OREGON BROKER PSI ACTUAL EXAM REVIEW QUESTIONS NEWEST 2026 COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ (BRAND NEW VERSION!!)
Question 1
Which of the following would typically be considered a credit to the seller on a closing
statement?
A) Sales commission
B) Sale price of the property
C) Owner's title insurance premium
D) Recording fees for the new mortgage
E) Payoff of the existing loan
Correct Answer: B) sale price of the property
Rationale: On a closing statement, the sales price is a credit to the seller because it is the
amount of money they are receiving. Other credits for a seller might include prepaid
property taxes or utility reserves.
Question 2
In Oregon, how long is the period of "continuous possession" required to claim title through
adverse possession?
A) 5 years
B) 7 years
C) 10 years
D) 15 years
E) 20 years
Correct Answer: C) 10 years
Rationale: Under Oregon law, a person must maintain actual, open, notorious, exclusive,
hostile, and continuous possession of the property for a minimum of 10 years to successfully
claim adverse possession.
Question 3
A manufactured home is considered "de-titled" when:
A) It is moved to a storage lot.
B) It is sold as personal property.
C) It is attached to the land and recorded so it can be sold as real property.
D) The wheels and axles are removed, regardless of the land ownership.
E) It is leased to a tenant for more than one year.
Correct Answer: C) the manufactured home is attached to the land so you can sell it as real
property.
Rationale: De-titling involves a specific legal process where the manufactured structure and
the land it sits on are owned by the same person, allowing the structure to be classified and
taxed as real property.
, 2
Question 4
Under the Fair Housing Amendments Act of 1988, which of the following was added as a
protected class?
A) Age
B) Sexual Orientation
C) Marital Status
D) Familial Status
E) Source of Income
Correct Answer: D) familial status
Rationale: The 1988 Federal Amendment added familial status (families with children
under 18) and disability to the protected classes. Oregon state law additionally protects
sexual orientation, marital status, and source of income.
Question 5
In Oregon, "dual agency" is officially referred to as:
A) Undisclosed agency
B) Split agency
C) Disclosed limited agency
D) Facilitation
E) Transactional brokerage
Correct Answer: C) Disclosed limited agency
Rationale: Oregon law uses the term "Disclosed Limited Agency" to describe a situation
where a broker represents both the buyer and the seller, or multiple buyers, in the same
transaction with full disclosure and written consent.
Question 6
A principal broker is absent from the office. A broker with three years of experience may be
authorized to temporarily supervise for a maximum of:
A) 30 days
B) 60 days
C) 90 days
D) 120 days
E) 180 days
Correct Answer: C) 90 days
Rationale: Oregon administrative rules allow a broker with at least three years of active real
estate experience to manage an office for up to 90 days during the absence of the principal
broker, provided the Oregon Real Estate Agency is notified.
Question 7
How many acres are contained in a standard "section" within the Rectangular Survey System?
A) 40 acres
, 3
B) 160 acres
C) 320 acres
D) 640 acres
E) 1,280 acres
Correct Answer: D) 640 acres
Rationale: A section is one square mile, which equals 640 acres. A quarter-section contains
160 acres.
Question 8
When a principal broker dies, the associated licensees have how long to transfer their licenses
before they automatically become inactive?
A) 3 business days
B) 10 days
C) 14 days
D) 30 days
E) 60 days
Correct Answer: D) 30 days
Rationale: Licensees must find a new principal broker and transfer their license within 30
days following the death of their previous principal broker to maintain active status.
Question 9
What is the standard time frame for an Oregon real estate licensee to deposit earnest money into
a client trust account or neutral escrow?
A) 24 hours
B) 1 business day
C) 3 business days
D) 5 calendar days
E) 7 business days
Correct Answer: C) 3 business days
Rationale: Unless the sales agreement states otherwise, all funds received by a broker must
be deposited into the principal broker's trust account or a neutral escrow within three
banking days.
Question 10
Oregon is a "lien-theory" state. This means:
A) The lender holds the actual title until the loan is paid.
B) The mortgagor (borrower) retains legal title to the property.
C) Property can never be foreclosed upon.
D) All property is owned by the state.
E) Mechanics' liens have priority over all other liens.
Correct Answer: B) a state in which a mortgagor retains title to the property when a
, 4
mortgage lien is created
Rationale: In a lien-theory state like Oregon, the borrower holds legal title while the lender
holds a security interest (lien) against the property. This is opposed to title-theory states
where the lender holds the title.
Question 11
Which of the following is NOT included in the definition of "Real Property" under Oregon law?
A) A condominium
B) A timeshare property
C) A manufactured home on land owned by the same person
D) A leasehold in real property
E) A right of first refusal
Correct Answer: D) a leasehold in real property
Rationale: Oregon statute specifically excludes a leasehold interest from the definition of
real property. Real property refers to the ownership and estate interests, while a leasehold
is considered personal property of the tenant.
Question 12
If a landowner in Oregon stops using water for a "beneficial use" for a specific period, they may
lose their water right. What is this period?
A) 2 consecutive years
B) 3 consecutive years
C) 5 consecutive years
D) 10 consecutive years
E) 15 consecutive years
Correct Answer: C) 5 consecutive years
Rationale: Oregon follows the doctrine of "prior appropriation." If a water right holder
fails to use the water for five consecutive years, the right is subject to forfeiture for non-use.
Question 13
Which protected class in Oregon housing specifically prevents a landlord from rejecting an
applicant solely because they use a Section 8 voucher?
A) Familial status
B) Domestic violence
C) Source of income
D) Public assistance status
E) Marital status
Correct Answer: C) source of income
Rationale: In Oregon, "Source of Income" is a protected class. Landlords cannot refuse to
rent to someone because they receive legal, ongoing income from public assistance or
housing authorities (Section 8).
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ (BRAND NEW VERSION!!)
Question 1
Which of the following would typically be considered a credit to the seller on a closing
statement?
A) Sales commission
B) Sale price of the property
C) Owner's title insurance premium
D) Recording fees for the new mortgage
E) Payoff of the existing loan
Correct Answer: B) sale price of the property
Rationale: On a closing statement, the sales price is a credit to the seller because it is the
amount of money they are receiving. Other credits for a seller might include prepaid
property taxes or utility reserves.
Question 2
In Oregon, how long is the period of "continuous possession" required to claim title through
adverse possession?
A) 5 years
B) 7 years
C) 10 years
D) 15 years
E) 20 years
Correct Answer: C) 10 years
Rationale: Under Oregon law, a person must maintain actual, open, notorious, exclusive,
hostile, and continuous possession of the property for a minimum of 10 years to successfully
claim adverse possession.
Question 3
A manufactured home is considered "de-titled" when:
A) It is moved to a storage lot.
B) It is sold as personal property.
C) It is attached to the land and recorded so it can be sold as real property.
D) The wheels and axles are removed, regardless of the land ownership.
E) It is leased to a tenant for more than one year.
Correct Answer: C) the manufactured home is attached to the land so you can sell it as real
property.
Rationale: De-titling involves a specific legal process where the manufactured structure and
the land it sits on are owned by the same person, allowing the structure to be classified and
taxed as real property.
, 2
Question 4
Under the Fair Housing Amendments Act of 1988, which of the following was added as a
protected class?
A) Age
B) Sexual Orientation
C) Marital Status
D) Familial Status
E) Source of Income
Correct Answer: D) familial status
Rationale: The 1988 Federal Amendment added familial status (families with children
under 18) and disability to the protected classes. Oregon state law additionally protects
sexual orientation, marital status, and source of income.
Question 5
In Oregon, "dual agency" is officially referred to as:
A) Undisclosed agency
B) Split agency
C) Disclosed limited agency
D) Facilitation
E) Transactional brokerage
Correct Answer: C) Disclosed limited agency
Rationale: Oregon law uses the term "Disclosed Limited Agency" to describe a situation
where a broker represents both the buyer and the seller, or multiple buyers, in the same
transaction with full disclosure and written consent.
Question 6
A principal broker is absent from the office. A broker with three years of experience may be
authorized to temporarily supervise for a maximum of:
A) 30 days
B) 60 days
C) 90 days
D) 120 days
E) 180 days
Correct Answer: C) 90 days
Rationale: Oregon administrative rules allow a broker with at least three years of active real
estate experience to manage an office for up to 90 days during the absence of the principal
broker, provided the Oregon Real Estate Agency is notified.
Question 7
How many acres are contained in a standard "section" within the Rectangular Survey System?
A) 40 acres
, 3
B) 160 acres
C) 320 acres
D) 640 acres
E) 1,280 acres
Correct Answer: D) 640 acres
Rationale: A section is one square mile, which equals 640 acres. A quarter-section contains
160 acres.
Question 8
When a principal broker dies, the associated licensees have how long to transfer their licenses
before they automatically become inactive?
A) 3 business days
B) 10 days
C) 14 days
D) 30 days
E) 60 days
Correct Answer: D) 30 days
Rationale: Licensees must find a new principal broker and transfer their license within 30
days following the death of their previous principal broker to maintain active status.
Question 9
What is the standard time frame for an Oregon real estate licensee to deposit earnest money into
a client trust account or neutral escrow?
A) 24 hours
B) 1 business day
C) 3 business days
D) 5 calendar days
E) 7 business days
Correct Answer: C) 3 business days
Rationale: Unless the sales agreement states otherwise, all funds received by a broker must
be deposited into the principal broker's trust account or a neutral escrow within three
banking days.
Question 10
Oregon is a "lien-theory" state. This means:
A) The lender holds the actual title until the loan is paid.
B) The mortgagor (borrower) retains legal title to the property.
C) Property can never be foreclosed upon.
D) All property is owned by the state.
E) Mechanics' liens have priority over all other liens.
Correct Answer: B) a state in which a mortgagor retains title to the property when a
, 4
mortgage lien is created
Rationale: In a lien-theory state like Oregon, the borrower holds legal title while the lender
holds a security interest (lien) against the property. This is opposed to title-theory states
where the lender holds the title.
Question 11
Which of the following is NOT included in the definition of "Real Property" under Oregon law?
A) A condominium
B) A timeshare property
C) A manufactured home on land owned by the same person
D) A leasehold in real property
E) A right of first refusal
Correct Answer: D) a leasehold in real property
Rationale: Oregon statute specifically excludes a leasehold interest from the definition of
real property. Real property refers to the ownership and estate interests, while a leasehold
is considered personal property of the tenant.
Question 12
If a landowner in Oregon stops using water for a "beneficial use" for a specific period, they may
lose their water right. What is this period?
A) 2 consecutive years
B) 3 consecutive years
C) 5 consecutive years
D) 10 consecutive years
E) 15 consecutive years
Correct Answer: C) 5 consecutive years
Rationale: Oregon follows the doctrine of "prior appropriation." If a water right holder
fails to use the water for five consecutive years, the right is subject to forfeiture for non-use.
Question 13
Which protected class in Oregon housing specifically prevents a landlord from rejecting an
applicant solely because they use a Section 8 voucher?
A) Familial status
B) Domestic violence
C) Source of income
D) Public assistance status
E) Marital status
Correct Answer: C) source of income
Rationale: In Oregon, "Source of Income" is a protected class. Landlords cannot refuse to
rent to someone because they receive legal, ongoing income from public assistance or
housing authorities (Section 8).
