OR- ASSESSMENT Flashcards
1
Q
Chrissy lives in Lake Ridge Estates, a neighborhood in which vinyl siding may not be used on homes. This HOA regulation is what kind of private land control?
- CC&R
Conditions, covenants, and restrictions apply to an entire subdivision, while deed restrictions apply to a specifically named property.
A
- CC&R
- Deed restriction
- Law
- Regulation
2
Q
In Oregon, a promissory note used as earnest money ______.
* Comes due when the seller accepts the offer or at another agreed upon time
Promissory notes come due at, or within a specific amount of time after, the seller accepts the offer.
A
- Comes due at closing
- Comes due when tendered
* Comes due when the seller accepts the offer or at another agreed upon time - Is non-negotiable
3
Q
As an Oregon licensee acting as a limited agent for two parties in the same transaction, which of the following is the licensee required to do?
* Disclose conflicts of interest in writing to all parties.
Oregon licensees engaged in a limited agency relationship are required to disclose in writing any existing or potential conflicts of interest to all parties.
A
- Advocate for the best interests of the primary client after disclosing it to the secondary client.
* Disclose conflicts of interest in writing to all parties. - Disclose motivations to buy or sell if they would be relevant to the bargaining position of either party.
- Unless expressed as confidential in writing, disclose whether one client will accept less favorable terms or price to the other.
4
Q
Which of the following must be approved by a planning department in Oregon before the development of a subdivision can begin?
* Plat
Subdivision development requires submission of a plat to the local planning department, which must be approved by the planning department before development may begin.
A
- Percolation map
- Planning map
* Plat - The vacant land purchase contract
5
Q
John and Amy purchased a builder’s home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage?
* 10 years
Structural damage can take a while to appear, so homeowners will want to file a claim if it’s a decade
or less.
A
* 10 years
* Five years
* One year
* Three years
Structural damage can take a while to appear, so homeowners will want to file a claim if it’s a decade or less.
6
Q
How many days do Oregon real estate brokers have to submit paperwork to their principal real estate broker?
- ** Three banking days**
Oregon administrative rules require that brokers submit all real estate activity documents to their principal broker within three banking days of receipt.
A
- Seven banking days
- Seven calendar days
* Three banking days - Three calendar days
Oregon administrative rules require that brokers submit all real estate activity documents to their principal broker within three banking days of receipt.
7
Q
Who may be the identified person as the responsible party for a registered business name in Oregon?
- ** A principal broker or property manager**
Either a licensed principal broker or a licensed property manager must be identified as the responsible
individual for a registered business name. Designating an individual ensures that notifications regarding the registered business are sent to the appropriate person.
A
- Any licensee
- Anyone associated with the firm
- A principal broker only
- ** A principal broker or property manager**
8
Q
What factors does the underwriter consider in reviewing a mortgage loan application?
* Credit, capacity, and collateral
Underwriters review the borrowers credit score and history, capacity to repay the loan, and collateral.
A
- Capacity, collateral, and criminal record
* Credit, capacity, and collateral - Credit, capacity, and collections
- Credit, credentials, and collateral
Underwriters review the borrowers credit score and history, capacity to repay the loan, and collateral.
9
Q
Drew and Hank were camping at Hank’s riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he’d buy it from Hank for $80,000, which Hank agreed was a fair price. It’s two months later, and Hank is upset that Drew now says he won’t buy it. Why isn’t this contract enforceable?
* Real estate contracts must be in writing.
The statute of frauds requires that real estate contracts be in writing. Drew’s offer was oral and thus didn’t create an enforceable contract.
A
- Drew didn’t have the financial resources to make the offer.
* Real estate contracts must be in writing. - There was no offer and acceptance.
- This wasn’t a legal purpose.
The statute of frauds requires that real estate contracts be in writing. Drew’s offer was oral and thus didn’t create an enforceable contract.
10
Q
A buyer and a seller signed a sales contract with a definite closing date of May 15. If the buyer needs to move the closing date to June 15, what document would the buyer use to make this change?
- ** Amendment**
When added, an amendment changes the original terms of the sales contract. This is unlike an addendum, which may be added without changing other terms already agreed to in the sales contract.
A
- Addendum
- ** Amendment**
- Annotation
- Appendix
11
Q
Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others he used. What process is he utilizing?
- ** Reconciliation**
Through the reconciliation process, the most weight may be given to one or two comparables, or equal weight may be given to all. The term correlation is often synonymous with reconciliation. Another term for this is weighted averaging.
A
- Averaging
- Bracketing
- Conformity
- ** Reconciliation**
Through the reconciliation process, the most weight may be given to one or two comparables, or equal weight may be given to all. The term correlation is often synonymous with reconciliation. Another term for this is weighted averaging.
12
Q
How long after completion can a contractor file a construction lien?
- ** Within 75 days**
A contractor has up to 75 days after a notice of cessation or completion is filed by the owner to file a construction lien.
A
- Within 120 days
- Within 30 days
- ** Within 75 days**
- Within 95 days
A contractor has up to 75 days after a notice of cessation or completion is filed by the owner to file a construction lien.
13
Q
To be an effective property manager, a licensee must be familiar with a variety of ______.
- ** Lease agreements**
Property managers must be familiar with many types of lease agreements in order to be effective.
A
- Agency disclosures
- Employment contracts
- Independent contractor agreements
- ** Lease agreements**
Property managers must be familiar with many types of lease agreements in order to be effective.
14
Q
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______.
- ** In writing, and in accordance with uniform standards**
FIRREA helps to regulate the ways that lenders value real property by requiring that appraisals be done by licensed, qualified personnel, and that the appraisal report be in writing.
A
- By licensed real estate professionals
- By members of the Appraisal Foundation
- In the most expeditious and inexpensive way possible
- ** In writing, and in accordance with uniform standards**
FIRREA helps to regulate the ways that lenders value real property by requiring that appraisals be done by licensed, qualified personnel, and that the appraisal report be in writing.
15
Q
Which of these situations represents the illegal practice of blockbusting?
* Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values.
Blockbusting is the practice of convincing homeowners that a demographic shift could result in reduced property values or the inability to sell their properties
A
- Celia, a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of those neighborhoods will increase property values.
* Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values. - Estelle, a broker, warns potential clients about the upcoming zoning change in a neighborhood that is currently zoned as residential.
- Kian, a mortgage broker, refuses to underwrite mortgage applications from applicants who are Hispanic or Asian.
16
Q
An easement dictates that property owner A gives the right to property owner B to use a portion of the property. Which term describes property A?
- ** Servient estate**
Property A is the servient estate. It serves the dominant estate, Property B.
A
- Domain estate
- Dominant estate
- Service estate
- ** Servient estate**
Property A is the servient estate. It serves the dominant estate, Property B.
17
Q
A local buyer is purchasing a property for $120,000. What will the seller pay in transfer tax if the rate is $.37 per $100?
** $444**
In this situation, the transfer tax rate is $0.37 per $100. This is the same thing as .0037, which makes it easy to multiply. Multiply the transfer tax (.0037) by the value of the property ($120,000)
A
- $370
- $3,700
- $4,400
- ** $444**
In this situation, the transfer tax rate is $0.37 per $100. This is the same thing as .0037, which makes it easy to multiply. Multiply the transfer tax (.0037) by the value of the property ($120,000)
18
Q
Ashish is purchasing a bank-owned property. His real estate agent tells him the bank is offering insurable, not marketable, title. What does this mean to Ashish?
* Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy.
An insurable title may be acceptable to a buyer, depending on any known defects that are outlined in the policy.
A
- An insurable title has uncurable title defects, so Ashish should terminate his contract.
- Insurable title carries a higher standard of assurance than marketable title, so Ashish shouldn’t be concerned.
* Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy. - The title company will include any easements or other title defects as exceptions on the policy, which is a concern for Ashish.
19
Q
Three sisters owned a vacation home two blocks from the beach. Sadly, one sister passed away over the winter, so when summer arrived, the other sisters shared the home with a nephew, to whom one sister willed her share of the property. What type of ownership is this?
* Tenancy in common
This is a form of shared ownership, but only tenancy in common provides for inheritability—the other forms share the rights of survivorship (the existing tenants assume the deceased’s share of the property).
A
- Estate in severalty
- Joint tenancy
- Tenancy by the entirety
* Tenancy in common
This is a form of shared ownership, but only tenancy in common provides for inheritability—the other forms share the rights of survivorship (the existing tenants assume the deceased’s share of the property).
20
Q
Leo’s client is looking for a property with at least 2,500 finished square feet. Leo finds a 2,200-square-foot property with all the other features the client is looking for, and purposely doesn’t mention the square footage to his client. His client agrees to look at the property, falls in love with it, and wants to make an offer, but does not realize it doesn’t contain his desired square footage. Which of these statements accurately represents Leo’s level of misrepresentation in this situation?
- Leo knew about the square footage and intentionally didn’t mention it. He’s guilty of intentional misrepresentation.
Leo knew the square footage was short, and he intentionally didn’t mention it to the buyer. Therefore, he’s guilty of intentional misrepresentation.
A
- Because Leo didn’t state the square footage, he’s not guilty of misrepresentation.
- It’s the buyer’s responsibility to ensure that the property has the proper square footage, so Leo’s in the clear.
- Leo accidentally omitted a material fact. This is considered unintentional misrepresentation.
- Leo knew about the square footage and intentionally didn’t mention it. He’s guilty of intentional misrepresentation.
21
Q
After several months on the market, your seller client, Porter, accepted an offer for his home that was significantly less than he was hoping for. A week later, you receive another offer for the full list price. What’s your legal duty in this situation?
* You must present the offer immediately to your client.
Your legal obligation as a seller’s agent is to present all offers immediately, even if the seller has already accepted an offer.
A
- You must advise your client to cancel the current contract so you can present the new offer to him
- You must keep the offer as a backup and present it only if the current contract is terminated.
* You must present the offer immediately to your client. - You must reject the offer on behalf of your client.
22
Q
Nadia Seymore is a property manager whose contract with the owner of the Genie Bottle apartment complex just terminated today. What is she obligated to do for the apartment tenants?
* Within one day, inform them that their money will be turned over to another party.
The day after the termination date the property manager must notify each tenant who has a security deposit held in trust that those funds will be turned over either to the property owner or another person, agent, or property manager.
A
- Nadia has no obligation to the tenants.
- Return their deposits within 30 days.
- Within 30 days, complete a ledger accounting for how their money has been spent during her tenure as property manager.
* Within one day, inform them that their money will be turned over to another party.
23
Q
Which of the following questions can an agent in a dual agency transaction answer without breaching her duties to either client?
* Are you aware of any structural issues with the property?
The agent can (and is required to) answer questions from both clients regarding material or adverse material facts.
A
- How much should my counter-offer to the buyer be?
- What repairs or concessions should I ask for from the home inspection?
- What should I agree to fix from this list the buyer sent?
24
Q
Gene has lived in his Medford apartment for 15 months with a month-to-month lease. Archie, Gene’s landlord, has decided to terminate the lease for so he can move in. How long must Archie give Gene to vacate the apartment?
- ** 90 days**
Renters who have resided in a unit for more than 12 months, and who are being evicted for a landlord-based for-cause reason, must be given 90 days’ notice in Oregon.
A
- 14 days
- 30 days
- 60 days
- ** 90 days**
Renters who have resided in a unit for more than 12 months, and who are being evicted for a landlord-based for-cause reason, must be given 90 days’ notice in Oregon.
25
Under which of these circumstances must Rhoda provide the initial agency disclosure pamphlet?
*** When performing an agents-only tour of an upcoming listing When she begins discussions with a consumer about one of her listings**
## Footnote
Rhoda should provide the initial agency disclosure pamphlet at first contact with each party to a property transaction.
* When giving a presentation to a local club about her real estate business
*** When performing an agents-only tour of an upcoming listing When she begins discussions with a consumer about one of her listings**
* When talking with a group of friends about her various listings
26
Which type of listing can help a real estate professional determine how quickly a home in a given price range received an accepted offer?
* ** Pending**
## Footnote
When a property goes under contract, it's said to be pending. The timeframe from the date the property was listed until it goes under contract (becomes pending) tells the licensee how many days the property was on the market (days on market or DOM).
* Expired
* Foreclosed
* ** Pending**
* Withdrawn
27
Melissa is preparing the listing for her client. She’s pretending not to know about the buried underground storage tank on the premises because her seller asked her not to disclose it. What crime has she committed?
* ** Fraud**
## Footnote
This is fraud. Melissa intentionally failed to disclose a material fact about the listing.
* Collusion
* ** Fraud**
* Negligent misrepresentation
* Unintentional misrepresentation
28
Candice is a licensee in Oregon who has had a complaint filed against her. What party is responsible to look further into the complaint and prepare a report of the findings?
* ** Investigator**
## Footnote
Just as you would expect, the investigator will look into the complaint to verify its validity.
* Agency
* Department of Labor
* ** Investigator**
* Regulation division manager
29
Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true?
*** If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.**
## Footnote
Housing providers may inquire as to the nature of the disability if it's not apparent, and they must permit assistance animals for tenants with documented disabilities without charging an additional pet deposit.
*** If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.**
* If the disability is not obvious, the tenant must provide the landlord with full medical records to support the request.
* The landlord is not obligated to consider the request unless the tenant can produce either the original or a certified true copy of the animal's service certification.
* The landlord must consider the request but may require an additional "pet" security deposit.
30
Kelly, an Oregon real estate broker, is working with her client Bill on the purchase of a small single-family home. Bill’s offer has been accepted, and he brings her a check for some earnest money to move the process forward. Kelly’s week is filling up quickly with two open houses and several scheduled showings. She’s nervous about getting Bill’s check to her principal broker within the deadline. Should Kelly reschedule one of her showings?
*** No. She has three banking days to deliver any funds to her principal broker, so she can fit it in between showings.**
## Footnote
Oregon brokers have three banking days to deliver funds they receive to their principal broker.
* No. She has five banking days to deliver any funds to her principal broker, so she can fit it in between showings.
*** No. She has three banking days to deliver any funds to her principal broker, so she can fit it in between showings.**
* Yes. She needs to submit the check to her principal broker promptly.
* Yes. She needs to submit the check to her principal broker within 24 hours.
31
Kelly, an Oregon licensee in Gresham, meets with her seller clients to present a written offer for their recently listed home. After delivering the offer, Kelly will need to make note of two major things for her records, specifically in relation to handling the offer. What are they?
*** The time and date the offer was delivered and the seller’s response**
## Footnote
Licensees are required to keep a written record of the date and time each written offer or counter-offer was delivered and of the seller's or buyer's response.
* The amount of the offer and the seller’s response
* The name of the buyer and the seller’s response
* The time and date the offer was delivered and the offer amount
*** The time and date the offer was delivered and the seller’s response**
32
Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $200,500. Their tax rate is 1.5%. How much will their monthly taxes be?
** $250.62**
## Footnote
Monthly taxes are calculated by multiplying the assessed value by the tax rate and dividing by 12: $200,500 × .015% = $3,007.50 ÷ 12 = $250.62.
$111.04
$191.37
** $250.62**
$86.49
33
To which of the following borrowers might a lender be most likely to recommend an FHA loan?
*** A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores**
## Footnote
Loans insured by the Federal Housing Administration require a 3.5% down payment and permit buyers with lower credit scores to qualify for a loan.
* An investor who intends to use equity in another investment property as his down payment
* A retired couple interested in downsizing from a large four-bedroom house they own free and clear to a condominium
* A single stockbroker with a $40,000 down payment and significant assets in a stock portfolio
*** A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores**
34
Annie is developing a new condominium project. Under the Oregon Condominium Act, which of the following must she do?
*** Create and file a declaration in the county’s land records office.**
## Footnote
For new condominium projects, the act requires the developer to create and file a declaration. She must also get approval from the Land Development Division and Oregon Real Estate Agency.
* Complete the landscaping installation before selling any of the units.
*** Create and file a declaration in the county’s land records office.**
* Offer units to low-income buyers before offering them to the general public.
* Provide assistance for first-time homebuyers who need loans.
35
Lenore makes a 95% offer on a townhouse that’s listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier’s check for $35,025 comprising the balance of her 20% down payment and closing costs. What’s the amount of her total down payment?
* ** $54,150**
## Footnote
Lenore's offer is $270,750 which is 95% of the list price ($285,000 x .95 = $270,750 ). Her total down payment is 20% of her accepted offer of $270,750, which is $54,150 (or $270,750 x .2).
* $35,025
* ** $54,150**
* $57,000
* $62,100
36
Margo moved into a new house on May 1. By what date does she need to notify the agency she’s moved?
** May 10**
## Footnote
If you change your address, you must notify the agency no later than 10 days after the move.
* June 30
* ** May 10**
* May 15
* May 31
If you change your address, you must notify the agency no later than 10 days after the move.
37
Which approach to value is typically used for investment property of two- to four-family units?
*** Income approach**
## Footnote
The income approach to value analyzes a property’s ability to earn future income and is typically used for single-family houses (where the primary use is as a rental property) and for two- to four-family units.
* Cost approach
*** Income approach**
* Revenue approach
* Sales comparison approach
The income approach to value analyzes a property’s ability to earn future income and is typically used for single-family houses (where the primary use is as a rental property) and for two- to four-family units.
38
Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?
**Promissory note**
## Footnote
A promissory note (often called a "note") is the borrower's documented promise to repay the loan.
* Deed of trust
* Mortgage lien
* **Promissory note**
* Usury
39
Chelsea's mother owns several rental properties and intends to keep them to pass on to the family. Chelsea holds a special power of attorney to manage the rental properties, including working with the property manager to place and evict tenants as necessary. Which of these would violate the POA?
*** Without consulting her mother, Chelsea decides to completely refurbish one of the properties.**
## Footnote
An agent holding a POA can only make decisions that reflect the principal's preferences and can't exceed the authority granted by the POA. Refurbishing a property doesn't fall within the scope of managing the property is her mother's absence.
* At the property manager's recommendation, Chelsea evicts a long-time tenant for failure to pay rent.
* Chelsea instructs the property manager to prepare the quarterly financial reports.
*** Without consulting her mother, Chelsea decides to completely refurbish one of the properties.**
* Without consulting her mother, Chelsea hires a plumber to fix a major plumbing problem in one of the properties.
40
Orla represents the seller, and Pardeep, an agent from the same firm, represents the buyer in the same transaction. Kendrick is the principal broker over both Orla and Pardeep. What type of agency relationship does Orla have with her client?
**Single****
## Footnote
Orla and Pardeep both have a single agency relationship with their respective clients, and Kendrick is the disclosed limited agent.
* Buyer
* Limited disclosure
* ** Single**
* Subagency
41
A landlord has an available unit but refuses to show it to several applicants. These applicants are all single women with children. The applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law?
*** He is discriminating against people based on familial status by refusing to show available housing.**
## Footnote
This landlord's action discriminates by refusing to show available housing to prospective tenants based on protected class status.
* He is advertising the unit in a restrictive way that discriminates against those with children.
*** He is discriminating against people based on familial status by refusing to show available housing.**
* He is discriminating by offering special terms for rental based on a protected class status.
* He is sexually harassing potential tenants.
42
What is used to determine the maximum assessed property value?
*** Previous year real market value multiplied by 103% or 100% of the previous year maximum assessed value, whichever is greater**
* Previous year maximum assessed value
* Previous year real market value multiplied by 103%
*** Previous year real market value multiplied by 103% or 100% of the previous year maximum assessed value, whichever is greater**
* Real market value
43
Which feature is most likely to be the cause of an adjustment to a comparable when preparing a CMA?
* ** Busy street**
## Footnote
A busy street is less desirable for a residential property and more desirable for a commercial property. Other factors that could impact value are foreclosures, short sales, and cash-only sales.
* ** Busy street**
* Color
* Demographics
* Interest rates
44
In which of the following situations can the state use its power of escheat?
*** Nadine died with no heirs and no debt.**
## Footnote
Escheat occurs when a property owner dies without a will in place, and no heirs or creditors can be found.
* Hannah passed away with no children and no debt, other than $83,000 left on her mortgage.
* Maury died, and his three children are upset because his estate isn’t large enough to settle all of his debts.
*** Nadine died with no heirs and no debt.**
* Sam died with no will, and his son lives overseas.
45
Why was the Oregon Trust Deed Act created?
** So there would be no question about who was the beneficiary of a loan in the case of non-judicial foreclosure.**
## Footnote
The Oregon Trust Deed Act (OTDA) in the Oregon Revised Statutes requires lenders to record all deed of trust assignments before initiating non-judicial foreclosures.
* So lenders could buy and sell loans to each other without having to go through the recording process.
*** So there would be no question about who was the beneficiary of a loan in the case of non-judicial foreclosure.**
* To allow buyers to purchase a property through a third party.
* To assist low-income families in affording a home.
46
Fewer buyers in a higher price range would create what kind of pressure on housing prices?
*** Downward**
## Footnote
Fewer buyers creates downward pressure on housing prices.
*** Downward**
* Steady
* Strong
* Upward
Fewer buyers creates downward pressure on housing prices.
47
Jules is new to property management. Which of the following tasks may be one of her duties?
*** Creating a budget for next year's projected maintenance costs**
## Footnote
Among other duties, property managers may be responsible for creating budgets.
*** Creating a budget for next year's projected maintenance costs**
* Investing profits from the business
* Purchasing the apartments to be managed
* Representing the owner in court
Among other duties, property managers may be responsible for creating budgets.
48
Which of the following is an example of a fixture that is real property?
*** Shelves attached to the wall with brackets**
## Footnote
Shelves attached with brackets would be considered real property, since they're permanently affixed to the wall.
* Above-ground pool and pool accessories
* Bathroom mirror hanging on a hook
* Photos and wall hangings
*** Shelves attached to the wall with brackets**
Shelves attached with brackets would be
considered real property, since they're permanently affixed to the wall.
49
Identify the individual who is exempt from holding a real estate license.
* **Condo activity coordinator**
## Footnote
Persons conducting property transactions need a license but other administrative and support employees do not.
* Broker with a client interested in purchasing a condo
* **Condo activity coordinator**
* Condo sales executive
* Condo sales manager
50
A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do?
*** Refuse to rent to a female tenant.**
## Footnote
The "Mrs. Murphy" exemption applies to owner-occupied buildings with no more than four units. The owner may choose to rent only to a like-sex tenant but may not discriminate on any other basis.
* Advertise for a tenant of a specific race.
* Move out of the property and rent both portions of it, relying on the "Mrs. Murphy" exemption to permit renting only to single females.
*** Refuse to rent to a female tenant.**
* Use the services of a real estate professional to advertise for a male tenant.
51
Stan and Margo want to redevelop an old industrial site in order to create a microbrewery and event space. However, an environmental review found that hazardous chemicals were once used on site, and there is a possibility they will be released during redevelopment. Stan and Margo may not be liable for cleanup, under what federal law?
*** SARA**
## Footnote
SARA, or the Superfund Amendments and Reauthorization Act, created an innocent landowner defense. Often, the courts will review a SARA case and determine liability.
* CERCLA
* EIS
*** SARA**
* Wetlands Conservation Act
52
What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form?
*** EPA lead safety pamphlet**
## Footnote
Sellers must also provide a lead safety pamphlet to these prospective buyers.
*** EPA lead safety pamphlet**
* List of reputable home improvement contractors
* Verbal assurance that the home is lead-free before offering it for sale
* Written proof that the home is lead-free
*
53
Jared wants to purchase property. One of the properties his agent shows him was formerly zoned for commercial use. It has a steep drop off at the back of the property, as well as some soft spots and mounds. Should Jared's agent recommend that he have a home inspector investigate it?
*** Yes, these are clues that the property may have been used as a waste disposal site.**
## Footnote
These are clues that the property may have been used as a waste disposal site. His agent should recommend that Jared talk to a home inspector about the implications for remediation.
* No, Jared can address the cliff by bringing in additional soil.
* No, Jared is going to bulldoze the entire property to flatten it out anyway.
*** Yes, these are clues that the property may have been used as a waste disposal site.**
* Yes, these are indications of an underground storage tank.
54
Jason, an Oregon property manager, has just ended a property management agreement with a client. How long must Jason retain a copy of this document in his records?
*** Six years**
## Footnote
Oregon property management documents must be retained for no fewer than six years from the date of the termination, expiration, or other cessation.
* 10 years
* Six months
* ** Six years**
* Three years
Oregon property management documents must be retained for no fewer than six years from the date of the termination, expiration, or other cessation.
55
What happens to an initial offer from the buyer after a seller counters?
*** It's no longer in play.**
## Footnote
If a seller (or buyer, for that matter) wants to counter an offer, it should be related to a significant term because it essentially takes the original offer out of play.
* It becomes the back-up offer.
* It's accepted by the seller until the buyer accepts the counter.
*** It's no longer in play.**
* Sellers cannot counter a buyer's initial offer.
56
Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio?
*** 75%**
## Footnote
Lenders use the lesser of the sales price or appraised value. This results in an LTV ratio of 75% ($300,000 ÷ $400,000).
* 72%
*** 75%**
* 82%
* 96%
Lenders use the lesser of the sales price or appraised value. This results in an LTV ratio of 75% ($300,000 ÷ $400,000).
57
What is the best description of a deed?
*** A document to transfer ownership/interest in real estate**
## Footnote
A deed is a method of conveying real property from one party to another. A deed should be recorded to protect the parties' interests.
* A covenant
*** A document to transfer ownership/interest in real estate**
* An abstract of title
* A recording fee
A deed is a method of conveying real property from one party to another. A deed should be recorded to protect the parties' interests.
58
Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting construction of any building taller than one story. Ronesha wants a three-story house. What should she do?
*** Conform to the deed restriction.**
## Footnote
Once placed in a deed, restrictions are binding on current and future owners. Litigation or zoning board appeals won't change or remove them.
* Apply to the zoning board of appeals for a variance.
* Check to see if the building code will permit a larger house.
*** Conform to the deed restriction.**
* File a suit against Alice to have the restriction removed.
59
Which one of the following actions would result in the legal termination of an agency agreement?
*** The term specified in the agency agreement expired.**
## Footnote
If the specified term in the agency agreement expires, the agency agreement would be terminated.
* The client wants the seller to make improvements to the property.
* The client wants to attach an addendum to the sales contract.
* There's an unexpected death in the agent's family.
*** The term specified in the agency agreement expired.**
60
A seller tells his agent that he has to sell his house quickly because of a divorce proceeding, and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Has the agent breached the duty of confidentiality owed to the client?
*** Yes, the agent should have kept this information confidential**
## Footnote
The agent breached his duty of confidentiality to his client. Even if the client has given the agent permission to note the price is flexible, providing the reduction the seller is willing to make impacts his ability to negotiate for the best price.
* No, the agent is negotiating a faster sale for the client
* No, the agent is required to disclose personal information
* No, the agent owes the customer honesty
*** Yes, the agent should have kept this information confidential**
61
A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property?
*** $1,335.67**
First, find the square footage
5.5 × 43,560 = 239,580 SF
239,580 ÷ 400 = 598.95 front feet.
$800,000 ÷ 598.95 = $1,335.67 per front foot.
## Footnote
First, find the square footage (5.5 × 43,560 = 239,580). You're given one dimension of the rectangle, so find the other: 239,580 ÷ 400 = 598.95 front feet. To find the price per front foot, $800,000 ÷ 598.95 = $1,335.67 per front foot.
*** $1,335.67**
* $2,000
* $363.64
* $598.95
First, find the square footage (5.5 × 43,560 = 239,580). You're given one dimension of the rectangle, so find the other: 239,580 ÷ 400 = 598.95 front feet. To find the price per front foot, $800,000 ÷ 598.95 = $1,335.67 per front foot.
62
Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement?
*** The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.**
## Footnote
These taxes have already been paid, so they are a prepaid item. They'll appear as a buyer debit and seller credit at closing.
* The taxes are an accrued expense, and will appear as a buyer credit and a seller
* debit.
* The taxes are an accrued expense, and will appear as a buyer debit and a seller
* credit.
* The taxes are a prepaid expense, and will appear as a buyer credit and a seller debit.
*** The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.**
63
Sylvia, who's 15 years old, and her neighbor Marge, who's 24, sign an agreement that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this?
*** Voidable**
## Footnote
A voidable contract appears to be valid, but one or both parties have the right to rescind the contract. In this case, Sylvia can enforce the contract against Marge, but Marge cannot enforce against Sylvia.
* Enforceable
* Unilateral
* Valid
*** Voidable**
A voidable contract appears to be valid, but one or both parties have the right to rescind the contract. In this case, Sylvia can enforce the contract against Marge, but Marge cannot enforce against Sylvia.
64
An example of this type of leasehold estate is a month-to-month lease.
*** Periodic estate**
## Footnote
A periodic estate automatically renews at the end of its lease term, such as at the end of a given month.
* Estate at sufferance
* Estate at will
* Estate for months
*** Periodic estate**
A periodic estate automatically renews at the end of its lease term, such as at the end of a given
month.
65
Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?
*** Joint tenancy**
## Footnote
Joint tenancy provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship.
*** Joint tenancy**
* Tenancy by the entirety
* Tenancy in common
* Tenancy in severalty
Joint tenancy provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship.
66
Oregon's agricultural land use policy has the main purpose of ______.
*** Keeping rural lands rural.**
## Footnote
Oregon Revised Statute (ORS) 215.243, Agricultural land use policy, states that exclusive farm use zoning and its accompanying owner incentives and benefits are meant to keep rural lands rural.
* Assisting the public in living safe and healthy lives.
* Creating and maximizing opportunities for exporting.
*** Keeping rural lands rural.**
* Promoting a business climate that is fair and economically viable.
67
The Flint family purchased property that was previously public land with no public right of way. The property's perimeter is marked with fencing and one gate. Many people access public land through their property. What must they do to restrict access?
*** Post "Closed to Entry" signs at entry gates and water access points.**
## Footnote
The owner is responsible for posting signage at gate and water entry locations to enforce trespassing violations.
* Capture trespassers on camera.
* Post "Closed to Entry" signs at entry gates and every 500 feet of perimeter.
*** Post "Closed to Entry" signs at entry gates and water access points.**
* Post "Closed to Entry" signs at the gate, water access points, and every 500 feet of the perimeter.
68
Which of these situations does the Americans with Disabilities Act address?
*** Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs.**
## Footnote
The Americans With Disabilities Act prohibits discrimination against those with disabilities in the delivery of programs, services, and activities, so Meridian Apartments is violating the law.
* Marcus, a property manager, routinely dismisses rental applications from families with children under the age of 18.
*** Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs.**
* Metro Agents hired an interpreter to assist Spanish-speaking clients with the real estate process.
* The Golden Gate senior housing center has no exercise or activity center for its residents.
69
A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?
*** $315,789**
## Footnote
In order to calculate this, start with 100% minus a 5% commission, which is 95% or .95. Take $300,000 and divide this amount by .95.
* $150,000
* $300,000
*** $315,789**
* $450,000
In order to calculate this, start with 100% minus a 5% commission, which is 95% or .95. Take $300,000 and divide this amount by .95.
70
Which of the following is an example of commingling?
*** Mixing earnest money with personal funds**
## Footnote
Commingling occurs when escrow funds, such as earnest money, are mixed with personal funds.
*** Mixing earnest money with personal funds**
* Mixing two earnest money deposits
* Paying licensee bonuses from forfeited escrow deposits
* Using escrow funds to pay business expenses
71
Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA?
** * Get a low 4.925% APR**
## Footnote
An ad can show the APR without disclosing all the other credit terms. But if certain other "trigger" terms are included, such as down payment, payment amount, number of payments, or interest rate (other than APR), this would require full disclosure.
* 10% down payment
* 30-year fixed rate with no points
* A monthly payment of $900
* ** Get a low 4.925% APR**
An ad can show the APR without disclosing all the other credit terms. But if certain other "trigger" terms are included, such as down payment, payment amount, number of payments, or interest rate (other than APR), this would require full disclosure.
72
Because there were no deadlines specified in the contract, a buyer delayed applying for a loan to help purchase the property. The seller ended up suing the buyer for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did the buyer fail to do?
*** Perform contractual obligations within a reasonable time.**
## Footnote
When a contract doesn't provide specific dates for the terms of the contract that need to be met, performance must take place within a "reasonable time."
* Complete their loan application correctly.
* Notify the seller about a loan contingency.
*** Perform contractual obligations within a reasonable time.**
* Talk to the seller about the seller's contingency to sell the house in order to buy another property.
73
Bernie represented Oscar in the sale of Oscar's home. They signed an exclusive right-to sell-listing agreement. If Oscar were able to find his own buyer, would he owe Bernie a commission?
*** Yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the buyer.**
## Footnote
It's easy to confuse exclusive agency and exclusive right-to-sell agreements. With exclusive agency, the seller retains the right to find a buyer and avoid paying the commission.
* No, because he found his own buyer.
* No, because Oscar retained his exclusive right to sell.
*** Yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the buyer.**
* Yes, because Oscar is not a real estate licensee.
74
What type of Oregon ownership has the right of survivorship and requires that the co-owners be
married when they take title?
*** Tenancy by entirety**
## Footnote
Tenancy by entirety usually applies to married people and involves right of survivorship.
* Joint tenancy
* Tenancy at will
*** Tenancy by entirety**
* Tenancy in common
Tenancy by entirety usually applies to married people and involves right of survivorship.
75
Assuming licensee Shannon has actual knowledge of all of the following property issues, which of these issues should she disclose to prospective buyers?
*** The upstairs bathroom has a leaky toilet.**
## Footnote
Shannon needs to tell prospective buyers about the leaky toilet, since this is a material fact and can adversely affect the property's physical condition.
* The nearby school system is one of the worst in the area.
* The neighbors like to throw a lot of parties.
* The tree in the front yard is at least 50 years old.
*** The upstairs bathroom has a leaky toilet.**
76
Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as most significant?
*** Presence of mold**
## Footnote
Any interior or external condition issues that could affect human health are considered significant, "red flag" items.
* Broken dishwasher
* Lack of deadbolts
* Non-working sump pump
*** Presence of mold**
Any interior or external condition issues that could affect human health are considered significant, "red flag" items.
77
An Oregon listing agreement must include ______.
* **An agreement expiration date**
## Footnote
Oregon requires all listing agreements to be in writing and include an expiration date.
* A copy of the seller's property disclosure
* **An agreement expiration date**
* The name of the seller's original lender, if applicable
* The transaction closing date
78
How many days does an Oregon principal broker have to review documents of agreement?
*** Seven banking days**
## Footnote
Oregon administrative rules require principal brokers to review transaction-related documents of agreement within seven banking days after they've been accepted, rejected, or withdrawn.
*** Seven banking days**
* Seven calendar days
* Three banking days
* Three calendar days
Oregon administrative rules require principal brokers to review transaction-related documents of agreement within seven banking days after they've been accepted, rejected, or withdrawn.
79
Maria is the buyer's agent, and Julia is the seller's agent in a real estate transaction in Oregon. Jack is Maria's principal broker. Julia works for Kyle's firm. From whom can Julia accept compensation?
*** Kyle**
## Footnote
Since Julia works for Kyle, he is her principal broker. Licensees may not accept compensation from anyone except their principal broker.
* Jack
*** Kyle**
* Maria
* The seller
Since Julia works for Kyle, he is her principal broker. Licensees may not accept compensation from
anyone except their principal broker.
80
Alice listed a three-bedroom home for her client, but before she finds a buyer, the home burns to the
ground. What happens to the agency agreement that Alice has with her client?
*** The agency agreement is terminated if the property is destroyed.**
## Footnote
One of the ways that an agency agreement can be terminated is through property destruction
* The agency agreement continues as created unless Alice and her client can mutually agree to terminate it.
*** The agency agreement is terminated if the property is destroyed.**
* The agency agreement must be extended until the home is rebuilt, or for six months, whichever is longer.
* The agreement must continue, but it can be modified due to the changed value of the property.
*
81
A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs
up to but not including the day of closing, has already paid annual property taxes of $1,949. How will
the closing statement reflect the proration for the seller? Use a calendar year proration, and round to
the nearest dollar.
*** Credited $1,207**
The seller is required to cover the property taxes for January 1 through May 19, which is 139 days.
The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number
of days the buyer will own the property and have to cover property taxes) = $1,206.84. That's $1,207
when rounded to the nearest whole dollar.
* ** Credited $1,207**
* Credited $742
* Debited $1,207
* Debited $742
The seller is required to cover the property taxes for January 1 through May 19, which is 139 days.
The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number
of days the buyer will own the property and have to cover property taxes) = $1,206.84. That's $1,207
when rounded to the nearest whole dollar.
82
Rupert and Wesley own a ranch they purchased in Jacksonville in 1961. Which of the following is true?
* **Their property is subject to the doctrine of prior appropriation.**
## Footnote
Rupert and Wesley's land is subject to the doctrine of prior appropriation like all Oregon land. This means that the state has the right to control the right to use any water, except for water used for certain domestic purposes.
* Their property carries littoral water rights.
* Their property carries riparian water rights.
* **Their property is subject to the doctrine of prior appropriation.**
* They control the right to use all the surface water on their property.
*
83
In a real estate transaction in which you represent the seller, what are your duties to other parties in
the transaction?
*** Treat them honestly and fairly**
## Footnote
You must treat other parties in the transaction honestly and fairly, and you must disclose all material facts.
* Be honest in all matters that do not affect your client's interests
* Be polite and courteous
* Maintain the confidentiality of all matters that other parties disclose to you
*** Treat them honestly and fairly**
84
You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give
Ben a distinct advantage if he knew. Do you tell Ben?
* **No, because you can't share one client's confidential information with another client.**
## Footnote
Dual agents must still keep their clients' information confidential, even from the other client.
* No, because agents can't share information with their clients.
* No, because it's hearsay.
* **No, because you can't share one client's confidential information with another client.**
* Yes, because Ben is your client and has a right to know.
85
Which of these statements about a conventional mortgage loan is true?
*** Borrowers with larger down payments and higher credit scores are most likely to select a conventional mortgage.**
## Footnote
The FHFA imposes loan limits on conventional mortgages; borrowers with larger down payments and better credit scores may select a conventional mortgage to avoid paying for mortgage insurance.
*** Borrowers with larger down payments and higher credit scores are most likely to select a conventional mortgage.**
* Conventional mortgages are non-conforming.
* FHA imposes loan limits (maximum loan amounts) on conventional mortgages.
* The government insures up to 25% of conventional mortgages for qualifying buyers.
86
Blake is allowed to use his property in a way that's prohibited under current zoning ordinances,
because those ordinances would cause undue hardship for him. What gives him this permission?
*** Use variance**
## Footnote
This is a use variance. In contrast, an applicant for a special use permit doesn't have to show hardship. He must simply show that the proposed use meets the conditions already contained in the
ordinance (e.g., change in setback).
* Area variance
* Moratorium
* Special use permit
*** Use variance**
This is a use variance. In contrast, an applicant for a special use permit doesn't have to show
hardship. He must simply show that the proposed use meets the conditions already contained in the
ordinance (e.g., change in setback).
87
Assuming that dual agency is legal where these scenarios occur and that the licensees' brokerages
permit it, which of these situations demonstrates illegal dual agency?
*** Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.**
## Footnote
Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.
* Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's consent to dual agency.
* Kady's firm uses representation agreements that, when signed, provide consent to
* dual licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's listings.
* Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi explains that he represents the seller but then presents Renee's offer to his client.
*** Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.**
88
Which of the following is an example of price fixing?
*** Three brokerages determine a standard commission rate.**
## Footnote
Collusion must occur on pricing for the public in order for price fixing to occur.
* A brokerage requires all licensees to offer a fair cooperative brokerage fee.
* Three brokerages agree to purchase office supplies together to obtain a bulk discount.
*** Three brokerages determine a standard commission rate.**
* Three brokerages discuss the compensation of associated independent contractor licensees.
89
What criteria must a manufactured home meet to become real property?
*** The owner owns both the home and the land where it's placed and records the deed in the county of residence.**
## Footnote
In order to qualify as real property, the owner must own both the home and the property, and must record it in the county recorder's office.
* The home is owned free and clear, and the deed is recorded in the county of residence.
* The home is recorded in the local county recorder's office.
*** The owner owns both the home and the land where it's placed and records the deed in the county of residence.**
* The owner places the home on land the owner owns.
90
A development company specializes in constructing new, energy-efficient houses. What is the best approach for an appraiser to use when appraising these homes?
*** Cost approach**
## Footnote
The cost approach is the best method to determine the cost of acquiring the land and constructing the homes.
* Appraisal process
*** Cost approach**
* Income approach
* Sales comparison approach
The cost approach is the best method to determine the cost of acquiring the land and constructing the homes.
91
Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate?
*** 6.5%**
## Footnote
Jared was paid $12,239.50, which is 70% of the amount paid to his broker as commission. That makes his firm's commission $12,239.50 ÷ .70 = $17,485. Multiply that by two for the total commission
the firm grossed, since it's shared 50/50 with a cooperating brokerage (the brokerage that brings the buyer to the sale), giving you $34,970. Then divide by the total sales amount for the brokerage's
commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%.
* 2.3%
* 3.8%
*** 6.5%**
* 7.6%
Jared was paid $12,239.50, which is 70% of the amount paid to his broker as commission. That
makes his firm's commission $12,239.50 ÷ .70 = $17,485. Multiply that by two for the total commission
the firm grossed, since it's shared 50/50 with a cooperating brokerage (the brokerage that brings the
buyer to the sale), giving you $34,970. Then divide by the total sales amount for the brokerage's
commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%.
92
Cecilia wants to purchase a home her brokerage has listed. What must she do?
*** Disclose her licensed status to all including the seller.**
## Footnote
Brokers who want to purchase a property that's listed with their brokerage must disclose their intention and licensed status to the seller.
*** Disclose her licensed status to all including the seller.**
* Notify her principal broker and receive the principal broker's written permission.
* Notify the seller and the seller's agent in writing.
* Notify the seller's agent and lender in writing.
93
A homeowner's mortgage created a lien against the property they purchased with the mortgage. What
kind of lien is this?
*** Voluntary**
## Footnote
A mortgage is a voluntary lien. With voluntary liens, people agree to have the lien placed against their real or personal property.
* General
* Special assessment
* Vendor's
* ** Voluntary**
A mortgage is a voluntary lien. With voluntary liens, people agree to have the lien placed against their
real or personal property.
94
Oregon property manager Sarah has had a trust account open for one of her property owners for six months now. How many times has Sarah had to reconcile and record a reconciliation for this trust account?
*** Six times, because the account must be reconciled once per month.**
## Footnote
Property managers in Oregon must record a reconciliation of clients' trust accounts and security deposit accounts once per month, within 30 days of the bank statement.
* Approximately 24 times, because the account must be reconciled once per week.
*** Six times, because the account must be reconciled once per month.**
* Twice, because the account must be reconciled once per fiscal quarter.
* Zero times, because the account will be reconciled upon closing.
95
Eugene property manager Simon has finely honed his record keeping skills. He's very clear on what he needs to keep in order to protect his property owner's investment, and what he needs to keep in order to stay in compliance with Oregon Administrative Rules. Which of the following record types does Simon need to keep as part of Oregon's requirements?
*** Record of deposits, disbursements, and reconciliations for all client trust and/or security deposit accounts**
## Footnote
Oregon Administrative Rules require that property managers keep record of all client trust account records, including all receipts and disbursements, deposits, and reconciliations for each client's trust
account and security deposit account.
* Record of all planned maintenance and property improvement plans with cost and investment return projections
* Record of all verbal and written communication with contracted tenants
*** Record of deposits, disbursements, and reconciliations for all client trust and/or security deposit accounts**
* Record of receipts from all property management-related business expenses reimbursable by the property owner
96
What special concern do foreclosed properties often present?
*** There could be hidden title issues.**
## Footnote
While a foreclosed property may very well be a fixer-upper, typically you should be more concerned with any hidden title issues it may have.
* Buying the property at a discount may have tax implications.
* The homeowners may or may not have property insurance.
* The property sale may be subject to additional fees that will be passed to the new buyer.
*** There could be hidden title issues.**
97
Jason, an Oregon licensee, has just completed a listing agreement with a new seller client. How long
must Jason retain this document?
* **Six years**
## Footnote
While the exact retention date depends on the document type (from date of creation, from date of account closure, etc.), all documents, regardless of type, must be retained for no fewer than six years.
* Six months
* **Six years**
* Three years
* Until the close of the transaction
While the exact retention date depends on the document type (from date of creation, from date of
account closure, etc.), all documents, regardless of type, must be retained for no fewer than six years.
98
Jim represents Joel in the sale of Joel's country acreage and house. Jim's business partner, Rolly, informed Jim that he wants to put an offer in to purchase the property, with the intention to subdivide it. Which statement best represents the disclosure requirements regarding this transaction?
*** Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property.**
## Footnote
Jim must disclose all material facts of which he has actual knowledge. This includes the conflict of interest presented because Rolly is his business partner, and the fact that Rolly and intends to buy the
property and then subdivide it, as that may affect Joel's decision.
* Because Jim isn't buying the property for himself, he has no disclosure requirements.
* Jim may disclose that he's partners with Rolly, only if Rolly agrees.
*** Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property.**
* Rolly must disclose that he and Jim are business partners.
99
An agent has a signed listing agreement with his clients. In exchange for helping the clients list, market, and sell their home, they have agreed to pay the agent a commission. What type of agreement is being made between the agent and the clients?
* **Bilateral**
## Footnote
A contract involving an exchange of promises or other consideration between two parties is a bilateral contract.
* **Bilateral**
* Executed
* Mutual
* Unilateral
A contract involving an exchange of promises or other consideration between two parties is a bilateral contract.
100
Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor?
*** Whether the licensee receives benefits from the brokerage firm**
## Footnote
The IRS considers a number of factors when determining whether a licensee should be classified as an employee or an independent contractor, including whether the licensee receives benefits from the
firm
* Whether another broker supervises the licensee
* Whether the brokerage offers regular guidance and instruction to the licensee
* Whether the firm provides the licensee with a copy of the brokerage's policies and procedures manual
*** Whether the licensee receives benefits from the brokerage firm**
101
Because Oregon property managers do a lot of number crunching and prepare monthly and yearly
financial reports, they must have a command of ______.
*** Generally accepted accounting principles**
## Footnote
Because of their bookkeeping and financial reporting responsibilities, property managers must have a command of generally accepted accounting principles.
* Advanced spreadsheet formulas
*** Generally accepted accounting principles**
* Several programming languages
* The English language
Because of their bookkeeping and financial reporting responsibilities, property managers must have a
command of generally accepted accounting principles
102
Subdivision regulations imposed by developers in an effort to maintain control of the development of
the subdivision are an example of ______.
*** Private land use control**
## Footnote
Subdivision regulations, such as deed restrictions imposed by developers, are private land controls.
* Eminent domain
*** Private land use control**
* Profit limitations
* Taxation
Subdivision regulations, such as deed restrictions imposed by developers, are private land controls.
103
The Wharton's are buying house on a flag lot and would like to create an easement through their neighbors' field to give the sun access to their solar panels. How can they go about doing this?
*** They should get permission from the neighboring property owners and the county.**
## Footnote
Oregon statutes expressly permit property owners to create solar and wind easements to ensure access to both sunlight and wind. Owners who need to create an easement must negotiate the easement with their neighboring property owners and then obtain the county's approval
* They can't. The state of Oregon does not allow it.
*** They should get permission from the neighboring property owners and the county.**
* They should obtain the county's approval.
* They should persuade the sellers to include a provision in the sales contract that allows them to do this.
