Oregon Real Estate Property
Management Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant
Download Pdf.
1. Which statement most accurately describes the principal purpose of
Oregon real estate property management law?
A. To guarantee rental income for property owners
B. To regulate the management of real property for others and establish
standards governing licensees, owners, tenants, and property-management
activities
C. To eliminate all disputes between landlords and tenants
D. To allow property managers to practice law on behalf of owners
Rationale: Oregon property management regulation establishes
requirements for persons managing property for others and governs
professional conduct, client funds, tenant relations, and related activities.
2. Which activity most clearly constitutes property management when
performed for another person for compensation?
A. Occasionally recommending a neighborhood restaurant
B. Managing rental property, including leasing, rent collection, maintenance
coordination, and tenant relations
C. Selling one's own personal residence
D. Inspecting a property solely for personal investment purposes
,Rationale: Property management generally involves ongoing management
activities performed for another person, often for compensation, such as
leasing, rent collection, maintenance, and tenant administration.
3. A person manages an owner's rental property for compensation.
Which issue should be considered first when determining whether
Oregon property-management licensing requirements apply?
A. The manager's favorite type of property
B. Whether the activities fall within regulated property-management
services and whether an exemption applies
C. Whether the tenants own vehicles
D. Whether the property has a swimming pool
Rationale: The licensing analysis depends on the nature of the services
performed and whether the person qualifies for an applicable statutory or
regulatory exemption.
4. Which document most directly establishes the relationship between a
property owner and a professional property manager?
A. A tenant's maintenance request
B. A property management agreement
C. A utility bill
D. A property tax assessment
Rationale: A property management agreement establishes the contractual
relationship, authority, responsibilities, compensation, and other terms
between the owner and manager.
5. A property management agreement authorizes the manager to collect
rent, arrange repairs, and lease vacant units. What does this primarily
establish?
A. The manager's scope of authority
B. The tenant's ownership interest
,C. The property's zoning classification
D. The manager's authority to practice law
Rationale: The agreement defines the scope of services and authority
delegated by the owner to the property manager.
6. A property manager is asked by an owner to undertake an action
outside the authority granted by the management agreement. What
should the manager generally do?
A. Take the action automatically because the owner owns the property
B. Clarify the owner's instructions and obtain appropriate authorization
before proceeding
C. Transfer the property to another owner
D. Charge the tenant for the unauthorized action
Rationale: A property manager should act within the authority granted by
the management agreement and obtain appropriate authorization before
undertaking material actions outside that authority.
7. Which duty is most closely associated with a property manager's
responsibility to an owner?
A. Loyalty and faithful performance within the scope of the management
agreement
B. Guaranteeing appreciation in property value
C. Providing legal representation in court
D. Guaranteeing every tenant's payment
Rationale: A property manager owes the owner duties arising from the
management agreement and applicable law, including appropriate loyalty,
care, communication, and performance.
8. A property manager discovers a significant maintenance problem that
could affect the owner's property. What should the manager generally
do?
, A. Conceal the problem to avoid upsetting the owner
B. Promptly communicate the issue and take authorized steps to address it
C. Wait until the tenant moves out
D. Automatically pay for the repair personally
Rationale: Property managers should communicate significant property
issues promptly and take appropriate authorized action to protect the
property and comply with applicable obligations.
9. Which practice best demonstrates reasonable care in property
management?
A. Ignoring tenant maintenance requests
B. Monitoring property conditions and responding appropriately to known
problems
C. Delaying emergency repairs until the annual inspection
D. Allowing unauthorized contractors to perform all work
Rationale: Reasonable care includes appropriate monitoring,
communication, maintenance coordination, and timely response to known
property conditions.
10. A property manager receives rent payments on behalf of an
owner. Which principle is most important?
A. The manager may use the money temporarily for personal expenses
B. The manager must properly handle, account for, and disburse the funds in
accordance with applicable requirements
C. The manager automatically owns the rent once it is received
D. The manager may deposit the funds into any personal account
Rationale: Rent and other client funds must be handled and accounted for
according to applicable trust-account and property-management
requirements.
11. Which practice would most clearly constitute commingling of
funds?
Management Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant
Download Pdf.
1. Which statement most accurately describes the principal purpose of
Oregon real estate property management law?
A. To guarantee rental income for property owners
B. To regulate the management of real property for others and establish
standards governing licensees, owners, tenants, and property-management
activities
C. To eliminate all disputes between landlords and tenants
D. To allow property managers to practice law on behalf of owners
Rationale: Oregon property management regulation establishes
requirements for persons managing property for others and governs
professional conduct, client funds, tenant relations, and related activities.
2. Which activity most clearly constitutes property management when
performed for another person for compensation?
A. Occasionally recommending a neighborhood restaurant
B. Managing rental property, including leasing, rent collection, maintenance
coordination, and tenant relations
C. Selling one's own personal residence
D. Inspecting a property solely for personal investment purposes
,Rationale: Property management generally involves ongoing management
activities performed for another person, often for compensation, such as
leasing, rent collection, maintenance, and tenant administration.
3. A person manages an owner's rental property for compensation.
Which issue should be considered first when determining whether
Oregon property-management licensing requirements apply?
A. The manager's favorite type of property
B. Whether the activities fall within regulated property-management
services and whether an exemption applies
C. Whether the tenants own vehicles
D. Whether the property has a swimming pool
Rationale: The licensing analysis depends on the nature of the services
performed and whether the person qualifies for an applicable statutory or
regulatory exemption.
4. Which document most directly establishes the relationship between a
property owner and a professional property manager?
A. A tenant's maintenance request
B. A property management agreement
C. A utility bill
D. A property tax assessment
Rationale: A property management agreement establishes the contractual
relationship, authority, responsibilities, compensation, and other terms
between the owner and manager.
5. A property management agreement authorizes the manager to collect
rent, arrange repairs, and lease vacant units. What does this primarily
establish?
A. The manager's scope of authority
B. The tenant's ownership interest
,C. The property's zoning classification
D. The manager's authority to practice law
Rationale: The agreement defines the scope of services and authority
delegated by the owner to the property manager.
6. A property manager is asked by an owner to undertake an action
outside the authority granted by the management agreement. What
should the manager generally do?
A. Take the action automatically because the owner owns the property
B. Clarify the owner's instructions and obtain appropriate authorization
before proceeding
C. Transfer the property to another owner
D. Charge the tenant for the unauthorized action
Rationale: A property manager should act within the authority granted by
the management agreement and obtain appropriate authorization before
undertaking material actions outside that authority.
7. Which duty is most closely associated with a property manager's
responsibility to an owner?
A. Loyalty and faithful performance within the scope of the management
agreement
B. Guaranteeing appreciation in property value
C. Providing legal representation in court
D. Guaranteeing every tenant's payment
Rationale: A property manager owes the owner duties arising from the
management agreement and applicable law, including appropriate loyalty,
care, communication, and performance.
8. A property manager discovers a significant maintenance problem that
could affect the owner's property. What should the manager generally
do?
, A. Conceal the problem to avoid upsetting the owner
B. Promptly communicate the issue and take authorized steps to address it
C. Wait until the tenant moves out
D. Automatically pay for the repair personally
Rationale: Property managers should communicate significant property
issues promptly and take appropriate authorized action to protect the
property and comply with applicable obligations.
9. Which practice best demonstrates reasonable care in property
management?
A. Ignoring tenant maintenance requests
B. Monitoring property conditions and responding appropriately to known
problems
C. Delaying emergency repairs until the annual inspection
D. Allowing unauthorized contractors to perform all work
Rationale: Reasonable care includes appropriate monitoring,
communication, maintenance coordination, and timely response to known
property conditions.
10. A property manager receives rent payments on behalf of an
owner. Which principle is most important?
A. The manager may use the money temporarily for personal expenses
B. The manager must properly handle, account for, and disburse the funds in
accordance with applicable requirements
C. The manager automatically owns the rent once it is received
D. The manager may deposit the funds into any personal account
Rationale: Rent and other client funds must be handled and accounted for
according to applicable trust-account and property-management
requirements.
11. Which practice would most clearly constitute commingling of
funds?
