Real Estate Regulations Quiz

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.