Oregon Real Estate Practice Test 2025 – Complete Exam Prep

The purpose of the Oregon Title Insurance Statute is primarily to protect property buyers and lenders from potential losses that may arise due to defects in the title. Title issues can include things like liens, claims against the property, or issues stemming from past ownership that may not be apparent at the time of purchase. Title insurance provides a safeguard against these risks by ensuring that, in the event a title defect does surface, the insurance will cover any associated losses.

In Oregon, the statute emphasizes the importance of transparent transactions and the reliability of the title insurance process, which helps maintain confidence in real estate transactions. This protection is crucial because it allows buyers and lenders to enter transactions with the assurance that they will be indemnified against certain risks that can negatively impact their investment in the property.

The other options address aspects of real estate but do not focus on the primary intent of the title insurance statute. Selling properties, regulating commission rates, or managing properties are distinct functions that do not align with the foundation of title insurance, which is essentially about risk management related to property ownership.