Chapter 11 Quizzes and Tests

Q: How long must a released felon sentenced for embezzlement wait before applying for a license? (8259)

A: 10 years [CORRECT]

Q: How many clock hours is the Broker In Charge training program? (8282)

A: 15 [CORRECT]

Q: What is the term of an OREC member? (8254)

A: 4 years [CORRECT]

Q: OREC has how many members? (8252)

A: 7 [CORRECT]

Q: At least how many clock hours are required in the Basic Course of Real Estate, Part I of II? (8277)

A: 90 [CORRECT]

Q: Which of the following statements is TRUE? (8271)

A: A broker is not required to open a trust account unless funds or items are held in escrow. [CORRECT]

Q: Which of the following individuals are NOT classified as a broker? (7843)

A: A provider of real estate industry related services [CORRECT] Explain: To be classified under the broker title, the individual must be authorized by a real estate broker to provide brokerage services.

Q: Under the Brokerage Relationships Act which of the following actions is mandatory? (7845)

A: Account for all money and property received by the broker in a timely manner. [CORRECT] Explain: Regardless of whether or not you have a brokerage services agreement in place accounting for money and property received is mandatory and you cannot waive, ignore, or otherwise do away with it in any way.

Q: When must all escrow funds be deposited? (8267)

A: Before the end of the third banking day following acceptance of an offer [CORRECT]

Q: Which of these statements is TRUE? (7840)

A: Compensation does not determine the relationship between a broker and a party. [CORRECT]

Q: Which of these provisions of the Brokerage Act has not changed? (7841)

A: Duties of Broker Following Termination, Expiration or Completion of Performance [CORRECT]

Q: Which Oklahoma Broker Relationships Act law section has remained unchanged? (7921)

A: Duties of Broker Following Termination, Expiration or Completion of Performance [CORRECT] Explain: Not everything in the Oklahoma Broker Relationships Act has changed. For example Section 858-358 remains exactly the same regarding duties of broker following termination, expiration or completion of performance.

Q: What is the suggested strategy for currently active brokerage agreements signed into effect prior to November 1, 2013? (7850)

A: Enter into a new agreement when it expires. [CORRECT] Explain: Your clients might be better served to enter into new agreements using the new forms for those agreements that expire after November 1, 2013. Using the new forms will minimize confusion for both you and your clients.

Q: Which of the following broker actions converts a customer into a client? (7863)

A: Entering into a listing agreement [CORRECT] Explain: The term brokerage service agreement means an oral or written agreement to provide brokerage services entered into by a real estate broker and a person who is a party to a real estate transaction.

Q: Which of the following actions would be classified as a substantial misrepresentation? (8264)

A: Failing to disclose to a buyer any known material defects [CORRECT]

Q: An OREC complaint recipient has how many days to file a written response? (8265)

A: Fifteen days from the notice

Q: Broker Jones agreed to list his neighbor's vacant lot. The agreement was not in writing, just an over-the-fence handshake. What's the best advice that you can give to Broker Jones? (7855)

A: Good practice dictates that Broker Jones put the agreement in writing. [CORRECT] Explain: Brokerage service agreements can be oral. However, all agreements should be in writing, so as to be clear about the specific duties you will be providing to your clients.

Q: Under what conditions can you disclose confidential information? (7847)

A: If the disclosure is required by law [CORRECT] Explain: You or your firm can disclose confidential information without client consent if mandated by law.

Q: Where would you find documentation that confirms that a client received notice of the type of services provided by a broker? (7852)

A: In a separate provision or document that is either incorporated into or attached to the contract to purchase, lease, option, or exchange real estate [CORRECT] Explain: Brokerage services must disclose in writing and kept with the transaction file.

Q: Which of these statements about the terms transaction broker and single party broker is FALSE? (7839)

A: Licensees are prohibited from using these terms. [CORRECT]

Q: How much education credit can a licensee earn for meetings which are a normal part of in-house training? (8283)

A: None [CORRECT]

Q: Where are all code violation fines deposited? (8289)

A: Oklahoma Real Estate Education and Recovery Fund [CORRECT]

Q: When must a firm inform all parties in a transaction when providing services to both parties? (7851)

A: Prior to the parties signing a contract to purchase, lease, option, or exchange real estate [CORRECT] Explain: The firm must provide written notice to both parties prior to a contract.

Q: Which type of information is NOT automatically considered confidential? (7848)

A: Proposed property zoning change [CORRECT] Explain: Information that is public does not fall under the confidentiality rule.

Q: Which of the following broker duties is owed only to a client? (12390)

A: Provide a seller's net sheet to the seller in writing. [CORRECT] Explain: Providing a seller's net sheet to a seller or an estimate of closing costs to a buyer are mandatory duties owed only to a party for whom you are providing brokerage services in a transaction. These duties are owed when an offer is made.

Q: When a broker is providing brokerage services, what must the parties do? (7838)

A: Provide in writing that they received the disclosure from the broker. [CORRECT]

Q: Which of the following broker duties can be waived in writing by a party? (12389)

A: Receive all written offers and counteroffers. [CORRECT] Explain: Receiving written offers and counteroffers, reducing them to written form, and presenting offers and counteroffers are the only duties that can be waived, but it must be done in writing. All other duties are mandatory and you cannot waive, ignore, or otherwise do away with them in any way.

Q: How are members appointed to the Commission? (8253)

A: The Governor

Q: Which entity keeps custody of an associate's license? (8257)

A: The associate's broker [CORRECT]

Q: Which entity is responsible for informing the Commission of training completed? (8279)

A: The licensee [CORRECT]

Q: After November 1, 2013 what happens to currently active brokerage agreements that were entered into prior to that date? (7836)

A: They remain in force until the expiration date stated in the agreement. [CORRECT]

Q: What are the duties of broker following termination, expiration, or completion of performance? (7861)

A: To account for all monies and property relating to the transaction and maintain confidentiality [CORRECT] Explain: Section 858-358 remains the same regarding monies and property relating to the transaction and confidentiality.

Q: Which of the following statements is FALSE? (7837)

A: When a broker provides brokerage services to a buyer, he or she must describe and disclose in writing the broker's duties and responsibilities prior to showing any properties. [CORRECT]

Q: Under what circumstance, if any can a broker deposit personal funds into an escrow account? (8269)

A: When funds are necessary to service the account [CORRECT]

Q: Which of the following statements is TRUE? (7859)

A: You are permitted to use the word "agent" in a trade name. [CORRECT] Explain: A real estate broker is permitted to use the word "agent" in a trade name and as a general reference as a real estate licensee.

Q: Below is a list of situations involving possible confidential information. Indicate which situation must be disclosed. (12391)

A: Your seller tells you that there is a crack in the foundation of the home that he "repaired" himself with caulk so it wouldn't be seen. It is not mentioned on the property disclosure. [CORRECT] Explain: The law requires disclosing issues surrounding property condition. You must not disclose confidential information related to pricing, motivating factors, financing issues or because the party designated it as confidential. Non-confidential information may be disclosed if you see the need.

Q: Section 858-363, the Authority of Broker Associates deals with (7857)

A: a clearer description of an associate's authority. [CORRECT] Explain: Associates shall not enter into a brokerage agreement with a party in the associate's name and shall only be allowed to enter into the agreement in the name of the real estate broker.

Q: Trust account records must be maintained in their original format for (8273)

A: a minimum of two (2) years. [CORRECT]

Q: A seller's net sheet is best defined as a tool that is used to help (7846)

A: a property owner with a reasonable estimate of costs and net proceeds from the sale of the property. [CORRECT] Explain: As a broker, you must provide a seller's net sheet to any seller for whom you are providing brokerage services.

Q: Under the new Oklahoma Brokerage Relationships Act the duties and responsibilities that were previously designated to transaction brokers (7844)

A: are now "assigned" to all brokers. [CORRECT] Explain: The term transaction broker has been eliminated from the law and those duties formerly belonging to transaction brokers now belong to all brokers.

Q: Fiduciary duties (7862)

A: do not take precedence over the duties defined in the Oklahoma law. [CORRECT] Explain: Section 858-360(A) indicates that the broker duties and responsibilities under the law take precedence over any fiduciary duties based on the common law of agency.

Q: After November 1, 2013, (7856)

A: if you use the terms "single party broker" and "transaction broker," you should clearly define the usage, since it is no longer defined in the law. [CORRECT] Explain: The terms "single party broker" and "transaction broker" have been eliminated from the law, but you can still use those terms if you describe them.

Q: The Commission (8284)

A: may, upon its own motion investigate the business transactions of any real estate licensee. [CORRECT]

Q: If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker (7854)

A: must include a description of those steps in the transaction for which he or she will not provide brokerage services. [CORRECT] Explain: A full listing of services offered and not offered must be disclosed.

Q: In those cases when a broker is involved in a transaction but he or she does not prepare the contract, the broker (7853)

A: must still document that he or she has complied with the services provided disclosure requirements. [CORRECT] Explain: Regardless of what services that a broker performs in a transaction, that broker must document that disclosure confirmation requirements have been met.

Q: Any unlicensed person who violates real estate law may be guilty of a misdemeanor punishable by a fine of (8288)

A: not more than One Thousand Dollars ($1,000.00). [CORRECT]

Q: A yard sign must include the broker's (8261)

A: office telephone number. [CORRECT]

Q: All acts performed by a broker associate or provisional sales associate under the provisions of the Real Estate License Code must be done (8256)

A: only in the name of the associate's broker. [CORRECT]

Q: The term "transaction broker" has been removed from (7860)

A: the paragraph on vicarious liability. [CORRECT] Explain: Section 858-362 on vicarious liability did not change, but was rewritten to drop the term "transaction broker."

Q: Licensees are required to complete continuing education hours within (8281)

A: the thirty-six (36) months immediately preceding the term for which the license is to be issued. [CORRECT]

Q: Brokerage services means (7842)

A: those services provided by a broker to a party in a transaction. [CORRECT] Explain: Brokerage services means those services directly provided by a broker to a party in a transaction.