OREC Final Kevo

The Oklahoma Brokerage Relationships Act of 2013 provides that confidential information may not be disclosed without consent of the appropriate party. Confidential information includes: that a party is willing to pay more or accept less than what is being offered. the brokerage relationship between the parties. specific information about vicarious liability. material defects in the property.

A. that a party is willing to pay more or accept less than what is being offered.

Except as may be provided in a written brokerage agreement between the broker and a party to a transaction, the broker owes no further duties or responsibilities to the party after termination, expiration, or completion of performance of the transaction except: to keep confidential information confidential. to never reveal the commission rate. never reveal the price at which the property sold. to never disclose the brokerage relationship between the broker and the party..

A. to keep confidential information confidential.

A store tenant firmly attaches appropriate appliances for a restaurant business on the leased premises. These appliances are: trade fixtures and remain personal property. part of the real estate once they are installed. must not be removed during the lease term. to remain upon termination of the lease.

A. trade fixtures and remain personal property.

Legal title to real property passes from the seller to the buyer: when the deed is delivered and accepted. when the closing statement has been signed. on the date of the execution of the deed. when the mortgage is recorded.

A. when the deed is delivered and accepted.

For a broker to act for more than one party in a real estate transaction, without the knowledge and consent of all parties, is: Ethical. possible violation of the Broker Relationships Act and grounds for disciplinary action. not a cause for disciplinary action. all right if neither party suffers monetary loss.

B. possible violation of the Broker Relationships Act and grounds for disciplinary action.

The recommended use by a broker or sales associate of a fictitious or false contract for the purpose of inducing a lender or government agency to loan or insure any sum of money shall be construed as: "Puffing the goods." substantial misrepresentation (fraud). justified as long as no one gets hurt. practicing law without a license.

B. substantial misrepresentation (fraud).

Ownership of real property restricted to a husband and wife holding title with right of survivorship is: estate by joint tenancy. tenancy by the entirety. estate by common tenancy. estate by dower.

B. tenancy by the entirety.

If an offeree makes any alteration in an offer before accepting it,: the alteration is binding upon the offeror. the initial offer has been turned down and a counteroffer is being made. the altered offer becomes a binding contract if the offeror does not object within three business days. the offeree must forfeit the earnest money if the counteroffer is not accepted.

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

In arriving at their final value estimate, appraisers: give equal consideration to the value indicated by each approach. weigh each approach according to its suitability. establish the sales price. base their fees on value found.

B. weigh each approach according to its suitability.

Mr. Johnson's house sold for $55,000 and the total commission was 6% of that amount. The broker received 3/4 of the commission and the sales associate received 1/4. How much was the sales associate's commission? $3,300. $2,475. $ 825. $1,650.

C. $ 825

Information available from the County Assessor's Office reveals the assessed valuation of a certain piece of real property is $4,200. Homestead exemption is approved for the year on the property. The county tax levy for the area is 90 mills. The amount of ad valorem tax due on the property for one year would be: $348. $378. $288. None of these.

C. $288.

After the transaction closes, which of the following remains an obligation of the broker?: Disclosure of the brokerage relationship.. Disclosure of future vicarious liability. Account for any money or property relating to the transaction. Disclosure of any substantial misrepresentations relating to the transaction.

C. Account for any money or property relating to the transaction.

If fire destroys a home after the contract of sale is signed by both parties, but prior to closing, which is true under the Uniform Vendor Purchaser Risk Act? The party in possession generally bears the risk of loss. The seller bears the risk of loss if in possession and holding legal title at the time of loss. Both A and B. Neither A nor B.

C. Both A and B. (he party in possession generally bears the risk of loss. & The seller bears the risk of loss if in possession and holding legal title at the time of loss.)

In which of the following circumstances would a contract be terminated by acts of the parties? Death of either party. Destruction of the subject property. Completion of the objective. Bankruptcy of either party.

C. Completion of the objective.

The characteristics required for a property to have value include all of the following EXCEPT: Demand. Scarcity. Depreciation. Transferability.

C. Depreciation.

A broker receives a bona fide offer to buy a property. The purchase agreement is signed by both parties, but the title has not yet passed. The status of this contract is: Implied. Affirmed. Executory. Void.

C. Executory.

The concept of the right to buy without the obligation to do so is expressed in (a)n: Lease. Mortgage. Option. Appurtenance.

C. Option.

Which of the following is NOT necessary for a valid deed?: Grantor's signatures. Delivery and acceptance. Recording. Designation of the grantee.

C. Recording.

If no longer wishing to be represented by a broker, a principal may: subordinate the listing. cancel the exclusive listing contract without further liability to the broker. Revoke the brokerage agreement, but may be subject to court action for breach. assign the listing to another principal with similar property.

C. Revoke the brokerage agreement, but may be subject to court action for breach.

The sections in a township are numbered in a "snake" like pattern that always begins in what corner of the township?: The SW corner. The SE corner. The NE corner. The NW corner.

C. The NE Corner

What is a real estate listing? A list of brokers and sales associates. A list of property held by an owner. The employment of a broker by an owner to sell or lease. A written list of improvements on land.

C. The employment of a broker by an owner to sell or lease.

The offeror died four hours after the seller accepted the offer to purchase. One of the following statements is true with respect to the status of the negotiations.: A contract exists, but it may be rescinded by the executor of the offeror's estate. A contract exists and it may not be rescinded by the executor of the offeror's estate. The offer was revoked by operation of law on the offeror's death. A contract exists, but either party (or a representative) may rescind within a reasonable time.

C. The offer was revoked by operation of law on the offeror's death.

Which of the following is a broker required to reveal to a prospective purchaser? The property is the site of a recent murder or suicide. A felony was recently committed on the premises. The property has recurring plumbing problems because of the roots from the giant sycamore trees along the back fence. The previous occupant died from a communicable disease not transferable through occupancy.

C. The property has recurring plumbing problems because of the roots from the giant sycamore trees along the back fence.

One of the provisions of the Oklahoma Brokerage Relationships Act of 2013 is: a broker may not use the word "agent" under any circumstances. a broker may be a designated agent. a broker may use the word "agent" in a trade name. the word "agent" is illegal on all applications in real estate in Oklahoma.

C. a broker may use the word "agent" in a trade name

Discounts or "points" on mortgages are usually: a return of excessive interest charged to the mortgage. a charge to the mortgage for obtaining the loan. a charge to increase the yield on money invested. known as origination fees.

C. a charge to increase the yield on money invested.

An abstract of title is: a volume containing the original deed, mortgage, etc. a summary of existing instruments pertaining to given property. a summary of all recorded instruments pertaining to a given property. the same as a title insurance policy.

C. a summary of all recorded instruments pertaining to a given property.

In setting a price on a house, the prudent broker will: set an initial price considerably higher than the expected selling price to allow room for negotiations. start at a price below the market value as a come-on. advise the seller to set a price close to the market value. let the owners choose any price they think the property is worth.

C. advise the seller to set a price close to the market value.

Title insurance has a one-time premium paid at closing and protects the insured against loss from: all title defects of the past. all title defects of the future. all defects up to the policy's effective date which are not specifically excluded in the policy. unrecorded mechanic's liens.

C. all defects up to the policy's effective date which are not specifically excluded in the policy.

When an offer is presented, real estate licensees are required to provide the seller(s) and buyer(s): the current interest rates as expressed in an APR. with facts that might psychologically impact the property value. an estimate of the amount of the closing costs. the price of the house that sold next door.

C. an estimate of the amount of the closing costs.

Riparian rights are best described as those rights: specifically granted for a specified source of water. found in the records of the office of the County Clerk. an owner has from a natural water course abutting or crossing the land. obtained by the purchase of fixtures.

C. an owner has from a natural water course abutting or crossing the land

According to the guidelines outlined in the Truth-in-Lending Act (Regulation Z), it is required that the interest charged on a loan be expressed as an: approximate percentage rate. average percentage rate. annual percentage rate. estimated percentage rate.

C. annual percentage rate.

The provisions requiring a person to be licensed as a real estate broker or sales associate shall apply to any person who for compensation: leases, offers to lease, rents or offers to rent real estate. solicits prospective purchasers of real property. Both A and B. Neither A nor B.

C. leases, offers to lease, rents or offers to rent real estate. solicits prospective purchasers of real property. Both

The value which represents the most probably price that a property should bring, if it is sold after being offered for a reasonable period of time, and the sale is completed between a knowledgeable buyer and seller, neither acting under duress, is known as: present value. current value. market value. future value.

C. market value

The real estate market may be described in all of the following ways EXCEPT: free market. local market. moveable market. market that is slow to react to change in supply and demand.

C. moveable market

All of the following are considered legally incapable of entering into a contract, EXCEPT: Minors. intoxicated persons. persons who have reached their majority. mental incompetents.

C. persons who have reached their majority.

Forces which influence value resulting from government regulations such as zoning, building codes, and government loans are known as: social forces. physical forces. political forces. economic forces.

C. political forces.

A mechanic's lien claim arises when a general contractor has performed work or provided material to improve a parcel of real estate on the order of the owner and the work has not been paid for. Such contractor has a right to: tear out the work. record a notice of mortgage. record a mechanic's lien and file a court suit within the time required by state law. have personal property of the owner sold to satisfy the lien.

C. record a mechanic's lien and file a court suit within the time required by state law.

Legal action taken to resolve all "clouds" on a title is: suit for damages. foreclosure action. suit to quiet title. partition action.

C. suit to quiet title

A tract of land described as the SW ¼ of the SE ¼ of the NE ¼ of the NW ¼ contains: 25 acres. 10 acres. 5 acres. 2-1/2 acres.

D. 2.5 acers

Which of the following would not be a violation of the Federal Fair Housing Laws?: Inducing owners to sell because minorities are moving into the neighborhood. Directing minorities into predominantly minority neighborhoods. A lender refusing to make loans in neighborhoods which are predominantly minority. A broker refusing to show a property to a potential buyer because of the buyer's sexual preference.

D. A broker refusing to show a property to a potential buyer because of the buyer's sexual preference

When Sara Cellar hires Broker Bloke to sell her home, their listing contract gives Bloke an exclusive right-to-sell. Two weeks later, Sara sells the home to her friend, George. Which of the following is true? Sara will owe Bloke one-half of the agreed upon commission. Sara may not sell until the contract expires. Bloke will receive no commission. Although Sara has sold the house, Bloke will receive a commission.

D. Although Sara has sold the house, Bloke will receive a commission.

An individual may void a contract if it can be proved that it was signed under: Duress. undue influence. Coercion. Any of these.

D. Any of these.

An agreement between two or more competent persons, having as its purpose a legal object, wherein the parties agree to act in a certain manner is a: Deed. Description. Dedication. Contract.

D. Contract.

Farmer Brown puts up a fence between his and the property of Farmer Jones. Farmer Jones discovers that the fence is two feet on his side of the property line. This is termed an: Appurtenance. Easement. Assessment Encroachment

D. Encroachment

A legal description of property using physical features is called a description by: plat system. government survey. topographical survey. Monuments.

D. Monuments

The provisions of the Oklahoma Real Estate License Code originate in the state legislature. The agency created in 1950 to administer and enforce the Code is the: National Association of REALTORS®. Association of Real Estate License Law Officials. Oklahoma Association of Real Estate Authorities. Oklahoma Real Estate Commission.

D. Oklahoma Real Estate Commission

An example of a government lot is: any parcel of real property owned by the state or by a political subdivision of the state. any one of the thirty-six squares into which each township is divided. any one of those lots lying directly adjacent to the Indian Meridian. a parcel of land, along the shore of a lake or river, usually containing less than forty acres.

D. a parcel of land, along the shore of a lake or river, usually containing less than forty acres

The Indian Meridian is located: on the east boundary of the state running north and south. on the north boundary of the estate running east and west. about midway through the state running east and west. about midway through the state running north and south.

D. about midway through the state running north and south.

Once a contract for sale has been signed, the purchasers have: legal title to the real estate. the right to possess the real estate. nothing until they receive the deed. equitable title to the real estate.

D. equitable title to the real estate.

Before communication to the prospective purchaser of the seller's acceptance of an offer, the prospective purchaser may withdraw the offer at any time: unless the offer states it is irrevocable. provided the offer is not supported by a deposit. provided the offeree has breached the offer. for any reason.

D. for any reason.

A broker shall have all of the following duties and responsibilities only to the party for who the broker is providing brokerage services in a transaction to: inform the party in writing when an offer is made that a party will be expected to pay certain closing costs. keep the party informed regarding the transaction. when working with both parties to a transaction, the duties and responsibilities set forth in the law all of the above.

D. inform the party in writing when an offer is made that a party will be expected to pay certain closing costs, keep the party informed regarding the transaction, when working with both parties to a transaction, the duties and responsibilities set forth in the law, all of the above

Four widowers decided to buy a home and live together. They took title in equal shares, but agreed that as each of them died the share would pass to the remainder of the group until the only one left would own the entire property in severalty. Under this plan, the men took title to the home as : tenants in common. community property. tenants in partnership. joint tenants.

D. joint tenants

The term REALTOR refers to: all licensed real estate brokers. all brokers and their sales associates. members of the Oklahoma Real Estate Commission. only brokers and associates who are members of the National Association of REALTORS.

D. only brokers and associates who are members of the National Association of REALTORS

Which of the following is not valid consideration for the creation of a contract? money to be paid. promise to do or not to do a certain thing. services to be performed. services which have been performed.

D. services which have been performed

Deed restrictions are a means by which: the local zoning ordinances are enforced. the work of the Planning Commission is made effective. villages and cities can control construction details. the seller can limit or control the buyer's use.

D. the seller can limit or control the buyer's use.

The definition of real property includes all of the following, EXCEPT: land and improvements. mineral rights. buildings attached to the land. trade fixtures.

D. trade fixtures

When a quitclaim deed is given, the grantee receives: only the personal property. a reasonable warrant of possession. complete assurance that the grantor has title. whatever interest and benefit the grantor had, if any.

D. whatever interest and benefit the grantor had, if any.

The general law which governs the relationship between the sellers and the brokers they employ to market their property is: the Common Law of Agency. the Law of Property Control. case precedence. The Oklahoma Broker Relationships Act.

D.The Oklahoma Broker Relationships Act.

Inducing homeowners to sell by informing them of possible entry of minority groups into their neighborhood is: Steering. Blockbusting. Leverage. specific inducement.

B. Blockbusting.

A Contract for Deed does not give the purchaser: Possession. legal title to the property. equitable title. responsibility for taxes and insurance.

B. legal title to the property.

Occupation of real property may evolve into legal title by adverse possession, but the adverse possessor must, in all cases: show in the manner of possession that it is hostile to the true owner's title. pay the taxes before they become delinquent. be in possession of some written instrument, though defective, which will establish a "claim of right." reside on the subject property for twenty years continuously.

A. show in the manner of possession that it is hostile to the true owner's title.

Which of the following is a violation of the Federal Fair Housing laws? A sales associate refuses to show a customer a property because the seller does not want to sell to a minority member. A sales associate refuses to show a small apartment to a large family. A sales associate refuses to show a property because the client has a large number of debts. A landlord refuses to rent property to a real estate broker.

A. A sales associate refuses to show a customer a property because the seller does not want to sell to a minority member.

Federal laws that prohibit discrimination in housing are covered by the: Civil Rights Act of 1968. Real Estate Settlement Procedures Act. Truth-in-Lending Laws. Sherman Anti-Trust Act of 1890.

A. Civil Rights Act of 1968

The maximum value of a parcel of real estate will be found when a lot has been developed in much the same way as the adjacent neighborhood. This reflects the principle of: Conformity. Heterogeneity. integrated property. Transferability.

A. Conformity.

Any interest in, or right to land by third persons adversely affecting the value of the property is an: Encumbrance. Encroachment. Appurtenance. Indenture.

A. Encumbrance

A couple wants to sell their house. They want a broker to show the property, but hay would like to be able to sell the house themselves without paying a broker's commission. What form of listing would allow them to use the services of several brokers and not pay a commission should they sell the house themselves?: Open listing. Exclusive Brokerage listing. Exclusive right-to-sell listing. Multiple listing.

A. Open listing

If you were to calculate the cost of rebuilding a structure using exactly the same material used in the original construction, you would determine the cost of: Reproduction. Replacement. Refurbishing. Regeneration.

A. Reproduction.

Under our land system, we have certain rights which are called "bundle of rights." Which of the following is included in the "bundle of rights?": Right of disposition. Right of unrestricted use. Right of eminent domain. Right to bear arms.

A. Right of disposition

Which of the following is an economic characteristic of land?: Scarcity. Indestructibility. Heterogeneity. Fixed location.

A. Scarcity

Under a general warranty deed, which of the following is true?: The grantor guarantees to defend the title. The grantor's guaranty expires upon the death of the grantee. Guaranties are limited to the time the grantor owned the property. No guarantees are made.

A. The grantor guarantees to defend the title.

In the Fair Housing Act of 1988, the definition of a handicapped person may include: alcoholics and persons with communicable diseases. current drug abusers. Transvestites. All of the above.

A. alcoholics and persons with communicable diseases.

"Time is of the essence" means: both parties must perform within specified time or be guilty of breach. offeree must accept within specified time or offer lapses. acts required by contract should be performed within a reasonable length of time. both parties to the contract waive the necessity of performance by a specified time.

A. both parties must perform within specified time or be guilty of breach.

Depreciation resulting from outmoded design such as tall ceilings that make a home expensive to heat is classed as: functional obsolescence. physical deterioration. economic obsolescence. psychologically impacted.

A. functional obsolescence.

A building you have listed burns down. This would result: in termination of the listing contract by operation of law. in a reduction of the listed price based on the accrual method of depreciation. in payment of the agreed compensation as part of the insurance settlement. termination by acts of the parties as it was probably arson.

A. in termination of the listing contract by operation of law.

Limited partners are: limited as to how much they can invest in the business. liable without limits. limited as to their liability for debts of the partnership. liable personally for their share of partnership debts.

A. limited as to their liability for debts of the partnership.

Property of a temporary or moveable nature is: personal property. real property. Realty. real estate.

A. personal property

The money for making Federal Housing Administration loans is provided by: qualified lending institutions. any government agency. the Federal Housing Administration Agency. The Federal Deposit Insurance Corporation.

A. qualified lending institutions.

The Statute of Frauds: requires real estate contracts to be in writing to be enforceable. requires a licensee to operate as a broker. regulates escrow accounts. regulates conveyance by fraud.

A. requires real estate contracts to be in writing to be enforceable.

Under which of the following circumstances might a broker be liable for misrepresentation in negotiations with a prospective buyer?: Broker states the land area is approximately one acre, when it is actually 44,000 square feet. Broker fails to mention that the property is in a flood plain and flood insurance will be required if a mortgage is sought. Broker fails to advise the buyer that the property is located in an area of racial change and values will probably decrease. Broker does not tell the purchaser that the lending institution will require an impound account.

B. Broker fails to mention that the property is in a flood plain and flood insurance will be required if a mortgage is sought.

A person bought an apartment in a large building and received a deed conveying a fee simple title, plus a fractional share of common elements, and a tax bill on the apartment. This type of living unit is a: cooperative apartment. Condominium. duplex complex. complex duplex.

B. Condominium

The government may take private property provided it pays a just compensation for the property and the property must be for public use. Which of the following gives the government this right?: Police power of the government. Eminent domain. Property tax liens. Escheat action.

B. Eminent domain.

Which of the following does the law recognize as the highest type of interest in real estate?: Conventional life estate. Fee simple estate. Leasehold estate. Estate of survivorship.

B. Fee simple estate

Dusty Rhodes, an Oklahoma resident, died without leaving a written will. Which of the following is true?: His estate will not go through probate. He has died intestate. His estate automatically escheats to the county. His will was holographic.

B. He has died intestate.

Real estate occupied as a home by an owner who enjoys special rights and privileges is a(n): Freehold. Homestead. joint tenancy. estate forever.

B. Homestead

Which of the following is not a major acceptable means of describing property?: Rectangular Survey. House number. Lot and block. Metes and bounds.

B. House number

Estates owned by those who rent or lease property from others are: defeasible fee estates. leasehold estates. fee simple estates. estates at sufferance.

B. Leasehold estates

In of a breach of contract, the parties may specify in the contract the amount of damages to be paid in case of a breach. This is known as the: Collected damages clause. Liquidated damages clause. Specific performance clause. Impractical performance clause.

B. Liquidated damages clause.

Real property described by beginning at a certain point and measuring and indicating the direction and length of the boundaries of the property until the point of beginning is again reached is called: government survey. metes and bounds. Monuments. lots and blocks.

B. Metes and bounds

The right of an owner to use property without interference is guaranteed by the covenant: Of further assurance. Of quiet enjoyment. Of seizen. Against encumbrance.

B. Of quiet enjoyment.

The act of channeling prospective home buyers to a particular area to either maintain or change the racial character of a neighborhood is: Blockbusting. Steering. Canvassing. Redlining.

B. Steering.

`A valid contract must have legality of objective. Which of the following describes "legality of objective?": All the parties are of legal age and agree upon the legal consideration to be paid. The contract must not be for an illegal purpose or against public policy. Either party has the legal right to cancel the contract, provided legal notice is given. An agreement between competent parties that is legally enforceable.

B. The contract must not be for an illegal purpose or against public policy.

A contract that has no legal effect because it does not contain all the essential requirements of a contract is: Voidable. Void. Illegal. Executory.

B. Void.

Police power may be defined as the power of government to enact and enforce laws for the order, health, safety, morals and general welfare of the public. Which of the following is an exercise of police power?: Acquisition of private property for use by a municipality in exchange for just compensation. Zoning by a municipality. Condemnation of private lands by the Federal Government to construct a dam. Taking of property by the state when the owner dies intestate and no heirs are known.

B. Zoning by a municipality.

An owner who gives more than one broker an employment contract at one time has given each of them: Nothing. an open listing. a net listing. an exclusive listing.

B. an open listing. Multiple listing arrangements are: agreements among brokers to list properties separately. arrangements among brokers in which they agree to share listings and split commissions on cooperated sales. agreements among brokers as to the commission rates they will charge. Both A and B. ANSWER B. arrangements among brokers in which they agree to share listings and split commissions on cooperated sales.

The market data approach to appraisal is the method of appraisal in which the value of the property is: based on factual data related to income yield. based on sales of comparable properties. based on costs of duplication of the property. found by capitalizing the net income of the property.

B. based on sales of comparable properties.

Capitalization is the process by which the estimated future annual net income is used as the basis to: determine value. estimate value. establish depreciation. calculate potential tax liability.

B. estimate value.

If the seller backs out of a transaction, the earnest money deposit: goes to the seller. goes to the buyer. is split between broker and buyer. is split between broker and seller.

B. goes to the buyer.

If property is held by two or more owners as tenants in common, upon the death of the owner, ownership of the deceased would pass to the: remaining owner or owners. heirs or whoever is designated under the deceased owner's will. last surviving partner. Estate.

B. heirs or whoever is designated under the deceased owner's will

The Federal Reserve System does all of the following EXCEPT: regulates amount of reserves required. insures savings and loan association accounts. engages in open market operations. sets the discount rate charged to member banks.

B. insures savings and loan association accounts.

The Oklahoma Brokerage Relationships Act of 2013 : supplements the common law of agency. increases the broker's fiduciary duties. replaces and abrogates the common law of agency. introduces designated brokerage.

c. replaces and abrogates the common law of agency.