Client/escrow funds must be held in a designated clients' trust account, not commingled with broker funds.
Before you read
Test yourself first: 5 questions
Question 1 of 5
A broker receives an earnest-money check made payable to a neutral escrow holder. Which action best complies with Oregon trust-handling standards?
Answer: B. Oregon requires that funds received on behalf of others be handled promptly and placed with the proper escrow or in the clients' trust account without unreasonable delay; personal cashing or holding violates the duty.
Question 2 of 5
After receiving the Seller's Property Disclosure Statement, what right does an Oregon buyer typically have if the buyer is dissatisfied with the disclosures?
Answer: B. Oregon gives the buyer a statutory right to revoke the offer or the accepted agreement within a limited number of business days after receiving the Seller's Property Disclosure Statement (or, in some cases, the buyer may waive the statement in writing).
Question 3 of 5
Under Oregon law, when must a seller of residential real property generally deliver the Seller's Property Disclosure Statement to a buyer?
Answer: B. Oregon requires the seller to deliver the Seller's Property Disclosure Statement to the buyer, and the buyer has a statutory right to revoke the offer within five business days of receiving it if the disclosures are unsatisfactory.
Question 4 of 5
Oregon is a 'title theory'-style closing state that commonly uses which professional to handle the closing/settlement of a residential transaction?
Answer: A. Oregon closings are typically handled by licensed escrow agents at title/escrow companies who act as neutral third parties to hold funds and documents and disburse at closing, rather than by attorneys at the table (as in some states) or by the broker holding the funds.
Question 5 of 5
Under Oregon license law, who is primarily responsible for maintaining the clients' trust account and supervising the handling of trust funds for a real estate firm?
Answer: A. The principal broker is responsible for the firm's clients' trust account and for supervising the proper handling and accounting of trust funds. Entry-level brokers generally do not maintain their own trust accounts.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Seller's Property Disclosure Statement is required for most residential resales.
- Buyers generally have a statutory right to revoke after receiving the disclosure statement within the disclosure rules' timeframe.
- Oregon is NOT a community property state; it is a separate/common-law property state.
- Pre-license education: 150 hours (key number to remember).
- Client/escrow funds must be held in a designated clients' trust account, not commingled with broker funds.
- Principal brokers are responsible for proper trust account handling and recordkeeping.
- Misuse or commingling of trust funds is a serious disciplinary violation under OREA.
Oregon Disclosures, Escrow/Trust Funds & Key Numbers: FAQs
Is Oregon Disclosures, Escrow/Trust Funds & Key Numbers on the real estate exam?
Yes. State License Law is a scored domain on the Oregon real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Oregon test this differently?
Oregon applies its own license law on top of the national portion. This page covers the Oregon rules specifically, which is what the state section of your exam tests.
