1. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
2. Under an open listing, the seller owes a commission to:
Answer & explanation
Answer: C. Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.
3. A broker received a 4.2% commission totaling $12,600. What was the sale price?
Answer & explanation
Answer: C. Sale price = commission / rate = $12,600 / 0.042 = $300,000.
4. One discount point equals what percentage of the loan amount?
Answer & explanation
Answer: B. One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.
5. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?
Answer & explanation
Answer: C. Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.
6. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?
Answer & explanation
Answer: C. Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.
7. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
8. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?
Answer & explanation
Answer: B. LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.
9. A home sells for $400,000 with a 5% total commission. What is the total commission?
Answer & explanation
Answer: B. $400,000 x 0.05 = $20,000.
10. A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?
Answer & explanation
Answer: A. Purchase price = loan / LTV = $276,000 / 0.80 = $345,000. ($220,800 wrongly multiplies by 0.80.)
11. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?
Answer & explanation
Answer: B. LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)
12. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?
Answer & explanation
Answer: B. Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.
13. How is Oregon's maximum annual rent increase calculated under ORS 90.324?
Answer & explanation
Answer: C. ORS 90.324 sets the lesser of 10% or 7% plus the CPI-U West Region change, published by DAS by September 30.
14. A house with only one bathroom and very small closets in a market expecting more suffers from:
Answer & explanation
Answer: C. Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.
15. Annual taxes are $3,650. Using a 365-day year, what is the daily proration amount?
Answer & explanation
Answer: D. $3,650 / 365 = $10 per day. (The course's default convention is a 360-day year; this question specifies 365.)
16. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?
Answer & explanation
Answer: B. Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.
17. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:
Answer & explanation
Answer: B. Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.
18. A seller pays the commission that compensates the buyer's agent. Whom does the buyer's agent represent?
Answer & explanation
Answer: C. ORS 696.810(1) and 696.840 say compensation from the seller does not make the buyer's agent the seller's agent. OAR 863-015-0200(5) adds that payment alone does not create agency.
19. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)
20. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?
Answer & explanation
Answer: C. Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.
21. A commercial space of 2,400 rentable square feet is quoted at $27 per square foot per year. What is the monthly rent?
Answer & explanation
Answer: B. Annual rent = 2,400 x $27 = $64,800; monthly = $64,800 / 12 = $5,400. Commercial rates are quoted per square foot per YEAR.
22. May an Oregon broker form a personal LLC to receive commissions?
Answer & explanation
Answer: A. ORS 696.290(4) allows a licensee to form an entity to receive compensation but bars conducting real estate activity through it.
23. How many acres are in the NE 1/4 of the SW 1/4 of a section?
Answer & explanation
Answer: B. 640 acres / 4 = 160 for the quarter, and 160 / 4 = 40 for the quarter-quarter.
24. A licensee defrauds a business partner in a restaurant venture unrelated to real estate. Can the Real Estate Commissioner discipline the licensee?
Answer & explanation
Answer: A. ORS 696.301 reaches fraud or dishonest conduct substantially related to fitness, whether or not it occurred during professional real estate activity. Requiring a conviction confuses this ground with the separate conviction ground.
25. A broker associated with a principal broker earned a commission that the seller refuses to pay. Who may sue the seller to collect it?
Answer & explanation
Answer: B. ORS 696.710(2) allows only the principal broker with whom the broker was associated at the time the claim arose to sue the client. Brokers are paid through their principal broker, not directly.
Sources
Source verification pending. Confirm current requirements with your state regulator.