OREGON REAL ESTATE STATE EXAM 2025/2026
LATEST TEST BANK WITH OVER 600 PRACTICE
QUESTIONS WITH CORRECT ANSWERS/ OREGON
REAL ESTATE EXAM (PSI) LATEST 2025 (NEWEST)
This all-in-one Oregon Real Estate Exam Prep resource mirrors the actual PSI
exam and provides deep coverage of both national and Oregon-specific topics.
Each question includes a verified correct answer, helping you master critical
subjects like land use control, escrow procedures, agency relationships, trust
account handling, and advertising compliance. Designed to match the
structure, style, and difficulty of the real test, this test bank is ideal for fast-
paced review, knowledge reinforcement, and focused exam preparation.
Trusted by top-performing candidates across Oregon.
The act of entering upon another person's real estate without authority or permission of the owner
is called
an encroachment.
a trespass.
an easement.
a license. - CORRECT ANSWER-a trespass
Which of the following best describes the physical boundaries of Land?
a. The Surface of the earth and infinite space above the surface
b. the center of the earth and infinite space above it
c. The surface of the earth and minerals/water on or below the surface to the center of the earth
d. The surface of the earth and the air rights above the surface to the point defined by local zoning -
CORRECT ANSWER-b. the center of the earth and infinite space above it
Which of the following would be considered a property improvement?
a. An alteration to land to make it more useful
b. An increase in value in the property
c. A chicken coop permanently attached to the land
,d. A parcel of Land that has passed a percolation - CORRECT ANSWER-c. A chicken coop
permanently attached to the land
Shortly after the close of escrow, Jones, the seller, learned that the buyers, Mr. and Mrs. Brown,
were the stepfather and mother of Jones' real estate broker, that the Browns were acting on behalf
of the broker, and that an escrow for resale of the same property had been opened at a $25,000
higher sales price before the Jones to Brown escrow was closed. Jones filed a complaint with the
Real Estate Agency. Which of the following is true regarding this situation?
1.Since the seller got his asking price, there is no basis for a complaint.
2The real estate law does not cover a situation of this kind and the Commissioner has no jurisdiction.
3.After an administrative hearing, the Commissioner would discipline the broker for not disclosing
the relationship and would award money damages to the seller.
4.The seller could sue the broker in civil court for the amount of the profit realized on the resale of
the property an - CORRECT ANSWER-4.The seller could sue the broker in civil court for the amount
of the profit realized on the resale of the property and the broker is subject to disciplinary action by
the Commissioner.
Because a lawsuit or court action would not necessarily occur in this situation
The assignment of a lease which includes an option to purchase
1. transfers the option to the assignee.
2. is voidable by the landowner.
3. is prohibited by the Statute of Frauds.
4. will cause the option to become unenforceable. - CORRECT ANSWER-1. transfers the option to
the assignee.
Because the lease is being transferred to the person the lease benefits or is assigned
The position of trust assumed by a property manager as an agent is best described as which type of
relationship?
1. Indeterminable
2. Fiduciary
3. Trustor
4. Trustee - CORRECT ANSWER-2. Fiduciary
first off, in the language its stating what type of relationship it is not just who is who. secondly this is
an agency relationship of money ie the trust.
,A property owner has a lot valued at $10,000. He purchases the adjacent lot, which is identical, for
$10,000. Now the combined property is appraised at $30,000. This is an example of
1. residual.
2. plottage.
3.capitalization.
4.depth table. - CORRECT ANSWER-2. Plottage
Plottage. the increase in value realized by combining adjacent parcels of land into one larger parcel.
also known as assemblage.
tenancy in common (Def) - CORRECT ANSWER-a shared tenancy in which each holder has a
distinct, separately transferable interest.
Oregon law requires that the tax assessment of residential property be based on which of the
following as of the assessment date?
1. Intrinsic value
2. Real market value or maximum assessed value, whichever is lower
3. Replacement value
4. Offering price - CORRECT ANSWER-2. Real market value or maximum assessed value, whichever
is lower
Because these are established figures that can be used as a reference
Gross Lease (Def) - CORRECT ANSWER-Tenant pays rents, landlord pays all expenses of property;
most common form of residential lease
Net Lease (Def) - CORRECT ANSWER-A lease requiring the tenant to pay not only rent but also costs
incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
A licensed real estate property manager may
1. collect a commission for the lease of an owner's real estate.
2. negotiate a lease-option for an owner of real estate.
3. list the owner's rental property for sale.
, 4. receive a referral fee from a principal real estate broker who sells apartment complexes. -
CORRECT ANSWER-1. collect a commission for the lease of an owner's real estate.
Because the property manager is managing the property and the agreement most likely stipulates
that the property manager makes their money on a commission basis (like most of us in RE) which
would be off the leases or lease of the RE
A small apartment was leased by Mr. and Mrs. Thomas by a written lease which restricts the
occupancy to the tenant and his children. Two months later, the parents of the couple move in. The
landlord can
1. evict the parents only without notice.
2. increase the rent proportionately.
3. do nothing.
4. serve a Notice to Terminate the lease. - CORRECT ANSWER-4. serve a Notice to Terminate the
lease.
You cant evict specific parties, but you can terminate the lease (with notice) since they violated the
lease.
Which one of the following is a necessary element to enable you to record a deed?
1. Acknowledgment
2. Delivery
3. Date
4. None of the above - CORRECT ANSWER-1. Acknowledgment
All parties must understand a acknowledge deed conveyance. THIS IS SUPER IMPORTANT
In a construction mortgage the funds loaned are normally disbursed to the builder in
1. a series of installments, after each inspection of progress on the job.
2. a lump sum upon acquisition of title to the land.
3. daily installments that minimize interest payments on the outstanding balance of the loan.
4. two equal sums, one at the outset of construction and the other at completion of the job. -
CORRECT ANSWER-1. a series of installments, after each inspection of progress on the job.
Most investors and codes will require that benchmarks of progress be made before more money is
released.
LATEST TEST BANK WITH OVER 600 PRACTICE
QUESTIONS WITH CORRECT ANSWERS/ OREGON
REAL ESTATE EXAM (PSI) LATEST 2025 (NEWEST)
This all-in-one Oregon Real Estate Exam Prep resource mirrors the actual PSI
exam and provides deep coverage of both national and Oregon-specific topics.
Each question includes a verified correct answer, helping you master critical
subjects like land use control, escrow procedures, agency relationships, trust
account handling, and advertising compliance. Designed to match the
structure, style, and difficulty of the real test, this test bank is ideal for fast-
paced review, knowledge reinforcement, and focused exam preparation.
Trusted by top-performing candidates across Oregon.
The act of entering upon another person's real estate without authority or permission of the owner
is called
an encroachment.
a trespass.
an easement.
a license. - CORRECT ANSWER-a trespass
Which of the following best describes the physical boundaries of Land?
a. The Surface of the earth and infinite space above the surface
b. the center of the earth and infinite space above it
c. The surface of the earth and minerals/water on or below the surface to the center of the earth
d. The surface of the earth and the air rights above the surface to the point defined by local zoning -
CORRECT ANSWER-b. the center of the earth and infinite space above it
Which of the following would be considered a property improvement?
a. An alteration to land to make it more useful
b. An increase in value in the property
c. A chicken coop permanently attached to the land
,d. A parcel of Land that has passed a percolation - CORRECT ANSWER-c. A chicken coop
permanently attached to the land
Shortly after the close of escrow, Jones, the seller, learned that the buyers, Mr. and Mrs. Brown,
were the stepfather and mother of Jones' real estate broker, that the Browns were acting on behalf
of the broker, and that an escrow for resale of the same property had been opened at a $25,000
higher sales price before the Jones to Brown escrow was closed. Jones filed a complaint with the
Real Estate Agency. Which of the following is true regarding this situation?
1.Since the seller got his asking price, there is no basis for a complaint.
2The real estate law does not cover a situation of this kind and the Commissioner has no jurisdiction.
3.After an administrative hearing, the Commissioner would discipline the broker for not disclosing
the relationship and would award money damages to the seller.
4.The seller could sue the broker in civil court for the amount of the profit realized on the resale of
the property an - CORRECT ANSWER-4.The seller could sue the broker in civil court for the amount
of the profit realized on the resale of the property and the broker is subject to disciplinary action by
the Commissioner.
Because a lawsuit or court action would not necessarily occur in this situation
The assignment of a lease which includes an option to purchase
1. transfers the option to the assignee.
2. is voidable by the landowner.
3. is prohibited by the Statute of Frauds.
4. will cause the option to become unenforceable. - CORRECT ANSWER-1. transfers the option to
the assignee.
Because the lease is being transferred to the person the lease benefits or is assigned
The position of trust assumed by a property manager as an agent is best described as which type of
relationship?
1. Indeterminable
2. Fiduciary
3. Trustor
4. Trustee - CORRECT ANSWER-2. Fiduciary
first off, in the language its stating what type of relationship it is not just who is who. secondly this is
an agency relationship of money ie the trust.
,A property owner has a lot valued at $10,000. He purchases the adjacent lot, which is identical, for
$10,000. Now the combined property is appraised at $30,000. This is an example of
1. residual.
2. plottage.
3.capitalization.
4.depth table. - CORRECT ANSWER-2. Plottage
Plottage. the increase in value realized by combining adjacent parcels of land into one larger parcel.
also known as assemblage.
tenancy in common (Def) - CORRECT ANSWER-a shared tenancy in which each holder has a
distinct, separately transferable interest.
Oregon law requires that the tax assessment of residential property be based on which of the
following as of the assessment date?
1. Intrinsic value
2. Real market value or maximum assessed value, whichever is lower
3. Replacement value
4. Offering price - CORRECT ANSWER-2. Real market value or maximum assessed value, whichever
is lower
Because these are established figures that can be used as a reference
Gross Lease (Def) - CORRECT ANSWER-Tenant pays rents, landlord pays all expenses of property;
most common form of residential lease
Net Lease (Def) - CORRECT ANSWER-A lease requiring the tenant to pay not only rent but also costs
incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
A licensed real estate property manager may
1. collect a commission for the lease of an owner's real estate.
2. negotiate a lease-option for an owner of real estate.
3. list the owner's rental property for sale.
, 4. receive a referral fee from a principal real estate broker who sells apartment complexes. -
CORRECT ANSWER-1. collect a commission for the lease of an owner's real estate.
Because the property manager is managing the property and the agreement most likely stipulates
that the property manager makes their money on a commission basis (like most of us in RE) which
would be off the leases or lease of the RE
A small apartment was leased by Mr. and Mrs. Thomas by a written lease which restricts the
occupancy to the tenant and his children. Two months later, the parents of the couple move in. The
landlord can
1. evict the parents only without notice.
2. increase the rent proportionately.
3. do nothing.
4. serve a Notice to Terminate the lease. - CORRECT ANSWER-4. serve a Notice to Terminate the
lease.
You cant evict specific parties, but you can terminate the lease (with notice) since they violated the
lease.
Which one of the following is a necessary element to enable you to record a deed?
1. Acknowledgment
2. Delivery
3. Date
4. None of the above - CORRECT ANSWER-1. Acknowledgment
All parties must understand a acknowledge deed conveyance. THIS IS SUPER IMPORTANT
In a construction mortgage the funds loaned are normally disbursed to the builder in
1. a series of installments, after each inspection of progress on the job.
2. a lump sum upon acquisition of title to the land.
3. daily installments that minimize interest payments on the outstanding balance of the loan.
4. two equal sums, one at the outset of construction and the other at completion of the job. -
CORRECT ANSWER-1. a series of installments, after each inspection of progress on the job.
Most investors and codes will require that benchmarks of progress be made before more money is
released.
