Real Estate Regulations Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the maximum time allowed for an earnest money deposit to be made?

5 banking days

3 banking days (correct)

10 banking days

1 week

Which of the following duties is specifically owed by the seller's agent to the seller?

Approval of advertising content

Loyalty and confidentiality (correct)

Investigation of property condition

Solicting other properties

What is the duration of a temporary real estate license before full licensing requirements must be met?

1 year (correct)

6 months

18 months

9 months

How long do licensees need to keep continuing education records?

3 years Signup and view all the answers

What is a requirement for the first renewal of a real estate license?

27 hours of advanced practices Signup and view all the answers

When can a property manager be relieved of their duty to maintain confidentiality?

Never, it's an absolute duty Signup and view all the answers

What happens if a lien is not enforced by a lawsuit within 120 days?

The lien is invalidated Signup and view all the answers

What type of agency occurs when licensees under the same principal broker represent opposing parties in a transaction?

Limited agency Signup and view all the answers

What is the primary purpose of a promissory note with an early pay date when used as earnest money?

To protect the seller's interests Signup and view all the answers

Which of the following statements accurately reflects the concept of puffing in real estate?

Making exaggerated claims about a property's features Signup and view all the answers

What action must licensees take at first contact with a potential client?

Present agency disclosures Signup and view all the answers

What distinguishes partitioning from subdividing land in Oregon?

Subdividing is for 4 or more lots, while partitioning is for 2 or 3 parcels Signup and view all the answers

What does the principal broker remain responsible for until proper notice is received?

A licensee's activity Signup and view all the answers

Which of the following describes Disclosed Limited Agency?

When different licensees under one principal broker represent competing parties Signup and view all the answers

What is the 'Statute of Frauds' primarily concerned with in real estate transactions?

The necessity for real estate purchase agreements to be written Signup and view all the answers

What is a 'Material Fact' in the context of real estate?

Information that substantially impacts property value Signup and view all the answers

Study Notes

Earnest Money and Deposits

Earnest money deposits must be made within 3 banking days, while other funds need to be deposited within 5 days.
Using a promissory note with an early pay date as earnest money is advisable to protect the seller's interests.

Brokerage and Licensing

The principal broker must supervise and authorize any registered business name for the brokerage.
Licensees are prohibited from advertising properties without written listing agreements.
A temporary license is valid for up to 1 year, after which full licensing requirements must be met.

Responsibilities and Duties

The seller's agent has fiduciary duties to the seller, including loyalty, confidentiality, disclosure of material facts, and proper accounting for funds.
Property managers owe duties like timely accounting and maintaining confidentiality to property owners.
Licensees must present all offers promptly, regardless of any existing sale contract.

Education and Renewal Requirements

The first license renewal requires completion of a 3-hour law course and a 27-hour advanced practices course.
Subsequent renewals require the 3-hour law course plus electives.
Licensees must maintain continuing education records for 3 years and report address changes within 10 days.

Legal and Statutory Aspects

The Oregon Real Estate Agency can reprimand, suspend, or revoke licenses for violations, but cannot mandate restitution payments.
The statue of limitations for construction liens is 75 days from the completion of work; liens may become invalid after 120 days without a lawsuit.
Court-ordered sales may not require a real estate license if executed by court officers.

Property Ownership and Transactions

Tenancies by the entirety serve as the default ownership structure for married couples purchasing property together in Oregon.
Disclosed limited agency occurs when different licensees under the same principal broker represent competing parties in a transaction.
Licensees cannot solicit properties listed by another broker to avoid disciplinary action.

Marketing and Advertising

Puffing refers to exaggerated marketing claims that aren't strictly factual but permissible within limits.
Comparative Market Analysis (CMA) adjustments should reflect how features impact market value rather than their actual cost.
Agency disclosure pamphlets must be provided to consumers at first contact to explain agency relationships.

Property Development Terminology

Partitioning involves dividing land into 2 or 3 parcels, while subdividing refers to dividing land into 4 or more lots in Oregon.
The Willamette Meridian serves as the principal meridian used for land surveying in Oregon.
Material facts significantly affect property value and the ability to fulfill obligations; disclosure of hazards like meth labs is mandatory due to potential impact on property condition.

Financial Laws and Regulations

Usury laws set limits on interest rates that lenders can charge.
Water rights in Oregon pertain to the usage of water, requiring usage at least once every 5 years.
Trust accounts are designated for holding client funds separate from broker funds, ensuring proper management of financial transactions.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your understanding of earnest money deposits and brokerage licensing regulations in real estate. This quiz covers essential guidelines every real estate professional should know, including timelines for deposits and advertising restrictions.