Term
| 1. Three individuals own a motel as tenants in common. One of the individuals decides to sell all of her assets. She may legally |
|
Definition
a) sell, because a tenant in common may sell her portion of assets if a majority of the co-owners also agree to sell.
b) not sell, because a tenant in common’s interests always remain encumbered.
c) sell, because a tenant in common has an undivided interest in real property that is transferable.
d) not sell, because there is a right of survivorship. |
|
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Term
| 2. Which of the following statements is FALSE? |
|
Definition
a) Fixtures that are purchased, paid for, and installed after the execution of a mortgage are subject to liens of the mortgage.
b) When a landowner tears down a fence, with the intention that it be permanently removed, and piles the material on the land, such material is real property.
c) Generally, trade fixtures that were installed by the tenant are personal property.
d) A hot water heater installed on the property becomes a fixture. |
|
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Term
| 3. In the government survey system |
|
Definition
a) base lines run east and west.
b) principal meridians run east and west.
c) base lines run north and south.
d) a township contains 26 sections. |
|
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Term
| 4. You and your sister own a house. Your sister would like to sell her interest in the house to her cousin. You and your sister own the house under which of the following? |
|
Definition
a) Tenancy by the entirety
b) Tenancy at will
c) Tenancy in common
d) Estate for years |
|
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Term
| 5. A building housing an insurance agency existed before the property was rezoned residential. The insurance agency building has now grandfathered in. This is an example of |
|
Definition
a) a variance.
b) a nonconforming use.
c) spot zoning.
d) A planned unit development. |
|
|
Term
| 6. Which of the following statements concerning deed restrictions is NOT true? |
|
Definition
a) Violation of a deed condition may result in the forfeiture of title to real property.
b) Encumbrances in the form of deed conditions generally run with restricted land into the indefinite future.
c) The penalty for violation or breach of a restrictive covenant is more severe than that for breach of a restrictive condition.
d) The general goal of deed restrictions is to protect the value of all properties in a development. |
|
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Term
| 7. Which of the following laws require that appraisals performed as part of a federally related transaction must comply with federal standards and be performed by a state-certified or state-licensed appraiser? |
|
Definition
a) Financial Institutions Reform, Recovery, and Enforcement ACT (FIRREA)
b) Regulation Z
c) RESPA
d) Statute of Frauds |
|
|
Term
| 8. The annual net income for an office building is $20,000. If an owner realized a 9 percent return on her investment, the value of the building would be |
|
Definition
a) $1,800
b) $22,222
c) $222,222
d) $285,714 |
|
|
Term
| 9. Depreciation generally applies to |
|
Definition
a) the building only.
b) the land only.
c) both the land and the building.
d) the net income of the building. |
|
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Term
| 10. An appraiser is using the gross-rent-multiplier (GRM) method to estimate the market value of a single-family home. The home has an annual gross income of $7,200, with quarterly expenses of $900. The recognized GRM for the neighborhood is 110. The appraiser’s estimate of value is likely to be |
|
Definition
a) $22,000
b) $33,000
c) $66,000
d) None of the above. |
|
|
Term
| 11. Gross rent multipliers are generally used in appraising |
|
Definition
a) forms.
b) shopping centers.
c) single-family homes.
d) hotels. |
|
|
Term
| 12. All of the following statements concerning real estate financing are correct EXCEPT |
|
Definition
a) the mortgage generally is considered a lien.
b) the mortgagee is the lender.
c) an owner of property by whom the mortgage is executed is called a mortgagor.
d) A promissory note is security for a mortgage. |
|
|
Term
| 13. Which of the following is NOT characteristic of a conventional loan? |
|
Definition
a) It is neither insured nor guaranteed by public agency.
b) Security rests on the borrower’s ability to pay and the collateral pledged.
c) It is never insured by a private agency.
d) The ratio of the loan to the value of the property usually does not exceed 80 percent without private mortgage insurance. |
|
|
Term
| 14. Granting a conventional loan requires that the borrower provide the lender with which of the following? |
|
Definition
a) Sales contract and hypothecation instrument.
b) Mortgage and promissory note.
c) Deed of trust and sales contract.
d) Mortgage and letter of intent. |
|
|
Term
| 15. A veteran buys a home with a DVA-guaranteed loan. Two years later, the veteran sells the home to a buyer who, with the lender’s approval, assumes the veteran’s loan. In this situation, the veteran is |
|
Definition
a) responsible for paying an insurance fee charged by the DVA.
b) responsible for paying the loan origination fee.
c) no longer financially responsible if the buyer defaults six months later.
d) financially responsible if the buyer defaults six months later. |
|
|
Term
| 16. In order to help a buyer qualify for financing, a homeowner paid money to the lender to subsidize the buyer’s PI payment for three years. This type of loan is called a(n) |
|
Definition
a) ARM.
b) permanent buydown.
c) temporary buydown.
d) contract for deed. |
|
|
Term
| 17. A broker presents a seller with a written offer to purchase. The broker is responsible for |
|
Definition
a) explaining the advantages or disadvantages of the offer to the seller.
b) explaining the legal implications of accepting the offer.
c) binding the seller to the offer.
d) preparing the title search once the offer is accepted. |
|
|
Term
| 18. A licensed real estate broker who engages the services of a licensed salesperson on the basis that the broker can direct what the salesperson can do but not how it is done has |
|
Definition
a) engaged an independent contractor.
b) discriminated illegally.
c) practiced steering.
d) established an employer-employee relationship. |
|
|
Term
| 19. Which of the following statements does NOT correctly describe the status of dual agency? |
|
Definition
a) Dual agency is legal in all states.
b) Dual agency is not allowed unless all parties agree to it.
c) Disclosure of dual agency should be made when preparing an offer to purchase.
d) Disclosure of dual agency should be made prior to the closing of a real estate transaction. |
|
|
Term
| 20. Which of the following statements would NOT be a material fact to be disclosed by a seller’s agent? |
|
Definition
a) The buyer’s ability to make a higher offer.
b) Disclosure of a roof that leaks.
c) Discussion of the advantages of an offer to purchase.
d) Knowledge of active infestation of termites. |
|
|
Term
| 21. CERCLA is a law that deals with |
|
Definition
a) fair housing legislation
b) environmental legislation.
c) appraisal legislation.
d) banking legislation. |
|
|
Term
| 22. An owner had a grease fire and it spread to the ceiling. The kitchen was remodeled and the charred ceiling joists were sealed with paint. When the seller sells the property, the hidden charred ceiling joists should be disclosed as |
|
Definition
a) nothing because they were repaired
b) discoverable defects.
c) Caveat emptor.
d) latent defects. |
|
|
Term
| 23. If the buyer’s agent knows that the house her buyer desires to purchase has been stigmatized by a recent murder-suicide, what ethically should the buyer’s agent do? |
|
Definition
a) Remain silent to protect the seller.
b) Remain silent because the incident didn’t harm the structure.
c) Disclose it to the buyer after the purchase agreement is signed.
d) Disclose it to the buyer before the buyer writes an offer. |
|
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Term
| 24. A salesperson obtains a written offer to purchase a home that she has listed for sale. The seller accepts the offer, and the salesperson promptly telephones the purchaser to notify him of the acceptance. Because the purchaser lives in a nearby town, the salesperson informs him that she will deliver a copy of the contract in three days. The salesperson has an enforceable contract when |
|
Definition
a) the seller signs the acceptance.
b) the offer to purchase is presented to the seller.
c) the acceptance is telephoned to the salesperson representing the purchaser.
d) a copy of the contract is delivered to the purchaser in three days. |
|
|
Term
| 25. A gave an option on her property for 90 days to B and received a cash consideration of $100. B later assigned the option to C for a valuable consideration. Before expiration of the option, A stated that she no longer wanted to sell the property. Which of the following is correct? |
|
Definition
a) The option is void, because an option cannot be assigned.
b) The option is not binding on A, for $100 is not sufficient consideration.
c) C would have a good chance in court to compel A to sell to him, if he exercised the option before its expiration date.
d) A can refuse to sell, because the consideration paid by C was not in cash. |
|
|
Term
| 26. A seller listed her home with a broker. Shortly thereafter, the seller telephoned the broker and withdrew the exclusive-right-to-sell listing. A week later she sold the home to her neighbor for a higher price than the price on the listing. In this situation, which of the following is true? |
|
Definition
a) The owner has the right to terminate the listing at any time without being liable for monetary damages incurred by the original listing broker.
b) Under an exclusive-right-to-sell listing, the broker is not entitled to a commission if the property doesn’t sell.
c) The broker is not entitled to a commission because the seller obtained a better price than she would have received through the broker’s efforts.
d) If the owner withdrew the listing, after the broker spent money on it, the owner is liable to the broker for damages. |
|
|
Term
| 27. An owner gives an exclusive-right-to-sell listing to a broker for a 6-month period. During the exclusive period the owner also gives an open listing to another broker who produces a buyer that has met the sellers terms. What is the owner’s liability for payment of a commission? |
|
Definition
a) Only one commission must be paid, which both brokers share on a 50/50 basis.
b) The owner is liable only to the first broker for the payment of a commission.
c) The owner is liable for payment of a commission to both brokers.
d) The owner is liable only to the second broker for the payment of a commission. |
|
|
Term
| 28. A grantee has received an executed, notarized deed. The grantee takes possession of the property but does not record the deed. The conveyance is |
|
Definition
a) invalid between the parties and valid as to third parties with constructive notice.
b) valid as between the parties and valid as to the subsequent recorded interests.
c) valid as between the parties even though recording hasn’t taken place
d) invalid as between the parties. |
|
|
Term
| 29. Which of the following statements does NOT correctly describe equitable title? |
|
Definition
a) Upon creation of a binding offer to purchase, buyer holds equitable title.
b) Equitable title converts to legal title upon delivery and acceptance of the deed (at closing)
c) Equitable title is the time after contract and before closing
d) It may not be conveyed by will. |
|
|
Term
| 30. RESPA requires that borrowers be provided with a good faith estimate of settlement costs by lenders no later than how many business days after the loan application. |
|
Definition
a) One
b) Two
c) Three
d) Four |
|
|
Term
| 31. Which of the following laws provides comprehensive guidance for making public facilities accessible? |
|
Definition
a) RESPA
b) Regulation Z
c) Federal fair housing laws
d) Americans with Disabilities Act (ADA) |
|
|
Term
| 32. The right of recission provided by Regulation Z is for a time period of |
|
Definition
a) two business days following the transaction or until delivery of the disclosure statement, whichever is later.
b) three business days following the transaction or until delivery of the disclosure statement, whichever is later.
c) four business days following the transaction or until delivery of the disclosure statement, whichever is later.
d) five business days following the transaction or until delivery of the disclosure statement, whichever is later. |
|
|
Term
| 33. The American with Disabilities Act became law in |
|
Definition
a) 1968
b) 1989
c) 1990
d) 1994 |
|
|
Term
| 34. A landlord allowed a tenant confined to a wheelchair to make changes to an apartment to allow easier access in the property. These changes are called |
|
Definition
a) organizational accommodations.
b) familial accommodations.
c) small modifications.
d) reasonable accommodations or modifications. |
|
|
Term
| 35. An owner in a condominium project does not |
|
Definition
a) hold a fee-simple title on his or her unit.
b) have an undivided proportionate interest in the common elements.
c) have to pay mortgages, taxes, and assessments that are liens against other units in the project.
d) have a real property interest. |
|
|
Term
| 36. Which of the following statements does NOT correctly describe the Interstate Land Sales Full Disclosure Act? |
|
Definition
a) It regulates unimproved parcels sold through an interstate sale.
b) It is aimed at avoiding fraudulent marketing schemes.
c) It covers subdivisions with fewer than 25 lots.
d) It requires developers to file reports with HUD prior to offering unimproved lots in interstate commerce by telephone. |
|
|
Term
| 37. The law that governs documents and forms when personal property is used as security for loan is the |
|
Definition
a) Code Interstate Land Sales Full Disclosure Act.
b) Horizontal Property Act.
c) Real Estate Settlement Procedures Act.
d) Uniform Commercial |
|
|
Term
| 38. Which of the following is NOT a leasehold estate? |
|
Definition
a) An estate for years
b) Periodic estate
c) Time share
d) Estate from year to year |
|
|
Term
| 39. Strict Liability under the Superfund means that? |
|
Definition
a) each individual owner is personally responsible
b) the owner is responsible to the injured party without excuse
c) the liability is not limited to the owner
d) the owner is not responsible at all |
|
|
Term
| 40. Your neighbor has given you the permission to go hunting on his farm. You have a(n) |
|
Definition
a) leasehold
b) easement appurtenant
c) license
d) defeasible fee estate |
|
|
Term
| 41. A four bedroom house with one bath would be an example of |
|
Definition
a) physical deterioration
b) functional obsolescence
c) economic obsolescence
d) environmental obsolescence |
|
|
Term
| 42. Which is not a stage in the appraisal process? |
|
Definition
a. state the problem
b. analyze the tax consequences
c. reconcile the data for estimate
d. analyze and interpret the data |
|
|
Term
| 43. You have a mortgage in which you make the same principal and same interest each month over a term, which one is it? |
|
Definition
a) amortized mortgage
b) term mortgage
c) reverse annuity
d) partially amortized mortgage |
|
|
Term
| 44. OREC commissioners are appointed by the |
|
Definition
a) OAR
b) House of Representatives
c) Governor with advice and consent of the Senate
d) State Supreme Court |
|
|
Term
| 45. Once confirmed by the Senate, OREC commissioners serve a term of |
|
Definition
a) 2 years
b) 3 years
c) 4 years
d) 5 years |
|
|
Term
| 46. The fine for practicing real estate without a license is |
|
Definition
a) $10,000 or the commission whichever is greater.
b) $5,000 or the commission whichever is greater.
c) $3,000 or the commission whichever is greater.
d) $1,000 or the commission whichever is great. |
|
|
Term
| 47. A real estate licensee may be fined by the Commission |
|
Definition
a) no more than $5,000 for all violations resulting from a single incident.
b) no more than $4,000 for all violations resulting from a single incident.
c) no more than $2,000 for all violations resulting from a single incident.
d) no more than $1,000 for all violations resulting from a single incident. |
|
|
Term
| 48. A violation of the Oklahoma Code and Rules is |
|
Definition
a) a felony.
b) grand larceny.
c) a misdemeanor.
d) a federal felony. |
|
|
Term
| 49. The Oklahoma Real Estate Commission (OREC) maintains a standing committee to |
|
Definition
a) review and revise rules.
b) draft and revise residential real estate purchase contracts.
c) review and revise ethical standards.
d) None of the above. |
|
|
Term
| 50. The provisional sales associate license is for a period of |
|
Definition
a) 1 year.
b) 2 years.
c) 3 years.
d) 4 years. |
|
|
Term
| 51. The Oklahoma Real Estate Commission office |
|
Definition
a) is in Oklahoma City only.
b) has Oklahoma City and Tulsa branches.
c) has Oklahoma City, Tulsa, and Lawton braches.
d) None of the above. |
|
|
Term
| 52. A provisional sales associate must successfully complete a 45-hour post-license course during |
|
Definition
a) first year of licensure.
b) second year.
c) third year.
d) fourth year. |
|
|
Term
| 53. In order to qualify for a broker license, OREC Code requires that applicant to |
|
Definition
a) successfully complete a 90-hour broker course.
b) have two years active licensure as a provisional and/or sales associate.
c) pass broker examination with 80% accuracy or more.
d) All of the above |
|
|
Term
| 54. A broker license is issued for |
|
Definition
a) 1 year.
b) 2 years.
c) 3 years.
d) 4 years. |
|
|
Term
| 55. With the exception of the first, entry-level provisional sales associate license, Oklahoma real estate licenses are normally issued for |
|
Definition
a) 1 year.
b) 2 years.
c) 3 years.
d) 4 years. |
|
|
Term
| 56. OREC requires propriety brokers to maintain a specific place of business which |
|
Definition
a) complies with local laws.
b) is available to the public during reasonable business hours.
c) Both A and B
d) Neither A or B |
|
|
Term
| 57. Concerning the Sex Offenders Registration Act, the OREC Code |
|
Definition
a) imposes no duty on the licensees to disclose information about sex offenders.
b) imposes a duty on licensees to disclose information about sex offenders.
c) does not address the Sex offenders Registration Act.
d) None of the above. |
|
|
Term
| 58. According to the OREC Rules, the purpose of the OREC is to |
|
Definition
a) safeguard the public interest.
b) provide quality service by assisting and providing resources.
c) investigating and sanctioning licensed activities.
d) All of the above. |
|
|
Term
| 59. Ultimate responsibility for notifying completion of a continuing education offering is on |
|
Definition
a) the licensee
b) the school.
c) the broker.
d) None of the above. |
|
|
Term
| 60. If a provisional sales associate fails to take the required postlicense (Part II) course during the first year of licensure, |
|
Definition
a) he/she may take it during the second year.
b) he/she may substitute an accounting course.
c) he/she cannot renew the license.
d) None of the above. |
|
|
Term
| 61. No real estate licensee shall begin operation in the real estate business without |
|
Definition
a) joining a multi-list system.
b) having been issued a license.
c) attending at least one Commission meeting.
d) joining the Realtors Association. |
|
|
Term
| 62. A licensee whose license has lapsed shall be considered for reinstatement if the licensee |
|
Definition
a) pays an amount equal to the current examination fee.
b) pays licensee fee and late penalties.
c) provides documents as required by the Commission.
d) All of the above. |
|
|
Term
|
Definition
a) no more than three branch offices.
b) no more than five offices.
c) no more than ten offices.
d) as many branch offices as desired and must have a licensed broker in charge. |
|
|
Term
| 64. If a licensee works out of a branch office, the licensee’s license must be issued to |
|
Definition
a) the home office.
b) the branch office.
c) Either A or B.
d) Neither A or B. |
|
|
Term
| 65. If an associate hires an unlicensed assistant |
|
Definition
a) only the associate is responsible for the associate’s activities.
b) the broker is responsible for the associate’s activities.
c) unlicensed assistants are not legal.
d) only licensed assistants are legal. |
|
|
Term
| 66. When the associate advertises, the advertisement must |
|
Definition
a) not be done only under his/her name.
b) include the name of the broker or the company name.
c) under the direct supervision of the broker.
d) All of the above. |
|
|
Term
| 67. Good faith money paid under a contract for sale of real estate is |
|
Definition
a) called “earnest money” and is paid by the buyer.
b) may be held by a third party until closing.
c) Both A and B
d) Neither A nor B |
|
|
Term
| 68. The usual procedure is to deposit an earnest money payment |
|
Definition
a) by the end of the next banking day following completion of a firm contract.
b) by the end of the third banking day following completion of a firm contract.
c) within a reasonable time.
d) any time prior to closing. |
|
|
Term
| 69. A broker’s trust account is used |
|
Definition
a) for the deposit of earnest money only.
b) in lieu of a general account.
c) for the deposit of money belonging to others.
d) to compensate the broker for expenditures. |
|
|
Term
| 70. When money is deposited in a trust account, part of which will be used to pay the broker’s compensation |
|
Definition
a) the broker can withdraw his/her rightful share of the money before the real estate transaction is consummated or terminated.
b) accurate records must be kept on the account.
c) Both A and B
d) Neither A nor B |
|
|
Term
| 71. Copies of all written instruments on a real estate transaction that are prepared by a licensee must be |
|
Definition
a) distributed to all signers of the instrument.
b) maintained by the real estate broker.
c) duplicate originals.
d) All of the above |
|
|
Term
| 72. The obligation of the associates to turn over all monies deposited, payments made, or things of value received by an associate to the sponsoring broker promptly, is found under |
|
Definition
a) Acts of Sales Associates.
b) Prohibited Deals.
c) Substantial Misrepresentation.
d) Duty of Account. |
|
|
Term
| 73. Property taxes are always |
|
Definition
a) prepaid.
b) unjust.
c) accrued.
d) overdue. |
|
|
Term
| 74. Hazard insurance is always |
|
Definition
a) prepaid.
b) accrued.
c) excessive.
d) unreasonable. |
|
|
Term
| 75. Documentary tax stamps cost |
|
Definition
a) 75 cents per thousand dollars on the gross sales price.
b) 75 cents per each $500, or portion thereof, on the gross sales price.
c) $1.50 per $500, or portion thereof, of new money in the transaction.
d) $1.10 per $1,000 on new money. |
|
|
Term
| 76. Ultimate responsibility to accurate settlement cost statements rest with the |
|
Definition
a) title company.
b) listing broker.
c) sales associate.
d) parties to the transaction. |
|
|
Term
| 77. The Oklahoma Real Estate Commission is made up of |
|
Definition
a) one representative from an approved school of real estate.
b) five licensed real estate brokers.
c) one member representing the consumer public.
d) All of these |
|
|
Term
| 78. In most states, the listing broker has fiduciary duty with |
|
Definition
a) the customer.
b) the listing salesperson.
c) the client.
d) the buyer. |
|
|
Term
| 79. You are a licensee holding an open house on one of your listings. An old friend sees the sign and stops in, and ultimately asks you to write an offer to purchase. At this point, without any discussion about agency, which of the following statements about agency is correct? |
|
Definition
a) Your friend is your customer.
b) Your position as seller’s agent prohibits you from writing the offer.
c) The request automatically creates an express dual agency relationship.
d) The relationship with your friend presents an irreconcilable conflict of interest. |
|
|
Term
| 80. You are working as a buyer’s broker to a client. Which of the following would not describe your role as a buyer’s broker? |
|
Definition
a) You should show the buyer properties only in which your commission is protected.
b) You should counsel the buyer about developing objectives.
c) You should search for the best properties for your buyer to inspect, widening the marketplace to include homes for sale by owners (FSBOs).
d) You should help the buyer prepare the strongest offer. |
|
|
Term
| 81. Commissions and fees paid by the seller to a listing agency are determined by |
|
Definition
a) standards promulgated by local board of REALATORS.
b) negotiations between the seller and the listing licensee.
c) applying the prevailing customary fees charged in that area.
d) an industry index computed monthly from multiple-listing service data. |
|
|
Term
| 82. Which of the following is a similarity between an exclusive-right-to –sell listing and an exclusive-agency listing? |
|
Definition
a) Under both, the seller avoids paying the broker a commission if the seller sells the property without the help of the broker.
b) Both give the responsibility of representing the seller to just one broker.
c) Both are net listings.
d) Under both, the seller authorizes one specific salesperson to show the property. |
|
|
Term
| 83. You wrote an offer on a house for $214,000. The seller gave you a counteroffer for $218,000. The seller may withdraw the counteroffer any time |
|
Definition
a) within 72 hours after acceptance.
b) prior to the buyer’s acceptance.
c) prior to the removal of all contingencies in the offer.
d) prior to closing. |
|
|
Term
| 84. In theory, which of the following types of deeds gives a property buyer the most protection against problems that may arise with the title? |
|
Definition
a) Quitclaim
b) Bargain sale
c) Special warranty
d) General warranty |
|
|
Term
| 85. Brokers who violate the Sherman Antitrust Act may be punished by a maximum fine of |
|
Definition
a) $10,000.
b) $25,000.
c) $50,000.
d) $100,000. |
|
|
Term
| 86. The Civil Rights Act of 1866 prohibits discrimination based on |
|
Definition
a) handicap.
b) familial status.
c) race.
d) sex. |
|
|
Term
| 87. Broker X is showing buyer Y, an Asian, homes only in Asian neighborhoods. The broker may be guilty of |
|
Definition
a) arbitrage.
b) blockbusting.
c) redlining.
d) steering. |
|
|
Term
| 88. A home is valued at $92,000. Property in this city is assessed at 70 percent of its value and the local tax rate is $3.40 per $100. What is the amount of the owner’s monthly taxes? |
|
Definition
a) $182.47
b) $260.67
c) $2,189.60
d) None of the above |
|
|
Term
| 89. Using $9.91 as a mortgage factor, what is the monthly payment for a $150,000 loan at 11.5 percent for 30 years? |
|
Definition
a) $1,429.50
b) $1,486.50
c) $1,525.50
d) $1,581.00 |
|
|
Term
| 90. You bought a home one year ago for $83,500. Property in your neighborhood is said to be increasing in value at a rate of 6 percent annually. If this is true, what is the current value of your real estate? |
|
Definition
a) $86,840
b) $87,675
c) $88,510
d) None of the above |
|
|
Term
| 91. Which of the following is NOT an agency that purchases loans on the secondary mortgage market? |
|
Definition
a) FDIC
b) FNMA
c) FHLMC
d) GNMA |
|
|
Term
| 92. Losing a right to the court’s injunction by inaction is an example of the doctrine of |
|
Definition
a) accession.
b) eminent domain.
c) annexation.
d) laches. |
|
|
Term
| 93. Which of the following would not be considered to be real property? |
|
Definition
a) Trees
b) Buildings
c) Trade fixtures
d) Water rights |
|
|
Term
| 94. Which of the following types of depreciation is generally incurable? |
|
Definition
a) Physical deterioration
b) Economic or external obsolescence
c) Functional obsolescence
d) Physical depreciation |
|
|
Term
| 95. In an exclusive-right-to-sell listing agreement, how many agents are involved? |
|
Definition
a) Two
b) One
c) As many as the owner/lister chooses
d) As many salespeople as the broker has in his/her office. |
|
|
Term
| 96. A drunken man signed an offer to purchase. It is a |
|
Definition
a) valid.
b) void.
c) voidable.
d) unenforceable. |
|
|
Term
| 97. All of the following agency relationships could be used to describe a cooperating broker in a real estate transaction EXCEPT |
|
Definition
a) a subagent
b) an exclusive buyer’s broker.
c) a transaction broker
d) a exclusive seller broker. |
|
|
Term
| 98. An appraiser is trying to determine the value of an income property by capitalizing the income stream. Which of the following factors will the appraiser use? |
|
Definition
a) Mortgage interest
b) Net income
c) Replacement cost
d) Income taxes |
|
|
Term
| 99. Which of the following is a requirement for a valid deed? |
|
Definition
a) The grantee must sign the deed.
b) The consideration must be in dollars.
c) It must contain a subordination clause.
d) It must contain a granting clause. |
|
|
Term
| 100. An enforceable contract may contain any of the following except. |
|
Definition
a) money.
b) love.
c) affection.
d) duress. |
|
|
Term
| 101. Which of the following is an economic characteristic of land? |
|
Definition
a) Immobility
b) Situs
c) Nonhomogeneity
d) Indestructibility |
|
|
Term
| 102. All of the following would be public land use controls EXCEPT |
|
Definition
a) zoning
b) environmental protection laws
c) subdivision regulations
d) deed restrictions |
|
|
Term
| 103. Which person would NOT be protected under the familial status definition according to the federal fair housing law? |
|
Definition
a) A 19-year-old girl living with her mother
b) A 17-year-old boy living with his father
c) A 14-year -old girl living with a person who is seeking legal custody of her
d) A 21-year-old woman who is pregnant |
|
|
Term
| 104. Charging a rate of interest in excess of the maximum rate allowed by law is |
|
Definition
a) novation.
b) subordination.
c) laches.
d) usury. |
|
|
Term
| 105. The borrower under a note secured by mortgage is the |
|
Definition
a) mortgagor
b) trustee
c) mortgagee
d) vendee |
|
|
Term
| 106. Which of the following licenses is MOST likely to act as a general agent for a client? |
|
Definition
a) Broker
b) Property Manager
c) Cooperative broker
d) Listing salesperson |
|
|
Term
| 107. You received a real estate loan from a bank in which the leader was privately insured against loss in the event of default and foreclosure. The loan would have been which of the following? |
|
Definition
a) Conventional insured
b) Federal Housing Authority (FHA)
c) Veterans Administration (VA)
d) Rural development |
|
|
Term
| 108. A lender that refuses to provide loans on properties located in a minority neighborhood regardless of the ethnicity of the applicant would be engaged in a discriminatory practice known as |
|
Definition
a) steering.
b) redlining
c) blockbusting.
d) hypothecating. |
|
|
Term
| 109. An odorless radioactive gas produced by the decay of other radioactive materials in rocks under the earth’s surface is which of the following? |
|
Definition
a) Asbestos
b) UFFI
c) Lead
d) Radon |
|
|
Term
| 110. Which of the following types of depreciation contains elements that are incurable only? |
|
Definition
a) Physical deterioration
b) Economic of external obsolescence
c) Functional obsolescence
d) Physical depreciation |
|
|
Term
| 111. A summary of all the recorded instruments affecting the title to a property is called a(n): |
|
Definition
a) Abstract of title.
b) Certificate of title.
c) Escrow.
d) Title insurance policy. |
|
|
Term
| 112. A contract in which one party promises to do something if the other party performs a specific act is a(n) |
|
Definition
a) unenforceable contract.
b) unilateral contract.
c) void contract.
d) bilateral contract. |
|
|
Term
| 113. In order to apply for a provisional sales associates license, an applicant must |
|
Definition
a) be 18 years or older.
b) successfully complete the required pre-license course.
c) be of good moral character.
d) All of the above. |
|
|
Term
| 114. The OREC issues license to |
|
Definition
a) associations.
b) branch offices.
c) corporations.
d) All of the above |
|
|
Term
| 115. In order to renew an active real estate sales associate or broker’s license, an active licensee must complete |
|
Definition
a) 12 clock hours of continuing education.
b) 9 clock hours of continuing education.
c) 30 clock hours of continuing education.
d) 21 clock hours of continuing education. |
|
|
Term
| 116. The OREC requires applicants for real estate licenses to be of “good moral character.” Which of the following does the OREC consider when evaluating “good moral character?” |
|
Definition
a) Convictions.
b) Bankruptcy
c) License denied in another state
d) All of the above |
|
|
Term
| 118. A house located next to an airport would be an example of |
|
Definition
a) $60.
b) $70.
c) $80.
d) $90. |
|
|
Term
| 117. The OREC examination fee for a provision sales associate or sales associate’s license is |
|
Definition
a) functional obsolescence
b) economic or external obsolescence
c) physical deterioration
d) physical depreciation |
|
|
Term
| 119. Personal property is generally conveyed by a |
|
Definition
a) bill of sale
b) certificate of title
c) quitclaim deed
d) trust deed |
|
|
Term
| 120. A branch office manager |
|
Definition
a) may be a sales associate.
b) does not have to have a license.
c) must have a broker license.
d) must be designated by OREC. |
|
|
Term
| 121. A broker may have an office in his home if |
|
Definition
a) OREC approves.
b) the corporation approves.
c) not contrary to local zoning ordinances.
d) none of the above. |
|
|
Term
| 122. The amount of earnest money deposit is usually |
|
Definition
a) a standard figure.
b) determined by the broker.
c) a percentage of the sales price.
d) negotiated between the seller and the buyer. |
|
|
Term
| 123. If a broker accepts an earnest money deposit from the buyer, which of the following is true? |
|
Definition
a) The deposit money remains in the Trust account until either closing or agreement to release to is signed.
b) In every case, all money deposited must immediately be delivered to the seller.
c) Money deposited by the buyer is always returnable to the buyer.
d) In case of dispute between the buyer and the seller, the broker decides in spite of a disagreement. |
|
|
Term
| 124. When customer funds are placed in a trust account, the broker is |
|
Definition
a) free of personal liability for the amount of the deposit because of the state statutes governing trust account liability.
b) free of liability for any loss because of the recovery fund provisions.
c) only liable for the amount equal to the commission as stated in the listing contract.
d) liable under the law for the full amount thereof. |
|
|
Term
| 125. Non deposited escrow items may be accepted |
|
Definition
a) only if the associate or broker agrees to care for same.
b) if evaluated.
c) if evaluated and placed in a safe place with the seller
d) if evaluated, placed with an authorized escrow agent and all parties are informed. |
|
|
Term
| 126. When placing earnest deposits in the operating account of a company, a broker |
|
Definition
a) must take necessary measures to assure that the balance never falls below the amount of such deposits.
b) must keep separate records.
c) is guilty of commingling.
d) must do so by the end of the third banking day after acceptance. |
|
|
Term
| 127. Brokers can be censured for commingling funds if they deposit earnest money to anything other than |
|
Definition
a) their general real estate operating accounts.
b) their personal accounts because a portion of the money was due to them.
c) separate checking accounts designated as trust accounts.
d) separate savings accounts. |
|
|
Term
| 128. The seller normally pays the cost of the |
|
Definition
a) abstracting.
b) real estate commission.
c) documentary tax stamps.
d) All of these. |
|
|
Term
| 129. Which of the following is not a power and duty of the Oklahoma Real Estate Commission? |
|
Definition
a) To hold examinations of persons who shall apply for the issuance of licenses to them, and to promulgate such rules and regulations as it may deem proper.
b) To cause the prosecution of any person who violates any of the provisions of the “Code.”
c) To serve as a board of arbitration to settle disputes among brokers or associates.
d) To issue licenses to persons who have passed examinations and who otherwise meet license requirements. |
|
|
Term
| 130. If a broker and an associate have a dispute over sales commission which cannot be settled by other means, they should |
|
Definition
a) try to get the Oklahoma Real Estate Commission to settle it first.
b) bring action to an appropriate court.
c) drop the issue.
d) slug it out. |
|
|
Term
| 131. A licensee has a duty to disclose psychologically impacted properties when? |
|
Definition
a) Sometimes
b) When requested by buyer as a written request
c) never
d) Always |
|
|
Term
| 132. MAI is an organization for what? |
|
Definition
a) Mortgage Brokers
b) Appraisers
c) Associate
d) Title Attorneys |
|
|
Term
| 133. How long are you on the do not call solicitation list? |
|
Definition
a) Until you cancel
b) 1 year
c) 2 years
d) You will be notified to renew every year |
|
|
Term
| 134. The statement that land is immobile refers to it’s? |
|
Definition
a) Indestructibility
b) Geographic location
c) Durability
d) Homogeneity |
|
|
Term
| 135. If you are in your first year as a licensee and you don’t have finance or investment experience what should you probably avoid? |
|
Definition
a) Listing a Commercial Property
b) Listing a Residential Property
c) Listing a friends home
d) Listing a neighbors home |
|
|
Term
| 136. How are property taxes shown on a settlement statement if already pre paid for the year? |
|
Definition
a) It will not be shown
b) It will be shown on the buyer side ledger
c) It will show that they were Paid Outside of Closing
d) It will be show as a charge to the seller |
|
|
Term
| 137. When the associate fills out the Seller’s Disclosure? |
|
Definition
a) The seller should always review for accuracy
b) The seller should always help the associate fill it out
c) The seller should not review for accuracy
d) The associate shall not fill out the disclosure. |
|
|
Term
| 138. How long are sellers disclosures valid? |
|
Definition
a) 180 days
b) Until revised
c) 1 year
d) 3 years |
|
|
Term
| 139. What happens if you present an NSF check for renewal of your license? |
|
Definition
a) You will not be allowed to renew your license?
b) You will not be allowed to renew and have 60 days to write another check
c) You will be allowed to renew your license but will be given 30 days to write another check
d) You will be allowed to renew |
|
|
Term
| 140. What benefits do income producing property have? |
|
Definition
a) Produces steady income
b) Possible increase in appreciation over time
c) None
d) Both a and b |
|
|
Term
| 141. Duty of a transaction broker includes all except: |
|
Definition
a) Honesty
b) Keeping parties informed
c) Loyalty
d) Confidentiality |
|
|
Term
| 142. You are a single party broker for the buyer and the seller’s broker tells you confidential information. You should? |
|
Definition
a) Inform the OREC
b) Inform your Broker
c) Keep all information confidential
d) Tell your buyer |
|
|
Term
| 143. If a seller makes a counteroffer to the buyer, the buyer |
|
Definition
a) Is bound by the original offer.
b) May withdraw the offer in six days.
c) Is relieved of the original offer and is bound by the new terms
d) Has done something un ethical |
|
|
Term
| 144. Unless there is a stipulated to the contrary, when real estate under a lease is sold, the lease |
|
Definition
a. Must be renewed
b. Is cancelled
c. Remains binding on the new owner
d. Becomes a tenancy from month to month |
|
|
Term
| 145. If a licensee moves they must alert the OREC within how many days? |
|
Definition
a) 5 days
b) 10 days
c) 15 days
d) 20 days |
|
|
Term
| 146. If a tenant cannot be reached it is okay to: |
|
Definition
a) Send a certified letter and notify anyone 12 or over in the household
b) Tell anyone no one and send a certified letter
c) Tell an adult and then send a certified letter
d) No notification is needed |
|
|
Term
| 147. If a licensee moves, they must alert OREC within how many days? |
|
Definition
a) 5 days
b) 15 days
c) 10 days
d) 20 days |
|
|
Term
| 148. You can practice real estate |
|
Definition
a) upon receiving your license and license number
b) after finding a broker
c) after passing your test
d) after you’re assigned an office |
|
|
Term
| 149. If an associate dies during the listing |
|
Definition
a) the listing is void
b) the listing is neither void, nor voidable
c) the listing is voidable
d) Both a and b |
|
|
Term
| 150. When a broker is providing services to one party in a transaction without being an advocate for that party, he/she is |
|
Definition
a) a transaction broker.
b) operating illegally
c) a single-party broker.
d) an unlicensed assistant. |
|
|
Term
| 151. After the transaction is closed, to which of the following remains an obligation of the broker? |
|
Definition
a) Disclosure of the brokerage relationship.
b) Disclosure of potential future vicarious liability.
c) Account for any money or property relating to the transaction.
d) Disclose any substantial misrepresentations relating to the transaction. |
|
|
Term
| 152. An important disclosure about the broker relationship which a single-party broker must make is |
|
Definition
a) all parties in the relationship share vicarious liability.
b) the party is liable for any tort committed by the broker even though it was done outside the brokerage relationship.
c) the party is never vicariously liable for the actions of either transaction brokers or single-party brokers.
d) the party is vicariously liable for the torts of the single-party broker. |
|
|
Term
| 153. A single-party broker |
|
Definition
a) may not enter into a written brokerage agreement under any circumstances.
b) must enter into a written brokerage agreement before providing brokerage services
c) may enter into a written brokerage agreement if the party requests it.
d) may enter into a written brokerage agreement only with a potential buyer. |
|
|
Term
| 154. The Broker Relationships Act provides that, when the transaction is terminated, the broker must |
|
Definition
a) keep confidential information confidential.
b) reveal all confidential information.
c) disclose the exact terms of any commission splits between cooperating brokers.
d) disclose any confidential information which pertains only to the opposite party in the transaction. |
|
|
Term
| 155. When a potential buyer asks questions about why the seller is selling the property, the broker |
|
Definition
a) may only have the buyer put his/her request in writing and submit it to the seller for response.
b) may explain the request involves confidential information which he/she has not been given permission to disclose.
c)) may freely answer the questions.
d) may do so as either a transaction broker or a single-party broker with a written agreement. |
|
|
Term
| 156. When working with one party, a broker |
|
Definition
a) may never do so as a transaction broker.
b) may never do so as a single-party broker.
c) may do so only as a single-party broker without a written agreement.
d) may do so as either a transaction broker or a single-party broker with a written agreement. |
|
|
Term
| 157. Both a transaction broker and single-party broker have the duty to |
|
Definition
a) advocate for only one party in a transaction.
b) advocate for both parties in all transactions.
c) treat all parties honestly.
d) treat only the party with whom they have a written agreement honestly. |
|
|
Term
| 158. In Oklahoma, the Common Law of Agency |
|
Definition
a) is still in full force and effect in brokerage relationships.
b) relates only to the single-part brokerage relationship.
c) relates only to the transaction brokerage relationship.
d) has been abrogated by the Oklahoma Brokerage Relationships Act. |
|
|
Term
| 159. A transaction broker may assist both parties in a transaction |
|
Definition
a) either with or without a written agreement.
b) only with a written agreement with parties.
c) only without a written agreement with either party.
d) a transaction broker may not assist both parties in a single transaction. |
|
|
Term
| 160. A transaction broker may provide services. |
|
Definition
a) by advocating only for the party with whom he/she has a written agreement.
b) by advocating for either party in the transaction if he//she has written agreement with both sides.
c) without advocating for either party.
d) and must advocate for all parties in all transactions. |
|
|
Term
| 161. Both transaction brokers and single-party broker have the duty to |
|
Definition
a) present in a timely manner all written offers and counteroffers.
b) keeping the party with whom the broker has written agreement fully informed about the transaction.
c) sharing confidential information with the party with whom the broker has a written agreement.
d) keeping only the seller fully informed concerning the transaction. |
|
|
Term
| 162. Leasehold estates last for |
|
Definition
a) a definite period of time.
b) for as long as the parties are willing to continue the relationship.
c) either a or b
d) neither a nor b |
|
|
Term
| 163. In the leasehold estate arrangement |
|
Definition
a) the lessor retains the reversionary rights.
b) the lessor retains the right to collect rents.
c) both a and b
d) neither a nor b |
|
|
Term
| 164. A lessee generally may |
|
Definition
a) sublet as desired.
b) sublet only if the lease permits it.
c) sublet only for short periods of time.
d) none of the above. |
|
|
Term
| 165. A ground lease is one in which |
|
Definition
a) only rural land and buildings may be included.
b) only the land is leased.
c) there is no such thing as a ground lease.
d) a ground lease is only for 99 years. |
|
|
Term
| 166. On-site property management duties include |
|
Definition
a) showing the property.
b) interviewing the prospects.
c) negotiating and signing leases.
d) all of the above. |
|
|
Term
| 167. Off-site property management duties may include |
|
Definition
a) accounting, payrolls, payment of bills.
b) training programs for the property manager.
c) acquiring hazard and liability insurance
d) all of the above. |
|
|
Term
| 168. Rental income is based upon |
|
Definition
a) number of units.
b) have little effect on the budget.
c) decrease management’s workload.
d) None of the above. |
|
|
Term
| 169. Non-payment of rent can |
|
Definition
a) increase operating costs.
b) have little effect on the budget.
c) decrease management’s workload.
d) none of the above. |
|
|
Term
| 170. That which has been added to another thing and which becomes part of the property. |
|
Definition
a) Encroachment
b) Appurtenance
c) Lien
d) Mortgage |
|
|
Term
| 171. A homestead exemption protects against judgments from |
|
Definition
a) angry neighbors
b) from forced sale from creditors
c) for properties of more than 10,000
d) mechanics liens |
|
|
Term
| 172. Joint tenants must hold with unities of |
|
Definition
a) Time
b) Title
c) Possession
d) All of the above |
|
|
Term
| 173. In the exercise of its powers and duties, the OREC shall comply with |
|
Definition
a) Reg. Z
b) Reg. X
c) Administrative Procedures Act.
d) Uniform Commercial Code. |
|
|
Term
| 174. Which of the following is not required to have a real estate license to perform some very limited real estate activities. |
|
Definition
a) Owner
b) Attorney-in-fact
c) Attorney-at-law
d) all of the above |
|
|
Term
| 175. In order to qualify for a broker license, OREC code requires the applicant to |
|
Definition
a) successfully complete a 90-hour broker course.
b) have two years active licensure as a provisional and/or sales associate.
c) pass broker examination with 80% accuracy or more.
d) all of the above. |
|
|
Term
| 176. A real estate licensee in another state |
|
Definition
a) may apply for an Oklahoma nonresident license.
b) apply for a temporary OREC license.
c) must have an office in Oklahoma.
d) none of the above. |
|
|
Term
| 177. A broker who is licensed in another state |
|
Definition
a) must never do real estate business in Oklahoma.
b) may enter a cooperative brokerage agreement with an Oklahoma broker.
c) must seek approval of the Oklahoma Secretary of State Office
d) must seek approval of the Oklahoma Securities Department. |
|
|
Term
| 178. When a licensee requests the OREC to place a license on inactive status, the licensee must |
|
Definition
a) continue to pay renewal fees.
b) make the request in writing.
c) complete forms furnished by OREC
d) all of the above. |
|
|
Term
| 179. OREC requires proprietary brokers to maintain a specific place of business which |
|
Definition
a) complies with all local laws.
b) is available to the public during reasonable business hours.
c) both a and b.
d) neither a nor b. |
|
|
Term
| 180. If the OREC fines a licensee for a violation, the licensee has |
|
Definition
a) 15 days to pay or the fine doubles.
b) 30 days to pay or the fine doubles.
c) 45 days to pay or the fine doubles.
d) to pay the fine immediately. |
|
|
Term
| 181. Concerning the Sex Offenders Registration Act, the OREC Code |
|
Definition
a) imposes no duty on licensees to disclose information about sex offenders.
b) imposes a duty on licensees to disclose information about sex offenders.
c) does not address the Sex Offenders Registration Act.
d) none of the above. |
|
|
Term
| 182. A deed that warrants only the time in which owner owned the property |
|
Definition
a) General Warranty Deed
b) Special Warranty Deed
c) Quitclaim Deed
d) None of the above |
|
|
Term
| 183. The OREC operates under the Open Records Act which allows |
|
Definition
a) OREC to open records for inspection.
b) OREC open records to be copied.
c) OREC to charge for copies.
d) all of the above. |
|
|
Term
| 184.Broker X is showing buyer Y , an Asian, homes only in Asian Neighborhoods. The broker may be guilty of |
|
Definition
a) arbitrage
b) blockbusting
c) redlining
d) steering |
|
|
Term
| 185.A person who receives real property by will is called a |
|
Definition
a) trustee
b) devisee
c) testator
d) hypothecator |
|
|
Term
|
Definition
a) no more than three branch offices.
b) no more than five branch offices.
c) no more than ten branch offices.
d) as many branch offices as desired. |
|
|
Term
| 187. Any change of name of licensee or licensed firm must be filed in the OREC office within |
|
Definition
a) 5 days of such change.
b) 10 days of such change.
c) 15 days of such change.
d) 20 days of such change. |
|
|
Term
| 188.Which of the following must sign a deed in a valid conveyance? |
|
Definition
a) broker
b) director of public record
c) grantor
d) grantee |
|
|
Term
| 189.Which is the recorded summary of documents? |
|
Definition
a) Abstract
b) Torrens system
c) Certificate of Title
d) Deed |
|
|
Term
| 190. A broker may be the broker for more than one firm if |
|
Definition
a) the firms are in the same place.
b) he has an identical twin.
c) the Secretary of State’s office issues a certificate of good standing.
d) both a and c. |
|
|
Term
| 191. When a complaint is filed with the OREC against a licensee, the licensee must respond within |
|
Definition
a) 10 days.
b) 15 days.
c) 20 days.
d) 30 days. |
|
|
Term
| 192. Good faith money paid under a contract for the sale of real estate is |
|
Definition
a) called “earnest money” and is paid by the buyer.
b) may be held by a third party until closing.
c) both a and b.
d. 30 days. |
|
|
Term
| 193. The amount of earnest money deposit is |
|
Definition
a) a standard figure.
b) determined by the broker.
c) a percentage of the sales price.
d) negotiated between the seller and the buyer. |
|
|
Term
| 194. The amount of earnest money deposit is usually |
|
Definition
a) a standard figure.
b) determined by the broker.
c) a percentage of the sales price.
d) negotiated between the seller and the buyer. |
|
|
Term
| 195. A man signed a lease for six months this is an example |
|
Definition
a.) estate for years
b) periodic estate
c) tenancy at will
d) tenancy at sufferance |
|
|
Term
| 196. Inventory and equipment sold as part of a business would be transferred by |
|
Definition
a) bargain
b) bill of sale
c) quitclaim
d) warranty |
|
|
Term
| 197.American Disabilities Act became law |
|
Definition
a) 1968
b) 1989
c) 1990
d) 1994 |
|
|
Term
| 198. A broker listing her neighbors home. The commission should be |
|
Definition
a) the size of the brokers firm
b) rates approved by the commission
c) rates by the board of realtors
d) negotiations with her neighbor |
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Term
| 199. An associate brings an offer to purchase with an earnest money check to the broker. The offer by the buyer is accepted by the seller. The next day the broker is notified by the seller that, through no fault of the associate, the buyer and seller have decided to cancel the sale, and the broker is instructed to return the deposit to the buyer. The broker |
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Definition
a) can keep one-half of the deposit and give the other half to the seller.
b) has grounds for suing the seller, but must return the deposit to the buyer.
c) can retain the deposit as compensation for services rendered.
d) can keep one-half of the deposit and return half to the buyer. |
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Term
| 200. Brokers can be censured for commingling funds if they deposit earnest money to anything other than |
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Definition
a) their general real estate operating accounts.
b) their personal because a portion of the money was due them.
c) separate checking accounts designated as trust accounts.
d) separate savings accounts. |
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