question

Owner Reports

answer

A property manager is obligated to give an accounting of an owner's property. The reports are usually given per month and an annual report.

question

Reconciliation

answer

A balance and reconciliation of the company's receipt and disbursement journal, company bank statement and each owner's ledger.

question

A late rent payment fee can be charged if ?

answer

if the rental agreement includes the specifics of a late fee. (sect 6/ch3)

question

Essential services include ?

answer

Heat, water, locking doors, electricity. (sect 6/ch3)

question

A tenant is obligated to do the following:

answer

Use the premises as designed and intended. (sect 6/ch3)

question

A landlord may retaliate against a tenant by ?

answer

A landlord may not retaliate against a tenant (sect 6/ch3)

question

Under occupancy guidelines, a bedroom should contain at least how many square feet?

answer

70 (sect 6/ch3)

question

If the tenant, in violation of the rental agreement, keeps on the premises a pet capable of causing damage to persons or property, the landlord may deliver a written notice specifying the violation and stating that the tenancy will terminate upon a date not less than how many days after the delivery of the notice unless the tenant removes the pet from the premises prior to the termination date specified in the notice?

answer

10 days (sect 6/ch3)

question

In most kinds of housing, a property manager with a tenant having a month-to-month tenancy may also attempt to evict a tenant with a 72-hour notice for not paying their rent. This may happen if a tenant has not paid rent within 7 days of its due date. If rent is due on the first of the month, a property manager may give a 72-hour notice on the what day of the month?

answer

8th day . (sect 6/ch3)

question

Notices may be served by either personal delivery or by mail. Unless a lease or other agreement specifies otherwise, mail delivery shall be done by ?

answer

first class mail. (sect 6/ch3)

question

Which of the following is CORRECT? I. The most common notices include 30-day notices for "no cause." II. If tenancy began more than one year ago, the tenant must receive a 60-day "no cause" notice.

answer

Both I and II (sect 6/ch3)

question

Which of the following is CORRECT? I. The most difficult eviction proceedings for tenants to win are those based on 30-day notices for no cause II. When it comes to eviction, a residential property manager usually can terminate a rental agreement with a tenant without the tenant's agreement.

answer

Correct answer: I only (sect 6/ch3)

question

Which of the following is INCORRECT? I. Residential property managers cannot take or keep any of a tenant's belongings until the rental agreement has ended. II. After a rental agreement has ended, however, a property manager has the right to dispose of a tenant's abandoned personal belongings in any convenient manner.

answer

Correct answer: II only (sect 6/ch3)

question

A property manager may NOT remove a motor vehicle that is not abandoned from the rental premises without notice to the owner or operator if the vehicle: ________

answer

Correct answer: has a flat tire. (sect 6/ch3)

question

In Oregon, a security deposit is ?

answer

Correct answer: a refundable payment or deposit. (sect 6/ch3)

question

According to the Oregon Residential Landlord Tenant Act, a fee is ?

answer

Correct answer: a nonrefundable payment of money by a tenant. (sect 6/ch3)

question

If a property manager is going to close a mobile home park, he must give all residents how many days' notice?

answer

365 days (sect 6/ch3)

question

Delivery of notice must include ?

answer

Correct answer: a verbal or written notice by either party. (sect 6/ch3)

question

Premises means which of the following? I. A dwelling unit and the structure of which it is a part and facilities and appurtenances. II. Grounds, areas and facilities held out for the use of tenants.

answer

Correct answer: Both I and II (sect 6/ch3)

question

Property Maintenance

answer

Correct answer: Dwelling units must be in habitable condition. (sect 6/ch3)

question

Transient Occupancy

answer

Correct answer: Hotels, motels, bed and breakfast, or any type of short-term lodging is not under the jurisdiction of the landlord tenant act. (sect 6/ch3)

question

Retaliatory Conduct

answer

Correct answer: A landlord may not unjustly retaliate against a tenant by increasing rent or decreasing services. (sect 6/ch3)

question

Property Manager

answer

Correct answer: A property manager has fiduciary obligations to the property owner and must comply with both federal and state landlord tenant rules. (sect 6/ch3)

question

A property manager must keep a __________, _______________ copy of each tenant's rental agreement.

answer

Correct answer: true legible (sect 6/ch4)

question

A property manager must give the property owner a copy of the property management agreement _______.

answer

Correct answer: promptly. (sect 6/ch4)

question

After the execution of a valid property management agreement, the property manager must do all of the following EXCEPT:

answer

Correct answer: establish a clients' trust account only for the funds of the property owner who signed the agreement. (sect 6/ch4)

question

A legible copy of the tenant's rental agreement I. must be given to the tenant by the property manager upon execution of the agreement. II. must be retained by the property manager in the site office.

answer

Correct answer: I only (sect 6/ch4)

question

The original, executed property management agreement must be filed and maintained by the property manager for how long?

answer

Correct answer: for six years. (sect 6/ch4)

question

All funds received by a manager must be deposited within __________banking days.

answer

Correct answer: 5 (sect 6/ch4)

question

A property manager must deposit all funds received on behalf of a client into a Clients' Trust Account by the close of business on ?

answer

Correct answer: the fifth banking day following receipt. (sect 6/ch4)

question

A ______________ ledger must be kept for each property managed.

answer

Correct answer: separate (sect 6/ch4)

question

Owner's account ledgers must be: I. identified with the same client ID number as is stated on the property management agreement II. annually audited by an independent auditor.

answer

Correct answer: 1. I only (sect 6/ch4)

question

When there are funds for more than one client in the same clients' trust account, each entry in the property manager's receipts and disbursements journal must, among other things, contain which of the following?

answer

...

question

A property manager must establish at least one owner's ledger for

answer

Correct answer: each property managed. (sect 6/ch4)

question

All cash received from a tenant by a property manager must I. be deposited into the property manager's clients' trust account. II. be recorded by an entry in the tenant's ledger.

answer

Correct answer: Both I and II (sect 6/ch4)

question

Which of the following statements concerning receipts for cash is FALSE?

answer

Correct answer: Property managers must retain only the originals of the receipts. (sect 6/ch4)

question

Clients' Trust Accounts

answer

Correct answer: A property manager must keep money separate from the business operation and their personal money. (sect 6/ch4)

question

Receipt and Disbursement Journal

answer

Correct answer: A log of all payments made into and out of the management's clients' trust account. (sect 6/ch4)

question

Owner's Ledger

answer

Correct answer: Similar to a receipts and disbursement journal, but only records funds received and disbursed for each individual owner. (sect 6/ch4)

question

Tenant Ledger

answer

Correct answer: Details all rent transactions with the tenant. (sect 6/ch4)

question

Reconciliation

answer

Correct answer: A balance and reconciliation of the company's receipt and disbursement journal, company bank statement and each owner's ledger. (sect 6/ch4)

question

Owner Reports

answer

Correct answer: A property manager is obligated to give an accounting of an owner�s property. The reports are usually given per month and an annual report. (sect 6/ch4)

question

Too much economic expansion causes inflation ? recession?

answer

Correct answer: inflation (sect 6/ch5)

question

The real estate market does not follow the business cycle. True or False

answer

False (sect 6/ch5)

question

Cycles of the real estate market differ from those of the general business economy in that ?

answer

Correct answer: trends in real estate lag behind trends in the general market. (sect 6/ch5)

question

When evaluating the data in a neighborhood survey a residential property manager will be most concerned with ?

answer

Correct answer: trends in population. (sect 6/ch5)

question

When completing a budget forecast, the property manager should I. study past budgets and income and expense reports. II. study past balance sheets.

answer

Correct answer: I only (sect 6/ch5)

question

In property management, an operating budget ?

answer

Correct answer: is a projection of anticipated costs for a building. (sect 6/ch5)

question

Information for estimating future operating expenses can be obtained I. from a review of operating expenses for comparable properties. II. from reviewing the owner's past operating expenses.

answer

Correct answer: Both I and II (sect 6/ch5)

question

Which of the following would be characterized as an operating expense in a property management budget? I. Hazard insurance II. Property management fees

answer

Correct answer: Both I and II (sect 6/ch5)

question

An example of a variable operating expense in the operation of a large office complex would be

answer

Correct answer: decorating costs. (sect 6/ch5)

question

The repair of fire damage to an office building is an example of a

answer

Correct answer: non-recurring variable cost. (sect 6/ch5)

question

The wages paid to the employees hired to maintain and clean a building are an example of ?

answer

Correct answer: regularly recurring cost. . (sect 6/ch5)

question

The break-even point is one of the primary ways to determine the profitability of a building. True or False?

answer

Correct answer: True (sect 6/ch5)

question

The property manager should be aware of the break-even point of any building he manages. The break-even point is ?

answer

Correct answer: the percent of occupancy required to break even at the particular rent charged. (sect 6/ch5)

question

Business Cycles (4 stages)

answer

Correct answer: The four stages to a business cycle; expansion, contraction, recession, and revival. (sect 6/ch5)

question

Market Rent Survey

answer

Correct answer: A report on comparable rents within a given area. (sect 6/ch5)

question

Variable Expenses

answer

Correct answer: Expenses that fluctuate with occupancy rates and collected income. (sect 6/ch5)

question

Projected net income

answer

Correct answer: Derived from potential rent collections minus vacancies and losses from credits. (sect 6/ch5)

question

Break Even Point

answer

Correct answer: Divide total expenses plus debt service by gross income. (sect 6/ch5)

question

The Federal Fair Housing Act covers ? I. discrimination in residential and commercial sales and leasing. II. discrimination in residential mortgage financing.

answer

Correct answer: II only (sect 6/ch6)

question

Persons who do not fall into certain protected categories cannot be discriminated against. True or False?

answer

Correct answer: False (sect 6/ch6)

question

Under Oregon law, it is lawful for a landlord of an apartment complex to I. require a prospective tenant to furnish credit references. II. reduce the rent for tenants who are married, but not for tenants who are single.

answer

Correct answer: I only (sect 6/ch6)

question

Which of the following types of discrimination is NOT covered by the Federal Fair Housing law?

answer

Correct answer: marital status. (sect 6/ch6)

question

The manager of an apartment complex that falls within the requirements of the federal fair housing laws may legally do which of the following? I. Segregate the families with children in specific portions of the complex. II. Charge the families with children higher rents than for tenants without children.

answer

Correct answer: Neither I nor II (sect 6/ch6)

question

A property manager routinely charges female tenants $200 for security deposits and male tenants $300 for security deposits. The property manager's policy I. is legal if he has documentation that male tenants overall are less financially responsible than female tenants. II. is legal if he refunds the difference after the tenant has established a good payment record.

answer

Correct answer: Neither I nor II (sect 6/ch6)

question

In Oregon, it is unlawful for a landlord to refuse to rent

answer

(sect 6/ch6)

question

The Fair Deal Agency manages two apartment complexes of comparable rents. The Essex is predominantly young professionals; the Fairfax Gardens is mostly occupied by lower income minorities. Smith, a member of a minority, inquires about a two-bedroom vacancy at the Essex, but is told—untruthfully—that the only two-bedroom available is at Fairfax Gardens. Smith declines because he knows that the Essex is better maintained and has more amenities. Seeking advice as to his rights under the Federal Fair Housing Act, Smith asks a broker friend whether the following practices violate the law: I. Discouraging rentals to minority prospects because management fears other tenants will flee. II. Providing an inferior level of services to the minority-occupied units than to other units of comparable rents. Which should the broker tell Smith violates the law?

answer

Correct answer: Both I and II (sect 6/ch6)

question

Under federal fair housing laws, a landlord may legally I. charge higher deposits for tenants with children than for those without children. II. limit the use of certain facilities, such as the swimming pool, to single tenants only.

answer

Correct answer: Neither I nor II (sect 6/ch6)

question

Blockbusting is an illegal lending practice. True or False?

answer

Correct answer: False (sect 6/ch6)

question

Oregon's discrimination statutes related to real property transactions apply to I. sellers of real property. II. lessors of real property. III. real estate licensees.

answer

Correct answer: I, II and III (sect 6/ch6)

question

Real estate licensees are bound by the laws covering discrimination. True or False?

answer

True (sect 6/ch6)

question

The Fair Credit Reporting Act was I. passed to address a growing credit reporting industry in the United States that compiled "consumer credit reports" and "investigative consumer reports" on individuals. II. was the first federal law to regulate the use of personal information by private businesses.

answer

Correct answer: Both I and II (sect 6/ch6)

question

The Fair Credit Reporting Act was I. passed to address a growing credit reporting industry in the United States that compiled "consumer credit reports" and "investigative consumer reports" on individuals. II. was the first federal law to regulate the use of personal information by private businesses.

answer

Correct answer: Both I and II (sect 6/ch6)

question

Fair Housing Act

answer

Correct answer: Prohibits discrimination by real estate professionals or private individuals against protected classes in all residential housing transactions. (sect 6/ch6)

question

Protected Categories

answer

Correct answer: Race, color, religion, sex, national origin, familial status, mental or physical handicapped and in Oregon marital status. (sect 6/ch6)

question

Blockbusting

answer

Correct answer: A broker induces panic selling for his own profit. (sect 6/ch6)

question

Redlining

answer

Correct answer: A lender refuses to make home loans in predominately minority areas. (sect 6/ch6)

question

HUD Complaint

answer

Correct answer: Upon investigation, HUD will turn a complaint over to the Oregon Bureau of Labor and Industries. (sect 6/ch6)

question

A licensed personal assistant to an Oregon broker associated with a principal real estate broker could legally perform which of the following activities? I. Install signs and lock boxes on listed properties. II. Prepare and submit advertising to a newspaper as long as the broker reviews it.

answer

I only (sect 1)

question

A principal real estate broker hired a number of part-time employees to show property, pass out brochures, quote prices, and state terms of the sale of real property in a development. A real estate broker was on site to fill out all of the earnest money agreements. The employees did not sign documents. Under these circumstances, the employees must be:

answer

employees must be real estate licensees. (sect 1)

question

Which of the following statements is false concerning an inactive real estate broker involved in a lease option of his personally owned real estate? 1. The transaction must be supervised by a principal real estate broker. 2. The real estate broker must deposit all funds received in the transaction into a neutral escrow depository. 3. The real estate broker must maintain a transaction file on the transaction as if the transaction were being handled by a principal real estate broker. 4. The real estate broker must disclose the broker's license status to the other party to the transaction.

answer

1. The transaction must be supervised by a principal real estate broker. (sect 1)

question

4. Which of the following individuals is not exempt from licensing law or requirements while engaging in property management activity? 1. A hotel representative in the business of arranging transient lodging in a hotel or inn. 2. A railroad company arranging transient lodging at a hotel or inn in the course of its business. 3. An innkeeper arranging transient lodging at his inn. 4. A limited partner in a limited partnership who, on a part-time basis, is acting under a separate, written property management agreement to rent the real property of the limited partnership.

answer

4. A limited partner in a limited partnership who, on a part-time basis, is acting under a separate, written property management agreement to rent the real property of the limited partnership. (sect 1)

question

. With his principal broker's permission and supervision, a real estate broker could do which of the following according to the Oregon real estate license law? I. Manage an office for 120 consecutive days. II. Close a transaction.

answer

II only (sect 1)

question

Oregon law provides that a person may renew an inactive real estate license 1. once, for a three-year term. 2. not more than twice, each time for two years. 3. only after taking an examination on current real estate matters. 4. every two years indefinitely.

answer

4. every two years indefinitely. (sect 1)

question

In Oregon, at the time of executing an earnest money agreement, the question of the disposition of forfeited earnest money is a matter for negotiation between 1. the principal or sole practitioner real estate broker and the seller. 2. the principal or sole practitioner real estate broker and the buyer. 3. the buyer and the seller. 4. all clients and principal or sole practitioner real estate brokers involved in the transaction.

answer

1. the principal or sole practitioner real estate broker and the seller. (sect 1)

question

Interest accrued on an interest-bearing client's trust account may not be directly paid to the 1. seller. 2. principal real estate broker. 3. purchaser. 4. associated broker.

answer

4. associated broker. (sect 1)

question

A real estate broker associated with a principal broker who hires an unlicensed person to work as a personal assistant could legally I. pay the assistant a salary. II. share a commission with the assistant.

answer

I. pay the assistant a salary. (sect 1)

question

A seller engages a broker to find a buyer ready, willing and able to purchase a seller's parcel of real property. The seller executes and delivers to the broker an exclusive right to sell employment contract. A few weeks prior to the expiration date of the employment contract, the seller decides to revoke the contract before any sale occurred and prior to the broker finding a buyer ready, willing and able to buy the property. 1. The owner can revoke his contract but could be liable for damages. 2. The owner can revoke his contract and will not be liable for damages to the broker. 3. The owner could not revoke his contract because it is irrevocable. 4. The owner would have to sell the real property at the listed price of the broker found a buyer ready, willing and able to buy at this price.

answer

1. The owner can revoke his contract but could be liable for damages. (sect 1)

question

In a usual listing agreement, the broker is authorized to 1. convey the real property listed. 2. promise the buyer that any offer on the listed terms will be accepted. 3. find a purchaser and bind his client to a contract. 4. find a purchaser and accept a deposit

answer

4. find a purchaser and accept a deposit (sect 1)

question

If principal broker Ed is aware that principal broker Dave has an exclusive listing which is about to expire, broker Ed may : 1. solicit an exclusive listing agreement from the owner after the expiration date. 2. persuade the owner to sign another exclusive listing immediately. 3. place his sign on the property anticipating the expiration of the listing. 4. secure a sales agreement from purchasers and with hold it until expiration of the listing.

answer

. solicit an exclusive listing agreement from the owner after the expiration date. (sect 1)

question

13. A seller refuses to provide either a property condition disclosure statement or disclaimer to the buyer. What may the listing licensee do in this situation? I. On behalf of the seller, he may issue the disclosure to the buyer. II. On behalf of the seller, he may issue a disclaimer to the buyer.

answer

Neither I or II (sect 1)

question

Broker Reed had an open listing on a house. To collect a commission he would have to prove which of the following? 1. He had a current real estate license. 2. He had a ready, willing, and able buyer. 3. He was the procuring cause of the sale. 4. All of the above.

answer

4. All of the above. (sect 1)

question

Mr. and Mrs. Thomas Martin want to sell their house. They want a broker to show the property, but they would like to be able to sell the house themselves without the obligation of paying a broker a commission. What form of listing would allow them to use several broker's services and not pay a commission should they sell the house themselves? 1. Open listing 2. Exclusive listing 3. Exclusive right to sell listing 4. Net listing

answer

1. Open listing (sect 1)

question

An exclusive agency listing guarantees the broker his commission 1. if any broker sells the property. 2. if the seller sells the property. 3. only if the sales price exceeds the listed price. 4. if the property changes ownership for any reason.

answer

1. if any broker sells the property. (sect 1)

question

A broker is entitled to a commission regardless of who sells the property during the listing period if he has which of the following listings? 1. Open 2. Exclusive right to sell 3. Net 4. All of the above

answer

2. Exclusive right to sell (sect 1)

question

Which of the following is NOT a strict legal term for a type of employment contract or listing? 1. Open listing 2. Exclusive agency listing 3. Multiple listing 4. Exclusive right to sell listing

answer

3. Multiple listing (sect 1)

question

An earnest money agreement is 1. a legally enforceable contract immediately upon the signature of the seller only. 2. a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer. 3. an opinion to buy which the purchaser may accept or reject. 4. none of the above.

answer

2. a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer. (sect 1)

question

A buyer gave a broker a written offer to purchase property which contained a 10 day acceptance clause along with a $2000 deposit. On the fifth day, prior to acceptance by the seller, the buyer notified the broker that he was withdrawing his offer and demanding return of the deposit. Which of the following statements is true? 1. The buyer cannot withdraw the offer until the end of the 10 day period. 2. The buyer may revoke his offer any time before the seller's acceptance is communicated to him and may obtain the return of his deposit. 3. The buyer may revoke his offer any time before he is notified of the seller's acceptance, but he will lose the deposit. 4. None of the above are true

answer

2. The buyer may revoke his offer any time before the seller's acceptance is communicated to him and may obtain the return of his deposit. (sect 1)

question

When a purchaser offers to buy real property, the: I. earnest money check should be made payable to the broker writing up the offer. II. purchaser may terminate the offer and have the earnest money refunded even though the seller has orally approved the offer.

answer

II only, (sect 1)

question

Equitable title is transferred to a buyer upon the execution of which of the following documents? I. Mortgage II. Land sales contract III. Trust deed

answer

II. Land sales contract (sect 1)

question

To avoid having a voidable contract, all "Time is of the essence" deadline set by the contract must be met I. within 24 hours of the stated deadline. II. within 48 hours of the stated deadline.

answer

4. Neither I nor II (sect 1)

question

Which of the following statements about counteroffers is true? I. A counteroffer is a rejection of the first offer and a new offer. II. A slight change made by the seller, such as moving the day of closing from one day to the next, would create a counteroffer.

answer

Both I and II (sect 1)

question

In a real estate sales transaction, the amount of the earnest money deposit is determined by 1. the real estate license law. 2. agreement of the parties. 3. a minimum of 5% of sales price. 4. the broker.

answer

2. agreement of the parties. (sect 1)

question

Which of the following statements concerning counteroffers is true? I. If the counteroffer is refused the original offer is open for acceptance. II. Material changes made to an original offer constitute a counteroffer.

answer

. II only (sect 1)

question

A second offer made on a property prior to the seller's decision on the first offer should be 1. rejected by the broker. 2. submitted to the seller immediately. 3. held pending a decision on the first offer. 4. returned to the offeror if it does not provide better terms than the first offer.

answer

2. submitted to the seller immediately. (sect 1)

question

A provision in an offer to purchase that requires the completion of a certain act before the contract is binding is known as a 1. covenant. 2. mandamus. 3. restriction. 4. contingency.

answer

4. contingency. (sect 1)

question

Jack Williams, a property manager, was $1000 short of the money he needed to pay his office rent. He wrote a check to himself from his client's trust account with the intention of replacing the monies from his next transaction. Williams action is known as I. conversion. II. commingling.

answer

I only (sect 1)

question

Commingling occurs when I. the client's funds are mixed with the agents personal account. II. a principal broker uses his own personal account to deposit client's funds.

answer

Both I and II (sect 1)

question

Using a clients funds for personal use is called I. commingling. II. conversion.

answer

II only (sect 1)

question

Miller, a licensed principal real estate broker, was sued for conversion. This means that Miller allegedly 1. misappropriated his client's funds. 2. failed to submit copies of the offer to purchase to the seller and buyer. 3. commingled the client's money with his own. 4. did all of the above.

answer

1. misappropriated his client's funds. (sect 1)

question

To the seller, a real estate broker representing the seller usually is 1. a general agent. 2. a factor agent. 3. an ostensible agent. 4. a special agent.

answer

4. a special agent (sect 1)

question

To create a valid listing for the purpose of selling real estate, a broker must have 1. two witnesses to the contract. 2. a written contract. 3. a general power of attorney. 4. a signed deed by the sellers

answer

2. a written contract. (sect 1)

question

Where no time period for acceptance by the offeree is stipulated in an offer, the offer 1. will lapse in 24 hours time. 2. will lapse in 48 hours time. 3. will lapse after a reasonable time. 4. will not lapse; it must be revoked by the offeror.

answer

3. will lapse after a reasonable time. (sect 1/)

question

Oregon administrative rules concerning listing agreements require I. definite expiration dates only if the listing is an exclusive right-to-sell. II. a licensee to give a copy of the listing to the seller at the time of securing the listing.

answer

II only (sect 1)

question

Oregon Real Estate Agency regulations require a licensee who is handling an offer to purchase to 1. give a legible copy of the document to all parties signing it. 2. show all written offers to purchase promptly to the seller. 3. keep a written record of the date and time each time the licensee shows a written offer to purchase to the seller. 4. do all of the above.

answer

4. do all of the above. (sect 1)

question

Part of the consideration offered to a seller when the buyer signs an agreement of sale is called 1. an option. 2. a recognizance. 3. earnest money. 4. a freehold estate.

answer

3. earnest money. (sect 1)

question

The form of listing agreement that provides the most benefit and protection to the broker is the 1. open listing. 2. exclusive right to sell listing. 3. exclusive agency listing. 4. multiple listing.

answer

2. exclusive right to sell listing. (sect 1)

question

The property condition disclosure or disclaimer law 1. requires a real estate licensee to complete the form for the seller if the seller refuses to comply. 2. applies to residential property. 3. requires compliance only if the buyer makes a specific request. 4. applies only to sellers represented by real estate licensees.

answer

2. applies to residential property. (sect 1)

question

Principal brokers must supervise which of the following activities of brokers? 1. Completion of a listing (employment) agreement. 2. Completion of a competitive market analysis. 3. Completion of an earnest money agreement. 4. Brokers must be supervised while performing all of the above.

answer

Correct answer: 4. Brokers must be supervised while performing all of the above. (sect 1)

question

A broker associated with a principal real estate broker was asked by a property owner to prepare a competitive market analysis for the owner's residence. Under Oregon law, which of the following statements about a competitive market analysis are true? I. A fee may be charged for providing a competitive market analysis. II. The analysis may not be contingent upon reporting a predetermined value.

answer

Correct answer: 3. Both I and II (sect 1)

question

A real estate broker associated with a principal real estate broker may do which of the following activities without supervision? 1. Set up his own property management business. 2. Rent or lease the licensee's own real estate. 3. Lease-option the licensee's own real estate. 4. Sell the licensee's own real estate.

answer

Correct answer: 2. Rent or lease the licensee's own real estate. (sect 1)

question

There are exemptions to licensing under the Oregon Real Estate Law, but which of the following is required to be licensed? 1. A Department of Veterans Affairs employee selling foreclosed homes. 2. A person who, for a fee, markets rental property and collects rent. 3. A person performing professional real estate activity under a court order. 4. A general partner who engages in a real estate transaction for a limited partnership.

answer

Correct answer: 2. A person who, for a fee, markets rental property and collects rent. (sect 1)

question

When a real estate broker asks a principal real estate broker to terminate their business relationship, the principal real estate broker must 1. send the real estate broker's license without delay to the real estate broker's new employing principal broker. 2. send a performance appraisal report to the Real Estate Agency Records Section. 3. return the real estate broker's license without delay to the Real Estate Commissioner. 4. do both of the first two above.

answer

Correct answer: 3. return the real estate broker's license without delay to the Real Estate Commissioner. (sect 1)

question

A person who holds an inactive real estate license I. may not engage in professional real estate activity. II. must disclose the fact that he has a license when buying or selling property on his own account or at least the first written document of agreement.

answer

Correct answer: 3. Both I and II (sect 1)

question

If a buyer makes an earnest money deposit and later forfeits the deposit, what is the disposition of the forfeited earnest money? 1. The real estate broker and the seller must negotiate the disposition of forfeited earnest money at the time they complete a listing agreement or earnest money agreement. 2. The real estate broker and the seller must always equally divide the forfeited earnest money between them. 3. The seller is always entitled to the full amount of the earnest money deposit. 4. The real estate broker is always entitled to the amount of the broker's expenses incurred, and the seller is entitled to the balance of the forfeited earnest money.

answer

Correct answer: 1. The real estate broker and the seller must negotiate the disposition of forfeited earnest money at the time they complete a listing agreement or earnest money agreement. (sect 1)

question

Which of the following must be deposited in a client's trust account or a neutral escrow? I. Earnest money deposits II. Collected rents to be prorated at closing III. Sales proceeds yet to be disbursed

answer

Correct answer: 4. I, II and III (sect 1)

question

Oregon real estate license law restricts brokers associated with principal brokers from I. bringing a lawsuit against a seller for payment of commission. II. directly accepting a finders fee from a principal broker with whom the broker is not licensed.

answer

Correct answer: 3. Both I and II (sect 1)

question

Were does a broker get the authority to accept an earnest money deposit? 1. The listing agreement 2. The offer to purchase 3. The land sales contract 4. Escrow instructions

answer

Correct answer: 1. The listing agreement (sect 1)

question

Broker Wilson, a sole practitioner, obtained an exclusive right to sell listing on a property. Five days later he died. 10 days after his death an offer was made on the property to a cooperating broker. Which of the following statements is true concerning this situation? 1. Wilson's wife could assume the listing contract and present the offer to the seller. 2. If the offer was accepted by the seller, Wilson's commission would be paid to his estate. 3. The listing agreement terminated at Wilson's death. 4. Any commission from the sale of the property would be paid to Wilson's heirs.

answer

Correct answer: 3. The listing agreement terminated at Wilson's death. (sect 1)

question

At the time of her death Mrs. Sampson, a licensed real estate broker, had 50 listings. The business, including all its assets, was left to her daughter, Jane Jones, who is also a licensed real estate broker. If the daughter wished to legally collect commissions on the sale of the listed properties, she would be required to 1. negotiate a new listing with each of the 50 property owners. 2. do nothing as provisions had already been made. 3. take court action to authorize collection. 4. tell each owner that the commission would be paid to her.

answer

Correct answer: 1. negotiate a new listing with each of the 50 property owners. (sect 1)

question

A typical listing contract contains which of the following? I. Description of the property II. Seller's obligation to pay a commission III Terms on which the seller wishes to sell the property.

answer

Correct answer: 4. I, II and III (sect 1)

question

A listing agreement which gives only one broker the right to sell the property during the listing, but which also reserves to the owner the right to sell his own property during the listing period without liability for a commission, is called 1. an open listing. 2. an exclusive right to sell. 3. a universal agency. 4. an exclusive agency.

answer

Correct answer: 4. an exclusive agency. (sect 1)

question

An owner signed a listing with the broker where it was understood that if the property was sold through the efforts of any other broker, or the owner, the listing broker would not be entitled to a commission. This kind of contract is called 1. an open listing. 2. a net listing. 3. an exclusive agency listing. 4. an exclusive right to sell listing.

answer

Correct answer: 1. an open listing. (sect 1)

question

A licensed real estate broker took an exclusive agency listing from an owner for a 90 day term. After the broker had expended considerable time and expense in trying to locate a buyer, the owner sold the property himself during the listing period. Under these circumstances the broker was entitled to 1. a full commission. 2. no commission. 3. half of the agreed commission. 4. his advertising expenses.

answer

Correct answer: 2. no commission. (sect 1)

question

Frank Morrow listed his property with broker Ted Scott. The listing agreement authorized Scott to act as a sole agent of Morrow and entitled Scott to a commission regardless of who sold the property. This is an example of 1. an open listing. 2. an exclusive right to sell listing. 3. a multiple listing. 4. an exclusive agency listing.

answer

Correct answer: 2. an exclusive right to sell listing. (sect 1)

question

A broker in court to collect a commission on an exclusive right to sell listing must allege and prove which of the following? I. He had an agency relationship with the seller. II. He was licensed. III. He introduced the buyer and the seller.

answer

Correct answer: 3. I and II only (sect 1)

question

Judy Brown listed her property with broker David Rowell. The listing contract stipulated that Brown would receive $62,000, with all proceeds over that amount to be given to Rowell for his commission. This type of listing is referred to as 1. an open listing. 2. an exclusive agency listing. 3. a net listing. 4. an exclusive right to sell listing.

answer

Correct answer: 3. a net listing. (sect 1)

question

When an earnest money agreement has been signed by the purchaser and given to the seller's broker with an earnest money check 1. the transaction constitutes a valid contract by law. 2. the purchaser can sue for specific performance if the seller refuses to sign the agreement. 3. the transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer. 4. the earnest money must be returned to the purchaser if he withdrawals the offer after the seller signs the agreement.

answer

Correct answer: 3. the transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer. (sect 1)

question

Wells agreed to purchase Peterson's real property for $45,000, signed an earnest money agreement and deposited $5,000 earnest money with broker Logan. Peterson was unable to provide marketable title, so Wells demanded return of his earnest money from Logan. Logan should 1. return the earnest money to Wells after Logan deduction his commission. 2. divide the earnest money in half and return one half to Wells and one half to Peterson. 3. return the entire amount to Wells. 4. forward the entire amount to Peterson.

answer

Correct answer: 3. return the entire amount to Wells. (sect 1)

question

An accepted offer to purchase contains the signature of I. the buyer. II. the seller.

answer

Correct answer: 3. Both I and II (sect 1)

question

Once an offer to purchase real estate has been signed by both buyer and seller, the buyer acquires an interest in the property known as 1. legal title. 2. special title. 3. equitable title. 4. sole title.

answer

Correct answer: 3. equitable title. (sect 1)

question

Where do you find the "time is of the essence" clause? 1. Closing documents 2. Earnest money agreement 3. Employment contract 4. Listing contract

answer

Correct answer: 2. Earnest money agreement (sect 1)

question

A counteroffer I. results in a new contract if accepted. II. invalidates the original offer.

answer

Correct answer: 3. Both I and II (sect 1)

question

The Buyer made an offer at less than the asking price. The Seller made a counteroffer. The Buyer would not accept the counteroffer. The Seller then agreed to accept the first offer. The situation now is that the I. Buyer is legally bound to complete the deal. II. broker has earned his commission.

answer

Correct answer: 4. Neither I nor II (sect 1)

question

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

answer

Correct answer: 2. contingency. (sect 1)

question

When a buyer, after all the parties have executed the purchase agreement, asks the broker for permission to move into the property before the closing, the broker's best course of action would probably be to 1. deny permission, but direct the buyer to the seller to discuss a temporary lease. 2. grant permission since the broker is the seller's agent and has the authority to act in the seller's behalf in such matters. 3. grant permission only if the seller has completely vacated the property. 4. do either one or two above.

answer

Correct answer: 1. deny permission, but direct the buyer to the seller to discuss a temporary lease. (sect 1)

question

The purchase agreement specifies that the agent and the seller may keep the earnest money if the buyer defaults. This stipulation is known as 1. mutual rescission. 2. unilateral rescission. 3. liquidated damages. 4. punitive damages.

answer

Correct answer: 3. liquidated damages. (sect 1)

question

As a concept of value, the highest and best use is the use that 1. contributes to the best interest of the community. 2. complies with zoning and deed restrictions. 3. produces the highest gross income. 4. produces the greatest net return on the investment.

answer

Correct answer: 4. produces the greatest net return on the investment. (sect 1)

question

Which of the following is NOT a characteristic of value? 1. Utility 2. Scarcity 3. Transferability 4. Cost

answer

Correct answer: 4. Cost (sect 1)

question

Market value is 1. the price a willing seller will accept and a willing purchaser will pay 2. cost of lot plus cost of building. 3. cost of lot and the capitalized value of the improvements. 4. determined by an appraiser.

answer

Correct answer: 1. the price a willing seller will accept and a willing purchaser will pay (sect 1)

question

Amenities are 1. changes or revision in a contract. 2. factors of convenience, location, beauty or utility. 3. payment received in satisfaction of injuries. 4. not considered by appraisers.

answer

Correct answer: 2. factors of convenience, location, beauty or utility. (sect 1)

question

When a lump-sum expenditure is required for overdue repairs, it is usually identified as 1. physical obsolescence. 2. functional obsolescence. 3. deferred maintenance. 4. building residual.

answer

Correct answer: 3. deferred maintenance. (sect 1)

question

Usually, the listing contract authorizes the broker to I. find a buyer. II. bind the seller to a sales contract when a qualified buyer has been found.

answer

Correct answer: 1. I only (sect 1)

question

A buyer and seller enter into an earnest money agreement through the efforts of a broker. The broker has liability to the buyer, and the buyer may have recourse against the broker if I. the broker gave the money to the seller and the seller backed out of the transaction. II. the broker acted outside the limits of the authority as granted. III. the broker misrepresented facts to the buyer.

answer

Correct answer: 4. I, II and III (sect 1)

question

Real estate license law prohibits real estate brokers from acting on their behalf without 1. the approval of the state regulatory agency. 2. the approval of the local real estate board. 3. full disclosure of their license status. 4. reservations.

answer

Correct answer: 3. full disclosure of their license status. (sect 1)

question

The seller tells the principal broker that termites have destroyed the floor and that the swimming pool is in violation of the city's setback requirements. Which of the following must the principal brokers broker disclose to a prospective buyer? I. The condition of the floor. II. The pool violation.

answer

Correct answer: 3. Both I and II (sect 1)

question

A broker has an exclusive listing on a house. The listing price was $73,250; the commission was 8% of the selling price. The broker received an offer from a buyer for $71,500 along with a $7,000 deposit. The offer included a termite and dry rot inspection as a contingency. The seller accepted the offer and instructed the broker to deposit the $7,000 into escrow. The broker should 1. deposit $1280 into escrow and retain $5,720 for his commission. 2. deposit the $7,000 into his personal account until the contingency has been met and then transfer the $7,000 into an escrow account. 3. deposit the $7,000 with an escrow company to which the parties have agreed. 4. deposit the $7,000 into a federally insured savings account under the broker's name until the transaction is ready to close.

answer

Correct answer: 3. deposit the $7,000 with an escrow company to which the parties have agreed. (sect 1)

question

Oregon's agency disclosure law applies to 1. residential property. 2. commercial property. 3. industrial property. 4. all of the above.

answer

Correct answer: 4. all of the above. (sect 1)

question

Oregon's agency disclosure law requires that a selling real estate licensee representing the seller give an Initial Agency Disclosure Pamphlet to a prospective buyer 1. only if the buyer signs an earnest money agreement. 2. at the first contact with the buyer who appears to be seeking representation. 3. within 10 days after the buyer contacts the licensee. 4. only if the licensee initiates the contact with the buyer.

answer

2. at the first contact with the buyer who appears to be seeking representation. (sect 2)

question

Under Oregon's agency disclosure law, a real estate broker associated with a principal broker may represent both the seller and buyer by a disclosed limited agency relationship. In this type of agency relationship I. the broker must agree to receive compensation from one party, not both. II. the buyer and seller arrange to have the principal broker keep some information confidential from the parties unless express permission otherwise is given.

answer

II only (sect 2)

question

Under Oregon's agency disclosure law, a buyer's single agent I. may accept a commission only from the buyer. II. is responsible for providing an Initial Agency Disclosure Pamphlet to the buyer at first contact.

answer

II only (sect 2)

question

An Oregon real estate licensee who agrees to act as the seller's agent is responsible to I. explain to the seller of the seller's obligations under the property condition disclosure and disclaimer law. II. provide a copy of the Initial Agency Disclosure Pamphlet to the seller prior to entering into a listing agreement.

answer

Both I and II (sect 2)

question

Which of the following statements about the Oregon property condition disclosure/disclaimer law and the agency disclosure law is true? I. The property disclosure/disclaimer law applies to all property within the State of Oregon. II. The agency disclosure law is limited to the sale of residential property.

answer

Neither I nor II (sect 2)

question

A prospective buyer must be given an Initial Agency Disclosure Pamphlet by the real estate licensee 1. at first contact. 2. as soon as the prospective buyer's specific real property needs or financial information is discussed. 3. at any time as long as it is given before closing. 4. only when the buyer signs and earnest money agreement.

answer

1. at first contact. (sect 2)

question

When an Oregon licensee represents the buyer as the buyer's agent I. only the buyer may pay the the licensee's commission.. II. the licensee has an obligation to the seller of honest dealing and disclosure of material facts.

answer

II only (sect 2)

question

A principal real estate broker 1. must only act for one party in a transaction. 2. may act for both parties if licensed for a minimum of one year. 3. is a fiduciary and has the duty to remain neutral. 4. may act for both parties with the knowledge and written consent of both.

answer

4. may act for both parties with the knowledge and written consent of both. (sect 2)

question

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. Owelty 2. Lis pendens 3. Fee simple 4. Agency

answer

4. Agency (sect 2)

question

To the seller, a real estate broker representing the seller usually is 1. a general agent. 2. a factor agent. 3. and ostensible agent. 4. a special agent.

answer

4. a special agent. (sect 2)

question

An owner of property gave a listing to a principal broker. Shortly thereafter the owner died. In this case the 1. agency is immediately terminated. 2. principal broker is entitled to his full commission from the estate. 3. listing agreement is binding on the heirs of the deceased owner. 4. principal broker is entitled to a reasonable time thereafter to procure a buyer during which time the listing will remain in force

answer

1. agency is immediately terminated. (sect 2)

question

What law prescribes the rights and duties between a property manager and his clients? 1. The law of agency. 2. The statute of frauds. 3. The statute of limitations. 4. The fair housing act.

answer

1. The law of agency. (sect 2)

question

The duty of loyalty to a client's interest requires a broker to I. keep the client informed of changing market conditions. II submit to the client all written offers received on the property.

answer

Both I and II (sect 2)

question

The prime obligation of an agent to the client is 1. loyalty. 2. deference. 3. mutual trust. 4. respect.

answer

1. loyalty (sect 2).

question

Marie Gregg acted on behalf of Tom Hilton without his authority, or even appearance of authority. At a later date, Hilton approved of her actions. Hilton's later approval of Gregg's actions would be an example of 1. express agreement. 2. ratification. 3. estoppel. 4. assumption of authority.

answer

2. ratification. (sect 2).

question

Once an Oregon licensee has established a single agency relationship with the seller or the buyer I. the relationship may not be changed to disclosed limited agency representation. II. the broker's commission may only be paid by the party with whom the broker has the relationship.

answer

Correct answer: 4. Neither I nor II (sect 2).

question

Under Oregon's agency disclosure law I. prior to entering into a listing agreement a real estate licensee must give an Initial Agency Disclosure Pamphlet to the seller. II. a seller is prohibited from paying a buyer's single agent's commission.

answer

Correct answer: 1. I only (sect 2).

question

Which of the following types of transactions, among others, are included under Oregon's agency disclosure statutes? I. Exchanges of real property. II. Options to purchase real property.

answer

Correct answer: 3. Both I and II (sect 2).

question

The first contact between Louise, the listing licensee representing the seller, and Susan, the purchaser, took place in the office. Under Oregon law, which of the following statements is true regarding this situation? 1. Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. 2. Louise may give Susan a copy of the Initial Agency Disclosure Pamphlet. 3. Louise does not need to provide a copy of the Initial Agency Disclosure Pamphlet to Susan if Susan waves her right to disclosure. 4. Louise is under no obligation to provide a copy of the Initial Agency Disclosure Pamphlet to Susan unless Louise agrees to become a buyers agent for Susan.

answer

Correct answer: 1. Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. (sect 2).

question

A real estate licensee is representing both the seller and buyer under a disclosed limited agency agreement. Under Oregon's agency disclosure law, the licensee may I. reveal to the buyer, without the seller's permission, that the seller will accept a price lower than the listing price. II. reveal to the seller, without the buyer's permission, that the buyer will pay a price higher than the offering price.

answer

Correct answer: 4. Neither I nor II (sect 2).

question

A real estate licensee representing a buyer has an obligation to I. provide an Initial Agency Disclosure Pamphlet to the buyer at first contact. II. Inform the buyer of the buyer's rights under the property condition disclosure/disclaimer law.

answer

Correct answer: 3. Both I and II (sect 2).

question

A buyer properly revoked his offer after receiving the property condition disclosure and requests the return of his earnest money. The broker 1. must promptly return the earnest money. 2. must obtain the seller's approval before releasing the earnest money 3. should file an interpleader to determine the disposition of the earnest money. 4. may, with the seller's permission, deduct part of his commission from the earnest money.

answer

Correct answer: 1. must promptly return the earnest money. (sect 2).

question

Under Oregon's agency disclosure law, a seller's single agent 1. may accept a commission only from the seller. 2. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement. 3. has no obligations to the buyers. 4. may not cooperate with a buyer's single agent.

answer

Correct answer: 2. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement. (sect 2).

question

The relationship between a real estate broker and his client is which of the following? 1. A fiduciary 2. An agency 3. Both of the above 4. None of the above

answer

Correct answer: 3. Both of the above (sect 2).

question

The position of trust assumed by the broker as an agent for the client is described most accurately as a 1. trustee relationship. 2. trustor relationship. 3. confidential relationship. 4. fiduciary relationship.

answer

Correct answer: 4. fiduciary relationship (sect 2).

question

A real estate broker may lose the right to a commission in a real estate transaction if I. guilty of a misstatement of known material facts. II. not licensed when hired as an agent.

answer

Correct answer: 3. Both I and II (sect 2).

question

The relationship between a real estate broker and his client is which of the following? 1. A fiduciary 2. An agency 3. Both 1 and 2 4. Neither 1 nor 2

answer

Correct answer: 3. Both 1 and 2 (sect 2).

question

In a standard listing contract, the principal broker acquires I. a fiduciary obligation toward his client. II. a limited power of attorney to accept offers on behalf of the client.

answer

Correct answer: 1. I only (sect 2).

question

According to the law of agency, a real estate property manager owes his client the duty of I. offering legal advice. II. conforming with his clients instructions. III. exercising reasonable care.

answer

Correct answer: 3. II and III only (sect 2).

question

A seller of a parcel of real property told the broker that the roof leaked in the house on the property and a statement to that effect was included in the listing agreement. The seller told the broker to inform all prospective buyers of this fact, but the broker sold the property and failed to tell the buyer that the roof leaked. What recourse does the seller have against the broker if the buyer sues the seller for misrepresentation? The seller 1. can recover damages from the broker. 2. cannot recover his damages because the client is solely liable for the acts of the agent. 3. must seek redress only with the Real Estate Agency. 4. has no recourse because of caveat emptor.

answer

Correct answer: 1. can recover damages from the broker. (sect 2).

question

The best way to discover a flaw in the recorded title to a piece of real property is by 1. calling the county surveyor. 2. taking out property insurance. 3. a search of title. 4. hiring a lawyer.

answer

3. a search of title. (sect 3)

question

A licensed property manager may authorize I. another licensed property manager to supervise her property management activity in her absence. II. an unlicensed bookkeeper to supervise in her absence.

answer

. I only (sect 3)

question

Abstract of title is a 1. contract for a deed. 2. condensed history of the title. 3. guarantee of title. 4. survey of the property.

answer

2. condensed history of the title (sect 3)

question

When a government agency takes possession of private property for public use, it is exercising the right of 1. eminent domain. 2. adverse possession. 3. dedication. 4. reversion.

answer

1. eminent domain. (sect 3)

question

The removal of land when a stream suddenly changes its channel is 1. adverse possession. 2. accretion. 3. avulsion. 4. breach.

answer

3. avulsion. (sect 3)

question

The process under eminent domain by which property is taken for public use is 1. lis pendens. 2. judgment. 3. condemnation. 4. abstract of judgment.

answer

3. condemnation. (sect 3)

question

Trees and crops 1. are real property. 2. are personal property. 3. may be real or personal property, depending on the circumstances. 4. are neither personal property nor real property; they are a form of fructus naturales.

answer

3. may be real or personal property, depending on the circumstances. (sect 3)

question

The addition to one's land by the gradual deposit of soil through natural causes is 1. annulation. 2. avulsion. 3. accretion. 4. ademption.

answer

3. accretion. (sect 3)

question

The system of land ownership whereby the land is owned and controlled by individuals is known as the 1. feudal system. 2. commercial system. 3. allodial system. 4. torrens system.

answer

3. allodial system (sect 3).

question

The right of alienation is defined as 1. the right to execute and deliver a deed. 2. the right to transfer an interest in real property. 3. the right to make a will. 4. statutes of descent and distribution.

answer

2. the right to transfer an interest in real property. (sect 3).

question

If aluminum storm windows are custom-made and installed on a particular building, they become what may properly be described as a I. fixture. II. part of the real property.

answer

2.Both I and II (sect 3).

question

An appurtenant easement 1. has no dominant estate. 2. is personal to the holder and incapable of transfer. 3. is possessory interest in the land of another person. 4. is an interest in land capable of transfer.

answer

4. is an interest in land capable of transfer. (sect 3).

question

A deed to real property has the statement "subject to an easement." The term "subject to" would mean the burdened land is 1. appurtenant. 2. a liability. 3. encumbered. 4. restricted.

answer

3. encumbered. (sect 3).

question

Harry owns a house subject to a first mortgage. His property is said to be 1. restricted. 2. encumbered. 3. subordinated. 4. executed.

answer

2. encumbered. (sect 3).

question

What is the usual way to finance a new sewer line installed in a neighborhood? 1. Excise tax 2. Special assessment 3. Real property tax 4. Utility charge

answer

2. Special assessment (sect 3).

question

Which of the following would be classified as an estate? 1. Mortgage 2. Lease 3. Real estate taxes 4. All of the above

answer

2. Lease (sect 3).

question

The maximum estate that a person may hold in land is called 1. estate in severalty. 2. a fee simple estate. 3. an estate for years. 4. a life estate.

answer

2. a fee simple estate. (sect 3).

question

Which of the following is a freehold estate? 1. Estate at will 2. Life estate 3. Estate for years 4. Leasehold

answer

2. Life estate (sect 3).

question

Jones conveys property to Smith as long as Smith maintains a church on the land. Jones has a 1. remainder. 2. possibility of reverter. 3. fee simple. 4. leasehold.

answer

2. possibility of reverter. (sect 3).

question

Ownership in severalty occurs when 1. two or more persons have identical interests in the same property concurrently. 2. husband and wife share the ownership of the same property. 3. two or more persons own the property in any form of title. 4. property is owned by one person.

answer

4. property is owned by one person. (sect 3).

question

Which of the following statements concerning a life estate is false? 1. All conveyances for a life estate have to be in writing to be enforceable. 2. A life estate can never extend beyond the life of the life tenant. 3. A life estate can be a freehold estate. 4. A person holding a life estate does not have fee title.

answer

2. A life estate can never extend beyond the life of the life tenant. (sect 3).

question

Jones, a life tenant, sells his estate to Smith. Jones dies. Title is in 1. Smith's name. 2. the remainderman. 3. Jones' heirs. 4. Smith's heirs.

answer

2. the remainderman. (sect 3).

question

In a deed in which the grantor, Paul Jenkins, states "to Angelo for his life, and then to Paul Jenkins" the grantor has what type of interest? 1. A life estate 2. A remainder 3. A reversion 4. A right of reentry

answer

3. A reversion (sect 3).

question

Hampton signed a lease to rent a seashore cottage from June 1, 2005 to August 30, 2005. Hampton had 1. a tenancy at will. 2. a tenancy at sufferance. 3. a month-to-month tenancy. 4. an estate for years.

answer

4. an estate for years. (sect 3).

question

A man had a one year lease on a residence which expired July 31, 2005. He stayed on after that date without the consent of the landlord and did not pay any rent. He now holds 1. an estate in remainder. 2. a tenancy at sufferance. 3. a month-to-month tenancy 4. an easement.

answer

2. a tenancy at sufferance. (sect 3).

question

If four persons hold title to real property as tenants in common, they 1. must each own a one quarter interest. 2. would be unable to determine which portion of the land is theirs. 3. would have the right of survivorship. 4. could not transfer their interest without the consent of the others.

answer

2. would be unable to determine which portion of the land is theirs. (sect 3).

question

David and Janet Rierson buy a home in Oregon. Although both of their names are specified in the deed, no mention is made in the deed concerning any preference for holding a title. This married couple would automatically hold the property as 1. tenants in common. 2. tenants by the entirety. 3. tenants in partnership. 4. joint tenants.

answer

2. tenants by the entirety. (sect 3).

question

An easement is 1. and estate in land. 2. an encumbrance, but not a lien. 3. a lien. 4. both the lien and an encumbrance.

answer

2. an encumbrance, but not a lien. (sect 3).

question

An easement appurtenant 1. may be terminated by the dominant tenement. 2. may be terminated by the servient tenement. 3. will be terminated if abandoned by the servient tenement. 4. cannot be terminated.

answer

1. may be terminated by the dominant tenement. (sect 3).

question

Which of the following could not be real property? 1. An easement 2. Mineral rights 3. An existing mortgage 4. A fixture

answer

3. An existing mortgage (sect 3).

question

An easement appurtenant is an interest in land I. which may be terminated at any time by the order of the land encumbered by the easement. II. which gives the holder of the easement use or enjoyment of another's land.

answer

2. II only (sect 3).

question

A license to cross a private property would I. expire upon the death of either party to the license. II. be revoked by sale of the property.

answer

3. Both I and II (sect 3).

question

Title VIII of the civil rights act of 1968, also known as the Federal Fair Housing Act, attempts to prohibit discrimination in I. the sale of housing. II. residential mortgage lending.

answer

3. Both I and II (sect 3).

question

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

answer

1. the broker uses racial fears to prompt people in a changing neighborhood to sell their homes (sect 3).

question

According to Oregon statute, to create a subdivision 1. means to divide land into two or three lots with a new street to make sure all lots are accessible. 2. means to divide land into a two or three lots, as long as no new street is created. 3. means to divide land into four or more lots within a calendar year. 4. depends on whether a new street is created.

answer

3. means to divide land into four or more lots within a calendar year. (sect 3).

question

Under the Oregon Subdivision and Series Partition Control Law I. the buyer has a three day right of rescission if he buys the lot for which a public report has been issued. II. there is a provision for the buyer to waive his rights under the law, if the buyer signs a written statement to that effect.

answer

1. I only (sect 3).

question

Condominium ownership is I. a type of space ownership. II. a form of fee simple ownership of real property.

answer

3. Both I and II (sect 3).

question

An acre contains 1. 26,650 square feet. 2. 34,780 square feet. 3. 43,560 square feet. 4. 54,670 square feet.

answer

3. 43,560 square feet. (sect 3).

question

How many acres are contained in the following description? Beginning at the SW corner of the NE 1/4 of section 26; thence North 1 mile to the NW corner of the SE 1/4 of section 23; thence Southwesterly to the SE corner of the NW 1/4 of section 27; thence East 1 mile to the point of beginning. 1. 80 acres 2. 160 acres 3. 260 acres 4. 320 acres

answer

4. 320 acres (sect 3).

question

If the owner of a condominium defaults on his mortgage, the owners of the remaining units 1. become subject to foreclosure. 2. must immediately institute a suit to quiet title. 3. must file an injunction against the defaulting owner. 4. are not affected by the defaulting owner's actions.

answer

4. are not affected by the defaulting owner's actions. (sect 3).

question

1. The right of eminent domain refers to 1. the right of every American citizen to own property. 2. an organization's right to condemn property pending an improvement that is for the good of the community. 3. an institution or individual acquiring land by grant from the government. 4. the government's right to acquire or authorize others to acquire title to property for public use.

answer

Correct answer: 4. the government's right to acquire or authorize others to acquire title to property for public use. (sect 3).

question

2. Real property includes I. appurtenances. II. rights that belong to the land. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 3. Both I and II (sect 3).

question

3. The sudden tearing away or removal of land by action of water is 1. accretion. 2. erosion. 3. aversion. 4. avulsion.

answer

Correct answer: 4. avulsion. (sect 3).

question

4. Which of the following statements concerning the addition or subtraction of land is correct? I. Accretion is the gradual deposit of soil through natural causes. II. The sudden tearing away of land by action of water is called avulsion. III. Erosion is the gradual loss of soil due to current, tides, or winds. 1. I only 2. II only 3. II and III only 4. I, II and III

answer

Correct answer: 4. I, II and III (sect 3).

question

5. What does the term "improvements" means in a real estate transaction? 1. Everything except the land 2. Additions to property since the last sale 3. Fixtures and personal property 4. Streets, curbs, sidewalks, and utilities

answer

Correct answer: 1. Everything except the land (sect 3).

question

6. The owners "bundle of rights" to real property includes I. the air rights above his property. II. the right to harvest emblements of a tenant farmer. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 1. I only (sect 3).

question

7. The transferring of title to real property to another is defined as 1. proration. 2. alienation. 3. prescription. 4. consideration.

answer

Correct answer: 2. alienation. (sect 3).

question

8. All of the following may properly be considered items of personal property EXCEPT 1. a portable electric space heater. 2. an installed gas hot water heater. 3. a television set connected to a cable outlet. 4. an electric dryer.

answer

Correct answer: 2. an installed gas hot water heater. (sect 3).

question

9. Rights in personal property are known as 1. estates. 2. common estates. 3. fee simple estates. 4. chattel interests.

answer

Correct answer: 4. chattel interests. (sect 3).

question

10. Permission to use property by the giving of an easement creates 1. a license. 2. a lien. 3. an encumbrance. 4. a prescription.

answer

Correct answer: 3. an encumbrance. (sect 3).

question

11. Which of the following is an encumbrance, but not a lien? 1. Mortgage 2. Deed restriction 3. Trust deed 4. Property taxes

answer

Correct answer: 2. Deed restriction (sect 3).

question

12. When a claim against a parcel of real estate may result from a pending lawsuit, a person examining the public records would look for a 1. forcible entry. 2. constructive notice. 3. caveat emptor notice. 4. lis pendens (Notice of Pendency)

answer

Correct answer: 4. lis pendens (Notice of Pendency) (sect 3).

question

13. A possessory right or ownership interest in real estate is called an 1. abstract of title. 2. estate. 3. ad valorem. 4. affidavit.

answer

Correct answer: 2. estate. (sect 3).

question

14. Which of the following is a Freehold estate? 1. Estate for years 2. Estate for life 3. Estate at will 4. Estate at sufferance

answer

Correct answer: 2. Estate for life (sect 3).

question

15. Lorraine Cruser owns a parcel of real property. She can change her fee simple title to less than a freehold estate by I. selling the mineral rights. II. a sale/leaseback arrangement. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 2. II only (sect 3).

question

16. Which of the following would be used to enforce the condition that was created at the time the real property was conveyed? 1. Cease and desist order 2. Zoning Board of appeals 3. Reverter clause 4. Violation citation

answer

Correct answer: 3. Reverter clause (sect 3).

question

17. An estate in severalty is held by I. three or more persons. II. two persons. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 4. Neither I nor II (sect 3).

question

18. Unless there exists a deed restriction to the contrary, the holder of a life estate may do all of the following to his holding except 1. sell it. 2. rented. 3. mortgage it. 4. devise it.

answer

Correct answer: 4. devise it. (sect 3).

question

19. The owner of a fee simple estate who conveys his real estate and reserves to himself a life estate in the entire property, grants to the grantee an estate called 1. homestead. 2. dower. 3. an incorporeal interest. 4. a remainder interest.

answer

Correct answer: 4. a remainder interest. (sect 3).

question

20. The right to future possession by the person creating a life estate is known as 1. alienation. 2. hypothecation. 3. reversion. 4. contingent.

answer

Correct answer: 3. reversion. (sect 3).

question

21. A lease on real property is generally considered to be 1. a property lien. 2. an estate for years. 3. an estate at sufferance. 4. a life estate.

answer

Correct answer: 2. an estate for years. (sect 3).

question

22. Smith leased a residence for a six-month term and upon expiration of the lease retained possession of the property without the consent of the landlord. Smith now holds an 1. estate for years. 2. estate at will. 3. estate from period to period. 4. estate at suffererance.

answer

Correct answer: 4. estate at suffererance. (sect 3).

question

23. A tenancy in common requires 1. husband and wife. 2. undivided interest. 3. equal interest. 4. an arrangement for possession.

answer

Correct answer: 2. undivided interest. (sect 3).

question

24. Mr. and Mrs. Allen Hughes buy a farm in Oregon, and no mention is made in the deed concerning any preference for holding the title. The Hughes couple will automatically hold a 1. tenants in common. 2. tenants by the entirety. 3. tenants in severalty. 4. tenants in common, with right of survivorship.

answer

Correct answer: 2. tenants by the entirety. (sect 3).

question

25. An owner who has a permanent right to cross over an adjoining owner's land has 1. an easement. 2. a license. 3. a party wall. 4. a riparian right.

answer

Correct answer: 1. an easement. (sect 3).

question

26. If I have a permanent right to cross your land to get to my house, my property has 1. a dominant tenement. 2. a servient tenement. 3. an easement in gross. 4. a license.

answer

Correct answer: 1. a dominant tenement. (sect 3).

question

27. An easement appurtenant to real property can be terminated by all of the following, EXCEPT 1. merger of both the servient and dominant parcels. 2. revocation by the servient owner. 3. prescription by the servient owner. 4. released by the dominant tenement owner.

answer

Correct answer: 2. revocation by the servient owner. (sect 3).

question

28. Bob owns a lot. He also owns a sewer easement over the property of his neighbor, Tom. This easement is appurtenant to Bob's lot. Bob sells his lot to Joe without specific mention of the easement in the deed. The easement 1. passes to Joe. 2. remains owned by Bob as an encumbered interest. 3. terminates unless it is a covenant running with the land. 4. reverts to Tom.

answer

Correct answer: 1. passes to Joe. (sect 3).

question

29. When one has permission to use land for some limited, specific purpose, but has no other rights, one has a 1. tenancy in common. 2. leasehold estate. 3. tenancy at suffererance. 4. license.

answer

Correct answer: 4. license. (sect 3).

question

30. Title VIII of the Civil Rights Act of 1968, also known as the Federal Fair Housing Act, prohibits discrimination in I. the sale of housing. II. the leasing of residential property. III. the leasing of commercial property. IV. residential mortgage lending. 1. I only 2. I and II only 3. I, II and IV 4. II, III and IV

answer

Correct answer: 3. I, II and IV (sect 3).

question

31. A broker is guilty of steering if I. he avoids showing white buyers property he has listed in a particular neighborhood. II. he shows Asian buyers only properties in neighborhoods dominated by Asian families. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 3. Both I and II (sect 3).

question

32. The Oregon Subdivision Control Act is administered by the 1. Attorney General. 2. State Land Board. 3. Real Estate Commissioner. 4. Governor.

answer

Correct answer: 3. Real Estate Commissioner. (sect 3).

question

33. Which of the following statements concerning subdivision public reports is true? I. A licensee must give a copy of a public report to a purchaser only after the execution of a binding sales contract. II. A licensee may use portions of a public report without using the entire report in advertising of the subdivision. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 4. Neither I nor II (sect 3).

question

34. Mr. Abel purchased a two-bedroom condominium. He now holds I. a freehold interest in his unit. II. a proprietary lease. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

answer

Correct answer: 1. I only (sect 3).

question

35. A condominium is an estate in real property consisting of an undivided interest in common in a portion of the property, together with a separate complete ownership of space. The estate may be 1. fee simple only. 2. an estate for life only. 3. an estate for years only. 4. any of the above.

answer

Correct answer: 4. any of the above. (sect 3).

question

36. In a description of land based on the rectangular survey system, the SE 1/4 of the SE 1/4 of the SE 1/4 of section 1 contains 1. 10 acres. 2. 20 acres. 3. 30 acres. 4. 40 acres.

answer

Correct answer: 1. 10 acres. (sect 3).

question

37. A normal size section in the Government Rectangular Survey System contains 1. 160 acres. 2. 1 square mile. 3. 6 square miles. 4. 36 square miles.

answer

Correct answer: 2. 1 square mile (sect 3).

question

38. Real property taxes that are not paid are 1. general, involuntary liens. 2. general, voluntary liens. 3. specific, voluntary liens. 4. specific, involuntary liens.

answer

Correct answer: 4. specific, involuntary liens. (sect 3).

question

39. Under Oregon law, if a principal real estate broker establishes an independent contractor relationship with an associated real estate broker 1. the real estate broker is not required to have his personal transactions supervised by the principal broker. 2. the listings obtained by the real estate broker may be transferred if the real estate broker moves to another principal broker's office. 3. the principal broker must supervise the real estate broker's real estate activities so as to conform to the Oregon Real Estate License Law and administrative rules. 4. the principal broker is not responsible for reviewing the real estate broker's advertising.

answer

Correct answer: 3. the principal broker must supervise the real estate broker's real estate activities so as to conform to the Oregon Real Estate License Law and administrative rules. (sect 3).

question

40. Under Oregon law a real estate broker associated with a principal real estate broker may 1. employ a principal real estate broker. 2. supervise real estate brokers in a branch office. 3. supervise their own files. 4. None of the above.

answer

Correct answer: 4. None of the above. (sect 3).

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