OREGON REAL ESTATE AGENCY LAW EXAM – QUESTIONS AND ANSWERS |
VERIFIED AND WELL DETAILED ANSWERS | PLUS RATIONALES |
GUARANTEED PASS | LATEST EXAM UPDATE
Core Domains
Oregon Real Estate Agency (OREA) Licensing and Regulatory Framework
Agency Relationships and Disclosed Limited Agency (ORS 696.800–696.880)
Fiduciary Duties, Client Responsibilities, and Professional Standards
Client Trust Accounts, Recordkeeping, and Escrow Compliance (ORS 696.241,
OAR 863)
Real Estate Contracts, Buyer Representation, and Listing Agreements (HB
4058)
2026 Legislative Updates: Managing Principal Brokers, Teams, and Timeshare
Agents (HB 3137, HB 2373)
Fair Housing, Advertising Regulations, and Prohibited Conduct
Introduction
The Oregon Real Estate Agency Law Exam assesses a candidate's mastery of
Oregon Revised Statutes Chapter 696, Oregon Administrative Rules Chapter 863,
and the regulatory framework governing professional real estate activity within
the state. This examination evaluates both foundational legal knowledge and the
critical thinking skills required for real-world professional practice. Candidates
are tested on licensing requirements, agency disclosure obligations, fiduciary
duties, trust account management, and recent legislative updates taking effect
January 1, 2026. Through multiple-choice and scenario-based questions, the
exam emphasizes practical application, ethical decision-making, and regulatory
compliance to ensure consumer protection and professional competence.
,SECTION ONE: QUESTIONS 1–50
Question 1
Under Oregon law, professional real estate activity conducted by a broker must
be performed under the supervision of which of the following?
A. The Real Estate Commissioner
B. A licensed principal broker
C. The Oregon Real Estate Board
D. A licensed escrow agent
🟢 Correct Answer: B. A licensed principal broker
🔴 Rationale: Oregon law requires that every real estate broker be associated
with and supervised by a licensed principal broker. The principal broker
assumes responsibility for the professional real estate activity of associated
licensees.
Question 2
A principal broker who registers a business name with the Oregon Real Estate
Agency is designated under new 2026 law as which of the following?
A. Supervising principal broker
B. Managing principal broker
C. Designated principal broker
D. Executive principal broker
🟢 Correct Answer: B. Managing principal broker
🔴 Rationale: HB 3137, effective January 1, 2026, created the "managing
principal broker" designation. A managing principal broker is a principal broker
who has registered a business name or assumed responsibility for a registered
business name.
,Question 3
Which of the following agency relationships is NOT recognized under Oregon
law?
A. Seller's agent
B. Buyer's agent
C. Disclosed limited agent
D. Transaction coordinator
🟢 Correct Answer: D. Transaction coordinator
🔴 Rationale: Oregon recognizes seller agency, buyer agency, and disclosed
limited agency. "Transaction coordinator" is not a statutory agency relationship
in Oregon; it describes an administrative role, not a legal agency status.
Question 4
A broker representing a buyer in a residential transaction involving one-to-four
dwelling units must enter into a written buyer representation agreement at
what point?
A. Before the closing date
B. Before or as soon as possible after beginning to assist the buyer
C. Within three business days of first contact
D. Only if the buyer requests representation
🟢 Correct Answer: B. Before or as soon as possible after beginning to assist
the buyer
🔴 Rationale: HB 4058 requires that a written buyer representation agreement
be entered into before, or as soon as possible after, the broker begins assisting
the buyer in purchasing or identifying property for purchase.
Question 5
A disclosed limited agent in Oregon represents both parties with which of the
, following?
A. Full fiduciary duties to both parties
B. Limited duties and written consent from both parties
C. No fiduciary duties to either party
D. Duties only to the seller
🟢 Correct Answer: B. Limited duties and written consent from both parties
🔴 Rationale: Under ORS 696.845, a disclosed limited agent represents both
buyer and seller with reduced fiduciary duties and must obtain written consent
from both parties before acting in that capacity.
Question 6
Oregon real estate licensees must deposit earnest money into a clients' trust
account within how many business days of receipt?
A. One business day
B. Three business days
C. Five business days
D. Seven business days
🟢 Correct Answer: B. Three business days
🔴 Rationale: Oregon administrative rules require earnest money to be
deposited into a clients' trust account within three business days of receipt,
ensuring timely safeguarding of client funds.
Question 7
A real estate team operating under a name different from the brokerage's
Registered Business Name must provide which of the following to clients?
A. A separate employment contract
B. The Real Estate Team Disclosure Form
VERIFIED AND WELL DETAILED ANSWERS | PLUS RATIONALES |
GUARANTEED PASS | LATEST EXAM UPDATE
Core Domains
Oregon Real Estate Agency (OREA) Licensing and Regulatory Framework
Agency Relationships and Disclosed Limited Agency (ORS 696.800–696.880)
Fiduciary Duties, Client Responsibilities, and Professional Standards
Client Trust Accounts, Recordkeeping, and Escrow Compliance (ORS 696.241,
OAR 863)
Real Estate Contracts, Buyer Representation, and Listing Agreements (HB
4058)
2026 Legislative Updates: Managing Principal Brokers, Teams, and Timeshare
Agents (HB 3137, HB 2373)
Fair Housing, Advertising Regulations, and Prohibited Conduct
Introduction
The Oregon Real Estate Agency Law Exam assesses a candidate's mastery of
Oregon Revised Statutes Chapter 696, Oregon Administrative Rules Chapter 863,
and the regulatory framework governing professional real estate activity within
the state. This examination evaluates both foundational legal knowledge and the
critical thinking skills required for real-world professional practice. Candidates
are tested on licensing requirements, agency disclosure obligations, fiduciary
duties, trust account management, and recent legislative updates taking effect
January 1, 2026. Through multiple-choice and scenario-based questions, the
exam emphasizes practical application, ethical decision-making, and regulatory
compliance to ensure consumer protection and professional competence.
,SECTION ONE: QUESTIONS 1–50
Question 1
Under Oregon law, professional real estate activity conducted by a broker must
be performed under the supervision of which of the following?
A. The Real Estate Commissioner
B. A licensed principal broker
C. The Oregon Real Estate Board
D. A licensed escrow agent
🟢 Correct Answer: B. A licensed principal broker
🔴 Rationale: Oregon law requires that every real estate broker be associated
with and supervised by a licensed principal broker. The principal broker
assumes responsibility for the professional real estate activity of associated
licensees.
Question 2
A principal broker who registers a business name with the Oregon Real Estate
Agency is designated under new 2026 law as which of the following?
A. Supervising principal broker
B. Managing principal broker
C. Designated principal broker
D. Executive principal broker
🟢 Correct Answer: B. Managing principal broker
🔴 Rationale: HB 3137, effective January 1, 2026, created the "managing
principal broker" designation. A managing principal broker is a principal broker
who has registered a business name or assumed responsibility for a registered
business name.
,Question 3
Which of the following agency relationships is NOT recognized under Oregon
law?
A. Seller's agent
B. Buyer's agent
C. Disclosed limited agent
D. Transaction coordinator
🟢 Correct Answer: D. Transaction coordinator
🔴 Rationale: Oregon recognizes seller agency, buyer agency, and disclosed
limited agency. "Transaction coordinator" is not a statutory agency relationship
in Oregon; it describes an administrative role, not a legal agency status.
Question 4
A broker representing a buyer in a residential transaction involving one-to-four
dwelling units must enter into a written buyer representation agreement at
what point?
A. Before the closing date
B. Before or as soon as possible after beginning to assist the buyer
C. Within three business days of first contact
D. Only if the buyer requests representation
🟢 Correct Answer: B. Before or as soon as possible after beginning to assist
the buyer
🔴 Rationale: HB 4058 requires that a written buyer representation agreement
be entered into before, or as soon as possible after, the broker begins assisting
the buyer in purchasing or identifying property for purchase.
Question 5
A disclosed limited agent in Oregon represents both parties with which of the
, following?
A. Full fiduciary duties to both parties
B. Limited duties and written consent from both parties
C. No fiduciary duties to either party
D. Duties only to the seller
🟢 Correct Answer: B. Limited duties and written consent from both parties
🔴 Rationale: Under ORS 696.845, a disclosed limited agent represents both
buyer and seller with reduced fiduciary duties and must obtain written consent
from both parties before acting in that capacity.
Question 6
Oregon real estate licensees must deposit earnest money into a clients' trust
account within how many business days of receipt?
A. One business day
B. Three business days
C. Five business days
D. Seven business days
🟢 Correct Answer: B. Three business days
🔴 Rationale: Oregon administrative rules require earnest money to be
deposited into a clients' trust account within three business days of receipt,
ensuring timely safeguarding of client funds.
Question 7
A real estate team operating under a name different from the brokerage's
Registered Business Name must provide which of the following to clients?
A. A separate employment contract
B. The Real Estate Team Disclosure Form
