Oregon Real Estate Practice Exam
(Free Questions & Answers)

Explanation

The Oregon Real Estate Agency (OREA) is the state agency responsible for licensing real estate brokers, principal brokers, and property managers, and for enforcing Oregon real estate law.

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Oregon requires licensees to provide consumers with the 'Initial Agency Disclosure Pamphlet' before providing any substantive real estate services. This ensures consumers understand the nature of the agency relationship being offered.

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Oregon law gives buyers 5 business days after receiving the Seller's Property Disclosure Statement to rescind their offer without penalty. This right ensures buyers have an opportunity to review the disclosure before being bound.

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VA loans, guaranteed by the U.S. Department of Veterans Affairs, typically require no down payment and no private mortgage insurance (PMI), making them a significant benefit for eligible veterans, active-duty service members, and surviving spouses.

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In a lien theory state like Oregon, the borrower (mortgagor) retains title to the property, and the lender (mortgagee) holds a lien on the property as security for the loan. This contrasts with title theory states where the lender holds title.

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The income capitalization approach values property based on its income-producing potential. It is the primary method for appraising income-producing properties like apartment buildings, retail centers, and office buildings.

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Oregon's fair housing law extends protection beyond the seven federal classes to include marital status, sexual orientation, gender identity, and source of income, among others. These state-level protections provide broader coverage than federal law alone.

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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.

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Assessed value: $480,000 × 0.90 = $432,000. Annual tax: $432,000 × ($12.50 ÷ $1,000) = $432,000 × 0.0125 = $5,400.

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Radon is a colorless, odorless radioactive gas produced by the natural decay of uranium in soil and rock. It can enter buildings through foundation cracks and accumulate to dangerous levels. The EPA recommends mitigation when indoor levels exceed 4 pCi/L.

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Oregon's Statewide Planning Goal 14 (Urbanization) requires all Oregon cities to establish Urban Growth Boundaries (UGBs) to manage growth, direct urban development to appropriate areas, and protect farmland and forests outside urban areas.

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Oregon's Residential Landlord and Tenant Act (ORS 90.300) requires a landlord to return the tenant's security deposit (or provide an itemized written statement of deductions) within 31 days after the tenancy terminates and the tenant delivers possession.

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Oregon requires 150 hours of pre-license education for a broker license, which includes courses in real estate practice, law, finance, and an agency disclosure course. This is among the higher pre-license requirements in the country.

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Even when representing the seller, an Oregon agent owes all parties the duty to disclose material facts about the property that could affect the buyer's decision. This is distinct from the duties of loyalty and confidentiality owed only to the client.

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A valid real estate contract in Oregon must identify the property being sold; a legal description or sufficient identification of the property is required. Notarization is not required for the contract itself, though it is required for recording a deed.

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The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction based on race, color, religion, national origin, sex, marital status, age, or because all or part of the applicant's income derives from a public assistance program.

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Tenancy by the entirety is a form of co-ownership available only to married couples (and in Oregon, registered domestic partners). Like joint tenancy, it includes the right of survivorship, and neither spouse can unilaterally convey their interest.

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Value = NOI ÷ Capitalization Rate. $60,000 ÷ 0.06 = $1,000,000. The cap rate reflects the market's expected return on investment for that property type and location.

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Blockbusting (also called panic peddling) involves inducing homeowners to sell or rent by making statements about changes in the racial or ethnic composition of a neighborhood. It is illegal under the federal Fair Housing Act and Oregon law.

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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.

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Down payment: $390,000 × 0.10 = $39,000. Loan amount: $390,000 − $39,000 = $351,000. Points are calculated on the loan amount: $351,000 × 0.02 = $7,020.

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Oregon DEQ is responsible for protecting Oregon's air, land, and water quality. It administers cleanup of contaminated sites under state Superfund programs, issues environmental permits, and monitors compliance with environmental regulations.

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Statewide Planning Goal 3 (Agricultural Lands) protects Oregon's agricultural lands from conversion to urban or other non-farm uses. It requires counties to zone and protect high-value farm land and to apply minimum lot sizes that maintain farm viability.

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Under Oregon's ORLTA (ORS 90.322), a landlord must provide at least 24 hours advance notice before entering a rental unit for non-emergency purposes such as repairs, inspections, or showing the unit to prospective tenants or buyers.

Explanation

The Oregon real estate broker licensing exam consists of 130 questions. Candidates must score at least 75% to pass. The exam covers both national real estate principles and Oregon-specific law.