Oregon Escrow & Title
Practice Questions & Answers (2026)

Explanation

Oregon escrow agents are licensed and regulated by the Oregon Division of Financial Regulation, which is part of the Department of Consumer and Business Services. Real estate brokers handle real property transactions but separate escrow company licensing is required for escrow agents.

Explanation

A quitclaim deed conveys whatever interest the grantor holds — which may be full ownership or nothing at all — with no warranties or guarantees. It offers the least protection to the buyer and is often used between family members or to clear title defects.

Explanation

TRID requires that the Closing Disclosure be provided to the borrower at least 3 business days before consummation (closing). This gives borrowers time to review final loan terms and costs and compare them to the Loan Estimate.

Explanation

Prorated property taxes as a credit or debit appear on the Closing Disclosure because they represent the allocation of costs between buyer and seller at settlement. A listing agreement sets the listing price and broker compensation but does not address closing prorations.

Explanation

A deed of trust involves: the trustor (borrower who conveys title to the trustee), the trustee (neutral third party who holds title as security), and the beneficiary (lender who receives the benefit of the security). The trustee holds naked legal title until the loan is paid off.

Explanation

An owner's title insurance policy protects the property buyer against financial loss from title defects that arose before the purchase (prior to the policy date), such as undisclosed liens, forgeries, or errors in public records. It provides coverage for as long as the owner holds the property.

Explanation

Oregon uses a race-notice recording statute. To be protected, a subsequent purchaser must both (1) have no actual or constructive notice of a prior unrecorded interest, and (2) record their deed before the prior interest is recorded.

Explanation

The SellerNet (or seller's net sheet) is a document prepared by the broker or escrow officer that estimates the seller's net proceeds from the sale after accounting for the payoff of existing loans, closing costs, commissions, and prorations.

Explanation

Proration is the process of fairly dividing ongoing property costs and revenues between the buyer and seller as of the closing date. Items prorated at closing typically include property taxes, HOA dues, rents, and prepaid insurance.

Explanation

A general warranty deed provides the broadest protection, warranting title against all claims — including defects arising from prior owners' actions. It includes covenants of seisin, quiet enjoyment, against encumbrances, further assurance, and warranty forever.