Final Exam Practice

You're reviewing the HUD-1 for a closing on June 25. In this county, property taxes are paid in arrears. If the annual property taxes are $5,400, what should be the prorated tax for the Seller?

$2,625 Seller credit

The house sold for $250,000. The Buyer made a 10% down payment. What was the house Loan to Value Ratio?

0.9

The landlord needs to perform a semi-annual inspection. How much notice of entry must the landlord provide the tenant?

1 day

How many square feet are in the SE 1/4 OF SW 1/4 of Sec 22 T11N, R2W?

1,742,400

The Oklahoma Real Estate Commission shall pay into the Oklahoma General Revenue Fund of the State Treasurer every year__

10% of the license fees collected during the fiscal year.

This program permits investors to defer taxes.

1031 Exchange

You're negotiating a Listing Agreement. At what price should you list the property if the seller wants to leave the closing with $25,000? You estimate closing costs at $5,000. The existing loan payoff is $90,000. You charge a 6% commission. Round to the nearest $100.

127,700

Your friend has a current balance of $150,000 on a $185,000 loan at 6.0% interest for 30 years. The monthly P&I is $1,109.17. What will be the mortgage balance after the next payment

149,640.83

The minimum age to get a Provisional Real Estate License in Oklahoma is?

18

At what date is the Residential Property Condition Disclosure Statement no longer valid?

180 days after completion

A licensee stood in the shadow of the OREC justice for violating the Code and Rules. What is the maximum administrative fine OREC may impose for a single violation?

2,000

How many acres are contained in the SE 1/4 of the SE 1/4 of Section 1, S 1/2 of the S 1/2 of Section 2, and S 1/2 of the SE 1/4 of Section 3?

280

The advertisement said the land measured "3/4 of a mile by 3/4 of a mile." How may acres of land are for sale?

360

A sold his home for $26,500 to "B" who agreed to assume the existing mortgage of $25,950. Give the cost of documentary tax stamps "A" would be required to place on the deed.

39.75

The terms of each member of the Oklahoma Real Estate Commission shall be ____

4 years

An apartment building has an effective income of $150,000. Its bills total $64,000, and depreciation is an additional $12,000. Interest payments on the loan total $40,000, and principal payments are $5,000. What is the property's pre-tax cash flow?

41,400

Z who is a real estate broker sold a house and received a commission of $31,500. Z's commission was 6% of the sales price of the home. What was the sales price of the home Z sold?

525,000

If you list a 2,300 square foot house with 2 baths, a three car garage and a den for $184,000 with a 6% commission. The seller accepts a full price offer from another company. There is a 50/50 commission split between your company and the selling company. Your commission is ____

5520

Sam Seller sold his duplex for the sum of $40,635 on an assumption type sale. When the transaction was closed, the mortgage assumed was $20,000. What was the cost of documentary tax stamps attached to the deed?

61.50

How many acres are in the SE 1/4 of SW1/4 & SW 1/4 of SE 1/4 of Sec 22 T11N, R2W

80

Spenser, who works for selling broker Smith, sells a house listed by listing broker Adams. The house sells for $425,000. The co-brokerage split between Smith and Adams is 50-50. Spenser is on a 65% commission schedule with Smith. If the total commission rate is 7%, what is Spenser's commission?

9,669

How does the Brokerage Relationships Act define a firm?

A sole proprietor, corporation, association or partnership

The Buyer signs a Contract for Deed; but five years after making all monthly payments, the buyer fails to submit a payment. The Seller gets a judgement to reclaim the property because of what?

Acceleration Clause

If the Seller discovers another defect to the property a month after completing the Property Disclosure Statement, what must the Seller do?

Amend the Disclosure Statement.

The landlord needs to serve the tenant with a notice to terminate the tenancy. To whom shall notice be served?

Any family member over the age of 12.

The rent is unpaid, when may the landlord bring an action for recovery?

Any time

Z purchased his home in 2001 and was required to join the neighborhood association. Why was Z required to join the neighborhood association?

Because of the deed restriction

Making profit by inducing owners to sell because minority members may be moving into the neighborhood is defined as ____

Blockbusting

This law prohibited racial discrimination in the buying, selling, holding, or conveying of real and personal property?

Civil Rights Act of 1866

Agents having a wide authority to conduct a series of transactions of a continuous nature on behalf of their clients are ______

General agents

A good way to determine if violations or encroachments exist is to ____

Have a survey performed

Any acknowledgment before a notary public must be made _____

In person

Jim has an ACTIVE real estate license and personally puts an offer on a piece of real property, what must he do?

Jim needs to disclose in writing that he is licensed

You represent a client who offers to buy a house built in 1977. What specific environmental hazard has a disclosure requirement for houses built in this era?

Lead Based Paint

When the mortgage is viewed as a lien on real property, the concept is _____

Lien Theory

Which class is protected under the Equal Credit Opportunity Act but not under the Fair Housing Act?

Marital Status

The Oklahoma Residential Landlord and Tenant Act provides that if the rental agreement does not specify the terms of the tenancy, the tenancy for all other than a roomer, the tenancy will be _____

Month-to-month

To be eligible to receive a real estate broker license in Oklahoma _____

Must have 2 years experience, within the previous 5 years, as a licensed real estate associate or provisional sales associate.

"The tenant pays rent plus all or part of the property charges" defines ___

Net lease

Oklahoma Real Estate Commission has been recreated to continue until July 1, 2017 under the provisions of what law _____

Oklahoma Sunset Act

To gain land through adverse possession, use must be ____

Open hostile, notorious, and continuous for a statutory period of time

The house your client is considering for purchase was built in 1951 and has a detached garage. The garage would be considered: _____

Real property

Who are the parties to a Listing Agreement?

Seller and Listing Agent

When a Realtor and a Seller sign a listing contract, the Broker becomes ____

Special agent

Real estate brokers authorized to conduct a single transaction for their principals are usually classed as _____

Special agents

Under this freehold estate characterized by co-ownership and the owner's right of survivorship but usually with no right of partition, the owners must be husband and wife.

Tenancy by the entirety

An Air Force Officer arrived at his new assignment and decided to build a new home. As a place to reside temporarily, the Officer rented a house for six (6) months. This type Leasehold Estate is called: ____

Tenancy for years

Albert and Ben own a house. After owning the house for 2 years, Albert decides he wants to sell his interest in the property. Albert and Ben own the house under the following form of ownership?

Tenancy in Common

Three people have identical rights in a property, share an indivisible interest, but may sell or transfer their interest without consent of the others. This type of ownership is ____

Tenancy in common

A gated community has a restrictive covenant that dictates fences can be no taller than five (5) feet. The city code states a maximum height of six (6) feet. A homeowner in the community builds a six foot high fence. The Board of Directors sue. What is the Court's ruling?

The restrictive covenant takes precedence because it is more restrictive.

Amy coerces Bill to enter into a contract with him. This contract is generally ______

Voidable by bill

Bob (seller) signed a listing contract. The Listing Broker brought an offer which Bob rejected. Another Realtor presented an offer, but the buyer rejected Bob's counter-offer. A week later, Bob accepted another offer. Twenty eight days later, the deal closed. When did Agency begin?

When the Seller signed the Listing Contract.

A Realtor goes through the entire transaction with a Buyer without signing a contract to represent the Buyer. Is this legal; and if so, what type of agency exists?

Yes. Implied agency

The duty of treating all parties with honesty and exercising reasonable skill and care is _____

a mandatory requirement

If an area containing a service station were changed to residential zoning, the service station is _______

a non-conforming use

It may be cause for suspension or revocation of license to ___

accept a gift from an unlicensed neighbor for selling their house.

There are different employment relationships which exist in our economy. A person who is only responsible to an employer for the results of the work is ______

an independent contractor

When land is torn from a bank by the action of a violent river it is called ____

avulsion

A person is not required to hold a real estate license to _____

be a resident manager for the owner of a multi-family apartment building.

The landlord sells a 24 unit apartment complex. The Grantee _____

becomes liable for all lease covenants

The primary purpose of the Truth-in-Lending Act is to ____

disclose to the consumer the cost and conditions of the installment purchase.

Open house or directional signs used in conjunction with broker's signs ____

do not have to contain the name or trade name of the associate's broker and broker's telephone number.

Any interest in, or right to, land by third persons, adversely affecting the value of the property is an _____

encumbrance

A set of beliefs that guides a person's actions is called ____

ethics

The two (2) types of actual authority in the common law of agency are _____

expressed and implied.

The relationship that exists between a real estate broker and the principal is commonly referred to as a(n) _____

fiduciary relationship

It may be cause for suspension or revocation of license to _____

guarantee future profits from resale of real estate.

The Veteran's Administration assists numerous qualified mortgage loan applicants because it ______

guarantees loans made by approved lenders

A licensee who is engaged in licensed activities through social networking mediums must _____

indicate their license status and include their broker's reference as required in the Code and Rules.

Larry is a real estate broker and decides to open a office in his home residence. This ____

is acceptable according to OREC Code and Rules.

If a seller makes any changes in an offer from a buyer prior to acceptance, the buyer, _____

is relieved of the original offer

The landlord is the same person as the ____

lessor

Five members of the Oklahoma Real Estate Commission shall be _____

licensed real estate brokers.

In agency the fiduciary duty requires the agent to _____

look out for the principal's best interest

Earl who is a real estate broker must ____

maintain records for a minimum of five years.

A sales associate's website must ____

make reference to the sales associate's broker.

A who is a broker has an interest bearing trust account. A having this interest bearing trust account has ___

not violated the law because A has disclosed in writing to all parties that the trust account bears interest and who receives this interest.

A has his real estate license revoked by the Oklahoma Real Estate Commission. How many days does A have to turn in his pocket card?

on or before the date the suspension/revocation becomes effective.

Under the Oklahoma Brokerage Relationships Act, a person who is a seller, buyer, landlord, or tenant or a person who is involved in an option or exchange is called a ____

party

The nature and import of the agency relationship should be disclosed to the client ____

prior to completing a listing agreement

B is a broker and has a trust account. B mixes his personal and business funds in this account. This is ____

prohibited by the Oklahoma Real Estate Commission.

The listing broker receives two offers on the same property at the same time. The broker is required to present each offer to the seller ____

promptly on receipt

Albert sells his home to Ben which was built in 1977. Because this house was built prior to 1978, Albert is required to ____

provide B with a signed lead based paint disclosure form.

The Civil Rights Act of 1866 prohibits discrimination on the basis of ___

race

Unless there is stipulation to the contrary, when real estate subject to a lease is sold, that lease _____

remains binding upon the new owner

An important function of the secondary mortgage market is to ____

sell mortgage-backed securities in order to buy pools of loans.

The illegal practice of sending potential home buyers or renters to equivalent properties in particular areas in order to maintain the homogeneity of an area is called _____

steering

Who is responsible for the accuracy of the Residential Property Condition Disclosure Statement?

the Seller

Albert has a mortgage on his home. The clause in Albert's mortgage which calls the entire balance of his mortgage immediately due if his home is sold is called ______

the alienation clause

In evaluating a loan application, a mortgage lender is most concerned about ______

the applicant's financial capability and the value of the collateral

The primary jeopardy of overpricing a property is that ____

the client's expectations may not be achieved.

A Provisional Real Estate license may be upgraded to a sales associate license at _____

the end of the first year.

If an offeree makes any alteration in an offer before accepting it, _____

the initial offer has been turned down and a counteroffer is being made

Lenders use the loan-to-value ratio as a guideline in underwriting because ______

the loan amount needs to be less than the property's value.

When writing a contract you are inserting the legal description into the contract. You should not base the legal description on ____

the street address

When a form of real estate sales contract has been agreed to and signed by the purchasers and given to the seller's broker with an earnest money check __________.

this transaction is considered an offer.

The broker receives an earnest deposit on an offer to purchase. The offer is accepted. The broker must place the earnest deposit in his _____

trust account before the end of the third banking day after acceptance.

A Provisional Real Estate license shall be issued a term of _____

twelve months.

A property abuts a non-navigable stream. What does the owner own?

unrestricted use of the water and owns the land beneath the stream to the stream's midpoint.

If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker must provide a _____

written disclosure to the party for whom the broker is providing brokerage services.