OR-STAT

Question 1

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.

Answer 1

• 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.

Question 2

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.

Answer 2

• 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.

Question 3

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.

Answer 3

• Address and zip code
• Lot and block
• Metes and bounds
  * Rectangular government survey

Question 4

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.

Answer 4

• Carparks, curbs, and roadways
• Conditions, consideration, and reports
• Condominiums, cooperatives, and residential housing.
  * Covenants, conditions, and restrictions

Question 5

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.

Answer 5

• 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.

Question 6

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.

Answer 6

• Dual ownership
• Pur autre vie
• Remainder interest
  * Reversionary interest

Question 7

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.

Answer 7

• 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

Question 8

Who defines construction lien procedures?

* States

Your state laws define the procedures for filing an enforceable mechanic’s lien

Answer 8

• Builders
• Consumers
• Lenders
  * States

Question 9

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?

Answer 9

• Charter
  * Deed restriction
• Lis pendens
• Subordination agreement

Question 10

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.

Answer 10

* 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.

Question 11

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

Answer 11

• 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

Question 12

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.

Answer 12

• 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

Question 13

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

Answer 13

• Estate in severalty
• Joint tenancy
  * Tenancy by the entirety
• Tenancy in common

Question 14

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.

Answer 14

• Accretion
• Littoral
• Prior appropriation
  * Riparian

Question 15

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.

Answer 15

• Joint tenancy
• Tenancy at will
  * Tenancy by entirety
• Tenancy in common

Question 16

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.

Answer 16

• Codes
• Conditions
• Contingencies
  * Covenants

Question 17

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.

Answer 17

• 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

Question 18

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.

Answer 18

• 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.

Question 19

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.

Answer 19

* $509,850

Question 20

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.

Answer 20

* Mobile

Question 21

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.

Answer 21

* So there would be no question about who was the beneficiary of a loan in the case of non-judicial foreclosure.

Question 22

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.

Answer 22

* Littoral

Question 23

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

Answer 23

* Tenancy in common

Question 24

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

Answer 24

*Buyers

Question 25

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 ## Footnote 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

Answer 25

*** Fee simple determinable**

Question 26

Which of these lenders would be least likely to approve a short sale? * Conventional lenders * Credit unions * First loan lenders *** Junior lenders** ## Footnote 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.

Answer 26

*** Junior lenders**

Question 27

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. ## 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

Answer 27

*** Create and file a declaration in the county's land records office.**

Question 28

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. ## 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.

Answer 28

*** The owner owns both the home and the land where it's placed and records the deed in the county of residence.**

Question 29

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 ## Footnote All space has to be accounted for, including lots, easements, and named streets.

Answer 29

*** A list of street names, a list of properties numbered and described, and a list of easements**

Question 30

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 ## Footnote Housing discrimination limits housing choice, which reduces victims of discrimination's ability to build wealth through homeownership

Answer 30

*** Prevent discrimination**

Question 31

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. ## Footnote 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.

Answer 31

*** Dawn was a hoarder.**

Question 32

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. ## 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.

Answer 32

*** They should get permission from the neighboring property owners and the county.**

Question 33

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 ## Footnote The Building Codes Division is responsible for tracking information regarding ownership, security interest, and location of all manufactured homes not deeded as real property.

Answer 33

*** Building Codes Division**

Question 34

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. ## Footnote 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

Answer 34

*** The farm has a problem with mold.**

Question 35

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. ## 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.

Answer 35

*** Their property is subject to the doctrine of prior appropriation.**

Question 36

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 ## Footnote 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.

Answer 36

*** Foreclosure**

Question 37

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 ## Footnote 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.

Answer 37

**Deed condition**

Question 38

* 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** ## Footnote 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.

Answer 38

*** Minimum bid**

Question 39

Which of the following contains details about the individual condominium units? * The bylaws * The covenants *** The declaration** * The disclosure ## Footnote The condominium declaration contains details about the layout and dimensions of the individual units in the development

Answer 39

*** The declaration**

Question 40

Oregon water rights include groundwater, which is also known as ___________. * Liquid gold *** Percolating water** * Recycled water * Riparian water ## Footnote Groundwater and percolating water are both terms used to refer to the water found below the earth's surface.

Answer 40

*** Percolating water**

Question 41

Which term means "for another's life"? * Fee simple *** Pur autre vie** * Remainderman * Reversion ## Footnote Pur autre vie is a legal term that means "for another's life."

Answer 41

*** Pur autre vie**

Question 42

Which of the following is considered a latent defect in Oregon? * Defect in ability to finance * Environmental hazard * Health hazard *** Hidden structural issue** ## Footnote Hidden structural issues that wouldn't show up in the course of a routine inspection are latent defects.

Answer 42

*** Hidden structural issue**

Question 43

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 ## Footnote The real market value is determined by the property's cash value amount if sold or destroyed.

Answer 43

*** Amount a property will sell for, can be financed for, or would be compensated for if destroyed**

Question 44

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 ## Footnote With a fee simple absolute estate, the property owner is granted all rights to the property by law.

Answer 44

*** Fee simple absolute**

Question 45

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 ## Footnote 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.

Answer 45

*** A Manufactured Structures Dealer's license**

Question 46

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. ## Footnote The plat plan has to be approved and filed with the county where the property exists before any lots can be sold.

Answer 46

*** Plat approved, finalized, and recorded with the county**

Question 47

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. ## Footnote 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

Answer 47

*** It's the value used to calculate the property taxes, and it's based on a percentage of the market value.**

Question 48

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 ## Footnote Sellers should disclose past meth production to potential buyers.

Answer 48

*** Disclose the information to potential buyers**

Question 49

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 * ## Footnote Per Oregon law, "middle housing" is defined as: duplexes, triplexes, quadplexes, cottage clusters, and townhouses

Answer 49

*** A townhome a half mile from the local shopping center**

Question 50

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. ## Footnote 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

Answer 50

** * Nothing, the special assessment stays with the land.**

Question 51

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** ## Footnote All space has to be accounted for, including lots, easements, and named streets

Answer 51

* 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

Question 52

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.** ## Footnote 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.

Answer 52

* 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

Question 53

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.** ## Footnote 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.

Answer 53

* 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.**

Question 54

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.** ## Footnote The goal of the progressive discipline is to educate and improve future behavior

Answer 54

* 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.

Question 55

At what phase of subdivision development can lots be sold? *** Plat approved, finalized, and recorded with the county** ## Footnote The plat plan has to be approved and filed with the county where the property exists before any lots can be sold.

Answer 55

* Final plat approved *** Plat approved, finalized, and recorded with the county** * Plat drafted and surveyed * Public hearing held and plat plan submitted

Question 56

Which party isn't required to comply with fair housing laws? *** A renter who gets a roommate through Craigslist** ## Footnote 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.

Answer 56

* 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

Question 57

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** ## Footnote Licensure is nearly always required when performing real estate activities for others for compensation, but exceptions are made for state employees.

Answer 57

* 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

Question 58

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.** ## Footnote 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.

Answer 58

* 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

Question 59

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.

Answer 59

*** Seven banking days** * Seven calendar days * Three banking days * Three calendar days

Question 60

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.

Answer 60

* 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.

Question 61

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.** ## Footnote The city has authority over the surrounding area, which then becomes the county's jurisdiction.

Answer 61

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.

Question 62

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** ## Footnote Renee should use the property that sold in the last three to six months as evidence for the suggested value.

Answer 62

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

Question 63

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.** ## Footnote 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.

Answer 63

*** 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

Question 64

If the ____ determines that no licensing violation has occurred, then a complaint against an Oregon licensee may be dropped. *** Oregon Real Estate Agency** ## Footnote The Oregon Real Estate Agency is responsible for creating an initial investigative report and determining whether or not a violation occurred

Answer 64

* Judge *** Oregon Real Estate Agency** * Principal broker * Secretary of state

Question 65

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** ## Footnote 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.

Answer 65

*** $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

Question 66

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.** ## Footnote 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.

Answer 66

* Dawn had dogs on the property. *** Dawn was a hoarder.** * The property has an underground tank. * The roof is missing several tiles.

Question 67

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.** ## Footnote 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.

Answer 67

* 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.**

Question 68

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.

Answer 68

* Collusion *** Fraud** * Negligent misrepresentation * Unintentional misrepresentation

Question 69

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** ## Footnote 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.

Answer 69

* 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

Question 70

In what way(s) do consumers compensate Oregon brokers for their services? *** As a flat fee, fee for service, and/or percentage of sale** ## Footnote 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.

Answer 70

* 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

Question 71

Which of the following is considered a latent defect in Oregon? *** Hidden structural issue** ## Footnote Hidden structural issues that wouldn't show up in the course of a routine inspection are latent defects.

Answer 71

* Defect in ability to finance * Environmental hazard * Health hazard *** Hidden structural issue**

Question 72

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.** ## Footnote 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.

Answer 72

*** 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.

Question 73

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** ## Footnote Providing contact information for witnesses and the licensee will aid in the investigation.

Answer 73

* Amount requested for damages * Character references * Fees and process serving forms *** Witnesses and licensee contact information**

Question 74

Who defines construction lien procedures? *** States** ## Footnote Your state laws define the procedures for filing an enforceable mechanic's lien.

Answer 74

* Builders * Consumers * Lenders *** States**

Question 75

Don just filed a construction lien for a kitchen countertop that he installed. How long is the lien good for? *** 120 days** ## Footnote 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.

Answer 75

*** 120 days** * 45 days * 90 days * Three years

Question 76

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.** ## Footnote Real estate activities performed under a court order do not require a license.

Answer 76

* 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.**

Question 77

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.

Answer 77

* 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.

Question 78

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.

Answer 78

* 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

Question 79

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** ## Footnote 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.

Answer 79

* A speedy resolution * Complete loyalty *** Fiduciary and statutory duties** * Undivided attention

Question 80

A copy of the acknowledged notice of opening a trust account must be maintained for six years following the ____________. *** Account's closing** ## Footnote Trust account records must be kept for six years from the date the records were received or created, whichever came later.

Answer 80

*** Account's closing** * Deposit of the funds * Seller's offer acceptance * Tendering of funds by the buyer

Question 81

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.** ## Footnote 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.

Answer 81

* 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.**

Question 82

When assessing penalties for practicing real estate without a license, the Oregon agency may ______. *** Impose fines for each violation** ## Footnote The agency may impose fines for each violation separately.

Answer 82

* 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

Question 83

Which of the following are landlords NOT required to maintain according to Oregon law? *** Tenant-installed water filtration system** ## Footnote Tenant-installed items are the responsibility of the tenant, not the landlord.

Answer 83

* Carbon monoxide alarms * Ceilings * Supplied appliances *** Tenant-installed water filtration system**

Question 84

Which statement best describes your responsibility, as an Oregon agent, when presenting offers to a client? *** Present all offers in a timely manner.** ## Footnote It is your responsibility to present all offers to a client in a timely manner.

Answer 84

* 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.

Question 85

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.** ## Footnote Your legal obligation as a seller's agent is to present all offers immediately, even if the seller has already accepted an offer.

Answer 85

* 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.

Question 86

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** ## Footnote 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.

Answer 86

* 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

Question 87

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** ## Footnote Lenders may pay for an estimate of value, or BPO, in case they have to take over a property and sell it.

Answer 87

* 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

Question 88

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** ## Footnote 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").

Answer 88

* The denomination details * The estimated deposit date *** The purpose of the deposit** * The time of day

Question 89

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.** ## Footnote 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.

Answer 89

* 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.

Question 90

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.** ## Footnote 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.

Answer 90

* 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.

Question 91

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.** ## Footnote Commingling is mixing trust funds, such as earnest money, with personal funds, and it's a violation Oregon license law.

Answer 91

* 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.

Question 92

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.** ## Footnote 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."

Answer 92

* 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.

Question 93

How long does a licensee have to hand over an earnest money check to the principal broker after accepting the check? *** Three banking days** ## Footnote Brokers must turn over any trust funds they receive to their principal brokers within three banking days of receipt.

Answer 93

* 10 banking days * Five banking days * One banking day *** Three banking days**

Question 94

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.** ## Footnote 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.

Answer 94

* 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.**

Question 95

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** ## Footnote 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.

Answer 95

* Angel * Angel and Margie * Margie *** Matt**

Question 96

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** ## Footnote 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.

Answer 96

*** Seven banking days** * Seven calendar days * Three banking days * Three calendar days

Question 97

Which example best represents "first substantive contact"? *** A buyer asks you about financing qualifications.** ## Footnote Discussing financing qualification is an example of first substantive contact.

Answer 97

* 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.

Question 98

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** ## Footnote Though the eviction notice must be for 30 days, the tenant must be given 14 days to cure the issue in Oregon.

Answer 98

* 10 days *** 14 days** * 30 days * Seven days

Question 99

What Oregon license is required to sell a manufactured home that's been removed from deed records? *** A Manufactured Structures Dealer's license** ## Footnote 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.

Answer 99

*** 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

Question 100

When looking at a rectangular government survey system map, where would Section 1 be located? *** The northeastern-most section of the township** ## Footnote 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.

Answer 100

* 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