OR-STAT Flashcards
In which scenario would the applicant qualify for the veteran home loan program in Oregon?
* Rudy served in the navy for 6 months before she was injured on duty, honorably discharged, and now wants to buy a small single-family home to live in.
Since she served over 90 days, released under honorable conditions, and plans on buying a single family home, Rudy is the only one qualified for an Oregon VA loan.
- Dalton has served in the military for 40 years and has now been honorably discharged. He’d like to buy his fifth home for he and his to live in after retirement.
- Damian was in the marines for 9 years but was discharged due to bad conduct.
- Lucian was in the air force for 18 years before retiring and now wants to buy a duplex to manage and use as a rental.
* Rudy served in the navy for 6 months before she was injured on duty, honorably discharged, and now wants to buy a small single-family home to live in.
What’s one reason that buyers might need additional cash at closing for a short sale?
* Short sales don’t clear liens from the title, so buyers may have to pay debts at closing.
When a property is sold through a short sale, it hasn’t been through the lien-clearing process. In order to take possession of the title, buyers may have to first pay any debts or liens against the title.
- Interest rates are higher for short sale transactions.
- Mortgage origination fees are higher for short sale transactions.
* Short sales don’t clear liens from the title, so buyers may have to pay debts at closing. - Short sales include a commission premium for the listing agent.
Which survey system is also known as the public land survey system (PLSS)?
* Rectangular government survey
The rectangular government survey system is also known as the public land survey system (PLSS) and is regulated by the U.S. Department of the Interior, Bureau of Land Management.
- Address and zip code
- Lot and block
- Metes and bounds
* Rectangular government survey
What does CC&R stand for?
* Covenants, conditions, and restrictions
Covenants, conditions, and restrictions are there to codify contingencies, agreements, and limits regarding the use of a property.
- Carparks, curbs, and roadways
- Conditions, consideration, and reports
- Condominiums, cooperatives, and residential housing.
* Covenants, conditions, and restrictions
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided?
* Barbie owns two-thirds, and Midge owns one-third.
Joint tenancy includes the right of survivorship, so Ken’s interest will pass to the other tenants. But because Midge bought in later than the others, she isn’t considered a joint tenant. Ken’s share will therefore pass entirely to Barbie.
- Barbie and Midge each own 50%.
- Barbie and Skipper each own 50%.
- Barbie, Midge, and Ken’s heirs each own one-third.
* Barbie owns two-thirds, and Midge owns one-third.
What type of interest involves the property ownership going back to the original owner at the end of the life estate?
* Reversionary interest
With reversionary interest, the estate reverts to the original owner at the end of the life estate if another person isn’t named as a remainderman.
- Dual ownership
- Pur autre vie
- Remainder interest
* Reversionary interest
When looking at a rectangular survey system map, where would Section 36 be located?
* The southeastern-most section of the township
The numbers on the grid start with Section 1 in the northeastern corner of the township, then follow a zigzag pattern, with Section 36 in the southeastern-most corner.
- The exact center of the township
- The northeastern-most section of the township
* The southeastern-most section of the township - The southwestern-most section of the township
Who defines construction lien procedures?
* States
Your state laws define the procedures for filing an enforceable mechanic’s lien
- Builders
- Consumers
- Lenders
* States
Which of the following may an owner place on the land when it’s sold to limit the use of the property?
* Deed restriction
An owner may place a deed restriction on a property to preserve the use of the property or to preserve the quality of the neighborhood?
- Charter
* Deed restriction - Lis pendens
- Subordination agreement
Which of the following describes a deed restriction?
* It can be placed on a single property, an entire subdivision, or a neighborhood.
A subdivision developer may place deed restrictions prior to offering properties for sale.
* It can be placed on a single property, an entire subdivision, or a neighborhood.
* It ensures compliance with zoning and public safety and preserves property value.
* It must be placed by the property owner within one year of purchasing the property.
* It’s limited to three years in duration.
Which of the following defines a subdivision?
* A tract of land divided into lots or plots and used for building purposes
A subdivision is a tract of land divided into lots or plots that are used for building purposes
- A map showing the location of districts throughout the municipality
- A survey of the social and economic statistics of the land
* A tract of land divided into lots or plots and used for building purposes - A transition area between uplands and aquatic habitats
Lisa and Geoff own 100 acres of undeveloped land in eastern Oregon. A wind energy company contacted them about using their property for wind turbines. What should the lease agreement include to protect all parties involved?
* Property location, parties using the property, statement of use, fees paid for use, and the defined unobstructed space requirement
The lease agreement should include the property location, how it will be used, and its space requirements.
- Property location, parties using the property, fees paid for use, and proof the wind turbines are registered with the local government
- Property location, parties using the property, statement of use, and proof the wind turbines are registered with the local government
* Property location, parties using the property, statement of use, fees paid for use, and the defined unobstructed space requirement - Property location, the defined unobstructed space requirement, and proof the wind turbines are registered with the local government
Which type of Oregon ownership includes unity of time, title, interest, possession, and marriage?
* Tenancy by the entirety
This is tenancy by the entirety. It’s similar to joint tenancy in that it has the right of survivorship and includes unity of time, title, interest, possession, but with marriage added
- Estate in severalty
- Joint tenancy
* Tenancy by the entirety - Tenancy in common
Which Oregon term refers to the rights of an owner of a property that touches a stream or river?
* Riparian
Riparian refers to the rights of an owner of a property that touches a stream or river.
- Accretion
- Littoral
- Prior appropriation
* Riparian
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
Tenancy by entirety usually applies to married people and involves right of survivorship.
- Joint tenancy
- Tenancy at will
* Tenancy by entirety - Tenancy in common
When referring to private land use restrictions, fence height, additional structures, and architectural design are generally categorized under ______.
* Covenants
Fence height, additional structures, and architectural design typically would be categorized under covenants. (HOA restrictions are typically set up as covenants.
- Codes
- Conditions
- Contingencies
* Covenants
Where would Section 1 be located when looking at a rectangular government survey system map?
* The northeastern-most section of the township
The numbers on the grid start with Section 1 in the northeastern corner of the township, and then follow a zigzag pattern, with Section 36 in the southeastern most corner.
- The exact center of the township
* The northeastern-most section of the township - The southeastern-most section of the township
- The southwestern-most section of the township
What is a common title defect in Oregon that originated from the secondary mortgage market?
* Loans traded on the mortgage electronic registration system (MERS) resulted in questions of ownership.
Lenders had trouble exchanging loans on the secondary mortgage market.
- Boundary issues caused by lender error.
- Loans sold on the secondary mortgage market were more susceptible to forgeries.
* Loans traded on the mortgage electronic registration system (MERS) resulted in questions of ownership. - Title companies that worked in the secondary mortgage market missed liens on properties.
Mark purchased his home for $485,000. Last year, his assessment showed his property valued at $495,000. What is the maximum assessment allowed when the maximum is calculated using 103% of assessed value?
- $495,000
- $499,550
* $509,850 - $519,750
The last year’s assessment is multiplied by 103% to determine the maximum assessed value.
* $509,850
Which type of home can’t be classified as real property?
- Manufactured
* Mobile - Modular
- Panelized
Because a mobile home was built before HUD construction standards were implemented in 1976, this type of home isn’t eligible for classification as real property.
* Mobile
Why was the Oregon Trust Deed Act created?
- 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.
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 there would be no question about who was the beneficiary of a loan in the case of non-judicial foreclosure.
The right to access navigable ponds, lakes, and other stationary bodies of water is called _________
rights.
- Homeownership
* Littoral - Mineral
- Riparian
Littoral rights are related to lakes and oceans. Remember that littoral and lake both start with L.
* Littoral
In which form of co-ownership is a person’s ownership inheritable?
- Joint tenancy
- Tenancy by the entirety
* Tenancy in common - Tenancy in severalty
With tenancy in common, if one owner dies, that person’s ownership is inheritable. It doesn’t automatically pass to the other owners as it would with joint tenancy
* Tenancy in common
Which of the following people or groups is not likely to be charged with discrimination related to a real estate transaction?
- Brokers
- Builders
* Buyers - Sellers
Anti-discrimination laws apply to brokers, owners, landlords, managers and operators, developers, homeowners associations, builders, insurance agents, and financial institutions
*Buyers
The Crows gave their son, Gibson, the family property, so long as he doesn’t join his friend’s rock band. If he joins the band, the property goes back to them. What type of estate is this?
- Fee simple absolute
- Fee simple defendable
* Fee simple determinable - Fee simple subject to a condition subsequent
With fee simple determinable, the property holder owns the property subject to a condition. If the condition is breached, then the property will go back to the original owner
* Fee simple determinable
Which of these lenders would be least likely to approve a short sale?
- Conventional lenders
- Credit unions
- First loan lenders
* Junior lenders
Junior lenders are least likely to approve a short sale. Because they’re in a secondary position when it comes to liens against the property, they realize that there may not be any money left to pay them after the lender in first position is paid.
* Junior lenders
Annie is developing a new condominium project. Under the Oregon Condominium Act, which of the
following must she do?
- 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.
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
* Create and file a declaration in the county’s land records office.
What criteria must a manufactured home meet to become real property?
- 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.
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 owner owns both the home and the land where it’s placed and records the deed in the county of residence.
What must the final plat plan contain when it’s submitted?
- A list of sold properties, a list of easements, and construction plans
* A list of street names, a list of properties numbered and described, and a list of easements - Receipt of taxes paid, a list of easements, and a legal property description
- Transcript of public hearings, a list of numbered properties, and a list of street names
All space has to be accounted for, including lots, easements, and named streets.
* A list of street names, a list of properties numbered and described, and a list of easements
When Oregon real estate professionals comply with fair housing laws, they help to ______ and create an equal opportunity for all citizens to build wealth with their housing choices.
- Build secularism
- Maintain the status quo
* Prevent discrimination - Prevent racial profiling
Housing discrimination limits housing choice, which reduces victims of discrimination’s ability to build wealth through homeownership
* Prevent discrimination
Alex is representing Dawn, who has moved out of state and listed her condo in Lake Oswego. Which
of the following would be considered a stigma that Alex may not disclose?
* Dawn had dogs on the property.
* Dawn was a hoarder.
* The property has an underground tank.
* The roof is missing several tiles.
In Oregon, stigmatizing information about a property is not a material fact and may not be disclosed by real estate licensees. Hoarding is considered a stigma and not a material fact.
* Dawn was a hoarder.
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 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.
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 should get permission from the neighboring property owners and the county.
What’s the name of the Oregon government agency responsible for overseeing recording of ownership
of manufactured homes?
* Building Codes Division
* Department of Consumer and Business Services
* Land Use Board of Appeals
* Oregon Board of Examiners for Engineering and Land Surveying
The Building Codes Division is responsible for tracking information regarding ownership, security interest, and location of all manufactured homes not deeded as real property.
* Building Codes Division
Dale represents Taylor, the seller of an old farm outside of Eugene. Which of the following constitutes
a material fact that Dale must disclose?
- Taylor is extremely motivated to sell and is willing to accept low offers.
* The farm has a problem with mold. - The farm has a reputation for being haunted.
- The farm was once the site of a religious cult.
Taylor’s motivation is confidential information. The reputation and previous religious affiliations are stigmas that licensees may not disclose. However, the mold problem is a material fact and must be
disclosed
* The farm has a problem with mold.
Rupert and Wesley own a ranch they purchased in Jacksonville in 1961. Which of the following is true?
- 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.
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 is subject to the doctrine of prior appropriation.
When a lender sells a property at auction due to the borrower’s default on the mortgage, it’s called a:
* Foreclosure
* Granted release sale
* REO
* Short sale
It’s called foreclosure. This is true whether it a lender or other lien holder initiated the sale. An example other than a lender would be the local taxing authority for nonpayment of property taxes.
* Foreclosure
Shemar owns a starter home a few miles outside of the city center, and he wants to deed it to his grandson, Tyler. According to the paperwork Shemar had drawn up, Tyler will own the property as long as he continues to pay the property taxes on time. After the second missed property tax payment, ownership would revert to Shemar. What did Shemar place on the deed?
- CC&Rs
- Deed condition
- Deed covenant
- Deed limitation
A condition grants ownership with a requirement placed on the new owner using specific language in the deed. If the condition is violated, the current owner may lose the property.
Deed condition
- Jenny decided to bid on a house in her neighborhood. The auctioneer announced the lowest bid that
will buy the property. This is a(n) ______ auction. - Absolute
* Minimum bid - One money
- Reserve**
In a minimum bid auction, bidders are told the minimum bid that will win the auction. The auctioneer will likely ask for an opening bid of this amount.
* Minimum bid
Which of the following contains details about the individual condominium units?
- The bylaws
- The covenants
* The declaration - The disclosure
The condominium declaration contains details about the layout and dimensions of the individual units in the development
* The declaration
Oregon water rights include groundwater, which is also known as ___________.
- Liquid gold
* Percolating water - Recycled water
- Riparian water
Groundwater and percolating water are both terms used to refer to the water found below the earth’s surface.
* Percolating water
Which term means “for another’s life”?
- Fee simple
* Pur autre vie - Remainderman
- Reversion
Pur autre vie is a legal term that means “for another’s life.”
* Pur autre vie
Which of the following is considered a latent defect in Oregon?
- Defect in ability to finance
- Environmental hazard
- Health hazard
* Hidden structural issue
Hidden structural issues that wouldn’t show up in the course of a routine inspection are latent defects.
* Hidden structural issue
What methodologies are used when calculating real market value?
* Amount a property will sell for, can be financed for, or would be compensated for if destroyed
* Maximum assessed value minus 5%
* Price paid in the last six months for comparable properties
* Value of surrounding homes
The real market value is determined by the property’s cash value amount if sold or destroyed.
* Amount a property will sell for, can be financed for, or would be compensated for if destroyed
If you purchase a home and have all the rights of ownership, including the right to sell and to convey the property to heirs at your death, what type of estate do you have?
* Fee simple absolute
* Fee simple defeasible
* Fee simple determinable
* Fee simple subject to a condition subsequent
With a fee simple absolute estate, the property owner is granted all rights to the property by law.
* Fee simple absolute
What Oregon license is required to sell a manufactured home that’s been removed from deed records?
* A Manufactured Structures Dealer’s license
* A real estate license
* Both a real estate or Manufactured Structures Dealer’s license
* Either a real estate or Manufactured Structures Dealer’s license
If a manufactured home is sold separately from the land, for example a home located in a mobile home park, the manufactured/mobile home would be considered personal property and a Manufactured Structures Dealer’s license would be required. The same is true of any manufactured home not classified as real property.
* A Manufactured Structures Dealer’s license
At what phase of subdivision development can lots be sold?
- Final plat approved
* Plat approved, finalized, and recorded with the county - Plat drafted and surveyed
- Public hearing held and plat plan submitted.
The plat plan has to be approved and filed with the county where the property exists before any lots can be sold.
* Plat approved, finalized, and recorded with the county
Which of these is true about the assessed value of real estate?
- It is typical for the assessed value to increase by 5% or more per year.
* It’s the value used to calculate the property taxes, and it’s based on a percentage of the market value. - Property taxes are based on real market value and not assessed value.
- The assessed value of a property will almost always be higher than real market value.
Assessed value of a property is a percentage of the market value, and it’s used to calculate the amount of property tax the owner will pay
* It’s the value used to calculate the property taxes, and it’s based on a percentage of the market value.
Seller Jack knows that his property was once the site of a meth lab. What should he do?
* Disclose the information to potential buyers
* Let the property inspector handle it
* Plead ignorance
* Tell no one
Sellers should disclose past meth production to potential buyers.
* Disclose the information to potential buyers
Quinn lives in Portland and is looking for some middle housing to buy. Which of the following would most likely meet her needs?
- A single-family home in the center of town
- A single-family home on a corner lot
* A townhome a half mile from the local shopping center - A unit in a mid-rise condo building
*
Per Oregon law, “middle housing” is defined as: duplexes, triplexes, quadplexes, cottage clusters, and townhouses
* A townhome a half mile from the local shopping center
What must an Oregon buyer do after purchasing a farm deferral property to retain the deferral?
Nothing, the special assessment stays with the land.
- Submit a claim to the state.
- The buyer must apply for a new special assessment.
- The seller must transfer the assessment to the buyer.
According to Oregon Revised Statute (ORS) 308A.116(2), any land that is zoned as Exclusive Farm Use can be granted a special assessment for the taxes they’d owe, commonly called a farm deferral. The special assessment is not affected by the change of ownership. The special assessment stays with the land, unless it is small tract forestland, or highest and best use forestland
**
* Nothing, the special assessment stays with the land.**
What must the final plat plan contain when it’s submitted?
* A list of street names, a list of properties numbered and described, and a list of easements
All space has to be accounted for, including lots, easements, and named streets
- A list of sold properties, a list of easements, and construction plans
* A list of street names, a list of properties numbered and described, and a list of easements. - Receipt of taxes paid, a list of easements, and a legal property description
- Transcript of public hearings, a list of numbered properties, and a list of street names
When you sign a listing agreement with an Oregon seller, which of these actions will you take to fulfill your duties as a listing agent?
* Expose the property to the greatest number of potential buyers through your marketing.
Your duty as a listing agent is to protect your seller client’s interests, so you’ll use appropriate marketing methods to expose the property to the greatest number of potential buyers.
- Encourage the seller to work with you as a limited agent for the quickest sale.
* Expose the property to the greatest number of potential buyers through your marketing. - Filter interested buyers according to how they’ll fit in with the neighborhood.
- List the property at the highest price the market will bear to maximize your commission
Rebecca has moved all of her Oregon property management files to an off-site location. It has a 24-hour security guard with cameras, locks, and other security measures. Rebecca has a few things left to do to ensure her files are being stored properly. Which of these is among them?
* Provide the real estate commissioner with new location information and authorization to access to files.
When files are kept in a location other than a property manager’s main office, the commissioner must be notified of their location five days prior to their relocation, be given information on how to access the records, and also be given authorization to exam them.
- Duplicate the files, with at least one copy being stored at the Rebecca’s main office.
- Ensure a maximum of 50% of archived files are kept in a single location to minimize risk in case of a break-in.
- Ensure only the real estate commissioner has access to the files.
* Provide the real estate commissioner with new location information and authorization to access to files.
The agency takes a progressive discipline approach to license violations. What is the intent of this approach?
* Curb repeated violations, reinforce licensee expectations, and increase licensee knowledge of applicable laws and rules.
The goal of the progressive discipline is to educate and improve future behavior
- Allow more lenient enforcement of laws and draw new licensees to the area.
* Curb repeated violations, reinforce licensee expectations, and increase licensee knowledge of applicable laws and rules. - Inform licensee of legal rights and provide stricter disciplinary measures.
- Prohibit licensees from operating, set standards of conduct, and assign a probation officer.
At what phase of subdivision development can lots be sold?
* Plat approved, finalized, and recorded with the county
The plat plan has to be approved and filed with the county where the property exists before any lots can be sold.
- Final plat approved
* Plat approved, finalized, and recorded with the county - Plat drafted and surveyed
- Public hearing held and plat plan submitted
Which party isn’t required to comply with fair housing laws?
* A renter who gets a roommate through Craigslist
Oregon laws on discriminatory practices mirror the federal Fair Housing Act. Fair housing laws apply to anyone with an ownership interest in real property, real estate licensees and organizations, mortgage loan providers, and appraisers.
- An appraiser who works solely with commercial properties
- A real estate licensee working solely with auction properties
* A renter who gets a roommate through Craigslist - A silent partner who owns 10% of a 15-unit apartment complex
Which of the following, when done for others and for compensation, may be done by someone who doesn’t hold an Oregon real estate license?
* Performing official real estate duties as an Oregon government employee
Licensure is nearly always required when performing real estate activities for others for compensation, but exceptions are made for state employees.
- Negotiating the exchange of real estate
- Negotiating the sale or exchange of lots or parcels of land
* Performing official real estate duties as an Oregon government employee - Selling or offering to sell real estate
David’s principal broker Arnold meets with each associated broker once a month to look over their financial records. David knows the requirements, so he stays out of the hot seat by making sure all of his records include ______.
* Copies of all checks, receipts, and notes on funds received including details like date, time, and purpose.
Principal brokers will need all financial records, but specifically: receipts for any acceptance of funds; copies of all checks; check details such as date received, payor, purpose, file reference, and date delivered; and any deposit records.
- Copies of all checks and receipts
* Copies of all checks, receipts, and notes on funds received including details like date, time, and purpose. - Copies of all receipts and notes on funds received including details like date, time, and purpose
- Notes on funds received, including details like date, time, and purpose
How many days does an Oregon principal broker have to review documents of agreement?
* Seven banking 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.
* Seven banking days
* Seven calendar days
* Three banking days
* Three calendar days
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. **
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.
What government agency has the authority to approve land division?
The city has jurisdiction up to six miles outside the city limits, and the county has authority beyond the city limits.
The city has authority over the surrounding area, which then becomes the county’s jurisdiction.
Jurisdiction is divided by the state into districts that approve land division.
The city has jurisdiction up to six miles outside city limits, and the state regulates beyond the city limits.
The city has jurisdiction up to six miles outside the city limits, and the county has authority beyond the city limits.
The county has jurisdiction over all land within its boundaries.
Renee is preparing a competitive market analysis for her clients. Which of the following sold properties is the best to use in her data collection as evidence for the suggested value?
** A property that sold three to six months previously**
Renee should use the property that sold in the last three to six months as evidence for the suggested value.
A property that sold 12 to 18 months previously
A property that sold 18 to 24 months previously
** A property that sold three to six months previously**
A property that sold two to three years previously
SB 608, which changes Oregon’s no-cause eviction law, applies to ______.
* All landlords except those who live in a one- or two-unit rental.
Landlords who live on the same property with the tenant (owner-occupied, one to two units) may use a no-cause eviction at any time.
* All landlords except those who live in a one- or two-unit rental.
* All landlords who don’t live in their units
* Landlords with 10 or more units only
* Landlords with five or more units
If the ____ determines that no licensing violation has occurred, then a complaint against an Oregon
licensee may be dropped.
* Oregon Real Estate Agency
The Oregon Real Estate Agency is responsible for creating an initial investigative report and determining whether or not a violation occurred
- Judge
* Oregon Real Estate Agency - Principal broker
- Secretary of state
Tina is a master gardener who uses Tim’s land to develop a garden. Tina pays Tim a fee to use his land for gardening. What are the limits to the amount Tina pays Tim so that liability is Tina’s responsibility?
* $25 per year for use of land for gardening
Oregon laws require the amount collected to be below the set amount of $25 per year but is subject to change. If that amount is exceeded, the landowner becomes liable.
* $25 per year for use of land for gardening
* A flat fee per visit
* A percentage of each guided trip fee that’s reported to the county tax assessor
* A percentage of each guided trip fee that’s reported to the county tax assessor when clients sign a liability waiver
Alex is representing Dawn, who has moved out of state and listed her condo in Lake Oswego. Which of the following would be considered a stigma that Alex may not disclose?
* Dawn was a hoarder.
In Oregon, stigmatizing information about a property is not a material fact and may not be disclosed by real estate licensees. Hoarding is considered a stigma and not a material fact.
- Dawn had dogs on the property.
* Dawn was a hoarder. - The property has an underground tank.
- The roof is missing several tiles.
Clarence is an Oregon property manager who’s performing a three-way reconciliation. He’s compared the bank statement balance-adjusting for any outstanding checks or receipts-to the balance on his receipts and disbursements journal for the same date. How should these numbers compare?
* They should match.
When reconciling, after adjusting for outstanding checks and receipts, compare the adjusted ending bank balance to the balance on the same date in the receipts and disbursements journal on the reconciliation worksheet. They should match.
- The journal amount should be larger than the bank balance.
- The journal amount should be smaller than the bank balance.
- The journal should include interest that doesn’t show up on the bank statement.
* They should match.
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
This is fraud. Melissa intentionally failed to disclose a material fact about the listing.
- Collusion
* Fraud - Negligent misrepresentation
- Unintentional misrepresentation
To disburse disputed funds an Oregon principal broker may give notice to both parties then _____.
* Wait 20 days before refunding the money to the buyer
After notice is provided and waiting 20 days, the principal broker may refund the money to the buyer. The parties may come to an agreement on their own during those 20 days or may decide to take the matter to court.
- Wait 20 days before forfeiting the money to the state
* Wait 20 days before refunding the money to the buyer - Wait 20 days before refunding the money to the seller
- Wait 20 days before transferring the funds to a business operating account
In what way(s) do consumers compensate Oregon brokers for their services?
* As a flat fee, fee for service, and/or percentage of sale
Consumers generally compensate brokers for their services in the form of a percentage of the sales price of the property, but other options include a flat fee or fee for service.
- As a fee for service only
* As a flat fee, fee for service, and/or percentage of sale - As a flat fee only
- As a percentage of the sales price only
Which of the following is considered a latent defect in Oregon?
* Hidden structural issue
Hidden structural issues that wouldn’t show up in the course of a routine inspection are latent defects.
- Defect in ability to finance
- Environmental hazard
- Health hazard
* Hidden structural issue
Principal broker John is often extremely busy supervising his brokerage and training new licensees. He doesn’t have time for his own clients, so he frequently sends his wife Maria to meet with clients to sign transactional paperwork under his license. Maria doesn’t hold a real estate license but she does have a power of attorney (POA) for John and can therefore represent him in his real estate dealings. .
All fees are paid to John. What is the issue with John doing this?
* John is prohibited from allowing anyone to use his principal broker’s license in order to perform real estate activities.
In Oregon, principal brokers can’t let anyone use their license in order to perform real estate activities, even if the principal broker receives the fee.
* John is prohibited from allowing anyone to use his principal broker’s license in order to perform real estate activities.
* Maria should be paid any fees due.
* There is no issue as long as Maria has a POA for John.
* There is no issue as long as the fees are paid directly to John.
Dawn is filing a complaint against her real estate broker. In her complaint she included her contact information, supporting documents, and signature. What other documents should she include to aid in the complaint investigation?
* Witnesses and licensee contact information
Providing contact information for witnesses and the licensee will aid in the investigation.
- Amount requested for damages
- Character references
- Fees and process serving forms
* Witnesses and licensee contact information
Who defines construction lien procedures?
* States
Your state laws define the procedures for filing an enforceable mechanic’s lien.
- Builders
- Consumers
- Lenders
* States
Don just filed a construction lien for a kitchen countertop that he installed. How long is the lien good for?
* 120 days
The lien notice reserves the right to lien and ceases 120 days after work completion unless a claim is filed with the county recorder or a statement is served to the homeowner of the intent to lien.
* 120 days
* 45 days
* 90 days
* Three years
James has been assigned by court order to handle a principal’s trust funds. What are the license requirements for James?
* There is no requirement to have any type of license.
Real estate activities performed under a court order do not require a license.
- He’ll need to have an escrow license.
- He must have a principal broker license.
- He’s required to have a broker license.
* There is no requirement to have any type of license.
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.
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.
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
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
In a disclosed limited agency relationship, a licensee is engaged as an agent with two parties in a transaction and owes them both _____.
* Fiduciary and statutory duties
In a disclosed limited agency agreement, Oregon statutes dictate that the representing agent owes all fiduciary and statutory duties to both parties in the transaction.
- A speedy resolution
- Complete loyalty
* Fiduciary and statutory duties - Undivided attention
A copy of the acknowledged notice of opening a trust account must be maintained for six years
following the ____________.
* Account’s closing
Trust account records must be kept for six years from the date the records were received or created, whichever came later.
* Account’s closing
* Deposit of the funds
* Seller’s offer acceptance
* Tendering of funds by the buyer
Oregon principal broker Danny oversees his main office and a branch office that’s 20 miles away. For efficiency, his policy is generally for his branch office to keep all of its own records at its location, rather than transporting them all to the main office. Is Danny in compliance with Oregon law?
* Yes, records may be stored at the principal broker’s main office or at the branch office where the record originated.
Records may be stored at the principal broker’s main office, at the branch office where the record originated, or at an off-site location when specific OAR requirements are met.
- No, all records must be held in a neutral, off-site location.
- No, all records must be stored at the main office.
- Yes, as long as the same principal broker oversees both offices, records can be stored at either location.
* Yes, records may be stored at the principal broker’s main office or at the branch office where the record originated.
When assessing penalties for practicing real estate without a license, the Oregon agency may ______.
* Impose fines for each violation
The agency may impose fines for each violation separately.
- Be more lenient if fewer transactions are involved
- Encourage the buyers and sellers who were parties to the transactions to sue for damages
* Impose fines for each violation - Take into consideration the amount of commission earned in each transaction
Which of the following are landlords NOT required to maintain according to Oregon law?
* Tenant-installed water filtration system
Tenant-installed items are the responsibility of the tenant, not the landlord.
- Carbon monoxide alarms
- Ceilings
- Supplied appliances
* Tenant-installed water filtration system
Which statement best describes your responsibility, as an Oregon agent, when presenting offers to a client?
* Present all offers in a timely manner.
It is your responsibility to present all offers to a client in a timely manner.
- Don’t present offers below the asking price.
* Present all offers in a timely manner. - Present only offers at asking price.
- Use your own judgment to decide which offers to present.
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.
- 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.
Keeping your continuing education coursework log is similar to keeping tax records. For how long
does the agency suggest keeping education records?
* One year longer than your license renewal period
It’s three years-a year longer than the license renewal period. This is really a safety measure in case something doesn’t get recorded and it’s just smart record keeping practice.
- As long as you are an active licensee
* One year longer than your license renewal period - Seven years just like for the IRS
- Until your license is up for renewal
Why might a lender pay a fee for a broker price opinion?
* To get an estimate of value in case of foreclosures or short sales
Lenders may pay for an estimate of value, or BPO, in case they have to take over a property and sell it.
- To get an appraisal to determine value for a loan
* To get an estimate of value in case of foreclosures or short sales - To help the seller set an appropriate listing price
- To use mathematical modeling to analyze a property
Receipts must be issued for all cash funds received related to the management of rental property in Oregon. Those receipts must include the date, the amount, the tenant or machine from which the cash was received, the owner ID code, the name and signature of the person who received the funds, and _______.
* The purpose of the deposit
Cash receipts must be pre-numbered consecutively and in duplicate, and they must contain the date, amount, owner ID code, tenant or machine involved, payee, name and signature of the recipient, and the purpose (such as, “laundry machine income”).
- The denomination details
- The estimated deposit date
* The purpose of the deposit - The time of day
Jamie makes an offer on Tiffany’s house. Tiffany counters that offer on price alone, and Jamie accepts that counter-offer. How should these changes be made?
* The changes must be in writing with the date and all parties’ signatures.
The licensee must make sure that any changes or modifications made during the negotiation process are in the counter-offer or addenda and are dated and signed by all parties before proceeding with the transaction.
- The changes must be agreed to verbally by both parties in the presence of one or both of the parties’ agents.
- The changes must be in writing, and then initialed and dated by the buyer’s and seller’s agents.
* The changes must be in writing with the date and all parties’ signatures. - The changes must be in writing with the initials of the licensee who authorized the changes.
Which of the following is a true statement regarding promissory notes used as earnest money in Oregon?
* They’re payable to the seller upon acceptance of the buyer’s offer.
Promissory notes used as earnest money in Oregon are generally payable when the seller accepts the buyer’s offer or at another agreed upon time following the seller’s acceptance.
- They’re payable at closing.
- They’re payable immediately.
* They’re payable to the seller upon acceptance of the buyer’s offer. - They’re payable to the seller upon financing approval.
Licensee Conner has been investigated by the state of Oregon for commingling. What has Conner done to violate the license law?
* He deposited a buyer’s earnest money funds into his personal account.
Commingling is mixing trust funds, such as earnest money, with personal funds, and it’s a violation Oregon license law.
- He accepted a commission from a client for performing real estate activities.
* He deposited a buyer’s earnest money funds into his personal account. - He obtained informed consent from all parties to act as a dual agent in a transaction.
- He refused to comply with his buyer client’s request to show her only properties in neighborhoods with a specific racial make-up.
A listing ad in The Medford Mail Tribune states, “Within walking distance to restaurants, nightclubs, shopping, and schools.” Does this violate fair housing law?
* No, because “walking distance” refers to a property-related factor.
Walking distance has been determined to not be a violation, but to avoid offending those who have difficulty walking, consider using the phrase “close to” instead of “within walking distance.”
- No, because it lists amenities used by both adults and children.
* No, because “walking distance” refers to a property-related factor. - Yes, because it includes the term “walking.”
- Yes, because it lists specific amenities.
How long does a licensee have to hand over an earnest money check to the principal broker after
accepting the check?
* Three banking days
Brokers must turn over any trust funds they receive to their principal brokers within three banking days of receipt.
- 10 banking days
- Five banking days
- One banking day
* Three banking days
In Oregon, your principal broker’s name or business name must be included the physical address of the main brokerage office, and:
* Use the business name on active record.
The Oregon Real Estate Agency stipulates that a registered business name must include the physical address of the main brokerage office and the corporate name, cooperative name, limited partnership name, business trust name, or assumed business name of active record with the Office of the Secretary of State.
- Include the names of all the licensees who will be operating under this business name.
- Include the post office box address.
- Must be on the upper left corner of all advertising.
* Use the business name on active record.
Margie is the broker for the seller, and Angel is the broker for the buyer. Both of them work for principal broker Matt. Who is the disclosed limited agent?
* Matt
Matt is ultimately responsible for the transaction even though the buyer and seller have agreements with their own brokers. Thus Matt serves as the disclosed limited agent.
- Angel
- Angel and Margie
- Margie
* Matt
Real estate broker Joseph’s clients just accepted an offer from a family wanting to buy their cottage and now has a signed agreement. Joseph has made sure to cross all his T’s and dot his I’s, but since he is still new at this he’s a little worried that he missed something on his paperwork when he gives it to his principal broker, Mario. How long does Mario have to review the documents and make sure they are all correct?
* Seven banking days
Oregon principal brokers have seven banking days to review documents of agreement. Banking days are business days when banks are open, meaning no weekends or holidays.
* Seven banking days
* Seven calendar days
* Three banking days
* Three calendar days
Which example best represents “first substantive contact”?
* A buyer asks you about financing qualifications.
Discussing financing qualification is an example of first substantive contact.
- A buyer asks whether the community clubhouse has a swimming pool.
* A buyer asks you about financing qualifications. - A buyer calls you to ask what school district the property is in.
- A buyer emails you for details about the square footage of a property.
Erin has a one-year lease on her cottage in Oregon. Her rental agreement states that she must maintain renters’ insurance while residing in the house. Upon requesting proof of insurance, Justin, the unit’s property manager, learns Erin doesn’t have the required insurance. Justin creates an eviction notice for cause and delivers it in person to Erin. How long must Justin give Erin to remedy the situation?
* 14 days
Though the eviction notice must be for 30 days, the tenant must be given 14 days to cure the issue in Oregon.
- 10 days
* 14 days - 30 days
- Seven days
What Oregon license is required to sell a manufactured home that’s been removed from deed records?
* A Manufactured Structures Dealer’s license
If a manufactured home is sold separately from the land, for example a home located in a mobile home park, the manufactured/mobile home would be considered personal property and a Manufactured Structures Dealer’s license would be required. The same is true of any manufactured
home not classified as real property.
* A Manufactured Structures Dealer’s license
* A real estate license
* Both a real estate or Manufactured Structures Dealer’s license
* Either a real estate or Manufactured Structures Dealer’s license
When looking at a rectangular government survey system map, where would Section 1 be located?
* The northeastern-most section of the township
The numbers on the grid start with Section 1 in the northeastern corner of the township, and then follow a zigzag pattern, with Section 36 in the southeastern most corner.
- The exact center of the township
* The northeastern-most section of the township - The southeastern-most section of the township
- The southwestern-most section of the township
