OREGON REAL ESTATE PRINCIPAL BROKER EXAM – QUESTIONS AND ANSWERS
| VERIFIED AND WELL DETAILED ANSWERS | PLUS RATIONALES | GUARANTEED
PASS | LATEST EXAM UPDATE
Core Domains:
• Oregon Real Estate License Law and Administrative Rules
• Managing Principal Broker Supervision and Responsibilities
• Clients' Trust Accounts and Financial Recordkeeping
• Agency Relationships and Disclosed Limited Agency
• Real Estate Teams and Advertising Compliance
• Fair Housing and Anti-Discrimination Requirements
• Contracts, Compensation, and Commission Handling
• Property Management and Rental Regulations
• Disciplinary Actions and Enforcement
• Professional Ethics and Fiduciary Duties
Introduction:
The Oregon Real Estate Principal Broker Examination assesses the knowledge,
judgment, and supervisory competence required to serve as a managing principal
broker in Oregon. Candidates must demonstrate mastery of license law,
administrative rules, clients' trust account management, supervision of associated
licensees, and ethical decision-making. The examination employs multiple-choice
and scenario-based questions designed to evaluate practical application rather than
mere memorization. Emphasis is placed on real-world problem-solving, regulatory
compliance, and the exercise of sound professional judgment in complex brokerage
situations. Successful completion ensures the candidate is prepared to protect
consumers and uphold the standards of the real estate profession.
SECTION ONE – QUESTIONS 1–50
,1. A managing principal broker discovers that an associated broker has been
conducting professional real estate activity under a team name that is not the
registered business name. Under HB 3137, what is the managing principal
broker’s primary obligation?
A. Report the violation directly to the Real Estate Commissioner within 24 hours
B. Take corrective action to bring the advertising into compliance and ensure the
registered business name is conspicuous
C. Terminate the broker’s license immediately
D. Ignore the violation since team names are permitted if they are not registered
🟢 Correct Answer: B. Take corrective action to bring the advertising into
compliance and ensure the registered business name is conspicuous
🔴 Rationale: Under HB 3137 and OAR 863-015-0125, all team advertising must
prominently display the registered business name and cannot imply the team is a
separate legal entity. The managing principal broker is responsible for ensuring
compliance through supervision and corrective action rather than immediate
license termination.
2. Which of the following scenarios requires a clients’ trust account to be
opened and maintained by a managing principal broker?
A. A broker holds a $500 earnest money deposit in the brokerage operating
account for three days
B. A property manager holds tenant security deposits on behalf of an owner
C. A principal broker receives a commission check and deposits it into the business
account
D. A broker accepts a personal check from a client for a competitive market
analysis fee
,🟢 Correct Answer: B. A property manager holds tenant security deposits on
behalf of an owner
🔴 Rationale: Oregon law requires client funds, including tenant security deposits
held on behalf of owners, to be maintained in a clients’ trust account.
Commingling client funds with business funds is prohibited and may result in
disciplinary action.
3. Under Oregon’s disclosed limited agency rules, when may a principal broker
represent both the buyer and the seller in the same transaction?
A. Only when the transaction involves residential property under $500,000
B. Only with a fully executed disclosed limited agency agreement and written
consent of both parties
C. Only when the principal broker personally knows both parties
D. Never; dual agency is prohibited in Oregon
🟢 Correct Answer: B. Only with a fully executed disclosed limited agency
agreement and written consent of both parties
🔴 Rationale: ORS 696.815 permits disclosed limited agency when both parties
provide informed written consent. The principal broker must maintain neutrality
regarding confidential information and fulfill duties to both parties as outlined in
the agreement.
4. A managing principal broker is reviewing a new advertising campaign
developed by an affiliated real estate team. The advertisement prominently
displays the team name but lists the registered business name in small print at
the bottom. Which statement best describes the compliance status of this
advertisement?
, A. Compliant, because the registered business name appears somewhere in the
advertisement
B. Non-compliant, because the registered business name must be immediately
noticeable and not obscured
C. Compliant, because team names are permitted as long as they are approved by
the managing principal broker
D. Non-compliant only if the advertisement is distributed in print form
🟢 Correct Answer: B. Non-compliant, because the registered business name must
be immediately noticeable and not obscured
🔴 Rationale: OAR 863-015-0125 requires that team advertising clearly and
conspicuously identify the registered business name. Placing it in small print
violates the requirement that it be immediately noticeable to consumers.
5. Which Oregon statute defines the grounds for discipline when a managing
principal broker fails to exercise reasonable supervision and control over
associated licensees?
A. ORS 696.301
B. ORS 696.241
C. ORS 696.815
D. ORS 696.026
🟢 Correct Answer: A. ORS 696.301
🔴 Rationale: ORS 696.301 establishes the grounds for disciplinary action,
including failure to exercise reasonable supervision and control over the
professional real estate activity of associated licensees. This is a core responsibility
of the managing principal broker.
| VERIFIED AND WELL DETAILED ANSWERS | PLUS RATIONALES | GUARANTEED
PASS | LATEST EXAM UPDATE
Core Domains:
• Oregon Real Estate License Law and Administrative Rules
• Managing Principal Broker Supervision and Responsibilities
• Clients' Trust Accounts and Financial Recordkeeping
• Agency Relationships and Disclosed Limited Agency
• Real Estate Teams and Advertising Compliance
• Fair Housing and Anti-Discrimination Requirements
• Contracts, Compensation, and Commission Handling
• Property Management and Rental Regulations
• Disciplinary Actions and Enforcement
• Professional Ethics and Fiduciary Duties
Introduction:
The Oregon Real Estate Principal Broker Examination assesses the knowledge,
judgment, and supervisory competence required to serve as a managing principal
broker in Oregon. Candidates must demonstrate mastery of license law,
administrative rules, clients' trust account management, supervision of associated
licensees, and ethical decision-making. The examination employs multiple-choice
and scenario-based questions designed to evaluate practical application rather than
mere memorization. Emphasis is placed on real-world problem-solving, regulatory
compliance, and the exercise of sound professional judgment in complex brokerage
situations. Successful completion ensures the candidate is prepared to protect
consumers and uphold the standards of the real estate profession.
SECTION ONE – QUESTIONS 1–50
,1. A managing principal broker discovers that an associated broker has been
conducting professional real estate activity under a team name that is not the
registered business name. Under HB 3137, what is the managing principal
broker’s primary obligation?
A. Report the violation directly to the Real Estate Commissioner within 24 hours
B. Take corrective action to bring the advertising into compliance and ensure the
registered business name is conspicuous
C. Terminate the broker’s license immediately
D. Ignore the violation since team names are permitted if they are not registered
🟢 Correct Answer: B. Take corrective action to bring the advertising into
compliance and ensure the registered business name is conspicuous
🔴 Rationale: Under HB 3137 and OAR 863-015-0125, all team advertising must
prominently display the registered business name and cannot imply the team is a
separate legal entity. The managing principal broker is responsible for ensuring
compliance through supervision and corrective action rather than immediate
license termination.
2. Which of the following scenarios requires a clients’ trust account to be
opened and maintained by a managing principal broker?
A. A broker holds a $500 earnest money deposit in the brokerage operating
account for three days
B. A property manager holds tenant security deposits on behalf of an owner
C. A principal broker receives a commission check and deposits it into the business
account
D. A broker accepts a personal check from a client for a competitive market
analysis fee
,🟢 Correct Answer: B. A property manager holds tenant security deposits on
behalf of an owner
🔴 Rationale: Oregon law requires client funds, including tenant security deposits
held on behalf of owners, to be maintained in a clients’ trust account.
Commingling client funds with business funds is prohibited and may result in
disciplinary action.
3. Under Oregon’s disclosed limited agency rules, when may a principal broker
represent both the buyer and the seller in the same transaction?
A. Only when the transaction involves residential property under $500,000
B. Only with a fully executed disclosed limited agency agreement and written
consent of both parties
C. Only when the principal broker personally knows both parties
D. Never; dual agency is prohibited in Oregon
🟢 Correct Answer: B. Only with a fully executed disclosed limited agency
agreement and written consent of both parties
🔴 Rationale: ORS 696.815 permits disclosed limited agency when both parties
provide informed written consent. The principal broker must maintain neutrality
regarding confidential information and fulfill duties to both parties as outlined in
the agreement.
4. A managing principal broker is reviewing a new advertising campaign
developed by an affiliated real estate team. The advertisement prominently
displays the team name but lists the registered business name in small print at
the bottom. Which statement best describes the compliance status of this
advertisement?
, A. Compliant, because the registered business name appears somewhere in the
advertisement
B. Non-compliant, because the registered business name must be immediately
noticeable and not obscured
C. Compliant, because team names are permitted as long as they are approved by
the managing principal broker
D. Non-compliant only if the advertisement is distributed in print form
🟢 Correct Answer: B. Non-compliant, because the registered business name must
be immediately noticeable and not obscured
🔴 Rationale: OAR 863-015-0125 requires that team advertising clearly and
conspicuously identify the registered business name. Placing it in small print
violates the requirement that it be immediately noticeable to consumers.
5. Which Oregon statute defines the grounds for discipline when a managing
principal broker fails to exercise reasonable supervision and control over
associated licensees?
A. ORS 696.301
B. ORS 696.241
C. ORS 696.815
D. ORS 696.026
🟢 Correct Answer: A. ORS 696.301
🔴 Rationale: ORS 696.301 establishes the grounds for disciplinary action,
including failure to exercise reasonable supervision and control over the
professional real estate activity of associated licensees. This is a core responsibility
of the managing principal broker.
