Simulated test questions that were answered incorrectly

Ann pays homeowner's insurance in advance for one year in the amount of $100. Ann sells her property to Bill and closes the sale on June 30th. Assuming that Ann paid the homeowner's insurance on January 1st of that year, how would the insurance be prorated between the buyer and seller?

$50 to debit to the buyer, $50 credit to the seller

A licensee was asked by the Division to provide documents concerning a transaction that was the subject of an investigation. The licensee failed to provide the documents as requested. What if anything has been violated?

Canon of ethics

Agent Carla forgot to include her brokers' phone number in her ad and now her ad has run with just her cell phone number. What could happen to Carla?

Carla's license is in no jeopardy

Ben has been given revocable permission to hunt on his neighbor's land. Which does Ben have?

License

Agent Tina at Tall Order Realty has been on a hot streak; she sold four of her own listings this month. When filling out Agency Disclosure statements, which section would she complete?

Section III, the section required when an agent is selling his/her own listings

A couple is engaged to be married. Any real estate they own at the time the marriage takes place remains that spouse's property in severalty, and property acquired after the marriage belongs equally to both of them. This type of ownership is referred to as

community property

When managing property for others, a brokerage is a fiduciary and is allowed to maintain

a separate interest-bearing property management trust account

What individual would NOT need a real estate license in order to sell real estate?

an executor selling dependent's real property

When one party lets the other parties know, before the time limit of performance, that the one party is not going to perform as agreed, the action is called

anticipatory repudiation

Emily had signed a one-year lease, but after living in the apartment for three months, she transferred her right of possession for the remainder of the lease to her friend. Which type of arrangement does Emily have with her friend?

assignment

What lien attaches to a property to prevent the transfer of title when there is a pending lawsuit that may affect the title?

attachment

The terms "agency" and "agency relationship" are defined by Ohio law as the relationship between a real estate licensee and the

person the licensee represents

Who provides the Equal Opportunity Information Bulletin?

commission

Which of the following is not under the jurisdiction of the Division of Real Estate?

reprimands

When a contract is terminated and each party gives back to the other party anything they have received, what occurs?

rescission

The Closing Statement, required by RESPA, must be used in what instance?

residential transactions financed by federally regulated mortgage loans

"The subject property" best describes the property

for which the value is sought

The amount that parties to a contract agree to, in advance, that will serve as compensation in the event of a breach is known as

liquidated damages

When a contract is breached, what describes the equitable remedy that allows a court to order someone to perform as agreed instead of paying damages?

specific performance

How much will a licensee be fined for paying fees to the state with a bad check?

$100

The fee for renewing a salesperson's license is

$182

A broker and sales agent are sued. The plaintiff wins a judgment against the broker and sales agent jointly and severally for $80,000 in compensatory damages and $20,000 in punitive damages. What would be the maximum extent of the liability of the Recovery Fund?

$80,000. The recovery fund will not pay for punitive damages

The fee for an application for a real estate salesperson's license is

$81

If a broker or salesperson has knowledge of a fellow broker or salesperson who is convicted of a crime, felony, crime of moral turpitude, or violation of any federal, state, or municipal civil rights law, how long do they have to notify the Superintendent?

15 days

Agent Andy was so excited to be writing and presenting his first offer to the seller and listing agent that he forgot to make the offer contingent on the sale of the buyer's current residence. After an investigation and disciplinary hearing, all of the following could happen EXCEPT

6 months of probation

What is market price?

A price a property actually sold for

What must be contained in the HUD Fair Housing poster?

Address of the Ohio Division of Real Estate

Agent Arthur showed a property to a buyer who wanted to make an offer. Before Agent Arthur set up the appointment to meet the buyer to execute documents, he got into a heated argument with his broker and decided to leave the brokerage to go to a new one. The day after he signs on with a different broker, Agent Arthur writes the offer with the buyer and presents the offer on behalf of his new broker. The seller accepts the offer. Which of the following choices best describes the situation?

Agent Arthur may get punished

Specific performance is

An equitable remedy in which the court orders the contract to be performed as agreed to by the parties.

A salesperson is issued a license to practice real estate on January 5, 2015. The salesperson has a birthday coming on April 10. When must the agent renew his or her license?

April 10, 2015

Under a deed of trust, the lender is known as the

Beneficiary

The act of the government taking private property for public use with just compensation is

Condemnation

What document lets a buyer and seller see the costs involved with closing the transaction?

HUD-1 SETTLEMENT STATEMENT

May a consumer who has been harmed by a licensee acting under her license as a real estate salesperson or broker immediately file a claim for payment from the Real Estate Recovery Fund?

No, the consumer must file a lawsuit, get a final judgment, and attempt to collect

As an agent is showing a house to a customer, the agent notices a large vertical crack in the basement wall. What is the agent's duty?

Nothing

what is the substitution of a new contract or a new party to an existing contract?

Novation

What law requires lenders to limit the amount of funds that can be held in reserves?

RESPA

If the amount available in the Real Estate Recovery Fund is less than _____, the Ohio Real Estate Commission must impose a special assessment of up to $10 on each licensed real estate broker, brokerage, or a salesperson who files a notice of license renewal.

The Dodd-Frank Reform Act lowered the threshold amount in the Real Estate Recovery Special Account to $500,000.

What is market value?

The price the property is likely to bring in an "arm's length" transaction

To compute the real property tax on a parcel of land, multiply the?

actual mills by the rate of mills

A salesperson has a direct fiduciary duty to the

broker

What law creates an automatic lien on a commercial property, subject to the listing agreement?

broker lein law

A salesperson executes a buyer-broker agreement with a buyer. The agent reads an ad placed by a FSBO seller, offering 3.5% commission to the broker who brings the buyer. What is the seller considered to be to the agent when the buyer/client makes an offer?

customer

A survey is the process of

determining the soze and boundaries of a property

How often are appointments to the Real Estate Commission made and by whom?

every year by the governor

What would a licensee NOT be permitted to do?

extend the listing

Agent Larry likes to be prepared so he keeps a supply of documents in his car trunk. On his way home from the office one day, he sees a For Sale by Owner sign and stops to convince the sellers to list their property with him. After they agree, Larry grabs a Consumer Guide to Agency for them from his trunk. Listed on the guide are the protected classes in Ohio: Race, color, religion, sex, national origin, disability, and ancestry. What protected class is Larry missing?

military status

Taking measures to reduce adverse impacts on the environment is known as

mitigation

A legatee is a person who receives

money

Harvey enters into a lease where he must pay 30 percent of the landlord's expenses. Which type of lease did Harvey sign?

net lease

How many times may an applicant for an Ohio real estate salesperson's license retake the state licensing examination?

no limit

Chelsea is a listing agent working for the listing broker and encounters a customer at the open house. The customer asks Chelsea if she could recommend an offering price. Chelsea should recommend that the customer

offer the list price

A listing broker receives a commission check from the title company immediately after a transaction closes. One of the broker's agents handled the sale and is due a share of the commission check. How long can the broker delay before paying the agent?

one month

What deed is most preferred from the seller's point of view?

quitclaim deed

A broker is representing buyer/client Dorothy in the search for a home. Dorothy decides to end the relationship after missing several opportunities to purchase due to the broker's unavailability to view properties at times and days convenient to her. How did this agency most likely end?

revocation

A closing with all parties present is a(n) ______ closing.

roundtable closing

Joe, a salesperson from Happy Days Real Estate, sold a house listed by Better Days Real Estate. What part of the Agency Disclosure Statement would Joe and Better Days Real Estate fill out?

section 1

The buyer is making an offer contingent on obtaining financing from the seller and asks the agent to prepare the document. The agent should

seek legal counsil

If a licensee's license has been suspended due to failure to complete the required continuing education in a timely manner, she must

submit a reactivation application, pay a reactivation fee, and show proof of completion of the required continuing education

Real estate agent Sue is showing a buyer client a house. The house is full of antique furniture, fixtures, and decorations. In the largest bedroom is a wall-sized wardrobe which covers the wall between the bedroom and the bathroom. A slow leak behind the bathtub has caused chronic moisture in the plaster of this wall. Sue should

tell the buyer about the latent defect

If a salesperson mishandles trust money, what is most likely to happen?

the broker's license could be suspended if the broker knew of it

What scenario best describes the process of novation?

the buyer and seller agree to substitute a new contract for a previous one

If the loan value is 80%, and the property is appraised at $86,500 and sold for $88,000, how much would the purchaser be permitted to borrow?

the loan value is based upon appraised value, not the sale price. $69,200

Jack buys Don's property, which is subject to a mortgage. After five years of payment, Jack defaults and misses a payment. What is the appropriate remedy for the original mortgagor?

the mortgagor has no recourse as there was no assumption

A salesperson takes a call at the office. The caller is a buyer who says he has a trust fund and wants to buy a house. The house the caller is interested in is a house personally owned by the real estate agent. Which situation is not possible?

the salesperson can represent both himself and the buyer

Once a salesperson is affiliated with a broker, what are the steps to be taken to associate with another broker?

the salesperson must submit an application to the superintendent

The agreement of sale should provide that if the property is damaged or destroyed by fire before the deal is consummated, the loss will fall upon the

the seller

What statement regarding condominium ownership is correct?

the unit owner may devise the property

What insulating material was pumped into houses until its ban in the 1970s?

urea-formaldehyde insulation

With regard to agency, what must an Ohio real estate brokerage give to prospective sellers and purchasers?

written brokerage policy on agency

A property manager offered a potential tenant a free entertainment center for signing a three-year lease. The property manager does not mention the entertainment center in the lease or any other documents. The tenant signs the lease, moves in, and enjoys the entertainment center. Is there anything wrong here?

yes, it is an undisclosed inducement