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PSI Services LLC3210 E TropicanaLas Vegas, NV 89121www.psiexams.comOREGON REAL ESTATE AGENCYREAL ESTATE BROKER, PRINCIPAL BROKER ANDPROPERTY MANAGER EXAMINATIONCANDIDATE INFORMATION BULLETINExaminations by PSI Services LLC ............................ 1Licensing Requirements ........................................ 1Applying for a License .......................................... 2Required Pre-license Education .............................. 2License Reactivation ........................................... 2Fingerprinting ................................................... 2Examination Scheduling Procedures ......................... 2Fees .................................................... 2Internet Registration ................................ 3Telephone Registration ............................. 3FAX Registration ...................................... 3Standard Mail Registration .......................... 3Retaking a Failed Examination ..................... 3Canceling an Examination ......................... 3Missed Appointment or Late Cancellation ........ 3Special Examination Arrangements ............... 4Emergency Examination Center Closing .......... 4Examination Site Location ..................................... 4Reporting to the Examination Site ........................... 4Required Identification ............................. 4Security Procedures ................................. 5Taking the Examination by Computer ....................... 5Identification Screen ................................ 5Tutorial ................................................ 5Examination Question Example .................... 5Examination Review ................................. 5Score Reporting ................................................. 6Duplicate Score Reports ............................ 6Tips for Preparing for your License Examination .......... 6Description of Examinations .................................. 6Pretest Items ......................................... 6Examination Content Outlines ..................... 6Sample Questions .............................................. 14After Passing the Examination ............................... 14Examination Registration Form .............................. 15Special Arrangement Request ................ End of BulletinPlease refer to our website to check for the most updated information at www.psiexams.comCopyright © 2013 by PSI Services LLC Last Revised 8/15/2013

EXAMINATIONS BY PSI SERVICES LLCThis Candidate Information Bulletin provides you withinformation about the examination and application process forobtaining a real estate license in the State of Oregon.Oregon Real Estate License Law states that a person may notact as a real estate broker, principal broker, or propertymanager without first obtaining a license issued by the OregonReal Estate Agency. To be licensed, you must pass anexamination to confirm that you have attained at least aminimum level of knowledge regarding the principles,practices, statutes, and regulations relating to real estate.Oregon law also requires a real estate licensee whose licensehas not been active for two consecutive years must pass areactivation exam to be eligible for reactivation.The Oregon Real Estate Agency has contracted with PSIServices LLC (PSI) to conduct examination testing. PSIprovides examinations through a network of computerexamination centers. PSI works closely with the state to becertain that examinations meet local as well as nationalrequirements in basic principles and examination developmentstandards.Following are the Oregon real estate examinations offered byPSI:• Broker• Principal Broker• Property Manager• Broker Reactivation• Property Manager ReactivationAll questions and requests for information about licensureshould be directed to the Oregon Real Estate AgencyOregon Real Estate Agency1177 Center St. NESalem, OR 97301-2505(503) 378-4170Email: orea.info@state.or.uswww.rea.state.or.usTake and pass both the state and national sections ofthe broker license examination. (If you are currentlylicensed as a broker in another state, you may seek awaiver for the national section of the broker licenseexamination by submitting a certified license historyto the Agency with your Broker License Application.Contact the Agency for more information.)Submit fingerprints for criminal background check.Principal Broker License RequirementsIf you are currently licensed as a broker in Oregon:To qualify for a principal real estate broker license, youmust: Be 18 years old. Have a high school diploma, GED or internationalequivalent. Have three years of active real estate licenseexperience.If you qualify, you must complete the followingrequirements in order:Submit a Principal Broker License Application with therequired fee by using eLicense, the Agency’s onlinelicense management system. Seewww.rea.state.or.us for more information.Complete the 40-hour Brokerage Administration andSales Supervision.Take and pass the principal broker licenseexamination.If you are not currently licensed in Oregon:To qualify for a principal real estate broker license, youmust: Be 18 years old. Have a high school diploma, GED or internationalequivalent. Have three years of active real estate licenseexperience.If you qualify, you must complete the followingrequirements in order:LICENSING REQUIREMENTSBroker License RequirementsTo qualify for a broker license, you must: Be 18 years old. Have a high school diploma, GED or internationalequivalent.If you qualify, you must complete the followingrequirements in order:Submit a Broker License Application with the requiredfee by using eLicense, the Agency’s online licensemanagement system. See www.rea.state.or.us formore information.Complete the 150 hours of required pre-licenseeducation.Submit a Principal Broker License Application with therequired fee by using eLicense, the Agency’s onlinelicense management system. Seewww.rea.state.or.us for more information.Complete the 150 hours of required broker prelicenseeducation.Complete the 40-hour Brokerage Administration andSales Supervision course.Take and pass the principal broker licenseexamination.Submit fingerprints for criminal background check.Submit certified license history showing three yearsof active real estate license experience in anotherstate.WWW.PSIEXAMS.COM 1

Property Manager License RequirementsTo qualify for a property manager license, you must: Be 18 years old. Have a high school diploma, GED or internationalequivalent.If you qualify, you must complete the followingrequirements in order:Submit a Property Manager Application with therequired fee by using eLicense, the Agency’s onlinelicense management system. Seewww.rea.state.or.us for more information.Complete the 60 hours of required propertymanager pre-license education.Take and pass the property manager licenseexamination.Submit fingerprints for criminal background check.APPLYING FOR A LICENSEYou must submit the appropriate license application andrequired fee to the Agency before your pre-license education iscomplete. License applications are available on the Agency’swebsite at www.rea.state.or.us.REQUIRED PRE-LICENSE EDUCATIONYou must complete the education required for the license youwant. The education must be completed from an Agencyapprovedschool or provider. Visit the Agency’s website atwww.rea.state.or.us for more information.Upon successful completion of the course requirementsyour education provider will send your candidateinformation to PSI so that you are eligible for the requiredexam.LICENSE REACTIVATIONA real estate licensee whose license has not been active fortwo consecutive years must pass a reactivation exam to beeligible for reactivation.Licensees register for and schedule the reactivation examdirectly with PSI. Educator-approval or Agency-approval is notrequired to register or schedule a reactivation exam.You may take the reactivation exam before you complete thecontinuing education requirement or choose a principalbroker. A passing score on the exam is valid for one year. Youmay complete the continuing education requirement duringthat year. Please view the Real Estate Licensee Resourcessection on the Agency’s website at www.rea.state.or.us fora detailed explanation of continuing educationrequirements.FINGERPRINTINGALL candidates applying for licensure must provide a set offingerprints for the purpose of conducting a state and nationalfingerprint-based criminal history record.You will be electronically fingerprinted at one of PSI Oregonsites, during regular testing hours, on the day of yourexamination. The prints will be forwarded electronically tothe appropriate review agencies. You will pay thefingerprinting fee at the test site on the day of testing. The$59.50 fee, may be made payable by money order, cashier’scheck, company check, VISA or MasterCard. This paymentincludes the Oregon State Police processing fee of $44.50, andthe PSI processing fee of $15.00. Please note: Fingerprintprocessing may take up to 4 weeks.Prints expire one year from the date you are printed.Candidates do not need to be fingerprinted: If you have an existing active or inactive Oregon realestate license. If you are upgrading to a Principal Broker. If you are taking a Reactivation exam.EXAMINATION SCHEDULINGPROCEDURESAll questions and requests for information about examinationsshould be directed to PSI.PSI Services LLC3210 E TropicanaLas Vegas, NV 89121(800) 733-9267 Fax (702) 932-2666www.psiexams.comPRE-LICENSE APPLICANTSUPON SUCCESSFUL COMPLETION OF THE PRE-LICENSE COURSEREQUIREMENTS YOUR EDUCATION PROVIDER WILL PROVIDEYOUR ELIGIBILITY ELECTRONICALLY TO PSI.After your provider has submitted your file to PSI, you will beeligible to schedule and pay for the examination. Note: If PSIdoes not have your record, please contact your educationprovider. The examination fee is valid for one examinationattempt. If you fail, you may retake the examination afterrescheduling and paying another fee to PSI.Broker Applicants. If you pass only one section of the Broker orPrincipal Broker License examination, you are required toretake only the failed section. The score for the sectionpassed is valid for 12 months; if the other part of theexamination is not passed by then, both sections of the exammust be retaken.REACTIVATION EXAMINATIONLicensees register for and schedule the reactivation examdirectly with PSI. Educator-approval or Agency-approval is notrequired to register or schedule a reactivation exam.EXAMINATION FEEExamination Fee $75NOTE: REGISTRATION FEES ARE NOT REFUNDABLE ORTRANSFERABLEWWW.PSIEXAMS.COM 2

INTERNET REGISTRATIONFor the fastest and most convenient test scheduling process,PSI recommends that candidates register for theirexaminations using the Internet. In order to register over theInternet, candidates will need to have a valid MasterCard orVisa. Candidates register online by accessing PSI’s registrationwebsite at www.psiexams.com. Internet registration isavailable 24 hours a day. In order to register by Internet,complete the steps below. For internet registration, you willneed a valid VISA or MasterCard.1. Log onto PSI’s website and create an account. Pleaseenter your email address and first and last name. Thisinformation must match exactly with the information theagency has on file. Be sure to check the box next to“Check here to attempt to locate existing records for youin the system”2. You will be asked to select the examination and enteryour ID#. Your record will be found and you will now beready to pay and schedule for the exam. Enter your zipcode and a list of the testing sites closest to you willappear. Once you select the desired test site, availabledates will appear. If you have problems contact PSI at(800) 733-9267 for help.TELEPHONE REGISTRATIONThe second fastest method of scheduling is via the telephonewith PSI’s Interactive Voice Response system (IVR) during nonbusinesshours or through live registrars during business hours.For telephone registration, you will need a valid VISA orMasterCard.Complete the Examination Registration Form (found at the endof this Candidate Information Bulletin), including your creditcard number and expiration date, so that you will be preparedwith all of the information needed to register by telephone.Call (800) 733-9267, 24 hours a day and register using theAutomated Registration System. Otherwise, PSI registrars areavailable Monday through Friday, between 4:30 am and 5:00pm and Saturday, between 8:00 am and 2:00 pm, Pacific Time,to receive the information listed on your ExaminationRegistration Form and schedule your appointment for theexamination.FAX REGISTRATIONFor Fax registration, you will need a valid VISA or MasterCard.Complete the Examination Registration Form, including yourcredit card number and expiration date.Fax the completed form to PSI (702) 932-2666.registrations are accepted 24 hours a day.FaxIf your information is incomplete or incorrect, it will bereturned for correction.Please allow 4 business days to process your Registration. After4 business days, you may call PSI to schedule the examination,(800) 733-9267.STANDARD MAIL REGISTRATIONFor those desiring to make payment for their examinationusing cashiers checks or money orders, or for those thatsimply do not wish to provide credit card information over thephone or Internet, you must use the Standard MailRegistration. In order to register, please follow the stepsbelow.Complete the PSI registration Form, and appropriateexamination fee to PSI. Payment of fees can be made bymoney order or cashier’s check. Company check, moneyorders or cashier’s checks should be made payable to PSI.Print your name on your cashier’s check or money order toensure that your fees are properly assigned. CASH ANDPERSONAL CHECKS ARE NOT ACCEPTED.PSI Services LLC3210 E TropicanaLas Vegas, NV 89121(800) 733-9267 Fax (702) 932-2666www.psiexams.comBE SURE TO READ ALL DIRECTIONS CAREFULLY BEFORECOMPLETING THE EXAMINATION REGISTRATION FORMS.IMPROPERLY COMPLETED FORMS WILL BE RETURNED TO YOUUNPROCESSED.Please allow 2 weeks to process your Registration. After 2weeks, you may call PSI to schedule the examination after6:30 a.m., Central Time, (800) 733-9267.RETAKING A FAILED EXAMINATIONIt is not possible to make a new examination appointment onthe same day you have taken an examination; this is due toprocessing and reporting scores. A candidate who testsunsuccessfully on a Wednesday can call the next day,Thursday, and retest as soon as Friday, depending upon spaceavailability. You may access a registration form atwww.psiexams.com. You may also call PSI at (800) 733-9267.Please note that you may also use the automated system,using a touch-tone phone, 24 hours a day in order to scheduleor reschedule an examination.CANCELING AN EXAMINATION APPOINTMENTYou may cancel and reschedule an examination appointmentwithout forfeiting your fee if your cancellation notice isreceived 2 days before the scheduled examination date. Forexample, for a Monday appointment, the cancellation noticewould need to be received on the previous Saturday. You maycall PSI at (800) 733-9267. Please note that you may also usethe automated system, using a touch-tone phone, 24 hours aday in order to cancel and reschedule your appointment.Note: A voice mail message is not an acceptable form ofcancellation. Please use the Internet, automated telephonesystem (IVR), or call PSI and speak to a Customer ServiceRepresentative.MISSED APPOINTMENT OR LATE CANCELLATIONYour registration will be invalid, you will not be able to takethe examination as scheduled, and you will forfeit yourexamination fee, if you:WWW.PSIEXAMS.COM 3

• Do not cancel your appointment 2 days before theschedule examination date;• Do not appear for your examination appointment;• Arrive after examination start time;• Do not present proper identification when you arrive forthe examination.SPECIAL EXAMINATION ARRANGEMENTSAll examination centers are equipped to provide access inaccordance with the Americans with Disabilities Act (ADA) of1990, and every reasonable accommodation will be made inmeeting a candidate’s needs. Applicants with disabilities orthose who would otherwise have difficulty taking theexamination must fill out the form at the end of this CandidateInformation Bulletin and fax to PSI (702) 932-2666. This formalso includes out-of-state testing requests.EXAMINATION SITE CLOSING FOR AN EMERGENCYIn the event that severe weather or another emergency forcesthe closure of an examination site on a scheduled examinationdate, your examination will be rescheduled. PSI personnel willattempt to contact you in this situation. However, you maycheck the status of your examination schedule by calling (800)733-9267. Every effort will be made to reschedule yourexamination at a convenient time as soon as possible. Youmay also check our website at www.psiexams.com.EXAMINATION SITE LOCATIONSThe following directions are generated from the most currentmapping services available. However, new road constructionand highway modifications may result in some discrepancies.If you are not familiar with the specific area of the testingsite, please consult a reliable map prior to your test date.Baker City2101 Main Street, #203Baker City, OR 97814From I-84 take Exit 304 onto Campbell Street. CampbellStreet to Main Street, turn left. Test site is on right side,Northwest corner of Main and Broadway, upstairs aboveCharlie's Ice Cream, in the Basch Sage Mini Mall, Room 203.Enter from Broadway.Bend325 N. Vermont Place, #106Bend, OR 97701From US-97 going North, continue on SE 3rd St. Turn left onNW Greenwood Ave. Turn right on NW Wall St. Then turnleft on Vermont Place. Vermont Place is a one block street.Eugene1955 Empire Park Drive, Suite #1Eugene, OR 97402From the Beltline Hwy West, take the OR-99 N exit and turnright. Watch for the stoplight at Barger Drive. Turn rightonto Barger Drive, then immediately turn left on Empire ParkDr. Take a left into the parking lot. Site is on the corner ofOR-99 N and Barger Drive (Site is in the Edward JonesInvestment Building). (There is a Subway on the corner).Independence4901 Airport RdIndependence State AirportIndependence, OR 97351Take I-5 to exit 260A for OR-99E BUS S/Salem Expy and follow,then taking a slight left onto Commercial St NE. Turn right onMarion St NE continuing onto OR-22W/Marion St. Bridge.Follow OR-22W for 5 miles, then turn left onto OR-51S/Independence Hwy. Turn right onto Polk St and continueonto Hoffman Rd. Turn right onto Airport Rd.Medford1236 A North Riverside AveMedford, OR 97501From I-5 going North, take the Barnett Street off ramp andturn left. Turn right on Riverside Ave, and go approximately3 miles. The site will be on the right hand side.From I-5 going South, take the North exit (#30) and turn rightand follow signs to “City Center”. Pass McAndrews, and turnleft on Manzinita. This dead ends at Riverside. Turn left onRiverside, go one block and site will be on the right hand side.Portland205 Business Center, Suite 2018383 NE Sandy BlvdPortland, OR 97220From the West Side:Get on I-84 heading East. TakeExit No. 5-82 nd Ave. Turn righton NE Multnomah St. Turn right on NE 82 nd Ave. Turn righton NE Sandy Blvd. The site is on the left ½ block from 82 ndand Sandy.From South East Portland:Get on I-205N toward Seattle. Take Exit 23B KillingsworthSt/US 30 Bypass W exit. Take the Sandy Blvd. West/US-30Business W exit-exit number 23B on the left. Turn slight righton NE Sandy Blvd. Site is on the right ½ block before youreach 82 nd and Sandy.From Vancouver, WA:Get on I-205 South toward Salem. Take Exit 23A-the US-30Bypass E exit toward Sandy Blvd. Turn right on NE ColumbiaBlvd/US-30 Bypass. Turn right on NE Sandy Blvd. Site is onthe right ½ block before you reach 82 nd and Sandy.Site is across from the Grotto.Additionally, PSI has examination centers in many otherregions across the United States. You may take thisexamination at any of these locations by submitting the outof-state request form found in the back of this bulletin.REPORTING TO THE EXAMINATION SITEOn the day of the examination, you should arrive 30 minutesbefore your appointment. This extra time is for sign-in, andidentification. If you arrive late, you may not be admitted tothe examination site and you will forfeit your examinationregistration fee.REQUIRED IDENTIFICATIONYou must provide one form of identification. Theidentification must be a VALID form of government issuedidentification (driver’s license, state ID, passport, military ID),which bears your signature, has your photograph and the namemust appear exactly as it does on the Eligibility Letter.WWW.PSIEXAMS.COM 4

If you cannot provide the required identification, you must call(800) 733-9267 at least 3 weeks prior to your scheduledappointment to arrange a way to meet this securityrequirement. Failure to provide all of the requiredidentification at the time of the examination withoutnotifying PSI is considered a missed appointment, and you willnot be able to take the examination.SECURITY PROCEDURESThe following security procedures will apply during theexamination:• All examinations are CLOSED book.• NO conversing or any other form of communication amongcandidates is permitted once you enter the examinationarea.• Please be advised that children, cell phones, pagers,cameras, electronic devices and recording devices of anykind are NOT allowed to enter PSI testing centers.Additionally, NO personal items are to enter the testingcenters. PSI will not be responsible for any personal items,and suggests that you leave such items in another safeplace, of your choosing.• Only non-programmable calculators that are silent, batteryoperated,do not have paper tape printing capabilities, anddo not have a keyboard containing the alphabet will beallowed in the examination site.• No smoking, eating, or drinking will be allowed at theexamination site.• You may not exit the building during the examination.• Copying or communicating examination content is aviolation of PSI security policy and the State Law. Eitherone may result in the disqualification of examination resultsand may lead to legal action.IDENTIFICATION SCREENYou will be directed to a semiprivate testing station to takethe examination. When you are seated at the testing station,you will be prompted to confirm your name, identificationnumber, and the examination for which you are registered.TUTORIALBefore you start your examination, an introductory tutorial tothe computer and keyboard is provided on the computerscreen. The time you spend on this tutorial, up to 15 minutes,DOES NOT count as part of your examination time. Samplequestions are included following the tutorial so that you maypractice using the keys, answering questions, and reviewingyour answers.One question appears on the screen at a time. During theexamination, minutes remaining will be displayed at the top ofthe screen and updated as you record your answers.EXAMINATION QUESTION EXAMPLEDuring the examination, you should press 1, 2, 3, or 4 to selectyour answer or press “MARK” to mark it for later review. Youshould then press “ENTER” to record your answer and move onto the next question. A sample question display follows:TAKING THE EXAMINATION BYCOMPUTERTaking the PSI examination by computer is simple. You do notneed any computer experience or typing skills. You will usefewer keys than you use on a touch-tone telephone. Allresponse keys are colored and have prominent characters. Anillustration of the special keyboard is shown here. You mayalso use the mouse.IMPORTANT: After you have entered your responses, you willlater be able to return to any question(s) and change yourresponse, provided the examination time has not run out.EXAMINATION REVIEWPSI, in cooperation with the Oregon Real Estate Agency, willbe consistently evaluating the examinations beingadministered to ensure that the examinations accuratelymeasure competency in the required knowledge areas. Whiletaking the examination, examinees will have the opportunityto provide comments on any questions, by using the commentskey on the keyboard. These comments will be analyzed by PSIexamination development staff. PSI does not respond toindividuals regarding these comments, all substantivecomments are reviewed. This is the only review ofexamination materials available to candidates.WWW.PSIEXAMS.COM 5

SCORE REPORTINGDESCRIPTION OF EXAMINATIONSA score of 75% is required to pass all real estate examinations,and is required on both the National section and the Oregonsection of the Broker Licensing Examination. Passing scores arevalid for one year from the date of passing. You must activateyour license within that time or you will need to retake theexamination to become licensed.Your score will be given to you immediately followingcompletion of the examination. The following summarydescribes the score reporting process:• On screen – your score will appear immediately on thecomputer screen. This will happen automatically at theend of the time allowed for the examination;- If you pass, you will immediately receive a successfulnotification.- If you do not pass, you will receive a diagnosticreport indicating your strengths and weaknesses byexamination type with the score report.- On paper – an unofficial score report will be printed atthe examination site.DUPLICATE SCORE REPORTSYou can write to PSI to request a duplicate of your scorereport.TIPS FOR PREPARING FOR YOURLICENSE EXAMINATIONThe following suggestions will help you prepare for yourexamination.• Only consider the actual information given in thequestion. Do not read into the question by considering anypossibilities or exceptions.• Planned preparation increases your likelihood of passing.• Start with a current copy of this Candidate InformationBulletin and use the examination content outline as thebasis of your study.• Read study materials that cover all the topics in thecontent outline.• Take notes on what you study. Putting information inwriting helps you commit it to memory and it is also anexcellent business practice.• Discuss new terms or concepts as frequently as you canwith colleagues. This will test your understanding andreinforce ideas.• Your studies will be most effective if you studyfrequently, for periods of about 45 to 60 minutes.Concentration tends to wander when you study for longerperiods of time.EXAMINATION SUMMARY TABLEExamination Section # of Items Time AllowedBroker National 80 120 MinutesState 50 75 MinutesPrincipal Broker National 80 120 MinutesState 50 75 MinutesProperty Manager 130 195 MinutesReactivation(Broker orPropertyManager)PRETEST ITEMS482 hours72minutesIn addition to the number of examination items specified, asmall number of five to ten “pretest” questions may beadministered to candidates during the examinations. Thesequestions will not be scored and the time taken to answerthem will not count against examination time. Theadministration of such non-scored experimental questions is anessential step in developing future licensing examinations.EXAMINATION CONTENT OUTLINESBroker License ExaminationThe real estate broker license examination is divided into twosections: the National section and the State section. Bothsections must be passed to meet the examination requirementfor a broker license. In the event that an applicant passes onesection and fails the other, the passing score is good for 12months. See “Score Reporting” above for more information.National Section. The national section consists of 80 multiplechoice questions. It covers topics such as law, finance,property management, taxation, mathematics, etc., which arecommon to all states. The major content areas and thenumber of questions included in each content area of thenational section of the broker license examination aredescribed below.Property Ownership (6 Items)1. Classes of Propertya. Real versus personal propertyb. Defining fixtures2. Land Characteristics and Legal Descriptionsa. Physical characteristics of landb. Economic characteristics of landc. Types of legal property descriptionsd. Usage of legal property descriptions3. Encumbrancesa. Liens (types and priority)b. Easements and licensesc. Encroachments4. Types of Ownershipa. Types of estatesb. Forms of ownershipc. Leaseholdsd. Common interest propertiese. Bundle of rights5. Physical Descriptions of Propertya. Land and building areaWWW.PSIEXAMS.COM 6

. Basic construction types and materialsLand Use Controls and Regulations (5 Items)1. Government Rights in Landa. Property taxes and special assessmentsb. Eminent domain, condemnation, escheatc. Police power2. Public Controls Based in Police Powera. Zoning and master plansb. Building codesc. Environmental impact reportsd. Regulation of special land types (floodplain,coastal, etc.)3. Regulation of Environmental Hazardsa. Abatement, mitigation and cleanuprequirementsb. Contamination levels and restrictions on saleor development of contaminated propertyc. Types of hazards and potential for agent orseller liability.4. Private Controlsa. Deed Conditions or Restrictionsb. Covenants (CC&Rs)c. HOA RegulationsValuation and Market Analysis (8 Items)1. Valuea. Market value and market priceb. Characteristics of valuec. Principles of valued. Market cycles and other factors affectingproperty value2. Methods of Estimating Value/Appraisal Processa. Market or sales comparison approachb. Replacement cost or summation approachc. Income approachd. Basic appraisal terminology (replacementversus reproduction cost, reconciliation,depreciation, kinds of obsolescence)3. Competitive/Comparative Market Analysis (CMA)a. Selecting and adjusting comparablesb. Factors to consider in a CMAc. Contrast CMA and appraisald. Price per square foote. Gross rent and gross income multipliers4. When Appraisal by Certified Appraiser is RequiredFinancing (7 Items)1. General Conceptsa. LTV Ratios, points, origination fees,discounts, broker commissionsb. Mortgage insurance (PMI)c. Lender requirements, equity, qualifyingbuyers, loan application procedures2. Types of Loansa. Term or straight loansb. Amortized and partially amortized (balloon)loansc. Adjustable rate loans (ARMS)d. Conventional versus insurede. Reverse mortgages, equity loans, subprimeand other nonconforming loans3. Sources of Loan Moneya. Seller/owner financingb. Primary marketc. Secondary marketd. Down payment assistance programs4. Government Programsa. FHAb. VA5. Mortgages/Deeds of Trusta. Mortgage clauses (assumption, due-on-sale,alienation, acceleration, prepayment,release)b. Lien theory versus title theoryc. Mortgage/deed of trust and note as separatedocuments6. Financing/Credit Lawsa. Truth in Lending, RESPA, Equal CreditOpportunityb. Mortgage loan disclosure and seller financingdisclosure7. Mortgage Fraud, Predatory Lending Practices (Risksto Clients)a. Usury and predatory lending lawsb. Appropriate cautions to clients seekingfinancingLaws of Agency (10 Items)1. Laws, Definitions, and Nature of AgencyRelationshipsa. Types of agents/agencies (special, general,designated, subagent, etc.)b. Possible agency relationships in a singletransactionc. Fiduciary responsibilities2. Creation and Disclosure of Agency and AgencyAgreementsa. Creation of agency and agency agreementsb. Express and impliedc. Disclosure of representationd. Disclosure of acting as principal or otherconflict of interest3. Responsibilities of Agent to Seller, Buyer, Landlordor Tenant as Principala. Traditional common law agency duties(“COALD”)b. Duties to client/principal (buyer, seller,tenant or landlord)c. Effect of dual agency on agent’s duties4. Responsibilities of Agent to Customers and ThirdParties5. Termination of Agencya. Expirationb. Completion/performancec. Termination by operation of lawd. Destruction of property/death of principale. Termination by acts of partiesMandated Disclosures (7 Items)1. Property Condition Disclosure Formsa. Agent’s role in preparationb. When seller’s disclosure misrepresentsproperty condition2. Warrantiesa. Types of available warrantiesb. Coverages provided3. Need for Inspection and Obtaining/VerifyingInformationa. Agent responsibility to verify statementsincluded in marketing informationb. Agent responsibility to inquire about “redflag” issuesc. Responding to non-client inquiriesWWW.PSIEXAMS.COM 7

4. Material Facts Related to Property Condition orLocationa. Land/soil conditionsb. Accuracy of representation of lot orimprovement size, encroachments oreasements affecting usec. Pest infestation, toxic mold and other interiorenvironmental hazardsd. Structural issues, including roof, gutters,downspouts, doors, windows, foundatione. Condition of electrical and plumbing systems,and of equipment or appliances that arefixturesf. Location within natural hazard or speciallyregulated area, potentially uninsurableproperty)g. Known alterations or additions5. Material Facts Related to Public Controls, Statutes orPublic Utilitiesa. Local zoning and planning informationb. Boundaries of school/utility/taxationdistricts, flight pathsc. Local taxes and special assessments, otherliensd. External environmental hazards (lead, radon,asbestos, formaldehyde foam insulation, highvoltagepower lines, waste disposal sites,underground storage tanks, soil orgroundwater contamination, hazardouswaste)e. Stigmatized/psychologically impactedproperty, Megan’s law issuesContracts (10 Items)1. General Knowledge of Contract Lawa. Requirements for validityb. Types of invalid contractsc. When contract is consideredperformed/dischargedd. Assignment and novatione. Breach of contract and remedies for breachf. Contract clauses (acceleration, etc.)2. Listing Agreementsa. General requirements for valid listingb. Exclusive listingsc. Non-exclusive listings3. Buyer Broker Agreements/Tenant RepresentationAgreements4. Offers/Purchase Agreementsa. General requirementsb. When offer becomes binding (notification)c. Contingenciesd. Time is of the essence5. Counteroffers/Multiple Counteroffersa. Counteroffer cancels original offerb. Priority of multiple counteroffers6. Lease and Lease-Purchase Agreements7. Options and Right of First Refusal8. Rescission and Cancellation AgreementsTransfer of Title (4 Items)1. Title Insurancea. What is insured againstb. Title searches/title abstracts/chain of titlec. Cloud on title/suit to quiet title2. Conveyances After Deatha. Types of willsb. Testate vs. intestate succession3. Deedsa. Purpose of deed, when title passesb. Types of deeds (general warranty, specialwarranty, quitclaim) and when usedc. Essential elements of deedsd. Importance of recording4. Escrow or Closinga. Responsibilities of escrow agentb. Prorated itemsc. Closing statements/HUD-1d. Estimating closing costs5. Foreclosure, Short Sales6. Tax Aspects of Transferring Title to Real PropertyPractice of Real Estate (12 Items)1. Trust Accounts (General; Regulatory Details in StatePortions)a. Purpose and definition of trust accountsb. Responsibility for trust moniesc. Commingling/conversiond. Monies held in trust accounts2. Fair Housing Lawsa. Protected classesb. Covered transactionsc. Specific laws and their effectsd. Exceptionse. Compliancef. Types of violations and enforcementg. Fair housing issues in advertising3. Advertisinga. Incorrect “factual” statements versus“puffing”b. Uninformed misrepresentation versusdeliberate misrepresentation (fraud)c. Truth in advertising4. Agent Supervisiona. Liability/Responsibility for Acts of AssociatedAgentsb. Responsibility to Train and Supervisec. Independent Contractorsd. Employees5. Commissions and Feesa. Procuring Cause/Protection Clausesb. Referrals and Finder Fees6. General Ethicsa. Practicing within area of competenceb. Avoiding unauthorized practice of law7. Issues in Use of Technology (electronic signatures,document delivery, internet advertising)8. Antitrust Lawsa. Antitrust laws and purposeb. Antitrust violations in real estateReal Estate Calculations (7 Items)1. General Math Conceptsa. Addition, subtraction, multiplication, anddivisionb. Percentages/decimals/ fractionsc. Areas, including acreage2. Property Tax Calculations (not Prorations)3. Lending Calculationsa. Loan-to-value ratiosb. Discount pointsc. Equityd. Qualifying buyers4. Calculations for TransactionsWWW.PSIEXAMS.COM 8

a. Prorations (utilities, rent, property taxes,insurance, etc.)b. Commissions and commission splitsc. Seller’s proceeds of saled. Total money needed by buyer at closinge. Transfer tax/conveyance tax/revenue stamps5. Calculations for Valuationa. Comparative market analyses (CMA)b. Net operating incomec. Depreciationd. Capitalization ratee. Gross rent and gross income multipliers (GIM,GRM)6. Mortgage Calculationsa. Down payment/amount to be financeda. Amortizationb. Interest ratesc. Interest amountsd. Monthly installment paymentsSpecialty Areas (4 Items)1. Property Management and Landlord/Tenant2. Common Interest Ownership Properties3. Subdivisions4. Commercial, Industrial, and Income PropertyState Section. The state section consists of 50 multiple choicequestions. It covers topics that relate to real estate laws, rulesand practices in Oregon. The major content areas and thenumber of questions included in each content area of the statesection of the broker license examination are described below.License Law and Disciplinary Measures (8 items)1. Licensinga. Maintenance and renewal(reinstatement/reactivation)b. Transfers and changes in informationc. Exemptionsd. Activities requiring license2. Violations and Disciplinary Measuresa. Violations (ORS 696.301)b. Penalties and administrative actionsc. Investigations and hearingsHandling of Clients’ Funds (7 items)1. Client Trust Accountsa. Establishing and maintaining client trustaccountsb. Recordkeepingc. Reconciliation2. Earnest Money and Promissory NotesAgency Law and Rules (5 items)1. Disclosed limited agency2. Affirmative duties of agent3. Types of agency4. Disclosure of agency relationshipsRegulation of Broker Activities (8 items)1. Brokerage Activitiesa. Advertisingb. Broker price opinions and competitive marketanalysesc. Offers to purchased. Listing agreementse. Licensee as principal in a transaction2. Broker/Principal Broker Relationshipsa. Compensation and prohibited compensationb. Employment agreements and independentcontractor relationshipsc. Registered business namesd. Supervision of associated licenseesDocument Handling and Recordkeeping (4 items)1. Time to submit to principal broker2. Time for document review by principal broker3. Record retention and storage4. Rules for specific types of recordsProperty Management (8 items)1. Property Management Agreements andTerminations2. Records and Receipts3. Residential Landlord and Tenant Act (ORS 90.100 -90.840)4. Property Manager Duties and ObligationsOregon Real Estate Related Statutes (10 items)1. Assessment and Taxation of Real Property2. Subdivisions and Partitions (ORS 92.010 - 92.990)3. Oregon Water Rights4. Oregon Construction Lien Law (ORS 87.001 –87.093)5. Oregon Discrimination Statute (ORS 659.033)6. Oregon Trust Deed Act (ORS 86.705 - 86.795)7. Oregon Land Use Law8. Oregon Property Disclosure Statement andStigmatized Properties9. Agricultural and Forest10. Foreclosures and Short Sales11. Oregon Veteran's Loan Program12. Common Interest Ownership and SpecialRequirementsa. Condos, timeshares, etc.b. Deed forms and recording requirementc. Issues with deeds acquired in foreclosure sales13. Forms of Ownership - tenancy by the entirety14. Auctions15. Manufactured Homes16. Oregon Environmental Regulation17. Rectangular Survey SystemPrincipal Broker License ExaminationThe principal broker license examination is divided into twosections: the National section and the State section. Bothsections must be passed to meet the examination requirementfor the broker license. In the event that an applicant passesone section and fails the other, the passing score is good for 12months. See “Score Reporting” above for more information.National Section. The national section consists of 80 multiplechoice questions. It covers topics such as law, finance,property management, taxation, mathematics, etc., which arecommon to all states. The major content areas and thenumber of questions included in each content area of thenational section of the principal broker license examinationare described below.Property Ownership (5 Items)1. Classes of Propertya. Real versus personal propertyb. Defining fixturesWWW.PSIEXAMS.COM 9

Property Manager License ExaminationThe property manager license examination consists of 130multiple choice questions. The major content areas and thenumber of questions included in each content area of theexamination are described below.Oregon License and Agency Laws (26 items)1. Oregon Real Estate License Law and AdministrativeRules2. Law of agency and agent affirmative duties3. Record keeping requirements4. Requirements of personnel supervision5. Required elements of a Property managementagreement6. Requirements for termination of propertymanagement agreementsClients' Trust Accounts (26 items)1. Clients’ trust account requirements2. Trust account three-way reconciliation processReal Property Law (9 items)1. Types of estates and forms of real estate propertyownership2. Land use controls3. Transfer of title, including foreclosure andredemption rights (Tenant notification and rights)4. Taxes and assessmentsTenant Relations and Fair Housing (27 items)1. Fair housing laws (local, state and federal)2. Provisions of the Americans with Disabilities Act3. Tenant selection process4. Provisions of the Oregon Landlord and Tenant Act5. Prohibited advertising language, misrepresentation.6. Default correspondence (tenant breach)7. Lock-out procedures8. Collections procedures and rules9. Eviction processContracts and Leases (13 16 items)1. Principles of contracts, contract terminology2. Contract breaches and remedies3. Standard lease clauses and provisions4. Types of leases5. Vendor contract negotiations6. Bid comparisonsRisk Management and Maintenance (15 13 items)1. How to identify maintenance, repair, and securityneeds, and evaluate completed services2. Principles of risk management3. Inspection procedures4. Required hazard and property condition disclosures5. Types and sources of insurance coverage6. Life safety procedures (e.g., disaster planning,evacuation {and drills}, hazard detection,emergency supplies and equipment)7. Characteristics of different kinds of residential andcommercial properties (standard property typedescriptions)8. Basic building and construction terminology9. Capital improvement and preventive maintenanceplanningEconomics and Accounting (13 items)1. Property analysis2. Market analysis3. How to determine market rental rates4. Accounting principles and formulas5. Report preparation (e.g., operating, financial, cashflow)6. Budget preparation7. Expense and income estimation8. Reconciliation of building passthroughsBroker Reactivation ExaminationThere are 48 multiple choice questions in the real estatebroker reactivation examination. Described below are themajor content areas, and the number and types of questions ineach.1. General Real Estate Law - 11 questionsQuestions include: Agency relationships; contracts,including listing agreements, earnest moneyagreements, and options; nature of real property;forms of ownership.2. Real Estate Finance - 9 questionsQuestions include: Government lending laws; financinginstruments such as mortgages, trust deeds and landsales contracts; government financing programs;conventional financing; foreclosure; exchanging;appraisal of real property.3. Special Fields - 3 questionsQuestions include: Local, state and federalgovernment land rights; Federal Fair Housing law;property management.4. License Laws - 15 questionsQuestions include: Oregon Revised Statutes chapter696 and Oregon Administrative Rules chapter 863.5. Control Laws - 10 questionsQuestions include: Assessment and taxation of realproperty; Oregon Veterans’ Farm and Home LoanProgram; Residential Landlord and Tenant Law (ORS90); Subdivisions and Partitions (ORS 92);Condominium Act (ORS 100); Oregon water rights;construction lien law (ORS 87); Oregon discriminationstatute (ORS 659); Oregon Trust Deed Act (ORS 86);deed forms.Property Manager Reactivation ExaminationThere are 48 multiple choice questions in the propertymanager reactivation examination. Described below are themajor content areas, and the number of questions in each.1. Real Estate License Law and Rules - (17 Items)Questions in this area include: License Law andAdministrative Rules as they apply to propertymanagers, in particular, recordkeeping, clients’ trustaccounts and reconciliation.2. Residential Landlord and Tenant Act - (12 Items)Questions in this area cover: rights and obligations oflandlords and tenants; evictions; forcible entry anddetainer procedures; anti-discrimination statutes,federal and state; Fair Credit Reporting Act as appliedto tenant selection.WWW.PSIEXAMS.COM 13

3. Basic Real Property Law - (5 Items)Questions include: types of estates and forms ofownership; nature of real property versus personalproperty; fixtures, emblements and water rights.4. Real Estate Contracts - (5 Items)Questions cover: property management agreements;rental agreements and leases.5. Agency Relationships - (5 Items)Questions include: law of agency and how it affectsthe relationship between property manager and owner.6. Transfer of Title - (2 Items)Questions include: Voluntary and involuntary transfers;encumbrances, including easements and liens; ways tolegally describe real property.7. Types of Leases (2 Items)Questions cover: common lease clauses and types ofleases.SAMPLE QUESTIONSThe following sample questions are similar to those used in thereal estate exams. The answer key follows.1. Personal property can be(A) converted into real property.(B) hypothecated.(C) alienated.(D) any of the above.2. All of the following are essential elements to a lawfullyenforceable contract,EXCEPT(A) legality of object.(B) mutual assent.(C) consideration and competency.(D) recordation.3. The most common form of the gross lease is the(A) ground lease.(B) apartment lease.(C) shopping center lease.(D) industrial lease.4. It is characteristic of mortgage brokers that theyI. function to bring borrowers and lenders together fora real estate loan.II. seldom make and service loans on their own accord.(A)(B)(C)(D)I onlyII onlyBoth I and IINeither I nor II5. A properly executed promissory note establishes(A) the amount of the debt.(B) who is borrower and who is lender.(C) the terms of repayment and the interest rate.(D) all of the above.6. A special permit that is issued to create a land-usenormally in violation with presentzoning is called(A) a non-conforming use.(B) an amendment.(C) a variance.(D) a modification.7. All written offers are to be tendered to the seller(A) promptly.(B) within 48 hours.(C) within three business days.(D) within five calendar days.8. An abstract of titleI. shows the history of ownership of the parcel.II. guarantees a valid title.(A)(B)(C)(D)I onlyII onlyBoth I and IINeither I nor IIANSWER KEY: 1. D; 2. D; 3. B; 4. C; 5. D; 6. C; 7. A; 8. AAFTER PASSING THE EXAMINATIONBroker ApplicantsAfter completing the education, passing the examination andclearing the background check, the Agency will make youavailable to become associated with a principal broker. At thattime, the principal broker will log into eLicense and associateyour license with the principal broker’s license or registeredbusiness name.Principal Broker and Property Manager ApplicantsAfter completing the education, passing the examination andclearing the background check, the Agency will make youavailable to either become associated with a principal brokeror to open your own business.If you will be working for a principal broker: your newprincipal broker must log in to eLicense and associate you withthe business.If you will work under your licensed name or under aregistered business name: To work under your licensed name, log into eLicense and select "Operate Under my Own License"and complete the process online.To work under a registered business name, log in toeLicense and select "Registered Business NameApplication," complete the online application, and pay theapplication fee.WWW.PSIEXAMS.COM 14

OREGON REAL ESTATE LICENSINGEXAMINATION REGISTRATION FORMBefore you begin. . .Read the Candidate Information Bulletin before filling out this registration form. You must provide all information requested and submit theappropriate fee. PLEASE TYPE OR PRINT LEGIBLY. Registration forms that are incomplete, illegible, or not accompanied by the proper fee will bereturned unprocessed. Registration fees are not refundable.1. Legal Name:Last Name First Name M.I.2. Candidate ID#:3. Mailing Address:Number, StreetApt/SteCity State Zip Code-4. Telephone: Cell - Office -5. Email: ____________________________________________@________________________________6. Examination: (Check one) Broker $75 Principal Broker $75Broker (State Only) $75 Principal Broker (State Only) $75Broker (National Only) $75 Principal Broker (National Only) $75Broker Reactivation $75 Property Manager $75Property Reactivation Manager $75(Check one) FIRST TIME RETAKE7. Total Fee $________ (Mastercard, VISA, Company check, money Order or Cashier’s Check only. Personal checks are notaccepted.)Credit card (MasterCard or VISA) payment accepted for internet, phone or fax registrations only. (Check one) MC VISACard No:___________________________________________________________Exp. Date:_____________________________For your security, PSI requires you to enter the card identification number located onCard Verification No:__________________ your credit card. The card identification number is located on the back of the card andconsists of the last three digits on the signature strip.Cardholder Name (Print):______________________________________ Signature:________________________________________8. I am faxing the Special Arrangement Request (at the end of this bulletin) and required documentation. Yes No9. Affidavit: I certify that the information provided on this registration form (and/or telephonically to PSI) is correct. I understand that anyfalsification of information may result in denial of licensure. I have read and understand the Candidate Information Bulletin.Signature:_____________________________________________________ Date:___________________________________________If you are registering by mail or fax, sign and date this registration form on the lines provided.Complete and forward this registration form with the applicable examination fee to:PSI Services LLC * ATTN: Examination Registration OR RE3210 E Tropicana Ave * Las Vegas, NV* 89121Fax (702) 932-2666 * (800) 733-9267 * TTY (800) 735-2929www.psiexams.comWWW.PSIEXAMS.COM 15

SPECIAL ARRANGEMENT REQUEST FORMOR OUT-OF-STATE TESTING REQUESTAll examination centers are equipped to provide access in accordance with the Americans with Disabilities Act (ADA) of 1990.Applicants with disabilities or those who would otherwise have difficulty taking the examination may request special examinationarrangements.Candidates who wish to request special arrangements because of a disability should fax this form and supporting documentationto PSI at (702) 932-2666.Requirements for special arrangement requestsYou are required to submit documentation from the medical authority or learning institution that rendered a diagnosis.Verification must be submitted to PSI on the letterhead stationary of the authority or specialist and include the following:Description of the disability and limitations related to testingRecommended accommodation/modificationName, title and telephone number of the medical authority or specialistOriginal signature of the medical authority or specialistDate_________________________________________________Legal Name:Last NameFirst NameCandidate ID#:________Address:StreetCity, State, Zip CodeTelephone : ( ) __________ - _______________ ( ) __________ - ______________HomeWorkEmail Address:Check any special arrangements you require (requests must concur with documentation submitted): Reader (as accommodation for visual impairmentor learning disability) Large-Print written examination Extended Time(Additional time requested:______________) Other____________________________________ Out-of-State Testing Request (this request does notrequire additional documentation)____________________________________Site requested:________________________________ Complete and fax this form, along with supporting documentation, to (702) 932-2666. After 4 business days, please call 800-733-6750 and leave a voice message. PSI Special Accommodations will call you back to schedule the examination within 48 hours.DO NOT SCHEDULE YOUR EXAMINATION UNTIL THIS DOCUMENTATION HAS BEENRECEIVED AND PROCESSED BY PSI SPECIAL ACCOMMODATIONS.

PSI Services LLC3210 E TropicanaLas Vegas, NV 89121