Practices Take Home

Question 1

The broker’s commission will usually be shown on the closing statement as ____________

1) a debit to the seller.
2) a debit to the buyer.
3) a credit to the buyer.
4) Both 1 and 3

Answer 1

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Question 2

Under Oregon law, if a principal broker establishes an independent contractor relationship with an
associated broker ____________

1) the associated broker is not required to have his personal transactions supervised by
the principal broker.
2) the listings obtained by the broker may be transferred if the broker moves to
another principal broker’s office.
3) the principal broker must supervise the broker’s real estate activities so as to
conform to the Oregon Real Estate License Law and Administrative Rules.
4) the principal broker is responsible for approving continuing education for the broker

Answer 2

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Question 3

A principal real estate broker must retain for a period of six years all ____________

1) listing agreements and earnest money receipts.
2) clients’ trust account records and ledgers.
3) vouchers, bills or obligations paid for the account of a client.
4) All of the above

Answer 3

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Question 4

If the seller does not provide the buyer with a property condition disclosure or exemption, the buyer
may cancel the transaction ____________

1) at any time prior to closing the transaction.
2) up to seven days prior to closing the transaction.
3) at no time after the offer is accepted.
4) up to 10 days prior to the closing of the transaction.

Answer 4

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Question 5

A person who advertises the rental of an apartment to married couples only is in violation of __________

1) Federal Fair Housing law.
2) Oregon Law Against Housing Discrimination.
3) Both 1 and 2
4) Neither 1 nor 2

Answer 5

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Question 6

Title VIII of the Civil Rights Act, the Fair Housing Act, applies to ____________

1) a single-family home owned and sold by private individuals who own more than
three such dwellings at any one time.
2) multiple-family units containing six apartments, with an owner that occupies one of
the residences.
3) a single-family unit that is individually owned by the brokers selling it.
4) All of the above

Answer 6

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Question 7

A principal broker is responsible to review and initial all documents written by his associated
brokers within ____________
1) one banking day.
2) as soon as practical.
3) seven banking days from the date the document was accepted, rejected or withdrawn.
4) ten days from the date the document was accepted, rejected or withdrawn.

Answer 7

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Question 8

A listing broker receives his authority to accept an earnest money deposit in the ____________

1) earnest money agreement.
2) Listing agreement.
3) closing documents.
4) Administrative Rules and Regulations.

Answer 8

2

Question 9

Which of the following best describe earnest money?
1) The consideration for the sale of the property
2) The commission paid to the broker
3) The money deposited by the purchaser at the time of signing the earnest money or
sales contract
4) The money deposited by the purchaser with the broker or seller to pay for the
expense of examining title

Answer 9

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Question 10

A real estate broker may lose the right to a commission in a real estate transaction if he/she is _______
I. found guilty of a misstatement of known material facts.
II. not actively licensed when hired as an agent.
1 ) I only
2 ) II only
3 ) Both I and II
4 ) Neither I nor II

Answer 10

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Question 11

An “Exclusive Agency” listing is good for ____________

1) 30 days.
2) 90 days, but can be automatically renewed at the broker’s option.
3) indefinitely, until canceled.
4) any time period the owner and the broker agree upon.

Answer 11

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Question 12

A listing agreement between a broker and seller may be terminated by ____________

1) the death of either party.
2) the bankruptcy of the seller.
3) the destruction of the property.
4) All of the above

Answer 12

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Question 13

13. Broker White left Principal Broker Smith and went to work for Broker Green’s company. What
    could legally happen to the listings obtained by White while licensed with Smith?

1) They remain with broker Smith
2) They could be transferred to broker Green by Smith
3) The listings could be voided by White
4) Since the listing is a personal contract between the seller and employee, broker
White could take the listings to White’s new office.

Answer 13

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Question 14

In a usual listing agreement, the broker is authorized to ____________

1) find a purchaser and accept a deposit.
2) convey the real property listed.
3) promise a buyer that any offer on the listed terms will be accepted.
4) find a purchaser and bind his client to a contract.

Answer 14

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Question 15

Andrews signed an “Exclusive Right To Sell” listing for his residence for a term of six months with
Broker Johnson. The price was set at $390,000; the commission was to be 6%. During the listing
period, the house was destroyed by fire. Under these circumstances ____________
1) Johnson is not entitled to a commission and the listing is terminated.
2) Johnson is entitled to a commission from Andrews.
3) the listing is still valid for the sale of the land upon which the house was located.
4) the fire insurance company and Andrews must each pay one half of the broker’s

Answer 15

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Question 16

An option is best defined as ____________

1) a contract in which one party agrees to buy real property from another party.
2) an informal agreement between the broker and the seller.
3) a contract in which one party buys the right to purchase real property.
4) a contract that transfers possession of real property for a specific period.

Answer 16

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Question 17

It is in the best interest of the seller if a broker takes a listing at ____________

1) whatever price the seller dictates.
2) market value plus commission.
3) the highest price the seller can get in the time the seller has in which to sell.
4) market value including the commission.

Answer 17

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Question 18

A principal broker who is going to be absent from the business may authorize another qualified broker
to control the business in the principal broker’s absence for a maximum of ____________

1) 48 hours.
2) 10 working days.
3) one month.
4) 90 days.

Answer 18

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Question 19

The commission rate for the sale of real estate is determined by ____________

1) a silent agreement among brokers in a local area.
2) fixed schedules approved by the state licensing commission.
3) the multiple listing service.
4) negotiation with the seller.

Answer 19

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Question 20

20. A broker acting under an “Exclusive” listing for the sale of a residence usually receives his
    commission when ____________

1) the earnest money is received.
2) he takes the listing.
3) the sale is closed.
4) he obtains an accepted offer executed by a ready, willing and able buyer.

Answer 20

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Question 21

Escrow agents in Oregon are licensed by the ____________

1) Oregon Corporation Commission.
2) Escrow Division of the Office of the Secretary of State.
3) Oregon Real Estate Agency.
4) Oregon Housing Agency.

Answer 21

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Question 22

A contractual provision making the sale of a home subject to the buyer qualifying for a loan is
called a \_\_\_\_\_\_\_\_\_\_\_\_
1) covenant.
2) novation.
3) courtesy.
4) contingency.

Answer 22

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Question 23

Which of the following actions by a broker associated with a principal broker would not be a violation
of Oregon license law?

1) Providing a competitive market analysis in pursuit of the listing
2) Accepting a bonus directly from the seller.
3) Promising a purchaser that the property will appreciate in value
4) Paying a finder’s fee to an unlicensed person for referring a seller to the associated
broker

Answer 23

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Question 24

The absence of which of the following would render an earnest money agreement unenforceable?

1) Legal purpose
2) Time period for seller’s acceptance
3) Earnest money deposit
4) Legal description of the property without the street address

Answer 24

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Question 25

After a broker’s agency relationship with an Oregon principal broker is terminated, the broker’s
license, if it is not reissued, revoked or suspended, will become an inactive license within ________

1) five calendar days
2) 30 calendar days
3) 20 business days
4) 15 business days

Answer 25

2

Question 26

A buyer cannot withdraw his offer ____________

1) before it is presented to the seller.
2) after proper notification of seller’s acceptance of the offer.
3) after an earnest money deposit has been given.
4) after seller’s acceptance of the offer but before the buyer is notified.

Answer 26

2

Question 27

Which of the following statements is correct as to the general practice of real estate brokering?
1) The commission a broker may charge for the sale of a home is controlled by the
Regulations Department of the Real Estate Commissioner.
2) In an “Exclusive Agency” listing, a seller may sell without being liable for paying a
commission.
3) Any agreement to divide commissions between cooperating brokers must be in writing.
4) Under no circumstances may a broker collect a commission after the listing has expired.

Answer 27

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Question 28

An organization of real estate brokers that exist for the purpose of exchanging listing information is
known as a ____________

1) multiple listing service.
2) listing cartel.
3) listing information pool.
4) listing exchange.

Answer 28

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Question 29

A listing agreement between the owner of real property and a real estate broker ____________

1) creates a fiduciary relationship.
2) is an employment contract, employing the broker to secure a buyer.
3) should contain all the responsibilities of both the broker and the owner.
4) All of the above

Answer 29

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Question 30

A principal broker must maintain a complete record of all funds, promissory notes, or other
consideration received on real estate offers and transactions for a minimum of ____________
1) seven years.
2) six years.
3) two years.
4) one year.

Answer 30

2

Question 31

A broker, newly licensed to sell real estate in Oregon, takes a listing on real property. Who does the
listing belong to?
1) The principal broker
2) The broker
3) The broker and the principal broker
4) Neither, until a sale is made

Answer 31

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Question 32

The phrase “time is of the essence” is most likely to be found in ____________

1) a listing agreement.
2) a principal broker’s loan statement.
3) an earnest money sale agreement.
4) a deed.

Answer 32

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Question 33

The original, executed copy of a property management agreement ____________

1) must be retained by the owner of the rental unit.
2) must be filed and maintained by the property manager.
3) may be filed and retained by the non-licensed employee of the property manager at the
rental site.
4) may be filed and maintained by the property manager in his branch office located nearest
to the rental unit.

Answer 33

2

Question 34

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

1) The seller should always be given a true legible copy of the listing.
2) A listing agreement in Oregon is limited to 180 days duration.
3) Each listing agreement shall state a definite expiration date.
4) The original copy of the listing agreement must be kept with the principal broker.

Answer 34

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Question 35

In order for a broker to recover a commission on an open listing, the broker must prove ____________

1) that the broker is duly licensed.
2) that the broker found a ready, willing and able buyer.
3) that the broker was the procuring cause.
4) All of the above

Answer 35

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Question 36

“Blockbusting” occurs when ____________

1) a broker shows houses to prospective buyers only in certain areas.
2) one lending institution buys all the houses on a block.
3) a broker uses racial fears to prompt people in a changing neighborhood to sell their
homes.
4) a lending institution does not make loans in a certain part of the city.

Answer 36

3

Question 37

Under Oregon Administrative Rules, which of the following is not required to be included in an
earnest money agreement?
1) When and whether evidence of title is to be furnished to the buyer
2) The form of earnest money included in the agreement
3) The name of the loan officer from whom the buyer will secure financing
4) Whether the buyer will receive a deed or land sales contract at closing

Answer 37

3

Question 38

In the event the Real Estate Agency revokes a principal real estate broker’s license, the licenses of
the brokers associated with the principal broker are automatically ____________
1) reviewed by a hearing committee at the Real Estate Agency.
2) transferred.
3) held by the Real Estate Agency for 30 days.
4) suspended.

Answer 38

4

Question 39

In a 1031 exchange, tax may be owed on the ____________

1) boot received.
2) boot paid.
3) Both 1 and 2
4) Neither 1 nor 2

Answer 39

1

Question 40

If broker Jane is aware that broker Mike has an “Exclusive Agency” listing which is about to expire,
broker Jane may ____________
1) persuade the owner to sign another exclusive listing immediately.
2) remove his sign on the property anticipating the expiration of the listing.
3) secure a sales agreement from purchasers and withhold it until expiration of the listing.
4) solicit an “Exclusive Agency” listing agreement from the owner after the expiration date.

Answer 40

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Question 41

A residential property is listed with you for sale. Before the expiration of the listing, your principal
declared bankruptcy. The listing is then ____________
1) terminated.
2) not affected.
3) subject to court review.
4) transferred to the trustee.

Answer 41

1

Question 42

In the Federal Fair Housing Act, Congress declared a national policy of providing fair housing
throughout the United States. This policy applies to which of the following?
1) The rental of a unit in a duplex where the owner lives in the other unit.
2) The owner of an 8-unit apartment where the owner occupies one unit.
3) The sale of houses owned by religious organizations to only members of that religion;
membership to which is open to anyone.
4) The sale of a house in a qualifying senior housing development.

Answer 42

2

Question 43

An Oregon broker’s unlicensed personal assistant directly participated in negotiations between a
seller and purchaser. Which of the following is true about this situation?
1) The personal assistant could legally collect a commission from the transaction.
2) Personal assistants are allowed to participate in negotiations as long as they do not
collect a commission.
3) The personal assistant would be in violation of the Real Estate License Law.
4) Personal assistants are allowed to participate in negotiations as long as they do not
sign any documents.

Answer 43

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Question 44

Pacific Savings and Loan would violate the Federal Fair Housing Act by denying a loan to
Sanchez because of which of the following?
1) Minority background
2) Poor credit history
3) Low earnings
4) Sporadic job history

Answer 44

1

Question 45

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

1) A copy of the listing agreement must be kept with the broker.
2) Each listing agreement shall state a definite expiration date.
3) The seller should always be given a true legible copy of the listing.
4) A listing agreement can be extended without the seller’s consent.

Answer 45

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Question 46

Real Estate Agency regulations require that every listing agreement ____________

1) explicitly provide that the owner notify the principal broker of his intention to cancel the
listing after the expiration date.
2) explicitly require the owner to pay the original listing broker when a sale is made after the
listing expires and while the property is listed with a subsequent principal broker.
3) state a definite expiration date.
4) All of the above

Answer 46

3

Question 47

A bill of sale is used to convey title to ____________

1) an easement.
2) personal property.
3) real property.
4) a life estate in real property.

Answer 47

2

Question 48

In Oregon, it is lawful for a landlord of an apartment building to refuse to rent real property __________

1) on the basis that the tenant was not born in the United States.
2) to a person who has a poor credit rating.
3) to an unmarried person.
4) to a family of five.

Answer 48

2

Question 49

When the “time is of the essence” clause is inserted in a contract to purchase real estate, __________

1) punctual performance of the terms is required of the principals of the contract.
2) performance of the terms is required of the buyer only.
3) punctual performance of the terms is required of the seller only.
4) both the buyer and the seller are prohibited from voluntarily extending the time limits set
in the contract.

Answer 49

1

Question 50

When a buyer forfeits an earnest money deposit, what is the disposition of the forfeited earnest money?
1) The principal broker and the seller must always equally divide the forfeited earnest
money between them.
2) The seller is always entitled to the full amount of the earnest money deposit.
3) The principal broker is always entitled to the amount of his expenses incurred, and the
seller is entitled to the balance of the forfeited earnest money.
4) The principal broker and the seller must negotiate the disposition of the forfeited
earnest money at the time they complete a listing agreement and/or earnest
money agreement.

Answer 50

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Question 51

Bill Meier owns most of the voting stock in Salem Estates, Inc., and in Willamette Acreage, Inc.
These two real estate organizations are ____________
1) an association.
2) subsidiary corporations.
3) affiliated corporations.
4) Subchapter S Corporations.

Answer 51

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Question 52

A fiduciary duty an agent owes their client is ____________

1) deference.
2) mutual trust.
3) respect.
4) loyalty.

Answer 52

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Question 53

A valid contract employs someone to do specific legal tasks which involve representing the
interests of the client to a third party. What kind of relationship is created by the contract?
1) Fee Simple
2) Severalty
3) Agency
4) Lis Pendens

Answer 53

3

Question 54

A seller has filed a suit for damages against the broker whom the seller listed a property with, claiming
that the broker really represented the buyer without disclosing that fact to the seller and obtaining the
seller’s permission. The buyer has testified to various statements made by the agent to the buyer.
Which of the following would be the most damaging to the broker?
1) “This property has the best view in the city.”
2) “You should submit your offer as soon as possible.”
3) “Let’s start with an offer under the listed price.”
4) “Let me explain about different ways to finance a property.”

Answer 54

3

Question 55

A buyer properly revokes his offer after receiving the property condition disclosure and requests the
return of his earnest money. The principal broker ____________
1) may not release the earnest money without the seller’s approval.
2) should file an interpleader to determine the disposition of the earnest money.
3) may deduct his expenses from the earnest money.
4) must promptly return the earnest money.

Answer 55

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Question 56

An offer, together with a cash deposit, was made on a parcel to the broker holding the listing. A
copy of the earnest money receipt stating the offer must first be given to the buyer ___________
1) when the seller has signed an acceptance of the offer.
2) when the broker has additional copies made.
3) immediately.
4) when escrow instructions are completed to the satisfaction of the buyer and seller.

Answer 56

3

Question 57

Which of the following statements regarding earnest money receipts is true?

1) Earnest money in the form of personal property is not acceptable according to the
Administrative Rules and Regulations of the Real Estate Agency.
2) An earnest money agreement used by a real estate licensee must be written on a
form approved by the Real Estate Agency.
3) The licensee is required to specify on the earnest money agreement the type of earnest
money received.
4) An earnest money agreement must be written on a form approved by the Oregon
Association of Realtors.

Answer 57

3

Question 58

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

1) once, for a 3-year term.
2) every 2 years indefinitely.
3) not more than twice, each time for 2 years.
4) only after taking an examination on current real estate matters.

Answer 58

2

Question 59

On Wednesday, a seller indicated to his listing broker that he would not sell for anything less than the
full price. Another licensee brought in an offer $3,000 below the listed price on Friday. The listing
broker must ____________
1) refuse to present the offer since it is not the full price.
2) present the offer promptly.
3) wait and see if he can get a better offer from an open house to be held on Sunday.
4) send the selling licensee back to get a higher offer.

Answer 59

2

Question 60

Under Federal Fair Housing laws, all of these would be “steering” EXCEPT?
1) Discouraging a person from inspecting a property because of his sex
2) Telling a person he would not be comfortable with the residents of the neighborhood
because of his religion
3) Failing to inform a person of the desirable features of a dwelling or a community
because of his familial status
4) Failing to help a person apply for a home loan

Answer 60

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