Free Oregon Principal Broker License Examination — State Section Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Oregon Principal Broker License Examination — State Section practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An Oregon principal broker lets an active license expire and continues negotiating a sale the next day. Which statement is correct?

   1. A. The activity is allowed during a 30-day grace period
   2. B. The activity is prohibited because an active license is required
   3. C. The activity is allowed if no commission is collected
   4. D. The activity is allowed if a renewal application is mailed within 10 days

   Answer: B

   Explanation: The controlling statute says a person may not perform the activity "unless the individual holds an active license." Expiration therefore creates no practice grace period.

   Reference: Oregon Revised Statutes — ORS 696.020

2. 2An Oregon principal broker begins managing rental real estate under a property management agreement but has not yet received client money. What trust-account step is required?

   1. A. Wait until the first rent payment arrives
   2. B. Open at least one clients' trust account
   3. C. Use the business operating account temporarily
   4. D. Ask each tenant to open an individual account

   Answer: B

   Explanation: Agency guidance says principal brokers managing rental real estate "must have at least one open clients' trust account."

   Reference: Orea Property Management Guide — OAR 863-025-0025 — required accounts

3. 3An Oregon licensee proposes to represent both seller and buyer in the same transaction. What is required to create the disclosed limited agency relationship?

   1. A. Oral consent from either party
   2. B. Written permission from all clients
   3. C. Approval only from the managing principal broker
   4. D. A court order after the offer is accepted

   Answer: B

   Explanation: The official pamphlet states that representation of both parties is allowed only "with the written permission of all clients."

   Reference: Orea Initial Agency Pamphlet — ORS 696.815 — Disclosed Limited Agent

4. 4A principal broker sells a personally owned investment property without representing anyone else. Which Oregon licensing rule applies?

   1. A. Licensing law never applies to an owner's own transaction
   2. B. The principal broker remains subject to the license law when acting on the broker's own account
   3. C. The principal broker must surrender the license until closing
   4. D. The transaction is regulated only if another licensee is paid

   Answer: B

   Explanation: ORS 696.020 keeps licensees subject to the chapter while acting on their "own behalf in the sale" or purchase of real estate.

   Reference: Oregon Revised Statutes — ORS 696.020

5. 5A purchase offer is rejected. Which earnest-money record belongs in the Oregon transaction file?

   1. A. A copy of the earnest-money instrument, but no later disposition record
   2. B. The disposition of the earnest money, such as return to the offeror or receipt by escrow
   3. C. Only the signed rejection after the buyer retrieves the original payment
   4. D. No earnest-money record once the seller rejects the offer and no sale closes

   Answer: B

   Explanation: The Agency's required-record list expressly includes "Earnest money disposition" and directs the file to note redemption, trust deposit, or escrow receipt.

   Reference: Oregon Real Estate Agency : Records of Professional Real Estate Activity - Sales : Business Management : State of Oregon — OAR 863-015-0250 — rejected offers and earnest money disposition

6. 6Before managing Oregon rental property for an owner, what agreement must the property manager or principal broker have?

   1. A. A signed, unexpired property management agreement
   2. B. An oral understanding witnessed by a tenant
   3. C. A deed conveying the property to the manager
   4. D. A county-issued listing license

   Answer: A

   Explanation: The Agency instructs, "You need a signed, unexpired property management agreement with the property owner before managing a property."

   Reference: Oregon Real Estate Agency : Elements of a Property Management Agreement : Newsroom : State of Oregon — OAR 863-025-0020 — written agreement

7. 7For Oregon property-tax purposes, what does real market value generally represent?

   1. A. The lesser of the owner's original price or the most recent arm's-length sale price
   2. B. The amount in cash reasonably expected from an informed buyer to an informed seller, neither under compulsion
   3. C. The assessor's market opinion capped at the balance of all recorded secured debt
   4. D. Replacement cost less depreciation when selected by the listing principal broker

   Answer: B

   Explanation: ORS 308.205 defines the measure as "the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller" without compulsion.

   Reference: Oregon Revised Statutes — ORS 308.205

8. 8A principal broker whose Oregon license is inactive receives an offer to list a neighbor's home for compensation. What must the principal broker do before performing the listing activity?

   1. A. Reactivate the license
   2. B. File a one-time transaction notice
   3. C. Obtain the seller's written waiver
   4. D. Work only through an escrow agent

   Answer: A

   Explanation: Oregon defines inactive status as "not authorized to engage in professional real estate activity." The license must be reactivated before the listing service is performed.

   Reference: Oregon Revised Statutes — ORS 696.020

9. 9Where must an Oregon clients' trust account for rental management be opened?

   1. A. At any federally insured online bank, even without an Oregon branch
   2. B. At a federally insured bank with at least one physical branch in Oregon
   3. C. At any Oregon-chartered bank, whether or not its deposits are federally insured
   4. D. At a federally insured institution selected in writing by every affected tenant

   Answer: B

   Explanation: Agency guidance specifies a "federally insured bank" and also requires a physical Oregon branch.

   Reference: Oregon Real Estate Agency : Opening Clients’ Trust Accounts : Newsroom : State of Oregon — OAR 863-025-0025 — qualifying bank

10. 10Two buyers represented within the same Oregon brokerage submit competing offers on the same property. What agency issue arises?

    1. A. No agency issue because neither is a seller
    2. B. A disclosed limited agency situation exists within the brokerage
    3. C. Both buyer relationships terminate automatically
    4. D. The higher bidder becomes the only client

    Answer: B

    Explanation: The current rule defines disclosed limited agency to include "the representation of two or more buyers" when they want to purchase the same property.

    Reference: Oregon Revised Statutes — OAR 863-015-0205, effective January 1, 2026