Free Oregon Real Estate Broker Exam Practice Test

Sample Oregon Broker practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Brokerage Supervision and Reporting

   A principal real estate broker in Oregon discovers that one of their associate brokers has been consistently misrepresenting property features to potential buyers. The principal broker immediately terminates the associate broker's contract and reports the conduct to the Oregon Real Estate Agency. Within what timeframe must the principal broker provide a written report of the termination and the reasons for it to the Agency, if the associate broker's actions were a violation of ORS 696.301?

   • A.Within 30 days of termination
   • B.Within 10 days of termination(Correct)
   • C.Immediately upon termination
   • D.Within 20 days of termination

   Explanation

   Oregon Administrative Rule (OAR) 863-020-0040 requires a principal broker to provide a written report to the Oregon Real Estate Agency within 10 days of terminating an associate broker's contract for cause, especially when the cause involves a potential violation of licensing laws.

2. Question 2Disclosure and Agency Duties

   An Oregon real estate broker is representing a seller whose property is subject to a Homeowners Association (HOA) assessment that is currently delinquent. The seller claims they will pay the balance at closing. What is the broker's primary fiduciary duty regarding this delinquent assessment in the offer and acceptance process?

   • A.Disclose the delinquency to the buyer's agent in writing but allow the seller to handle payment arrangements directly.
   • B.Ensure the delinquent assessment and any associated penalties are paid in full from the seller's proceeds at closing, or clearly state in the purchase agreement who will be responsible.(Correct)
   • C.Advise the buyer to assume responsibility for the delinquent assessment as part of the purchase agreement.
   • D.Inform the buyer that HOAs typically forgive delinquent assessments upon a change of ownership.

   Explanation

   The broker has a fiduciary duty to disclose all material facts and ensure the transaction terms are clear. This includes ensuring that delinquent HOA assessments, which are a lien on the property, are addressed. The best practice is to have the seller pay at closing or to explicitly outline responsibility in the agreement.

3. Question 3Earnest Money and Contractual Contingencies

   A buyer in Oregon makes an offer on a property that is contingent on obtaining financing. The loan estimate provided by the lender indicates a higher interest rate than the buyer anticipated, significantly increasing their monthly payment. The buyer decides not to proceed with the purchase. What is the broker's recourse if the buyer instructs them to cancel the contract and retrieve the earnest money deposit?

   • A.The broker should file an interpleader action with the court to determine the rightful owner of the earnest money.
   • B.The broker must consult with the seller and both parties must agree in writing for the earnest money to be returned.(Correct)
   • C.The broker can unilaterally return the earnest money to the buyer as per the buyer's instruction.
   • D.The broker can keep a portion of the earnest money as a cancellation fee for their services.

   Explanation

   When earnest money is involved, and a contingency is not met or waived, the broker holding the funds cannot unilaterally disburse them. Both buyer and seller must agree in writing on the disposition of the earnest money, or the broker must seek legal recourse like an interpleader action if there is a dispute.

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