Oregon Real Estate Practice Test 2025 – Your All-in-One Guide to Exam Success!

In Oregon, once earnest money is received in a real estate transaction, it must be held in a client trust account. This requirement is in place to ensure that the funds are safeguarded and can be accounted for properly. Client trust accounts are designated specifically for holding clients’ money and are governed by strict regulations to provide protection for all parties involved in a transaction. By depositing earnest money in a trust account, real estate professionals fulfill their fiduciary duty to their clients and help maintain transparency in the handling of financial transactions.

Using earnest money for other brokerage expenses or depositing it into the agency's general fund is not permitted, as this could create conflicts of interest and violate trust obligations. Returning the earnest money immediately is not standard practice, as it should remain in trust until the transaction concludes or a decision is made regarding the purchase agreement.