OREGON REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS ALREADY PASSED

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OREGON REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS ALREADY PASSED Can a NON-licensed individual who is an employee of a licensed real estate property manager do any of the following items, even if... the property manager signs a paper delegating their authority to a non-licensed office staff person? - 1. Negotiate rental of lease agreements? 2. Check tenant and credit references? 3. Physically maintain the real estate? 4. Conduct tenant relations? 5. Collect the rent? 6. Supervise the premises' managers? 7. Discuss financial matters relating to the management? 8. Receive and disburse trust funds in a clients trust account? YES 696.030 Exemptions. (9) A non-licensed individual who is employed by a principal real estate broker engaged in the management of a rental real estate or by a licensed real estate property manager and who acts on behalf of the principal real estate broker or licensed real estate property manager pursuant to a written delegation of the principal real estate broker’s or licensed real estate property manager’s authority. Do you have to be a licensed real estate agent to conduct a real estate AUCTION? (i.e. the auctioneer) YES There are various persons working at auctions who must be licensed. These include the broker who contracts (listing or employment agreement) to conduct the auction and the person who cries the auction. Bid assistants (sometimes called spotters or ringmen) who do more than merely spot bids for the auctioneer will also be required to have a real estate license. Do you have to be a licensed real estate agent to sell campground sites? NO Any individual who does not have a real estate license and is engaged in offering to sell or obtaining commitments to buy campground memberships by means of membership camping contracts by making a direct sales presentation to a person must be registered as a membership camping contract salesperson. Do you have to open a separate client trust account for each individual client (transaction)? YES Principal brokers must retain and store the records described in this rule as required by OAR 863-015-0250 and 863- 015-0260. However, where separate general business or clients’ trust accounts or both are maintained at branch offices, the financial records described in this rule may be maintained and located either at the principal broker’s main office or, if the principal real estate principal broker or branch office manager conducts the real estate business from that branch office, at that branch office. When you have to renew your license for the first time what is needed for continued education? THREE-HOUR LAW AND RULE REQUIRED COURSE AND 27-HOUR ADVANCED COURSE IN REAL ESTATE PRACTICES (B) A Board-approved three-hour law and rule required course on recent changes in rule and law, described in OAR 863-022-0055, required for all licensees; (C) A 27-hour advanced course in real estate practices, described in OAR 863-022-0020, required for real estate brokers before the first active renewal of the broker's license or before the first license reactivation following an inactive first renewal; When a broker writes a letter of resignation to his principle broker, at what point does that principal broker become NOT responsible for that broker? (when he receives the resignation letter? when he signs off on the license? when he signs off on the license and puts it in the mail?) OAR 863-014-0063 (A) AN ONLINE INACTIVATION APPLICATION AVAILABLE THROUGH THE AGENCY’S WEBSITE; OR (B) AN ONLINE LICENSE TRANSFER FORM AND FEE. How long does a property manager have to refund a tenants deposit after the end of their lease? NOT LATER THAN 31 DAYS AFTER THE TENANCY TERMINATES How long before funds in a purchase agreement need to be deposited into the clients trust account? EARNEST MONEY MUST BE DEPOSITED IN 3 BANKING DAYS AND ALL OTHER FUNDS WITHIN 5 BANKING DAYS Can a principal broker assign responsibility to an office manager to review and sign off on a real estate brokers advertisement? YES, BUT ULTIMATELY IT’S THE PRINCIPAL BROKER THAT IS RESPONSIBLE. What is an Applicable Identifying Code? “IDENTIFYING CODE” MEANS A UNIQUE SERIES OF LETTERS AND/OR NUMBERS ASSIGNED BY A PROPERTY MANAGER TO A PROPERTY MANAGEMENT AGREEMENT AT THE TIME OF THE AGREEMENT Construction Lien: Which of these individuals are able to put a lien on a property? Subcontractor for a construction of a new building OR A Wood furnishing company that provided the materials for the contractor? THE SUBCONTRACTOR BECAUSE THEY ARE THE ONES CONTRACTED FOR THE WORK. THE SUPPLIER WORKS WITH THE SUBCONTRACTOR AND HAS AN AGREEMENT WITH THEM! Do you have to be licensed to sell a time share? YES "Real property” means any estate in real property, including a condominium as defined in ORS 100.005, a timeshare property as defined in ORS 94.803 and the granting of an option or right of first refusal. “Real property” also includes a manufactured structure, as defined in ORS 446.561, owned by the same person who owns the land upon which the manufactured structure is situated. “Real property” does not include a leasehold in real property. What happens when a Principal Broker fires his employed broker? What happens to his license? LICENSE BECOMES INACTIVE ONCE THE LICENSEE GOES TO THE REAL ESTATE AGENCY WEBSITE AND FILLS OUT THE PROPER FORM. A PRINCIPAL REAL ESTATE BROKER WITH WHOM A LICENSEE IS ASSOCIATED REMAINS RESPONSIBLE FOR THE LICENSEE’S PROFESSIONAL REAL ESTATE ACTIVITY UNTIL THE AGENCY RECEIVES ONE OF THE FOLLOWING: (A) AN ONLINE INACTIVATION APPLICATION AVAILABLE THROUGH THE AGENCY’S WEBSITE; OR (B) AN ONLINE LICENSE TRANSFER FORM AND FEE. How many days? Example. 3 day rule for depositing earnest money or is it 5 days? THREE DAYS. IT IS THEN 7 DAYS FOR PRINCIPAL BROKER TO REVIEW PAPERWORK, SIGN DOCS, ETC. IS IT 3 DAYS FOR WORKERS TO GET DOCS TO PRINCIPAL BROKER AND 5 DAYS FOR THEM TO GET TO BANK? Property management has a security deposit for 1 of his tenants, how many days does he have to deposit? FIVE (5) DAYS Can a warehouse put a construction lean on a property if not paid by the contractor for the supply even though the contractor is paid? Or is that a different lien? YES What's the difference between a nonconforming use permit and variance? A VARIANCE IS AN EXCEPTION TO THE EXISTING ZONING, WHEREAS A NONCONFORMING USE (ALSO KNOWN AS A GRANDFATHER CLAUSE), ARISES WHEN THERE IS A CHANGE TO THE ZONING BUT AN EXISTING USE IS STILL PERMITTED TO CONTINUE. If a buyer doesn't receive the disclosure statement when can the buyer back out of a contract? DISCLOSURE STATEMENT: EACH SELLER OF RESIDENTIAL PROPERTY DESCRIBED IN ORS 105.465 MUST DELIVER THIS FORM TO EACH BUYER WHO MAKES A WRITTEN OFFER TO PURCHASE. UNDER ORS 105.475 (4), REFUSAL TO PROVIDE THIS FORM GIVES THE BUYER THE RIGHT TO REVOKE THEIR OFFER AT ANY TIME PRIOR TO CLOSING THE TRANSACTION. What's the penalty of property manager of not showing funds or with book keeping issues? 1000 max. 5000 max or 1000 per day? UP TO $1,000 PER DAY OF VIOLATION what happens to principal broker if a complaint is made against them? Are they suspended or a notice for review? NOTICE FOR REVIEW: THE COMMISSIONER WILL EVALUATE ALL RELEVANT FACTORS TO DETERMINE WHETHER TO ISSUE A NON-DISCIPLINARY EDUCATIONAL LETTER OF ADVICE OR TO DISCIPLINE A LICENSEE THROUGH REPRIMAND, SUSPENSION OR REVOCATION UNDER ORS 696.301 Do you have to be licensed to advertise real estate. YES, MUST BE LICENSED. Can a licensee sell their own listing? YES Does a broker have to go through his own principal broker to buy or sell property? NO Does a promissory note have to state legal address or amount or both? TO BE VALID BOTH. Do you need a license to deal in options and vacation rentals for compensation? YES, THE KEYWORD IS COMPENSATION When opening a trust account how long do you have to register it with real estate agency? WITHIN 10 DAYS Who can register a real estate business name? PRINCIPAL BROKER Does a court ordered real estate sale transaction need a license to sell? NO Does the VA office selling REO properties need License? NO, GOVERNMENT AGENCIES DO NOT NEED A LICENSE TO SELL REAL ESTATE. Does someone engaging in RE transaction for a small partnership need license? IF IT IS AN OWNER OF A FIRM THEN YES, IF IT IS AN OWNER OF A PROPERTY AND THEY WANT TO SELL THEN NO. If a tenant does not pay rent for a month, and moves out after a few days into the month, and the landlord rents out the unit to someone else for the remainder of the month, is he entitled to the rent owed to him by the first tenant and can also keep the rent he has made from the new tenant? NO, IF THE LANDLORD RENTS IT OUT THEN THE LANDLORD IS ONLY ENTITLED TO COLLECT THE RENT FOR THE DAYS THAT IS WAS VACANT. EXAMPLE: TENANT LEFT ON MAY 3RD AND LANDLORD RENTED ON MAY 10TH. LANDLORD CAN COLLECT RENT FOR 10 DAYS. MAY 1‐10TH. If Joe vacated his rental home at the first of the month without paying the last month's rent and Principal Bill sued him for the month's rent but found a new renter immediately 5 days after, how does he charge the new & old tenant? JOE OWES THE PRINCIPAL FOR THE 5 DAYS THE PROPERTY WAS VACATED. In the US rec. system the north south lines are called what? MERIDIANS What is the principal meridian in Oregon called? THE WILLAMETTE MERIDIAN What can happen to a broker if they solicit another brokers listing? THE REAL ESTATE AGENCY CAN REVOKE THE REAL ESTATE LICENSE OR, REPRIMAND THE BROKER. THEY DO THIS BY PROGRESS DISCIPLINE: If a broker, is asked to come do a listing presentation, and see that another broker already has a sign up and currently has the listing, what should the broker do? NEVER PRESENT RUN AWAY Bill is a broker. John is seller. Bill knows John has exclusive right to sell agreement with Ann. Bill told John to sign another agreement with him. Bill will: PUT HIS LICENSE IN JEOPARDY WITH THE COMMISSIONER An owner of a building has a 20 year lease, after 10 years, the economic rent has increased. What does this mean for the owner? MEANS THAT THE OWNER IS GETTING MORE MONEY THAN HE WAS ORIGINALLY WILLING TO ACCEPT. ECONOMIC RENT IS THE EXTRA MONEY OR PAYMENT MADE OVER AND ABOVE THE AMOUNT EXPECTED BY ITS OWNER. The real estate board can do what to a licensee except? REPRIMAND A LICENSEE? YES REVOKE A LICENSE? YES SUSPEND A LICENSE? YES MAKE A BROKER PAY RESTITUTION? NO What is the purpose of foreclosure? LEGAL ACTION FOR THE LENDER TO RECLAIM THEIR PROPERTY IN WHICH THE BORROWER HAS FAILED TO MAKE THE REQUIRED PAYMENTS. What is more of a material fact in Oregon Real Estate. A previous murder or meth lab? METH LAB: DISCLOSE MATERIAL FACTS - TO DISCLOSE ALL MATERIAL FACTS, BUT AN AGENT DOES NOT HAVE TO DO INVESTIGATIVE WORK. The principal broker must retain all client records for 6 years. How long does a property manager retain his client records? 6 YEARS The following documents must be kept for record by the principal broker for a period of time after the transaction EXCEPT a. Emails used in the process of the transaction b. BILLS PAID TO KEEP THE CLIENT TRUST ACCOUNT OPEN All c. Documents voluntarily created during the transaction d. Earnest money deposit receipts Which of the following reasons can a client be rejected LEGALLY of showing of a home? a. Agent only provides services to married couples. b. Agent only advertises to minority families c. THE CLIENTS ARE A MEMBER OF THE HATE GROUP "KKK" A buyer is in the process of purchasing a 40 acre farm land. The current sellers have a tax deferral due to the EFU in place. What happens to the tax deferral when the buyer purchases the property & can the deferral be passed to the new owner? NO. A seller asks a real estate agent to list their land for sale. The land includes an 'untitled' manufactured home. Can the real estate agent list both the land & untitled man. home in the same transaction? JUST THE LAND, REAL ESTATE AGENTS CAN’T SELL AN UNTITLED MANUFACTURED HOME If a Broker manages his own rental property what he must do? DEPOSIT MONEY INTO A CLIENT TRUST ACCOUNT The legal responsibility a property manager has to an owner can be found? OREGON REVISED STATUTES If a broker states in a purchase in sale agreement that he will list on MLS only and not do any other duties to seller and not represent seller on transaction. Which affirmative duties might be waived in writing if both parties agree. MANAGE MONEY IN TIMELY ORDER A Buyer enters a contract to purchase property that is zoned agriculture use only. The property also has a house and barn on it. The property currently is under deferment tax, what should the buyer do to maintain that the agricultural tax deferment stays in place? -do nothing because automatic transfer defer tax ASK SELLER TO TRANSFER ON TITLE PRIOR TO CLOSING Smith is principal who list house on the MLS. Bill is broker with another brokerage that found John a house.. Bill brings an offer to purchase Smith's house. Who will Bill give the earnest money too? Smith or John? EARNEST MONEY SHOULD GO TO SMITH AS THEY REPRESENT THE SELLER OR GO TO ESCROW. Tenant moved out w/out 30 days notice and landlord sued for unpaid rent. 6 days after tenant moved out the landlord rented that unit to a new tenant. How much can the landlord collect? LANDLORD WILL COLLECT RENT FROM BOTH OLD AND NEW TENANT – THE OLD TENANT OWES FOR THE DAYS THE NEW TENANT IS NOT THER What agency relationship does a broker have in Oregon? RESIDENTIAL REAL ESTATE If promissory note is used as earnest money what is best interest for seller? PAY DATE OF THE EARNEST MONEY IS THE SAME DAY THAT SELLER ACCEPTS THE OFFER If buyer purchases land for development, where can a broker advise the client to seek advice? OREGON DEPARTMENT OF LAND CONSERVATION AND DEVELOPMENT [Show More]

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