BROKERAGE AND CHARTERING EXAM 1 2026
AND 2027 MASTER GUIDE FULL REVIEW
QUESTIONS WITH 100% VERIFIED CORRECT
ANSWERS.
◎ A principal broker accepted an earnest money deposit check from a buyer from an
accepted offer on one of the principal brokers listings and then endorsed it over to the
associated broker who listed the property as a partial commission advance. What is
correct?. ANSWER:- The principal broker has illegally converted trust funds for
business use.
◎ A licensed real estate property manager may. ANSWER:- collect a commission for
the lease of an owner's real estate.
◎ Julie is buying Makya's house. The closing date (day belongs 2 seller) of the
transaction is Sept 1 (244 day of year). Buyers loan amount is $78,750 (90%; 30 yrs @
8%). The monthly payment on the loan is $577.84 w $525 going to interest in the first
month. At closing, Julie must pre pay interest for the period of Sept 2 - 30th. Use the
365 day method. What is julies prepaid interest amount?. ANSWER:- 507.50
If the buyer pays $525 interest for 30 days, the daily expense is ($) or 17.50. If
there are 29 days of prepaid expense, the buyers charge is ($17.50 x 29) = $507.50
◎ Which of the following documents created by a broker must be reviewed & initialed
by the principal broker?. ANSWER:- Transaction addenda
Advertisements to promote listings
&
Trust account reconciliations
◎ At the closing of a mortgage loan. ANSWER:- the parties complete all loan
origination documents and the loan is funded.
◎ In OR, if a property closes on August 15th & the buyer and seller are each paying
their normal closing costs, the real property tax prorations will show on the closing
statement as. ANSWER:- A DEBIT to the seller and a CREDIT to the buyer
◎ Rejected offers & expired listings must be retained for. ANSWER:- Six years
◎ When advertising on the internet, a licensee must. ANSWER:- Identify the licensee,
principal broker &/or brokerage in all advertising/communications
, Get principal broker approval w respect to general page design & contents prior to use
on all personal real estate web pages
Comply w all applicable, federal, state & local laws
And
Back up & maintain all email or other electronic communications w clients to comply w
record retention requirements
◎ Principal brokers must supervise which of the following activities of a broker.
ANSWER:- Completion of an earnest money agreement
Completion of a listing agreement
Completion of a CMA
ALL!
◎ What is NOT correct about an accounting balance sheet?. ANSWER:- It is also
known as a profit and loss statement
◎ What would not be prorated at closing?. ANSWER:- Condominium assessments
Taxes
Utilities
Inspection fees
Inspection fees - prorated items are expenses that BOTH parties must share. Non-
prorated items are one-time individual charges. Sale commissions, recording fees, &
title insurance
◎ When an earnest money deposit check is placed into escrow. ANSWER:- The
escrow agent should be given written instructions relative to the deposit
◎ What about a Federal Tax ID number (EIN) is true?. ANSWER:- A sole proprietorship
must have an EIN when wages will be paid to one or more employees
◎ A principal brokers responsibility to independent contractor licensees includes.
ANSWER:- Maintaining records of commissions paid and preparing a 1099 for each
license reflecting total commissions paid
◎ When determining the layout of a real estate office, the most important consideration
for clients should be. ANSWER:- Confidentiality
◎ Oregon Real Estate License Law permits administrative action to be taken against a
principal broker failing to. ANSWER:- Notify the Real Estate Agency of the principal
brokers change of address
AND 2027 MASTER GUIDE FULL REVIEW
QUESTIONS WITH 100% VERIFIED CORRECT
ANSWERS.
◎ A principal broker accepted an earnest money deposit check from a buyer from an
accepted offer on one of the principal brokers listings and then endorsed it over to the
associated broker who listed the property as a partial commission advance. What is
correct?. ANSWER:- The principal broker has illegally converted trust funds for
business use.
◎ A licensed real estate property manager may. ANSWER:- collect a commission for
the lease of an owner's real estate.
◎ Julie is buying Makya's house. The closing date (day belongs 2 seller) of the
transaction is Sept 1 (244 day of year). Buyers loan amount is $78,750 (90%; 30 yrs @
8%). The monthly payment on the loan is $577.84 w $525 going to interest in the first
month. At closing, Julie must pre pay interest for the period of Sept 2 - 30th. Use the
365 day method. What is julies prepaid interest amount?. ANSWER:- 507.50
If the buyer pays $525 interest for 30 days, the daily expense is ($) or 17.50. If
there are 29 days of prepaid expense, the buyers charge is ($17.50 x 29) = $507.50
◎ Which of the following documents created by a broker must be reviewed & initialed
by the principal broker?. ANSWER:- Transaction addenda
Advertisements to promote listings
&
Trust account reconciliations
◎ At the closing of a mortgage loan. ANSWER:- the parties complete all loan
origination documents and the loan is funded.
◎ In OR, if a property closes on August 15th & the buyer and seller are each paying
their normal closing costs, the real property tax prorations will show on the closing
statement as. ANSWER:- A DEBIT to the seller and a CREDIT to the buyer
◎ Rejected offers & expired listings must be retained for. ANSWER:- Six years
◎ When advertising on the internet, a licensee must. ANSWER:- Identify the licensee,
principal broker &/or brokerage in all advertising/communications
, Get principal broker approval w respect to general page design & contents prior to use
on all personal real estate web pages
Comply w all applicable, federal, state & local laws
And
Back up & maintain all email or other electronic communications w clients to comply w
record retention requirements
◎ Principal brokers must supervise which of the following activities of a broker.
ANSWER:- Completion of an earnest money agreement
Completion of a listing agreement
Completion of a CMA
ALL!
◎ What is NOT correct about an accounting balance sheet?. ANSWER:- It is also
known as a profit and loss statement
◎ What would not be prorated at closing?. ANSWER:- Condominium assessments
Taxes
Utilities
Inspection fees
Inspection fees - prorated items are expenses that BOTH parties must share. Non-
prorated items are one-time individual charges. Sale commissions, recording fees, &
title insurance
◎ When an earnest money deposit check is placed into escrow. ANSWER:- The
escrow agent should be given written instructions relative to the deposit
◎ What about a Federal Tax ID number (EIN) is true?. ANSWER:- A sole proprietorship
must have an EIN when wages will be paid to one or more employees
◎ A principal brokers responsibility to independent contractor licensees includes.
ANSWER:- Maintaining records of commissions paid and preparing a 1099 for each
license reflecting total commissions paid
◎ When determining the layout of a real estate office, the most important consideration
for clients should be. ANSWER:- Confidentiality
◎ Oregon Real Estate License Law permits administrative action to be taken against a
principal broker failing to. ANSWER:- Notify the Real Estate Agency of the principal
brokers change of address
