Real Estate Test

How long after the date of the transaction are Oregon licensees required to keep records?

6 years

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.

6 years

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

A an active principal broker's license. B an active real estate broker's license. C an active sole practitioner broker's license. D None of the above

It is a violation of the Real Estate License Law for a real estate broker to conduct real estate activity

A during the time the license is on inactive status. B after the license has expired. C while waiting for the license to be reissued to another principal broker. D during all the above.

Oregon principal real estate brokers must keep records for six years. Those records include

A files for transactions that failed. B tenant rental agreements. C reconciled bank statements for clients' trust accounts. D All of the above ---

Which of the following individuals is not exempt from licensing law requirements while engaging in property management activity?

A limited partner in a limited partnership who, on a part-time basis, is acting under a separate, written property management agreement to rent the real property of the limited partnership

Which of the following statements about listing agreements is NOT true?

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

For six years, a principal real estate broker must retain all:

A listing agreements and earnest money receipts. B clients' trust account records and ledgers. C vouchers, bills, or obligations paid for the account of a client from the trust account. D All of the above. ------

Which of the following persons involved in real estate activities are required to obtain an Oregon real estate license?

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

In which of the following situations may an Oregon principal broker pay a listing finder's fee?

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

Which of the following clients' trust funds may be placed by a property manager into a federally insured interest-bearing account?

All of the above may be placed in a federally insured interest-bearing account

24 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? I. Jackson II. The principal broker

Both I and II

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? I. A fee may be charged for providing a competitive market analysis. II. The analysis may not be contingent upon reporting a pre-determined value.

Both I and II

A person who holds an inactive real estate license I. may not engage in professional real estate activity. II. 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.

Both I and II

A 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.

Both I and II

A real estate principal broker is required by the Oregon license law to do which of the following? I. 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 II. 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

Both I and II

A real estate property manager 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.

Both I and II

According to Oregon real estate license law, a principal real estate broker: I. must maintain a definite place of business. is responsible for the actions of the brokers licensed II. under him and must supervise their professional real estate activity.

Both I and II

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

Both I and II

Oregon Real Estate License Law permits administrative action to be taken against a principal broker's license for failing to I. notify the Real Estate Agency of the principal broker's change of address. II. retain files of all real estate activity for a period of 6 years from the termination or expiration

Both I and II

Oregon law requires a principal broker who closes his office to do which of the following? I. Notify the Real Estate Agency where the records will be stored. II. Maintain records within the State of Oregon

Both I and II

Oregon real estate license law restricts brokers associated with principal brokers from I. bringing a lawsuit against a seller for payment of commission. II. directly accepting a finder's fee from a principal broker with whom the broker is not licensed.

Both I and II

Records of a principal broker for professional real estate activity conducted in Oregon must be retained I. for a minimum of six years. II. within the state of Oregon.

Both I and II

Which of the following categories of licensees, without charging a fee, could legally offer a seller an estimate of the sales price of the seller's property for the purpose of obtaining a listing? I. Real estate broker II. Principal real estate broker

Both I and II

Which of the following constitutes engaging in professional real estate activity as defined by Oregon law? a ) A person who, for a fee, rents real estate owned by others to the public b ) A person who, for a fee, assists owners only in procuring prospective tenants for the owners' rental property

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? I. He can advertise the property without a real estate license. II. He can negotiate the sale of the property without a real estate license.

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?

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

Principal brokers must supervise which of the following activities of brokers?

Brokers must be supervised while performing all of the above.

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.

An unlicensed personal assistant to a real estate broker could legally do which of the following?

Deliver documents to a buyer

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?

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

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

I and II only

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

I and II only

56 A purchaser gives $20,000 as earnest money to a sole practitioner real estate broker. He instructs the sole practitioner 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 I. funds must be deposited in a federally insured interest-bearing account, provided both parties to the transaction give their written consent. II. interest which accrues must be paid to the purchaser since he was the party that requested the money be placed in an account.

I only

A nonlicensed personal assistant to an Oregon broker associated with a principal real estate broker could legally perform which of the following activities? I. Install signs and lock boxes on listed properties II. Prepare and submit advertising to a newspaper as long as the broker reviews it

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 I. he has written approval from the purchaser and the seller. II. interest earned is credited to the purchaser.

I only

A real estate broker associated with a principal broker who hires an unlicensed person to work as a personal assistant could legally I. pay the assistant a salary. II. share a commission with the assistant.

I only

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

If the branch office of a real estate firm maintains a separate clients' trust account, it must also I. maintain a separate bookkeeping system. II. 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

Regardless of where the principal broker resides, the records for professional real estate activity conducted in Oregon must be retained I. in the state of Oregon. II. for seven years after the date of the transaction.

I only

The license of an active Oregon real estate broker who is associated with a principal broker I must be renewed before the expiration date to remain active II must be displayed in the office of the principal broker under whom the broker is licensed

I only

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

I, II and III

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

I, II and III

Non-licensed employees of a property manager may I. collect rents from tenants. II. negotiate property management agreements with owners. III. negotiate rental agreements with tenants. IV. show properties to prospective tenants.

I, III and IV only

A principal broker may place clients' trust funds into an interest-bearing account only if I. the interest earned on the account is not credited to the broker. II. all parties who have an interest in the funds give their written permission.

II only

A property manager must comply with license law and administrative rules in which of the following? I. The rental of his personally-owned properties II. The lease-option of his personally-owned properties

II only

A real estate broker receives an earnest money deposit of $15,000 from a purchaser who instructs the real estate 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 I. interest which accrues must be paid to the purchaser since he was the party that requested the money be placed in an interest- bearing account. II. funds must be deposited in a federally insured interest-bearing account, provided both parties to the transaction have given their written consent.

II only

An Oregon resident may engage in real estate without a license if I. he only negotiates one transaction each year for another person for compensation. II. he deals in estate property as an appointed executor of the estate.

II only

Susan is a real estate broker associated with Brown Realty. Which of the following statements about commissions Susan is paid is true? I. Susan may give part of the money she receives from her principal broker to an unlicensed person if the person lives outside the state of Oregon. II. Susan may pay a finder's fee to Kim, a real Estate broker associated with another principal broker, as long as the money is paid through Kim's principal broker.

II only

When a real estate broker transfers to a different principal broker: I. the real estate broker may take all of his existing listings with him to the new office. II. an acknowledgment of transfer must be sent to the receiving principal broker.

II only

Which of the following acts requires a real estate license in Oregon? I. Negotiation between a buyer and a seller for the sale of a mobile home located on a rental space in a mobile home facility II. Acceptance of a listing to sell a farm

II only

Which of the following is correct about listing agreements? I. The buyer must be given a copy upon request. II. A copy of a listing agreement must be kept with the principal broker.

II only

Which of the following statements concerning a real estate property manager managing non- residential real property is true? I. The property manager must place all funds accepted by him into a federally insured clients' trust account. II. The property manager must maintain an owner's ledger account for each owner of managed property.

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. I. Manage an office for 120 consecutive days II. Close a transaction

II only

Non-licensed employees of a property manager may perform all of the following activities except

Negotiate and sign property management agreements with owners

Which of the following property management activities would require a real estate license?

Negotiation of property management agreement with property owner

A branch office registration is necessary to use a model unit, available for sale, a ) in a subdivision for promotion of interest in the development. b ) temporary structure for dissemination of information.

Neither I nor II

A real estate broker associated with a principal broker participating in a real estate transaction is allowed to accept compensation directly from the I. seller. II. buyer.

Neither I nor II

A real estate broker is transferring to a new principal broker. That real estate broker is permitted under Oregon law to take with him to the new office I. all of his pending sales. II. the listings that he has signed within the last 30 days.

Neither I nor II

Mary is a real estate broker associated with principal broker Larry. Tom is a sole practitioner 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? I. This is acceptable as long as Mary receives her commission from principal broker Larry. II. This is acceptable as long as principal broker Larry is notified by sole practitioner principal broker Tom.

Neither I nor II

Under Oregon law a real estate broker associated with a principal real estate broker may I. employ a licensed personal assistant. II. supervise real estate brokers in a branch office.

Neither I nor II

Under Oregon law, it is legal for a real estate broker associated With a principal broker to directly pay a finder's I. fee for referring a buyer to a real estate broker associated with another principal broker. II.a close relative or friend.

Neither I nor II

Under Oregon real estate license law, funds in a principal broker's clients' trust account can be subject to I. attachment on a claim against the principal broker. II. execution on a claim against the principal broker.

Neither I nor II

Which of the following acts are permitted under the Oregon License Law?

None of the above

A real estate broker associated with a principal real estate broker may do which of the following without supervision?

Rent or lease the licensee's own real estate

A real estate broker associated with a principal real estate broker may do which of the following activities without supervision?

Rent or lease the real estate broker's own real estate

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.

Which of the following statements concerning a property manager's clients' trust funds is false?

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

An Oregon real estate broker's unlicensed personal assistant directly participated in negotiations between a seller and purchaser. Which of the following is true about this situation?

The personal assistant would be in violation of the Real Estate License Law.

What must the principal broker do when one of the principal broker's associated real estate brokers has listed personally-owned property for lease-option with the principal broker?

The principal broker must maintain complete records for six years of any transaction arising from the listing.

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.

3 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 The escrow agent None of the above -----

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.

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.

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?

Verify the accuracy of listing information supplied by a broker by checking the records at the county tax office

Smith is a real estate broker associated with Brown Realty. Jones is a real estate broker associated with White Realty. Both firms belong to the same multiple listing service. Smith secures a listing and it is placed in the multiple listing service. Jones sells the property for White Realty. Jones can collect a commission directly from

White Realty.

A property manager, with the required written consent of all parties having an interest in the clients' trust funds, may place the funds in

a federally insured, interest-bearing bank account.

If a principal real estate broker or property manager places trust funds in an interest-bearing clients' trust account

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

Interest accrued on an interest-bearing clients' trust account may not be directly paid to the

associated broker

A licensed real estate property manager may

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

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.

Oregon law provides that a person may renew an inactive real estate license

every two years indefinitely.

A real estate principal broker or property manager must retain records of his Oregon real estate activity

for six years after the date of the transaction.

A property manager must open and maintain at least one clients' trust account

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

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 sole practitioner broker handling the transaction

is entitled to a full commission.

An unlicensed personal assistant who engages in activity which requires a license

is subject to civil fines by the Real Estate Commissioner.

Under Oregon statutes and administrative rules, a real estate property manager licensee may do all of the following for compensation EXCEPT:

list an owner's rental properties for sale.

The original, executed copy of a property management agreement

must be filed and maintained by the property manager.

It is legal for a principal real estate broker to place clients' trust funds in an interest-bearing account in Oregon

only if the account is federally insured.

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

A principal broker must maintain a complete record of all funds, promissory notes, or other consideration received on real estate offers and transactions for a minimum of

six years.

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

six years.

Charles Rupp is an active real estate property manager in Oregon and must therefore maintain records of all his professional real estate activity for a period of

six years.

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

six years.

Trust account records must be maintained for

six years.

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.

Under Oregon law, if a principal real estate broker establishes an independent contractor relationship with an associated real estate broker:

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.

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

thirty calendar days.