Free Oregon Property Practice Test — LicenseIQ

Question 1

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 2

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 3

On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

Accepted Answer

Only the seller completes the form, reporting what is known and stating when something is unknown; guessing creates liability.

Question 4

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 5

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 6

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 7

An owner's tax bill is $6,300 and she pays the full amount by November 15. How much does she pay?

Accepted Answer

Full payment by November 15 earns a 3% discount: $6,300 x 0.97 = $6,111. The $6,174 choice wrongly applies the 2% two-thirds discount to the whole bill.

Question 8

A broker sells her own rental house. Where must she disclose that she is a real estate licensee?

Accepted Answer

OAR 863-015-0145(1) requires disclosure in advertising and display signs and in writing on at least the first written agreement, stating she is representing herself.

Question 9

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 10

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 11

May an Oregon property manager manage rental real estate without a written management agreement?

Accepted Answer

OAR 863-025-0020(1) bars managing rental real estate without a written, unexpired agreement.

Question 12

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 13

A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

Accepted Answer

A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.

Question 14

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

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.)

Question 15

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 16

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 17

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 18

Which is required for a deed to be valid?

Accepted Answer

A valid deed needs a writing, competent grantor who signs, identifiable grantee, consideration, granting and habendum clauses, legal description, delivery and acceptance. The grantee does not sign; recording is not required for validity.

Question 19

How many days before a trustee's sale must the notice of sale be given under the Oregon Trust Deed Act?

Accepted Answer

ORS 86.764 requires the notice of sale at least 120 days before the sale.

Question 20

May a borrower whose interest was foreclosed by an Oregon trustee's sale redeem the property afterward?

Accepted Answer

ORS 86.797(1) states a person whose interest was foreclosed by the trustee's sale has no right to redeem.

Question 21

How many members serve on the Oregon Real Estate Board?

Accepted Answer

ORS 696.405 sets the Board at nine members appointed by the Governor. Seven is the number of licensee seats, not the total, which is why it is the tempting wrong answer.

Question 22

A deed conveys Oregon land to two siblings 'as joint tenants' with no other survivorship language. What estate do they take?

Accepted Answer

ORS 93.180 abolished joint tenancy in real property (except for trustees and personal representatives) and says 'joint tenants' alone creates a tenancy in common.

Question 23

Under ORS 696.020, to whom may the Oregon Real Estate Agency issue a real estate license?

Accepted Answer

ORS 696.020(1) limits licenses to individuals. A company does business under a registered business name controlled by a principal broker, but the company itself is never licensed.

Question 24

Which person is exempt from Oregon real estate licensing when acting in that capacity?

Accepted Answer

Officers and directors of a corporation acting for it are exempt under ORS 696.030. Being a CPA is not an exemption, and a promised fee makes the neighbor's work compensated activity.

Question 25

Under OAR 863-015-0245, 'residential property wholesaling' involves marketing property in which the marketer holds only an equitable interest for fewer than how many days?

Accepted Answer

The definition covers an equitable interest or option held fewer than 90 days with less than $10,000 invested in improvements.

Oregon real estate property practice test

1. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

2. An owner's title insurance policy protects against:

3. On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

4. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

5. In general, a 'stigmatized' property refers to one:

6. Which document is recorded in the county records and makes the property collateral for a loan?

7. An owner's tax bill is $6,300 and she pays the full amount by November 15. How much does she pay?

8. A broker sells her own rental house. Where must she disclose that she is a real estate licensee?

9. In a lease, the tenant holds a estate and the landlord holds a .

10. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

11. May an Oregon property manager manage rental real estate without a written management agreement?

12. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

13. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

14. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

15. A life estate is measured by:

16. A licensee may manage property for an owner for a fee only if there is:

17. A special warranty deed warrants title only against defects that:

18. Which is required for a deed to be valid?

19. How many days before a trustee's sale must the notice of sale be given under the Oregon Trust Deed Act?

20. May a borrower whose interest was foreclosed by an Oregon trustee's sale redeem the property afterward?

21. How many members serve on the Oregon Real Estate Board?

22. A deed conveys Oregon land to two siblings 'as joint tenants' with no other survivorship language. What estate do they take?

23. Under ORS 696.020, to whom may the Oregon Real Estate Agency issue a real estate license?

24. Which person is exempt from Oregon real estate licensing when acting in that capacity?

25. Under OAR 863-015-0245, 'residential property wholesaling' involves marketing property in which the marketer holds only an equitable interest for fewer than how many days?

Sources