. The 2002-03 property tax is $1,273.97 and has been paid. The seller is responsible for taxes and interest through the closing date of July 15. The seller will pay $385 for title insurance at closing. The broker's commission is 7%. The buyer will pay $9 for recording fees. How much cash does the seller receive at closing? $46,565 $51,847 $52,565 $45,847

$51,847 correct. Seller's Credits = $94,500 -Seller's Debits = $35,463 + 6,615 + 138 ($35,462.92 x 9.5% x 15/365 = $138)+ 52.35 ($1,273.97 x 15/365 = $52.35) + 385 $42,653 $94,500 - $42,653 = $51,847

If a closing is on July 15, and the current year's property tax will be $1,273.97 and has not been paid, after proration. How will the taxes appear on the closing statement, if the seller pays for the day of closing? (Work out any prorations on the basis of the actual number of days involved. Round the proration to the nearest dollar.) $52 credit to the buyer and a $52 debit to the seller. $52 debit to the buyer and a $52 credit to the seller. $157 credit to the buyer and a $157 debit to the seller. $684 debit to the buyer and a $684 credit to the seller.

$52 credit to the buyer and a $52 debit to the seller. correct. Taxes are owed by the seller for July 1 through July 15. Taxes owed = (1,273.97 x 15 days) ÷ 365 days = 19,109.55 ÷ 365 = $52.35 Seller pays $52.35 to buyer (seller debit; buyer credit)

Spencer will assume the Walsh's trust deed. Interest on the trust deed is 9.5%, with payments of $420.07 due on the first day of each month, including interest through the last day of the previous month. After the July payment the balance on the trust deed was $35,462.92. The lending institution agreed to Spencer's assumption of the trust deed, but will require the buyer to pay an assumption fee of 2% of the balance. The fee will be collected at closing. If will appear on the closing as a $709 debit to the buyer. $709 credit to the seller. $1,038 debit to the buyer. $1,198 credit to the seller.

$709 debit to the buyer. correct. Buyer pays assumption fee in addition to sales price (debit to buyer). Fee = 2% x 35,462.92 balance = $709.26 debit to buyer.

Which IRS form will a principal broker use if paying an independent contractor? W-2 1099 FUTA 20

1099 Correct. A 1099 form is used to report payments to independent contractors. The independent contractor must receive this form no later than January 31.

Federal do-not-call restrictions would allow a real estate company to continue to contact the client for up to ___ months after the transaction is completed. 3 12 18 24

18 months Correct. A real estate company would have an established business relationship with an existing client/customer, and therefore could make calls to such a person. It could continue to contact the client for up to 18 months after the transaction is completed, provided the client does not request that the broker not call.

Charles Rupp is an active principal broker in Oregon and must therefore maintain records of all his professional real estate activity for a period of 1 year. 6 years. 8 years. 11 years.

6 years Correct. The original copy of the principal broker's records must be filed in the principal broker's office for 6 years following the termination of the agreement.

Budgeting requires the principal broker to consider his basic objectives, policies, plans, and resources. make sure his company is properly organized. undertake a coordinated, comprehensive, and informative effort to achieve common objectives with his key people. All of these

All of these Correct. Because a budget is a plan that enables a principal broker to set goals and list the steps necessary to reach those goals, the broker must consider his basic objectives, policies, plans, and resources; make sure his company is properly organized; and undertake a coordinated, comprehensive, and informative effort to achieve common objectives with his key people.

The Commissioner may revoke or suspend a real estate broker's license for which of the following? Inducing a seller to break a listing contract with another principal broker to substitute a new listing contract with the broker's principal broker. Violating Oregon's discrimination statutes. Failure to deliver a completed copy of an offer to purchase to the purchaser and seller within a reasonable amount of time. All of these

All of these correct. These are all causes for suspension or revocation of a license.

Oregon sole practitioners and principal real estate brokers must keep records for six years. Those records include, among other things, files for transactions which failed. tenants' rental agreements. reconciled bank statements for clients' trust accounts. All of these

All of these Correct. Records that must be maintained include files for transactions which failed as well as for those which closed, property management and tenants' rental agreements, and all trust account records including reconciled bank statements for clients' trust accounts.

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

All parties to the transaction must grant written permission in order to deposit funds or papers in escrow. correct. Written permission of all parties having an interest in the trust funds is required before a broker can place funds in escrow. All actions need not be placed in escrow, and the sellers' and buyers' instructions are required to have the transaction placed in escrow (not the broker's instructions). A principal broker may close his own clients' transactions.

An Oregon principal broker must do which of the following when establishing a clients' trust account? I. Notify the Real Estate Agency of the name of the bank, account number and name of the account. II. Supply a notice to the bank that the account is maintained only for clients' funds. I only II only Both I and II Neither I nor II

Both I and II Correct. The principal broker must notify the Real Estate Agency of the name of the bank, account number and name of the account, so they can audit the account. He must also notify the bank that the account is maintained only for clients' funds, so the account is not attached for claims against the licensee.

Oregon law requires a principal broker who closes his office to do which of the following? I. Return all of the licenses of the persons under the principal broker's supervision. II. Maintain records within the State of Oregon. I only II only Both I and II Neither I nor II

Both I and II Correct. When a principal broker closes his office, he must remove the sign, notify the Commissioner, return all licenses of persons under his supervision, and still maintain all real estate records within the State of Oregon for the required 6 years.

Which of the following could, for a fee, offer a seller an estimate of the sales price of the seller's property for the purpose of obtaining a listing? Broker Principal broker Both broker and principal broker Neither broker nor principal broker

Both broker and principal broker Correct. A broker or principal broker can charge a fee for a CMA. Payment to a broker must be made through his principal broker.

A principal broker authorizes a 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 against the principal broker would be taken, since such guarantees are void by law. No disciplinary action against 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. correct. A licensee cannot guarantee, authorize or permit any person to guarantee future profits which may result from the resale of real property.

Which of the following is a method or process used in pursuing a listing agreement or in formulating an offer to acquire real estate in a transaction for the sale, lease, lease-option, or exchange of real estate? Competitive market analysis Lending collateral analysis Default collateral analysis Letter opinion

Competitive market analysis Correct. A competitive market analysis is a method or process used in pursuing a listing agreement or in formulating an offer to acquire real estate in a transaction for the sale, lease, lease-option, or exchange of real estate.

Which of these is not a step in performing a breakeven analysis? Determine how much cash the company needs for its normal operations. Determine the contribution margin percentage Separate fixed and variable expenses based on actual experience and project future expenses Relate the variable expense total to revenue

Determine how much cash the company needs for its normal operations. Correct. The fours steps in a breakeven analysis are: 1. Separate fixed expenses and variable expenses based on actual experience and project future expenses. 2. Relate the variable expense total to revenue. 3. Determine the contribution margin percentage. 4. Calculate the breakeven sales volume by dividing the contribution margin into the fixed expense total.

A property was listed with principal real estate broker Allen. He placed the listing in a multiple listing service to which he belongs. Beck, a broker associated with principal broker Downes, is also a member of the multiple listing service. Beck obtained a signed offer and earnest money deposit of $1,000 for the property Allen listed. The earnest money should be turned over to Downes. the multiple listing service. Beck's trust account. Allen.

Downes. Correct. A broker associate must place the deposit in the custody of his principal broker. So Beck must give the earnest money to Downes, his principal broker.

Edward sold his property to Linda with a possession and closing date of August 10. Edward has not yet received his current year's tax notice, but last year's taxes were $847. Which of the following statements about this situation is correct? Linda should be given a debit for the estimated taxes between January 1 and August 10. The taxes will appear as a debit on Linda's closing statement and a credit on Edward's closing statement. There is no way to attempt a tax proration until the actual bill arrives. Edward should be charged the estimated taxes from July 1 to August 10.

Edward should be charged the estimated taxes from July 1 to August 10. correct. If taxes are to be prorated, the seller will receive a credit for prepaid taxes. Since the tax year ends June 30, he would be credited for the amount paid for the period from the prorate date though June 30. If taxes are not yet due, the taxes will generally be prorated based on an estimate of the current year's tax bill (this can be adjusted after closing when the tax bill is received). It is rare that taxes would not be prorated until the tax bill arrives. The seller would be debited the estimated taxes from July 1 to the closing date; the buyer would be credited the same amount.

*****When can a real estate licensee provide a lending collateral analysis or default collateral analysis?***** A lending collateral analysis can be performed only if the loan transaction is less than $1,000,000. Either can be performed if it is used only for the internal purposes of a financial institution. Both choices Neither choice

Either can be performed if it is used only for the internal purposes of a financial institution. correct. A lending collateral analysis can be performed only if the loan transaction is less than $250,000. A lending collateral analysis or default collateral analysis can be performed if the analysis is used only for the internal purposes of a financial institution

Which of the following does NOT correctly describe a major marketing segment likely to be analyzed by a broker? Demographic segment, encompassing the population's average age, gender, ethnic makeup, family status, marital status, education, occupation, and income Psychographic segment, comprising the relative values and attitudes of the community, and the general lifestyles of the people who live in the community Geographical segment, including the longitude and latitude of the region Behavioral segment, consisting of the different property types found in the area, the sensitivity the local population has towards changing prices, and the loyalty the average customer feels towards a professional

Geographical segment, including the longitude and latitude of the region correct. The main reason a good manager wants to segment a market is so that his marketing efforts can focus on the people who are most likely to use the firm's services. The major segments to be analyzed by the broker are the geographical segment, which includes the climate of the region and any micro-climates, the population density and growth rate, and the available infrastructure; demographic segment, which encompasses the population's average age, gender, ethnic makeup, family status, marital status, education, occupation, and income; psychographic segment, which comprises the relative values and attitudes of the community, and the general lifestyles of the people who live in the community, such as a proliferation of concerts and theatrical presentations, sports teams, leisure time activities, and so forth; and the behavioral segment, consisting of the different property types found in the area, the sensitivity the local population has towards changing prices, and the loyalty the average customer feels towards a professional whom they have used in the past.

Under Oregon statutes, a real estate broker associated with a principal real estate broker may I. be authorized by the principal broker to handle a closing under the supervision of his principal broker. II. provide a competitive market analysis for a prospective client. I only II only I and II Neither I nor II

I and II Correct. A broker associate may close a transaction under the direct supervision of his principal broker if the principal broker files authorization to do so with the Real Estate Agency. A broker associate may also provide a competitive market analysis as this is not an appraisal.

A principal real estate broker's records for a specific transaction must include, among other things, which of the following? I. Voided checks II. Record of promissory notes or other consideration

I and II Correct. A principal broker must keep records of all offers and transactions handled by or through him on a prospective sale, purchase, lease option or exchange of real estate, whether the transaction fails or is concluded. These records must be kept in Oregon for at least 6 years after the date of the transaction in a consecutively numbered file for each offer or transaction. Records include listing agreements, earnest money agreements, receipts for funds, notes or documents, closing statements, vouchers of bills or obligations paid by the broker for sellers or buyers, continuing education records, clients' trust account records and ledgers (record of all funds, notes, or other consideration received, all checks, including voided checks written, and all transfers of documents).

In Oregon, nondisclosure of a dual agency by a broker or real estate property manager could result in I. the broker or property manager losing his license. II. contract rescission. I only II only I and II Neither I nor II

I and II Correct. If a broker or property manager represents two parties in a transaction (acts as a dual agent) and doesn't disclose this fact and get permission to do so, he could lose his license and the parties could sue to rescind the contract.

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

I and II Correct. Making false promises and material misrepresentations is a violation of the law even if no actual damage or injury resulted.

The listing real estate broker is responsible for the delivery of the signed closing statement to which of the following persons in a transaction if the listing broker handles the closing function? I. The buyer II. The seller I only II only I and II Neither I nor II

I and II Correct. When a broker performs a closing he must give the buyer and seller completed closing statements.

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

I and II correct. A principal broker may have separate trust accounts for each of his branch offices, and if he does, he must have a separate bookkeeping system for each account. Since the principal broker cannot commingle his personal funds with clients' funds, he cannot place rental collections on his own property in the clients' trust account, so these must go into his personal account or his business account.

Under the Real Estate Agency's administrative rules, a licensee may be assessed a civil penalty if the licensee conducts professional real estate activity I. while his license is on inactive status. II. after his license has expired I only II only I and II Neither I nor II

I and II correct. The license law provides that an unlicensed person may be assessed a civil penalty of up to $1,000 for engaging in professional real estate activity without an active real estate license. A person with an inactive, suspended, revoked or expired license is therefore subject to that penalty.lie

If a principal broker uses a neutral escrow depository for earnest money deposits she I. must have the agreement of all parties who have an interest in the trust funds. II. is not required to maintain copies of the earnest money agreements in her files. I only II only Both I and II Neither I nor II

I only Correct. A principal broker must have the agreement of all parties who have an interest in the trust funds to use a neutral escrow depository for an earnest money deposit, and must maintain a copy of the earnest money agreement in her files.

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

I, II and III correct. All funds held in trust for others must be kept in the principal brokers' clients' trust account or a neutral escrow trust account.

Records for professional real estate activity conducted in Oregon must be retained I. for a minimum of 10 years. II. within the State of Oregon. I only II only I and II Neither I nor II

II only Correct. A broker must keep records of all offers and transactions handled by or through him on a prospective sale, purchase, lease option or exchange of real estate, whether the transaction fails or is concluded. These records must be kept in Oregon for at least 6 years after the date of the transaction in a consecutively numbered file for each offer or transaction. Records include listing agreements, earnest money agreements, receipts for funds, notes or documents, closing statements, vouchers of bills or obligations paid by the broker for sellers or buyers, continuing education records, clients' trust account records and ledgers (record of all funds, notes, or other consideration received, all checks, including voided checks written, and all transfers of documents).

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

II only correct. When a broker performs a closing he must give the buyer and seller completed closing statements. A broker does not give a copy of the listing contract to the buyer.

Which of the following is least necessary for the functional plan for a real estate office? Closing room Adequate floor area for licensees Staff and filing space Individual offices for licensees

Individual offices for licensees correct. Not all offices provide separate offices for licensees. They all try to provide adequate space for licensees to work in, a room to close a sale, and space for clerical staff and files.f

A principal real estate broker receives cash as an earnest money deposit. All parties agree in writing for the funds to be deposited in an interest-bearing savings account, since they do not expect to close the transaction for a year. How will the interest earned on the earnest money deposit eventually be distributed? Interest on the earnest money must be divided equally between the buyer and the seller. Interest on the earnest money must be divided according to the written agreement of the parties having an interest in the trust funds. Only the seller is entitled to the interest earned on the earnest money. Only the principal broker is entitled to the interest earned on the earnest money.

Interest on the earnest money must be divided according to the written agreement of the parties having an interest in the trust funds. Correct. All parties in the transaction must give written approval to establish an interest-bearing account. In the approval they must specify to whom and when the interest will be paid. Based on the agreement, the interest could be paid to the buyer, seller or principal broker.

Which of the following is true of a policies and procedures manual? It should be given to new employees and sales staff to read. Employees and sales staff are always given copies to keep. It should be able to answer questions to difficult situations. All of these

It should be given to new employees and sales staff to read. correct. The policies and procedures manual should be given to new employees. In small offices, copies may be given to eveyone, but in large offices they are usually not. The manual should deal with routine situations, rather than difficult or unique ones, which should be handled with advice from a manager.

When prorating Oregon real property taxes in a closing statement, what date is used as the beginning of the tax year? January 1 May 31 July 1 November 15

July 1 correct. The tax year for real property taxes is July 1 to July 1.

In which primary category would accounts payable be on a balance sheet? Direct costs Indirect costs Assets Liabilities

Liabilities correct. The balance sheet has three categories, including assets, liabilities and owners' equity. Anything that the business owes is placed in liabilities. Anything that adds value to a company is in the assets category.

James Wilson, a principal broker licensed in Oregon, can enter into a cooperative transaction with John Weber, even though he knows that Weber's broker license has been I. suspended. II. revoked. I only II only I and II Neither I nor II

Neither I nor II correct. No licensee may knowingly permit anyone whose license has been revoked or suspended to engage in professional real estate activity with him or on his behalf.

Which of the following statements about closings is true? I. The total of the debit column on the seller's statement must be identical to the total of the credit column on the purchaser's statement. II. The closing date and the possession date must be the same day. I only II only I and II Neither I nor II

Neither I nor II correct. The buyer's credits must equal the buyer's debits (not the seller's debits). The seller's debits must equal the seller's credits (not the buyer's credits). The totals for the buyer and seller will be different as each party has different expenses. Therefore, choice "I" is false. Choice "II" is false as the closing date is the date financial calculations are made. The date of possession is generally later, after the deed has been recorded and the seller has had time to move.

Oregon Advertising and Other Office Activities

Oregon Advertising and Other Office Activities

Oregon Closings and Records

Oregon Closings and Records

Oregon Manuals and Reports

Oregon Manuals and Reports

Oregon Offices and Actions

Oregon Offices and Actions

Oregon Trust Accounts

Oregon Trust Accounts

Which of the following describes a general guide to action, serving as a control device to influence behavior? Policy Procedure Objective Vision

Policy correct. A policy is a general guide to action. It serves as a control device to influence behavior. It does not provide instruction in how to perform specific tasks. Policies will help establish the philosophy that management wants to instill in an organization.

A broker received a check from a buyer as an earnest money deposit on a listing held by the broker. There was no statement in the sales agreement directing the broker to hold the check until the seller either accepted or rejected the offer. The check must be deposited in a neutral escrow account or into the principal broker's clients' trust account within what period of time according to Oregon administrative rule? Prior to the close of business of the next banking day after the check is received. Within 48 hours of receiving the check. Prior to the close of business of the fifth banking day after the day the check is received. Within 120 hours of receiving the money.

Prior to the close of business of the fifth banking day after the day the check is received. correct. The rules do not state 120 hours. They require the deposit to be made by close of business the fifth banking day following the date the money was received. This may be more or less than 120 hours from the time it was received.

Which of the following belongs in the credit column of a seller's closing statement? Purchase money mortgage Proration of prepaid property taxes Buyer's attorney fee Proration of mortgage interest

Proration of prepaid property taxes Correct. If the seller has prepaid taxes, he will receive from the buyer a refund of the amount paid for the period after the prorate date. Therefore, the proration would be a credit to the seller and a debit to the buyer. The purchase money mortgage amount would reduce the seller's check so that is a debit to the seller. The buyer's attorney fee would be a debit to the buyer and nothing to the seller. Proration of mortgage interest on an existing loan would be a debit to the seller as the interest is paid in arrears.

Which of the following actions 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 purchaser that the property will appreciate in value. Paying a finder's fee to an unlicensed person for referring a seller to the associated broker. Providing a competitive market analysis in pursuit of a listing.

Providing a competitive market analysis in pursuit of a listing. correct. A normal real estate activity is providing a competitive market analysis in order to get a listing. Promising a purchaser that the property will appreciate in value is a violation, because appreciation cannot be guaranteed. Accepting a bonus directly from a seller is a violation as all payment must be through the principal broker. Payment of a finder's fee to an unlicensed person for referring a seller to the associated broker is a violation, as only licensed persons can be paid finders' fees.

hich document melds the relationship of the licensee with the company and the law regulating real estate activities? The Policies and Procedures Manual The Independent Contractor Agreement The Uniform Commercial Code The state statutes

The Policies and Procedures Manual Correct. A vital part of the training process comes when the broker explains the policy and procedure manual to the new licensees. In grand part, this document melds the relationship of the licensee with the company, and to the law regulating real estate activities: it explains how the firm handles escrows, deals with lenders and government agencies, and specific people's duties; it could point out that the company may be a member in a multiple listing service; it may note that the brokerage firm has special programs, such as a guaranteed sales plan, a home warranty program, equity financing programs, special arrangements with builders, repair contractors, and/or relocation services.

An Oregon broker is allowed to hold the check written as an earnest money deposit pending acceptance or rejection of the offer when so directed by the purchaser in the sales agreement without first depositing and processing the check. The broker must do which of the following if the offer is rejected and the purchaser's check is returned to the purchaser according to Oregon administrative rules? Make a photocopy of the purchaser's check. Obtain a receipt from the purchaser for the check. Maintain a copy of the rejected offer for six years. The broker must do all of these, make a photocopy, obtain a receipt, and maintain a copy of the rejected offer.

The broker must do all of these, make a photocopy, obtain a receipt, and maintain a copy of the rejected offer. correct. If an offer is rejected, a purchaser's check may be returned before it is deposited in a trust account or in escrow if the broker make a photocopy of the check, gets a receipt from the purchaser for the check, and maintains a copy of the rejected offer for six years.

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. Correct. A licensee cannot legally act as an undisclosed principal and agent. The Commissioner could discipline the broker but could not award damages to the seller. It is true that the broker can be disciplined by the Commissioner and the broker could be sued for the amount of the improper profit.

Real estate broker Jones, who is associated with principal broker Brown, received a $10,000 earnest money deposit in the form of a check from Buyer Smith on Tuesday along with an offer to purchase. Jones gave the check to Brown on Wednesday. The offer did not instruct Brown to hold the check pending the seller's decision on the offer. Oregon administrative rules require the check be deposited in Brown's clients' trust account or in a neutral escrow depository by the close of business on Tuesday. Thursday Friday. Monday.

Tuesday correct. A principal broker has 5 banking days after the date of the associated broker's receipt of earnest money (Wed., Thur., Fri., Mon., Tues.) to deposit it in a trust account or with escrow.

On the balance sheet of a business, goodwill is a current asset. a liability. a fixed asset. not shown. Incorrect. Goodwill is a fixed as

a fixed asset. correct. Goodwill is a fixed asset. It is not a current asset as current assets are those which can be converted rapidly to cash.

A company logo is a symbol to help identify the company and promote an image. the company's vision statement. the company's statement of purpose. the typeface on the company letterhead.

a symbol to help identify the company and promote an image. Correct. The logo is a symbol used with the company name to help the public quickly identify the company, and project an image for the company, such as the Rock of Gibralter used by Prudential, to project its reliability strength; or the swoosh used by Nike to project speed.

A person needs a real estate broker or principal broker license to advise, counsel, consult, analyze in connection with permissible land use alternatives. acquisition or sale of real estate by an entity whose purpose is investment in real estate. environmental impact. building and use permit procedures.

acquisition or sale of real estate by an entity whose purpose is investment in real estate. Correct. Counseling or consulting regarding permissible land use alternatives, environmental impact, and building and use permit procedures is an exemption from the law. Counseling or consulting regarding acquisition or sale of real estate by entity whose purpose is investment in real estate does require the real estate license.

The party responsible for payment of the closing costs with conventional financing is determined by the seller. agreement of parties. the broker. the title officer.

agreement of parties correct. In conventional loans anyone may pay closing costs. Therefore, the agreement of the parties will determine who will pay these costs. Federal VA requires the seller to pay escrow fees in a VA loan transaction.

A principal real estate broker may move inactive records away from the office as long as, among other things, the inactive records are kept in a single location. the Real Estate Commissioner is notified of the location's address. the principal broker gives any necessary written authorization to the Commissioner to inspect the records at the new location. all of these conditions are met.

all of these conditions are met. Correct. A principal real estate broker may move records away from the office only if they are kept in a single location and the Real Estate Commissioner is notified of the location's address and given any necessary written authorization to inspect the records at the new location.

A real estate licensee must notify the Agency of an adverse ruling against him in any court action within 20 days of the ruling if the ruling involved a real property transaction in which the licensee was the seller. the licensee as a purchaser of real property. a criminal charge against the licensee concerning the licensee's professional real estate activity. all of these, the real property transaction, the licensee, and the criminal charge.

all of these, the real property transaction, the licensee, and the criminal charge. Correct. A licensee must report to the Agency within 20 days of an adverse ruling relating to a real estate transaction in which the licensee was a defendant, whether the licensee was the buyer, seller, or agent and whether the matter was a criminal or a civil case.

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 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. Correct. Trust funds may be placed in an interest-bearing clients' trust account only if all parties having an interest in the funds give approval (in writing). The interest earned may be given to anyone authorized by the parties, including the principal broker or property manager. Since the principal real estate broker or property manager can get the interest, the funds of one client could be deposited in the same account with the funds of another client.

Regarding assets, all of the following are true EXCEPT an asset is anything of value owned by the company. an asset is anything of value owned by the company, unless it is subject to a loan. a building with a mortgage against it and equipment being purchased on an installment plan would be considered assets. goodwill is an asset.

an asset is anything of value owned by the company, unless it is subject to a loan. correct. An asset is anything of value owned by the company, whether it is owned free and clear, or subject to a loan. Therefore, a building with a mortgage against it and equipment being purchased on an installment plan would be considered assets. Goodwill is often considered an asset.

According to Oregon administrative rules, a listing agreement must be initialed within 5 days by the associated real estate broker who takes the listing. by the associated real estate broker before the contract may take effect. and reviewed by the principal real estate broker or branch manager within 7 banking days of the contract's date. by the principal real estate broker within 10 days of the contract's date.

and reviewed by the principal real estate broker or branch manager within 7 banking days of the contract's date. correct. All transaction documents must be reviewed and initialed by the branch manager or principal broker within 7 banking days after acceptance or rejection, or withdrawal.

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 these.

any of these. Correct. These are all violations. A broker must disclose when he is a principal, whether acting solely as a principal or acting as both principal and agent. The broker can represent more than one party in a transaction, but only with the prior consent of all parties. He must promptly deliver copies of documents to the parties involved.

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. correct. All parties in the transaction must give written approval to establish an interest-bearing account. In the approval, they must specify to whom and when the interest will be paid. Based on the agreement, the interest could be paid to the buyer, seller or a broker. While the parties could agree that the interest will be paid to an associated broker, it could not be paid directly to that broker. It would have to be paid to the principal broker, who could then pay the associated broker.

In an Oregon real estate transaction, the listing principal broker receiving an earnest money deposit must hold the funds in trust for both buyer and seller. turn the deposit over to the cooperating principal broker within 72 hours. state on the receipt the specific nature of the earnest money - cash, check or promissory note. both hold the funds in trust for the buyer and seller, and state on the receipt the specific nature of the earnest money.

both hold the funds in trust for the buyer and seller, and state on the receipt the specific nature of the earnest money. Correct. When the listing principal broker receives an earnest money deposit he holds it in trust for the buyer and seller. The earnest money receipt must specify the type of earnest money offered. The listing principal broker need not give the deposit to the cooperating principal broker; he may deposit it in his clients' trust account or in escrow.

In commercial rental transactions, rent is usually charged on a square foot basis. In comparison with "rentable" space, when the space rented is quoted as "usable" space there is less square area charged for rent. a higher cost per square foot than rentable space. both less square area charged for rent, and a higher cost per square foot. neither less square area charged for rent, nor a higher cost per square foot.

both less square area charged for rent, and a higher cost per square foot. Correct. When the space rented is quoted as "usable" space, typically inside wall to inside wall, there is less square area charged for rent. In comparison, when space is quoted as "rentable" space, it includes utility rooms, common area lobbies, hallways, and restrooms, and is therefore larger. Usable space would have a higher cost per square foot than rentable space.

Real estate broker Jones, who is associated with principal broker Brown, received a $10,000 earnest money deposit in the form of a check from Buyer Smith on Tuesday along with an offer to purchase. Jones gave the check to Brown on Wednesday. The offer instructed Brown to hold Smith's check pending the seller's decision on the offer. If the seller accepted the offer on Sunday, the check must be deposited in Brown's clients' trust account or in a neutral escrow depository by the close of business on the Monday following the seller's acceptance. by the close of business on the Wednesday following the seller's acceptance. by the close of business on the Friday following the seller's acceptance. by the date the transaction is closed by either the principal broker or an escrow agent.

by the close of business on the Wednesday following the seller's acceptance. correct. A principal broker has five banking days after the date of the associated broker's receipt of earnest money to deposit it in a trust account or with escrow, unless the offer instructs the principal broker to hold the check pending the seller's decision on the offer. If it does, the deposit must be made within three banking days after the date of acceptance (Mon., Tues., Wed.).

An offer was submitted to a broker on Saturday at 1 p.m. Without instructions to hold the money until acceptance of the offer, the broker must deposit the earnest money in his trust account or a neutral escrow depository by close of business, Friday. close of business, a week from Wednesday. close of business, Saturday. 1 p.m., Monday.

close of business, Friday. correct. Without instructions to hold the money, the broker must place the trust funds in the trust account, or with written approval by buyer and seller in a neutral escrow account, by the close of business the fifth banking day following the date the funds were received.

The amount of the revenue dollar left for the broker after payment of all commissions and fees to associates, co-op brokers, multiple fees and payment of the manager-owner's listing and selling commissions is the net profit. company dollar. desk cost. cost per sale.

company dollar. correct. The company dollar is the amount left for the company after paying fees and commissions to others, but before paying company expenses. Net income is the amount left after deducting expenses from the company dollar.

A balance sheet is used to project future income. demonstrates the accounting value or the financial position of the company. shows the total of all payments, commissions, fees and other income received by the brokerage. is used to develop cash flow projections.

demonstrates the accounting value or the financial position of the company. correct. A balance sheet provides a snapshot of the financial condition of the brokerage firm at a particular moment in time, usually the close of business, at the end of its fiscal year, or at the end of a month or a quarter. Its purpose is to demonstrate the accounting value or the financial position of the company, based on its assets and liabilities, rather than its income and expenses.

The type of ad placed in the feature section of a newspaper, often with one or more photographs is classified advertising. display advertising. niche advertising. segment marketing.

display advertising. correct. Display advertising is placed in the feature section of a newspaper, and most often includes one or more photographs.

An Oregon principal real estate broker may act as an escrow agent without obtaining an escrow license 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 broker. only under two conditions: the parties are not charged a separate fee for the service, and the transaction was handled by the broker. under no circumstances.

fIn an Oregon real estate transaction, only under two conditions: the parties are not charged a separate fee for the service, and the transaction was handled by the broker. Correct. The law requiring escrow agents to be licensed provides that a licensed principal broker who performs closings for the parties in a real estate transaction handled by the broker, need not have an escrow license if the parties are not charged a separate fee for the escrow services.

If a person with an active Oregon real estate license fails to comply with the administrative rules related to real estate brokers, the Real Estate Commissioner may do all of the following EXCEPT formally reprimand him. revoke his license. suspend his license. fine him.

fine him. Correct. The Commissioner can fine only persons who do not have active real estate licenses. For violations by persons with active licenses the penalties include reprimand, suspension or revocation.

The rules relating to the Federal Trade Commission's Do-Not-Call Registry allow calls to persons on a no-call list for up to three months after they have made an inquiry. for up to 18 months after a business transaction has been completed with them. for both of these. for neither of these.

for both of these. Correct. Calls can be made to persons on the no-call list for up to 18 months after a business transaction has been completed with them (such as former clients), and for up to three months after they have made an inquiry (such as persons who called on ads).

he rules relating to the Federal Trade Commission's Do-Not-Call Registry allow calls to persons on a no-call list for up to 18 months after a business transaction has been completed with them. for up to three months after they have made an inquiry. for both of these. for neither of these.

for both of these. Correct. Calls can be made to persons on the no-call list for up to 18 months after a business transaction has been completed with them (such as former clients), and for up to three months after they have made an inquiry (such as persons who called on ads).

The most preferred position for an ad in a magazine is front cover. inside front cover. inside back cover. back cover.

front cover. Correct. The order of preferential position, reflected by the cost of an ad in each location, is front cover, back cover, inside front cover and inside back cover.

The basic formula for calculating profit is cash flow - cash disbursements = net profit. gross revenue - accounts payable = net profit. gross profit - expenses and taxes = net profit. assets - Liabilities + owners' equity = net profit.

gross profit - expenses and taxes = net profit. Correct. Net after-tax income is determined by subtracting from gross receipts all business expenses, direct and indirect, and further deducting taxes to be paid.

A real estate broker associated with a principal broker in Oregon may handle a closing if authorization is granted, and a copy filed with the Real Estate Commissioner, by the buyer in the transaction. the seller in the transaction. the principal broker supervising the transaction. the buyer and the seller in the transaction.

he principal broker supervising the transaction. Correct. A broker associate may close a transaction only under the principal broker's supervision and only if authorization to do so is signed by the principal broker and filed with the Real Estate Agency. The buyer and seller need not give authorization.

When an active real estate licensee decides to sell his own home he must list it with his principal broker. he may sell for sale by owner, regardless of his principal broker's wishes. his principal broker has no liability if the transaction is for sale by owner. his principal broker is responsible for supervising the transaction.

his principal broker is responsible for supervising the transaction. correct. The law does not require an active licensee to have his principal broker list his property for sale. A principal broker's company policy may dictate whether the licensee must do so. Whether or not a principal broker acts as agent for a licensee in personal transactions, the principal broker remains responsible under the license law for supervising the personal transactions of his licensees.

A broker must disclose his license status in a sale agreement for the sale of a development company's property, if he has over a 5% interest in the company, regardless of whether he participates in the negotiations. if he has over a 5% interest in the company and participates in the negotiations for the sale of the company's property. only if asked. only if he has more than a 50% interest in the company.

if he has over a 5% interest in the company and participates in the negotiations for the sale of the company's property. correct. When a broker has more than a 5% interest in the company owning the property and participates in the negotiations for the sale of the property, she must disclose in writing, in the sale agreement, that she is licensed and representing herself as the seller in the transaction.

A principal broker can have a kiosk in a shopping mall, at which licensees provide information about the company and its listings if it is registered as a branch office. if it is licensed without registration, if it is to be open for less than six months. none of these, as such informational displays are prohibited.

if it is registered as a branch office. correct. Since the kiosk is not temporary and will be regularly staffed by licensees, it is a branch office, and required to be registered. If it were a temporary information booth, it would not need to be registered.

The most important function of a property ad is incite the recipient to take action. generate interest. create name recognition. promote an image.

incite the recipient to take action. correct. The concept of AIDA is that an ad should attract attention. The ad should point out features to arouse the reader's interest, generally in order of their appeal. It should create a desire on the part of the reader to want to see the property, and incite the reader to take action quickly.

The IRS form W-4 relates to income withholding allowances for an employee. wage and taxes. Social Security withholdings. FUTA.

income withholding allowances for an employee. correct. Form W-4 is used to determine federal and state income withholding tax.

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. correct. Any unlicensed person who engages in activity which requires a license is subject to civil fines by the Real Estate Commissioner. An unlicensed personal assistant cannot legally share in a commission with an employing licensee.

the Commissioner may fine a person for any of the following EXCEPT transacting real estate for others with an inactive license. transacting real estate for others with a suspended license. transacting real estate for others without a license. misrepresentation in a transaction for others conducted with an active license.

misrepresentation in a transaction for others conducted with an active license. Correct. A person can be fined for engaging in transactions without an active license, or as an active licensee for failing to produce property management records upon request of the Real Estate Commissioner. Other violations committed with an active license can result in action against the license (suspension or revocation) but not a fine.

A real estate broker associated with a principal broker could have his license suspended for misrepresentation. selling his own property even though he went through his principal broker and notified the buyer that he has a real estate license. being a poor credit risk. renting his own property.

misrepresentation. Correct. Of these choices, only misrepresentation violates the law. An associated broker may rent his own property without principal broker supervision or disclosure of license status. He may sell his own property if he goes through his principal broker and notifies the buyer of his license status (i.e., he has a license). He may even try to purchase property despite being a poor credit risk.

Real estate brokers must reconcile their clients' trust accounts at least once each week. month. six months. year.

month correct. Reconciliation is required monthly.

When promoting one's services as a counselor or a consultant, the licensee must not use any words that state or imply that he is qualified or has a level of expertise other than that he actually has. may offer legal or accounting advice, if he has taken advanced continuing education courses. Both choices Neither choice

must not use any words that state or imply that he is qualified or has a level of expertise other than that he actually has. Correct. When promoting one's services as a counselor or a consultant, the licensee must be sure his materials are truthful and not deceptive or misleading. This includes not using any words that state or imply that he is qualified or has a level of expertise other than what he actually has. In other words, if he has no extensive experience to serve as the basis of his advice, he may have a difficult time justifying his claim that he is a consultant. Another concern is that the licensee acting as a counselor does not overextend his authorization and engage in unlicensed appraisal activity or offer legal or accounting advice which he is unqualified to give.

***When a licensee negotiates a consulting agreement with a client, the principal broker*** has no duty to review the document. must review and initial the document within seven banking days. must review the document for compliance with laws, but has no obligation to assure the licensee is capable of performing the assignment. must both review and initial the document within seven banking days, and review the document for compliance with laws but has no obligation to assure the licensee is capable of performing the assignment.

must review and initial the document within seven banking days. Correct. The principal broker must review, initial and date any consulting agreement with a client to assure the licensee is capable of performing the tasks agreed to, within seven banking days after it has been accepted.

Assets minus liabilities equal gross income. net worth. net income. working capital.

net worth. correct. Assets are what the business owns. Liabilities are what it owes. The difference is equity or net worth.

A broker may engage in real estate counseling activities without supervision of his principal broker. only if authorized by his principal broker. only if the activity is intended to result in a sale. without principal broker review of the consulting agreement.

only if authorized by his principal broker. correct. A principal broker must directly supervise all licensees associated with the brokerage in the fulfillment of their duties and obligations to their respective clients. Therefore, if the licensees are to offer fee-for-service or consulting services, this activity should be authorized and controlled by the terms of the company policy manual or independent contractor agreement. The principal broker must also review, initial and date any document of agreement with a client to assure the licensee is capable of performing the tasks agreed to, within seven banking days after it has been accepted.

A broker can perform real estate property management and leasing activity for a property owner only in his name if he is licensed to a firm that does not engage in property management activity. only in the registered name of and under the direct supervision of his principal broker. as a resident manager outside the supervision of his principal broker. for one owner, outside his principal broker's supervision.

only in the registered name of and under the direct supervision of his principal broker. Correct. All real estate activity must be in the registered name of the principal broker, and may be performed by a broker associated with the principal broker only under the direct supervision of the principal broker.

The accounting equation for the balance sheet is income - expenses = owners' equity. net profit - gross profit = net equity. owners' equity = assets - liabilities. overhead costs divided by gross profit % = net equity.

owners' equity = assets - liabilities. correct. The basic equation for the balance sheet is assets - liabilities = owners' equity. Owners' equity is also called net worth.

Independent contractors can be subjected to all of the following EXCEPT sales quotas. requirements for floor time. required attendance at training sessions and required continuing education courses. required compliance with procedures established in a policies and procedures manual.

sales quotas. correct. Independent contractors cannot be subjected to sales quotas, but they can be subjected to requirements for floor time, attendance at training sessions and required continuing education courses, compliance with procedures established in the policies and procedures manual, and compliance with all real estate laws and rules and regulations.

Break-even analysis reflects the profit or loss per sale for a certain period. the company expenses per sale during a certain period. optimum spending levels at different levels of income. the level of sales necessary to cover costs.

the level of sales necessary to cover costs. Correct. Break-even analysis reveals the level of sales needed to enable the company to cover its costs and break even. Income per sale analysis reveals the profit per sale. Cost per sale analysis reveals the expenses per sale.

A balance sheet shows the profit the company makes each quarter. the net worth of the business. the company's profit and loss. the company's savings account balance.

the net worth of the business. correct. The balance sheet shows assets, liabilities, and owner's equity or net worth.

With regard to supervision of real estate advertising... only a licensee can preprare a property ad. only the principal broker can design his brokers' business cards. the principal broker cannot delegate responsibility for supervision of advertising to anyone. the principal broker is responsible for all advertising done under his real estate license

the principal broker is responsible for all advertising done under his real estate license Correct. Anyone may prepare an ad, including an unlicensed personal assistant. A broker associate may develop his own website or design his own business cards. In all cases, however, the principal broker is ultimately responsible for the advertising. While the principal broker may delegate direct supervisory authority over advertising originating in a branch office to the branch office manager, he remains responsible for all advertising done under his real estate license.

In Oregon, a real estate broker associated with a principal broker may handle a closing if authorization is granted and if a copy of that authorization is filed with the Real Estate Commissioner. The authorization must be granted by the Real Estate Commissioner. the seller in the transaction. both the principal broker and buyer in the transaction. the principal broker supervising the transaction.

the principal broker supervising the transaction. correct. A broker associate may close a transaction under the supervision of his principal broker if the principal broker files authorization to do so with the Real Estate Agency. Authorization of the buyer and seller is not required.

Net worth is defined as annual profit. the total of all commissions and fees earned. total assets minus total liabilities. the guaranteed interest rate for a borrower.

total assets minus total liabilities. Correct. Net worth means total assets minus total liabilities pursuant to generally accepted accounting principles.

Oregon administrative rules require a real estate broker associated with a principal broker to transmit documents and funds received by the associated broker to his principal broker within three banking days. promptly. by the end of the third banking day within five banking days.

within three banking days. correct. A real estate broker associated with a principal broker must transmit documents and funds received by him to his principal broker by the third banking day following receipt. The principal broker has five banking days from receipt by the broker, to deposit the check in a trust account or escrow. However, if the sale agrrement calls for the check to be held until acceptance of the offer by the seller, the principal broker has three banking days from aceptance to deposit the check.