Charles Barnes Final Exam

80. Q: To be eligible to receive a real estate broker license in Oklahoma (6555)

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

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

D. Provide B with a signed lead-based paint disclosure form.

When a realtor and a seller sign a listing contract, the broker becomes

D. Special agent

The buyer discovers, after closing, but the seller failed to disclose several problems existing with the property. The buyer demands the seller to take back the property and refund the buyer's money. The seller refuses. What is the probable outcome?

D. The buyer may sue for damages but not rescission of property purchase.

When is an offer to purchase property "accepted"?

D. The seller accepts, and the signed contract is delivered to the buyer.

A buyer had a contingency in a purchase contract to sell the buyers house in 120 days. On day 121, the seller informed the buyer that the seller would keep the earnest money but sell the house to another buyer. What did the original buyer violate?

D. Time is of the essence

The "secondary mortgage market" refers to the market wherein

D. existing loans are bought and sold.

Any acknowledgment before a notary public must be made

D. in person.

Earl is a real estate broker and has recently changed his business address, Earl has notified the Commission in the proper time frame and now must A. pay $30 for each license to be changed. B. pay $45 for each license to be changed. C. pay $25 for each license to be changed. D. pay $35 for each license to be changed.

pay $25 for each license to be changed.

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,

D. this transaction is considered an offer.

B is 45 years old and wants to rent a house from you. Under the Fair Housing Law which of the following would be legal?

Declining to rent to B because of his lack of income.

B is 45 years old and wants to rent a house from you. Under the Fair Housing Law which of the following would be legal? A. Requiring B to pay a $750 deposit because B has a child under 18 months of age. B. Requiring B to pay a $750 deposit because B has more than 2 children. C. Asking B to rent a home in another neighborhood because B has children. D. Declining to rent to B because of his lack of income.

Declining to rent to B because of his lack of income.

What transfers Real Property?

Deed

To create agency two things are required. What are they? A. Delegated authority and consent to act. B. Reasonable care and loyalty. C. Designated broker and appointed agent. D. A compensation and a written agency agreement.

Delegated authority and consent to act.

The intent of the Seller's Disclosure Notice is to do which of the following?

Disclose any known structural defects

When a licensee sells or buys real estate for him/herself, what must the licensee do? 605:10-9-4

Disclose in writing on all documents that pertain to the transaction & in all advertisements that he or she is licensed.

What can be the relationships when a broker assists only one party in a transaction?

Disclose in writing the broker's duties & responsibilities set for in Section 858-353 PRIOR to the party(s) signing a contract to sell, lease, option or exchange real estate.

The Seller has prepared a Property Condition Disclosure Statement. The Realtor notices a foundation crack which the Seller did not disclose. What should the Realtor do?

Disclose the foundation crack.

The primary purpose of Truth in Lending is to:

Disclose the true costs of obtaining credit.

Which of the following best describes Regulation Z?

Disclosure of credit charges.

Which of the following best describes Regulation Z? A. Requirements for licensing of brokers. B. Discrimination in housing. C. Regulation of mortgage interest rates. D. Disclosure of credit charges.

Disclosure of credit charges.

A who is a lender wishes to make the yield on a loan lower than the current market value. What would A charge to make the loan more competitive? A. Interest Point(s). B. Penalty Point(s). C. Interest fee. D. Discount Point(s).

Discount Point(s).

Allen who is a lender wished to make the yield on a loan lower than the current market value. What would Allen charge to make the loan more competitive?

Discount Points

Albert is an agent and has a listing on bills property. Bill instructs albert not to disclose a major mold problem in the house. Which of the following should albert do?

Do not obey what Bill asked

Without both parties written consent, the broker is prohibited from representing both a seller and a buyer in the same transaction, defines

Dual Agency

Discrimination is prohibited in lending practices under:

ECOA- Equal Credit Oppurtunity Act

Whose licenses must a broker maintain? 605:10-9-1

Each associate's license shall be issued to & available upon request in the office to which the associate is assigned whether that be the main place of business or branch office.

Earl who is a real estate broker, decides to close his office and cease real estate business, A. Earl is required to shred all records of his clients and notify the Commission within 72 hours. B. Earl is required to notify the Commission of the effective date and where records will be stored. C. Earl is required to post a public notice in any local newspaper and notify the Commission. D. Earl is required to notify the Commission within 72 hours.

Earl is required to notify the Commission of the effective date and where records will be stored.

Of the following, which is NOT necessary to have a valid contract for the Sale of Real Estate?

Earnest Money

Over time, a parcel of land lost access to a county road. The land owner had to obtain access to the road by court action. This is an example of

Easement by Necessity

Beyond the mandated subject matter, what term is applied to the remainder of continuing education courses?

Elective subject matter as approved by the Commission.

A puts a fence between his and B\'s property. B discovers that the fence is three feet on his side of the property line. This is termed a(n) A. Lien. B. Encroachment. C. Easement. D. Appurtance.

Encroachment.

A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage?

Enforceable

At the direction of a seller client a agent tells a pregnant working woman that the property is not in a good neighborhood for a single woman

Engaged in steering

What is the requirement for office identification? 605:10-9-2

Erect & maintain a sign on or about the entrance of the office. Sign shall be easily observed & read by person about to enter the office.

How does the Code define "person"?

Every individual, partnership, association or corporation, foreign or domestic.

A seller and a broker signed a contract to market a house. After 63 days on the market the seller called the broker to say, thanks but the seller had found a buyer. What kind of listing is this?

Exclusive Agency Listing

Which of the following types of listings are considered the most desirable for a broker?

Exclusive right to sell listing

Which of the following types of listings are considered the most desirable for a broker? A. Open listing. B. Net listing. C. Exclusive right to sell listing. D. One time show only listing.

Exclusive right to sell listing.

Which of the following is not included in the concept of eminent domain?

Exercise of zoning authority

It may be cause for suspension or revocation of license to

place a for sale sign on property without consent of the owner.

Which of the following is not included in the concept of eminent domain? A. Right of government to take property from the owner. B. Exercise of zoning authority. C. Condemnation proceeding. D. Just compensation at fair market value.

Exercise of zoning authority

Q: Section 7 of a township is directly below section (5784)

Explain: A township consists of 36 sections and section 1 starts in the top right of the township and goes from right to left.

Q: In order for a property to have value it must have all the following characteristics except (5803)

Explain: Demand, utility, scarcity, and transferability

Which agency investigates mortgage fraud

FBI

Which statement is true regarding FHA loans?

FHA insures approved lenders

It may be cause for suspension or revocation of license to A. place a leased billboard on a public highway. B. place a for sale sign on property without consent of the owner. C. give a business card to an unlicensed person. D. have a daily open house on listed property.

place a for sale sign on property without consent of the owner.

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

Family member 18 or older

Who is the largest purchaser in the secondary market?

Fannie Mae

The kind of estate most freely inheritable and transferable is a

Fee simple estate

The kind of estate most freely inheritable and transferable is a A. Fee simple estate. B. Life estate C. Estate in remainder D. Estate in reversion

Fee simple estate.

What happens when a license is issued for less than 36 months?

Fees shall be prorated to the nearest dollar & month.

After 30 days, what is the amount of the fine?

Fines shall double

The primary survey line running north and south in the rectangular survey system is the:

principal meridian

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

prior to completing a listing agreement.

A home improvement company was negotiating with a homeowner to add on two rooms to a home. The company agreed to take a second mortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan?

Friday, midnight. Because agreement was reached and SIGNED documents were provided on TUESDAY, Friday midnight ends the THREE-business-day period

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

General Agents

Which of the following deeds would be most preferred by the buyer?

General Warranty Deed

Which of the following deeds would be most preferred by the buyer? A. Limited warranty deed. B. General warranty deed. C. Quitclaim deed. D. Special warranty deed.

General warranty deed.

Which of the following reflects the stages through which a neighborhood passes A. Development, decline, revitalization, stability B. Stability, decline, revitalization and growth C. Development, stability, and revitalization D. Growth, stability, decline and revitalization

Growth, stability, decline and revitalization

183. Q: Jim has an INACTIVE real estate license and personally puts an offer on a piece of real property, (6568)

HE DOES NEED TO DISCLOSE

Which of the following is NOT a requirement for a valid conveyance of real property?

Habendum Clause. INCORRECT

B is a broker and has a trust account. B mixes his personal and business funds in this account. This is A. a common practice in Oklahoma however it is frowned upon in the real estate community. B. prohibited by the Oklahoma Real Estate Commission. C. a common practice and allowed by the Oklahoma Real Estate Commission if all parties connected the trust account are notified. D. a common practice and allowed if proper accounting is made.

prohibited by the Oklahoma Real Estate Commission. Physical deterioration

What is a hearing examiner?

Has the power & authority to conduct such hearings in the name of the Commission.

In the completion of a printed form of sales contract, several words were crossed out and other inserted. In order to eliminate future controversy as to whether the changes were made before or after the contract was signed, the broker should do which of the following? A. Have the entire contract re-drawn. B. Have both parties initial or sign on the margin near each change. C. Have each party write a letter to the other approving the changes. D. Write a letter to each party listing the changes that were made.

Have both parties initial or sign on the margin near each change.

Harvey Lipman, a masonry subcontractor, is owed $5,000 for work on a custom-built home in Sulphur Springs. How can he give constructive notice when his invoices to the customer continue to go unpaid?

He can obtain a mechanic's lien against the property

A family is looking for a home in a certain price range. The wife suggests several listing on the east side of town, and the agent agrees to show the family the suggested properties. En route to the targeted neighborhood, the agent drives a certain route to show the family certain retail services and two schools. What has the agent done wrong?

He has done nothing wrong.

An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?

He must exercise his option under the terms of the option contract

The fact that no two parcels of land can occupy the same location is referred to as A. Homogenity B. Heterogenity C. Non-hetrogenity D. None of the above.

Heterogenity

Which of the following is NOT a requirement to obtain a Provisional Sales Associate License?

High School Diploma or GED

In the event a transaction does not consummate, a broker shall A. promptly disburse the earnest money or items to the proper party in a way the Broker feels is in the best interest. B. promptly disburse the earnest money or items to the proper party in a way the Broker feels it\'s best for him/her. C. promptly disburse the earnest money or items to the proper party in accordance with the terms of the contract. D. None of the above

promptly disburse the earnest money or items to the proper party in accordance with the terms of the contract.

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.

Q: The Oklahoma Residential Landlord and Tenant Act does not govern (6588)

INSTITUTIONS-IS CORRECT

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 A. promptly on receipt. B. as soon as the seller has decided on any previous offer. C. prior to the seller deciding on any previous offer. D. in order of the best offer.

promptly on receipt.

Albert sells his home to ben which was built in 1977 Albert has to

provide B with a signed lead based paint disclosure form

A sells his home to B which was built in 1977. Because this house was built prior to 1978, A is required to A. provide B with a signed lead based paint disclosure form. B. re-paint the entire house before B moves in, so that any lead based paint that may be present will be covered and protected. C. provide B with a signed radon test disclosure form. D. pay for a structural home inspection.

provide B with a signed lead based paint disclosure form.

If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support?

If the parent was relying on the income for repayment of the loan

A deed that passes any title the grantor has but contains no warranties, is called a A. quitclaim deed. B. warranty deed. C. bargain and sale deed. D. grant deed.

quitclaim deed.

A received a deed from B who is the grantor and the deed contains no warranties. This deed is called a A. grant deed. B. special warranty deed. C. quitclaim deed. D. warranty deed.

quitclaim deed.

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

race

A is a licensed real estate broker and should reveal her license status under which of the following conditions?

In any real estate transaction A is involved with.

A is a licensed real estate broker and should reveal her license status under which of the following conditions? A. When A deems that it is advisable, based on first-hand knowledge of the situation and careful judgment. B. In any real estate transaction A is involved with. C. When A is representing a principal to third parties. D. In any real estate transaction except personal transactions.

In any real estate transaction A is involved with.

Q: An agency relationship may be terminated by all the following except

reciprocity

When an appraiser correlates the three approaches into a final estimate, he:

reconciles the differences according to the type of property being appraised and the quantity and quality of data available.

A feature found in a comparable property that is not present in the subject property will result in a:

reduction adjustment to the comparable's selling price.

The Adams family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of:

regression

It may be cause for suspension or revocation of license to A. manage an apartment complex while living on the premises. B. live in leased property. C. represent a broker other than the sponsoring broker in a real estate transaction. D. keep a pet in the real estate office.

represent a broker other than the sponsoring broker in a real estate transaction.

What new section has been added to the law section on broker compensation?

In the event a broker receives a fee or compensation from any party to the transaction based on a selling price or lease cost of a transaction, such receipt does not constitute a breach of duty or obligation to any party to the transaction.

An investor is considering the purchase of a seven unit strip mall on a well traveled road. What appraisal method is likely to provide the most accurate result?

Income Capitalization Approach

Which of the following items would affect a homeowner's adjusted basis?

Installing a new furnace

An increase in the availability of money would lead to which effect?

Interest rates would go down

Which of the following may the Oklahoma Real Estate Commission do upon its own motion?

Investigate the business transactions of any real estate licensee.

What happens when a licensee acts as a direct employee for an owner? 605:10-9-4

Is not required to indicate in the advertising that he or she is licensed.

Joe Brown agrees to buy Mary Meeks house for $215,000. Joe Brown deposits $2,000 earnest deposit with broker Jake Claus. Mary Meeks cannot give clear title to the property. Joe Brown demands return of his earnest deposit as provided in the contract. What should Broker Jake Claus do

Jake Claus should return the entire amount of the earnest deposit to Joe Brown.

Jim has an ACTIVE real estate license and personally puts an offer on a piece of real property,

Jim needs to disclose in writing that he is licensed.

Jim has an INACTIVE real estate license and personally puts an offer on a piece of real property, A. Jim needs to write the OREC and inform that he is purchasing a piece of real property. B. Jim does not need to disclose that he is a licensed real estate associate. C. Jim needs to disclose in writing that he is licensed. D. None of the above

Jim needs to disclose in writing that he is licensed.

A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire?

June 15, 2004

Q: One member of the Oklahoma Real Estate Commission is set aside for (5906)

LAYMAN

What is the critical specific issue with houses built before 1978?

Lead Based Paint

Which of the following transfers possession but not ownership? A. Mortgage. B. Land contract. C. Lease. D. None of the above.

Lease.

What happens if a fine has not been paid in 60 days?

License will automatically be revoked.

Who may engage in real estate activities?

Licensed Real Estate Agent.

77. Q: Members of NAREB are referred to as (5819)

MULTILINGUAL BROKERS

Which class is protected under the Equal Credit Opportunity Act but not under the Fair Housing Act? A. Marital Status. B. Sex. C. Ancestry. D. Religion.

Marital Status.

When a value estimate is obtained by comparing the subject property with recent sales of comparable properties, this is a definition of ...

Market/Data Approach

What can happen to a licensee's license?

May be suspended

When an associate moves to a new broker, within what time limit can the associate continue to engage in real estate activities? 605:10-11-2

May continually act if the change is done in a timely manner & in compliance with the 10 day notification requirment.

What is the procedure for a dissociated associate to be compensated by the prior broker? 605:10-11-2

May pay compensation directly to the associate & not be required to make the payment through the associate's new broker.

How may a branch office use a name different than the main office? 605:10-7-7

May use a different name as long as the broker registers the name(s) with the Commission.

Q: You own property which adjoins a non-navigable stream. Your property line would extend to the (6620)

Middle of the stream

When is the actual expiration of a license? 605:10-7-2

Midnight of the last day of the month of the designated license term.

How many hours must a licensee complete?

Minimum of 21 hours.

The real estate brokers operation account should include which of the following?

Money from the broker to operate the business.

The real estate brokers operation account should include which of the following? A. Deposits from the funds of his personal real estate rentals. B. Trust funds. C. Money from the broker to operate the business. D. None of the above.

Money from the broker to operate the business.

What factor would be necessary in the equation to determine the Gross Rent Multiplier (GRM) contrasted to calculating the Gross Income Multiplier (GIM)?

Monthly Rental Income

Who has the burden of proof in a hearing?

Moving Party.

What is time limit for depositing escrow funds? 605:10-13-1

Must be deposited before the end of the 3rd banking day following acceptance of an offer by an offeree unless otherwise agreed to in writing by all interested parties.

When may a license begin conducting real estate business? 605:10-7-1

Must be issued your number active license certificate.

What must a broker do with regards to an interest bearing trust account? 605:10-13-1

Must disclose in writing to all parties that the account bears interest & identify the party receiving the interest.

To be eligible to receive a real estate broker license in Oklahoma A. Must have 3 years experience, within the previous 5 years, as a licensed real estate associate or provisional sales associate. B. Must have 3 years experience, within the previous 7 years, as a licensed real estate associate or provisional sales associate. C. Must have 4 years experience, within the previous 5 years, as a licensed real estate associate or provisional sales associate. D. Must have 2 years experience, within the previous 5 years, as a licensed real estate associate or provisional sales associate.

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

When & how may a licensee promote a seller incentive? 605:10-9-4

Must have consent from the seller. The promotion only applies to the seller's particular property.

What is the restriction regarding contact information in an advertisement? 605:10-9-4

Must indicate that the party is a real estate broker & not a private party, to include, but not limited to, "agency", "company" , "realty", or "real estate", as the case may be.

What is the OREC requirement concerning in-class attendance?

Must physically be present during all of the offering time & successfully complete all course requirements to include an examination.

What constitutes in-class credit?

Must physically be present during all of the offering time & successfully complete all course requirements.

If OREC denies an applicant a license, what course of action can the applicant take? 605:10-3-3

Must provide written request within 30 days of being denied.

What must a licensee do to renew a license regarding continuing education? 605:10-7-2

Must submit evidence that they have completed the continuing education requirements enumerated in Section 858-307.2 of Title 59.

What proves distance education credit?

Must successfully complete all course requirements to include all modules and an examination.

172. Q: Claire, who is a real estate broker, closes her office, Claire (6577)

Must terminate all advertising in the name of her firm and offering signs must be removed within 30 days.

What is the first requirement for advertising real estate? 605:10-9-4

Must use their registered business trade name or the name under which the broker is licensed.

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

NOT the listing agent

What information must be on a yard sign?

Name of the associate's broker

Looking at shopping centers in the appraisal process, the social fiber of the community and distances from schools is called:

Neighborhood Analysis

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

Net Lease

A property owner wants to put $240,000. in the bank after selling a property and accounting for all expenses. A broker finds a buyer and sells the property for %28,000. Closing costs come to $10,000. not including the brokers commission. According to the agreement the remainder of the amount over $240,000 goes to the broker as commission. The listing agreement is probably a

Net Listing

What is a licensees duty regarding registered sex offenders or violent crime offenders?

No duty.

Broker office signs must have letters at least what size? 605:10-9-2

No less than 1 inch

What is the limitation regarding Congressional Districts?

No more than 2 members from the same congressional district.

Grant Parks, a general contractor, and his partner Sam Davis, a licensed broker, decide to buy a rundown apartment building in downtown Houston for which Sam is the listing agent. The property has been on the market for over nine months and has not attracted any offers. Grant and Sam plan to rehab the building and seek a change in zoning to make it more marketable. Can Grant buy the property from the seller without disclosing his partnership with Sam?

No, Sam should inform the seller of his partnership with Grant

In doing a market analysis, an appraiser found a recently sold property where the owners had just gone through a divorce. The property had been listed for $60,000 for 3 months but was purchased for $40,000 by one of the spouses. Should the appraiser use this as a comparable?

No--because of the divorce it was not an "at arms' length" transaction.

When a client pays a broker, does this act establish a relationship?

No.

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be a violation of the Truth in Lending Act?

No. Owners are not covered by Reg. Z.

The MLS property details said, "As Is." The listing broker, who once owned the house, neglected to tell anyone about the old well that he had covered over 7 years earlier. The new owner's dog fell through the rotted well cover and drown. Did the realtor do anything wrong according to the code & rules?

No. The statute of limitations had expired IS NOT THE ANSWER

Emma Johnson's efficiency apartment is unlivable since the furnace quit working three weeks ago. Emma has called her landlord repeatedly, with no response. She also tried e-mailing him and even went so far as to send a written letter by certified mail, return receipt. She has yet to hear from him or to see any signs of attempted repairs. After enduring chilly nights for 3 days where the temperatures dipped near freezing and catching a bad cold that turned into bronchitis, she packed a suitcase and moved in with a friend until the situation is remedied. She only returns to her apartment each day to check mail and messages and see if any repairs have been made. Rent is due in 4 days; must Emma pay her rent while such conditions exist?

No; since she brought the problem to the landlord's attention but received no response, she can claim constructive eviction.

Which of the following loans are not insured by a government organization? A. Conventional loan. B. Personal Loan. C. VA Loan. D. None of the above.

None of the above.

All the following must possess a valid Oklahoma Real Estate license EXCEPT?

None. All of them must possess an OREC issued license.

A Buyer inquires to the listing broker (who represents the Seller) why the Seller is selling and what is the lowest price the seller would accept in an offer. The Listing Broker should...

Not answer the questions as Loyalty to the Seller.

An unlicensed person who violates real estate law may be guilty of a misdemeanor punishable by a fine of?

Not more than $1,000.

A realtor also belongs to the vietnam veterans of america (VVA) The realto calls people asking for a clothing donation to the VVA charity. What has the realtor violated?

Nothing. The realtor is not selling Real Estate services

What must a licensee do if the licensee pleads nolo contendere?

Notify the Commission in writing of the conviction within 30 days after the plea is taken.

If a broker refuses to release an associate, what action must the associate take? 605:10-11-2

Notify the broker by certified mail of the disassociation & furnish the Commission a sworn statement that the notification has been sent to the broker.

A buyer assumes the mortgage. How is the owner relieved of the liability?

Novation

What's the relationship between the Oklahoma Real Estate License Code & the Common Law of Agency?

OREC Code shall replace & abrogate the fiduciary duties of a broker to a party based on common law principles of agency.

Which statement is FALSE?

OREC is exempt from being sued but may sue.

The Oklahoma Real Estate Commission office(s) are located

Oklahoma City

Where must the OREC office be located?

Oklahoma City, OK

Where does OREC deposit the money paid for fines?

Oklahoma Real Estate Education & Recovery Fund.

Oklahoma Real Estate Commission has been recreated to continue until July 1, 2013 under the provisions of what law A. Oklahoma Sunset Act B. Brokerage Relationship Act C. Real Estate license code D. Sherman Anti-Trust Act

Oklahoma Sunset Act

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

Oklahoma Sunset Act

When can a licensee place a yard sign on a property? 605:10-9-4

Once they have secured the permission of the owner or the owner's authorized representative & said permission has a definite date of expiration.

All acts performed by an associate must be in the name of whom? 605:10-11-1

Only in the name of the associate's broker.

Which of the following types of real estate licensees is required to display their license prominently at their place of business?

Only licensees who are residential rental locators are required to display their licenses

Which of the following is NOT a reliable source to describe the square footage of Oklahoma real estate?

Owner's Notarized Affidavit

Who pays the cost of the national criminal history record check?

Paid by the applicant.

What is the time limit to pay an OREC fine?

Paid within 30 days.

A wants to receive his real estate brokers license. Which of the following qualifications must A meet to obtain his Oklahoma real estate brokers license?

Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam.

A wants to receive his real estate brokers license. Which of the following qualifications must A meet to obtain his Oklahoma real estate brokers license? A. Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam. B. Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past year, and pass the state exam. C. Pass a 75 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam. D. None of the above.

Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam.

Al wants to receive his real estate brokers license. Which of the following qualifications must Al meet to obtain his Oklahoma real estate brokers license?

Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam.

The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mortgage, which had a current balance of $23,000. The Smiths' financed the remaining $37,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a:

Past Purchase Mortgage

What must an applicant do to retest after a test failure?

Pay fee for each test.

Tammy Doherty, a licensee found to be in violation of the Act, has been ordered to pay an administrative penalty of $1,000. Tammy has 30 days to:

Pay the penalty, stay the penalty, or contest the decision

What is the penalty for late filing? 605:10-7-2

Payment of an amount equal to the current examination fee in addition to the license & late penalty fee(s) for each delinquent license period(s).

There are certain things which can consistently be said about property. One of these is that property is always A. Personal if it is not real. B. Real if it is tangible. C. Personal if it is a fixture. D. None of the above.

Personal if it is not real.

The Oklahoma Real Estate license law requires which of the following to have a real estate license? A. Attorney at law performing real estate services in his or her law practice. B. Persons who manage or sell property for others including immediate family members. C. Persons acting as the attorney in fact for the owner of real estate authorizing the consummation of a real estate transaction. D. Home owners selling their property for commercial use.

Persons who manage or sell property for others including immediate family members.

Mary wanted to sell her house which had a serious leak in the roof. The broker told Mary that she must replace the roof in order for the house to sell. The leaky roof is considered what kind of depreciation. A. Curable external oblescence B. Incurable external oblescence C. Incurable functional obsolescence D. Physical deterioration

Physical deterioration

Mary wanted to sell her house which had a serious leak in the roof. The broker told Mary that she must replace the roof in order for the house to sell. The leaky roof is considered what kind of depreciation?

Physical deterioration

Jess and Celia Bickford are a young, newly-married couple trying to buy their first home in McKinney. The home they would like to buy is selling for $143, 500 and they have $8,500 saved for a down payment. Taking closing costs and down payment into consideration, an online calculator estimates that their monthly mortgage payments on a 6.1% loan would be around $846.43 - an amount that would be manageable for the couple on their $84,000 (annual) income. However, an affordability calculator rated their housing expense-to-income ratio as 28% and their debt-to-income ratio as 36% Would the Bickfords be likely to qualify for a conventional mortgage?

Probably not; they are on the borderline of the maximum housing expense-to-income ratio and debt-to-income ratio limits necessary to qualify for a conventional loan. An FHA loan would give them a little more flexibility in these ratios and in down payment requirements.

What are the subject areas OREC mandates for continuing education credit?

Professional Conduct, Broker Relationships Act, Fair Housing, Contracts & Forms, Code & Rule Updates & Current Issues.

The County Board of Supervisors announced State and Federal Funding to widen a two lane road to four lanes. Within a month, property values along the route yielded a 10% gain. This is an example of which Principle of Valuation.

Progression. INCORRECT

How does one determine the gross rent multiplier?

Property value divided by the monthly rent.

What must any broker do if the broker charges and collects fees for services?

Provide detailed accounting of expenditures to the person such services are performed within 10 days after the time specified to perform such services or upon written request from person for whom services are performed for, but no longer than 1 year from date of contract for such services.

What must an individual prove for license renewals & reinstatement? 605:10-7-1.1

Provide documentation to verify citizenship, qualified alien status, and eligibility under the Personal Responsibility & Work Opportunity Reconciliation Act of 1996.

What can be the relationships when a broker assists both parties in a transaction?

Provide written notice to both parties that the firm is providing brokerage service to both parties to a transaction prior to the parties signing a contract to purchase, lease, option or exchange real estate.

Which of the following is a six-mile strip running parallel to the Indian Meridian? A. Range. B. Tier. C. Standard parallel. D. Guide meridian.

Range

Which of the following are examples of items typically prorated between seller and buyer at closing?

Real estate taxes

When construction cost is based on current prices that would not be an exact duplicate of the subject property defines...

Reconciliation. INCORRECT

A who is a broker went to get a listing on a piece of property B was wanting to sell. B indicated to A that he did not want his house sold to an Hispanic. Which of the following should a do? A. List the property because it was not his idea. B. List the property and discourage Hispanics from looking at the property. C. Refuse to list the property. D. None of the above.

Refuse to list the property.

What must accompany a name change filing with the OREC?

Return the license certificate to the Commission office along with the request for such name change.

A revoked license must be?

Returned to the Commission

What rights does an applicant have after a failed examination?

Right to review their missed questions at the end of their examination.

A stream running north to south separates two parcels of land, The owner of the east bank claims all water to the western bank. The owner of the western bank can legally dispute this claim based on what doctrine?

Riparian Rights

A has just made the final payment on his mortgage loan to the bank. Regardless of this fact, the bank will still hold a lien on A\'s property until which of the following is recorded? A. Reversion of the mortgage instrument. B. Alienation of the mortgage instrument. C. Satisfaction of the mortgage instrument. D. Re-conveyance of the mortgage instrument.

Satisfaction of the mortgage instrument.

An important function of the secondary mortgage market is to?

Sell mortgage-backed securities in order to buy pools of loans

What must an applicant do to test? 605:10-3-5

Shall appear in person

What is the consequence of an expired license regarding the licensee's background? 605:10-7-2

Shall be considered an applicant & subject to a national criminal history record check.

What must each broker maintain? 605:10-9-1

Shall maintain a specific place of business, and supervise a brokerage practice which is available to the public during reasonable business hours.

What is the status of a provisional sales associate who has not successfully completed the post licensing education requirement before the expiration of their license? 605:10-7-2

Shall not be eligible to reinstate such license & shall apply & qualify as an original applicant.

What happens if a provisional sales associate fails to complete a post license course? 605:10-3-7

Shall not be entitled to renew such license.

In a repayment of a mortgage loan, which type of interest is used?

Simple

In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called?

Statutory Right of Redemption

129. Q: 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 (6557)

Steering

Leading prospective buyers to specific areas or avoiding areas to either maintain or change the area's character is a definition of ...

Steering

B purchases a parcel of land in Tulsa, Oklahoma and sells the interests in any minerals located in the ground to an exploration company. This means that B now owns all but which of the following with regard to this property? A. Sub surface rights. B. Air rights. C. Land rights. D. Surface rights.

Sub surface rights.

Which of the following methods describes land by stating the compass directions and distances of the boundaries?

Surveyors method of metes and bounds.

Which of the following forms of ownership can only be held by a husband and wife? A. Tenancy by the entirety. B. Tenancy in common. C. Joint tenancy with right of survivorship. D. Ownership in severalty.

Tenancy by the entirety.

An estate that is owned by three siblings with no rights of survivorship is an example of which of the following?

Tenancy in Common

A and B own a house. After owning the house for 2 years, A decides he wants to sell his interest in the property. A and B own the house under the following form of ownership? A. Estate of trust. B. Tenancy in Common. C. Titled estate. D. Tenancy at will.

Tenancy in Common.

Marcy Weyor, Nacogdoches homeowner, has just received a promotion that requires her to relocate to Atlanta, Georgia within two months. She would like to have the proceeds from the sale of her house to finance her move. At the suggestion of her real estate salesperson, the house is listed as having an "assumable mortgage." What does this mean?

That the buyers can assume Marcy's mortgage on its current terms, as long as the lender approves

The decision as to what the highest and best use to which a particular property could be put is determined by which of the following?

That use which would produce the greatest amount of amentias or net income in future years.

The decision as to what the highest and best use to which a particular property could be put is determined by which of the following? A. What use would presently produce the largest net income. B. What similar building lots are being sold for. C. How tall a building the neighborhood would warrant. D. That use which would produce the greatest amount of amentias or net income in future years.

That which would produce the greatest amount of amentias or net income in future years.

In what month does a license expire?

The 12th or 36th month, which ever applies.

A broker has a listing contract on a vacant house it has tanken longer to sell than anticipated

The Broker

To whom or what will OREC issue a new Provisional Sales Associate License?

The Broker

the buyer purchased a property. For years, the neighbors had considered the house strange with odd happenings. The house had been rented for 8 years with only one owner, but no one lived there very long. Neither the Realtor nor the Seller disclosed that a murder suicide had occurred at the residence 10 years earlier in a type of ritual. What should the Realtor have done?

The Broker has no obligation to disclose.

An Agent had enough business to warrant hiring an Unlicensed Assistant. At a peak busy time, the Assistant showed a listing to a prospective Buyer. Who will face discipline from OREC?

The Broker, the Associate, and the Assistant

The lender is required, under RESPA, to provide a detailed "Good Faith Estimate" statement at the time of loan application or within there business days to:

The Buyer

What or who regulates & issues real estate licenses in Oklahoma?

The Commission

In appraising special purpose buildings like churches and government buildings the only reasonable approach to value would be A. The GRM method B. The Sales Comparison Approach C. The Income Capitalization Approach D. The Cost approach

The Cost approach

You have your license under a broker. Your broker is required to put your real estate license on display in the office. Which of the following is your broker also required to display? A. The Equal Housing Opportunity Poster (EHO). B. A copy of all recently passed real estate legislation. C. A photo located at the top left side of each license. D. All of office listings and must be posted by the front door.

The Equal Housing Opportunity Poster (EHO)

Who appoints OREC Members?

The Governor with the advice & consent of the Senate.

Who can remove members of OREC and for what causes/reasons?

The Governor. For inefficiency, neglect of duty, or malfeasance in office.

An impound or reserve account MOST benefits whom?

The Lender

The Morgans paid last year's property taxes of $2,015 in arrears on January 31, the last day to pay without penalty. Now, they are selling their property to Rowena Fyler with the closing date set for May 13. To the nearest cent, calculate who owes whom -- and what amount -- using the calendar year method of prorating and charging the day of closing to Rowena. Assume that it's not a leap year.

The Morgans owe Rowena $728.64.

Any person who desires to perform licensed activities in Oklahoma but maintains a place of business outside Oklahoma may obtain an Oklahoma nonresident license by complying with all applicable provisions of A. The OREC Code and Rules B. The laws from the state from which the licensee was licensed outside of Oklahoma C. The OAR rules D. None of the above

The OREC Code and Rules

What organization recommends candidates to serve as Commissioners?

The Oklahoma Association of Realtors, Incorporated.

What is the Commission?

The Oklahoma Real Estate Commission.

When is an offer to purchase property "accepted"?

The Seller accepts, and the signed contract is delivered to the Buyer.

When a Seller makes a Counter-Offer, what is the "essence" of such an action?

The Seller rejects the Buyer's offer.

The seller under a land contract is called:

The Vendor

What is the maximum amount of a potential payment, including attorney fees?

The amount equal to the unsatisfied portion of the unsatisfied portion of the claimant's judgement or $25,000, whichever is less.

If a license has lapsed more than 5 years, what is the status of the applicant? 605:10-7-2

The applicant shall be regarded as an original applicant.

What action, if any, must a broker take if he or she is involved in a transaction but did not prepare the contract to purchase document?

The broker must still document that he or she has complied with the disclosure requirements.

Who's name must be on the account? 605:10-13-1

The broker's name as it appears on eh license or trade name filed with the Commission.

Who is responsible for the acts of an associate's unlicensed assistant? 605:10-11-1

The broker.

A seller accepts a buyer's counteroffer and mails the accepted contract to the buyer two days after receiving it. Because of confusion in the post office, it takes four days for the accepted contract to reach the buyer. In the meantime, the buyer's offer has expired. Which of the following is true?

The buyer is bound to the contract.

Which statement is TRUE regarding the Residential Property Condition Disclosure Statement?

The disclosure is part of the sales contract between the buyer and seller. INCORRECT

If a sales associate obtains a broker license, what happens to the unexpired time on the sales associate license? 605:10-7-2

The fee shall be credited to the broker license fee.

What are the requirements of a firm when providing services to both sides of the transaction?

The firm must ensure that it is complying with all the broker duties and responsibilities owed to each of the parties.

When hearing a complaint before the commission, upon whom does the burden of proof fall?

The moving party.

What is a "trade name"? 605:10-1-2

The name a firm is to be known as & which is used in advertising by the firm to promote & generate publicity for the firm. A firm may or may not do business in the name under which their license is issued but must register with the Commission all trade names used by the firm.

John Stone owns property in a life estate which is to pass to his nephew upon Stone\'s death. Subsequently, Stone sells the property to Marty Jones. Which of the following is correct? A. The nephew must wait until Jones dies to receive the property B. The nephew will still receive the property when Stone dies. C. Jones must pay one-half of the purchase price to the nephew to make the transaction legal. D. Stone cannot legally sell property he owns in a life estate; therefore, the sale will be cancelled.

The nephew will still receive the property when Stone dies.

What does OREC say about an office in a broker's residence? 605:10-9-1

The office may be in the residence of a broker.

Which of the following should an appraiser\'s estimate of value reflect? A. Only the opinion of the appraiser. B. The opinion of a competent buyer and seller reacting in the current market. C. The formal opinion of the Oklahoma Appraiser Board. D. The formal opinion of the Appraisal Qualification Board.

The opinion of a competent buyer and seller reacting in the current market.

Under what condition can confidential information be released?

The party gives consent to the disclosure in writing.

If OREC directs an examination as disciplinary action, who pays the testing fee?

The person having to take the test.

Which of the following would usually occur in a sale-and-leaseback transaction?

The property is sold on the condition that the new owner lease it back to the seller at the time title passes

Who is responsible to furnish OREC with evidence of post license completion? 605:10-3-7

The provisional sales associate.

A gated community has a restrictive covenant that dictates fences can be no taller that 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 courts ruling?

The restrictive covenant takes precedence because it is more restrictive

Which of the following is not one of the \"bundle of rights\"? A. The right to build upon or destroy within the limits of the law. B. The right to use and possess. C. The right to lease or dispose. D. The right of unrestricted use.

The right of unrestricted use.

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it?

The trustee

A VA loan may be granted for the purchase of a one-family to four-family property if:

The veteran agrees to live there

What must a licensee include on licensee purchase contract? 605:10-9-4

Their license number.

Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker?

There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.

What is the legal biew of dower and curtesy in Texas?

They are not recognized

Which is true about restrictive covenants?

They are placed by private parties in a deed.

Why would a mortgagee (beneficiary) have an appraisal on the property?

To assure the property value is suffcient to cover the loan.

Why is the RESPA closing statement allowed to be examined on or before closing?

To check for mathematical errors

The first step in an appraisal is:

To define the problem.

What is the purpose of continuing education? 605:10-3-6

To provide an educational program through which real estate licensees can continually become more competent & remain qualified to engage in real estate activities for which they are licensed.

What is the purpose of provisional sales associate post license education? 605: 10-3-7

To provide an educational program through which real estate provisional sales associates licensees can become more competent, knowledgeable and perfect their ability to engage in real estate activities for which they are licensed.

What is the purpose of Regulation Z?

To provide full disclosure of loan terms

Which of the following statements best defines promulgate?

To put a law into affect officially

If a broker does not have a written agreement with a client, what is the relationship?

Transaction Brokerage

How much do OREC Commissioner's earn while serving in an OREC capacity?

Travel expenses essential to performing the duties of office as provided in the State Travel Reimbursement Act.

A realtor agrees by a handshake to sell the house of his former high school chemistry teacher. The realtor finds a buyer who submits a full price offer with no provisions. The house sells but the seller refuses to pay a commission to the realtor. What type of contract does the realtor have with the seller.

Unenforceable

The term USPAP stands for A. Uniform Standards of Professional Appraisal Practice B. United States Professional Association of Proprietors C. Uniform Standards of Professional Appraiser Proprietors D. Uniform Standards of Plumbers Appraising Property

Uniform Standards of Professional Appraisal Practice

A broker must notify the Oklahoma Real Estate Commission of their trust account(s). How many trust accounts is a broker allowed? A. One B. Unlimited C. Two D. Three

Unlimited

When may a broker disperse funds from a trust account? 605:10-13-1

Until the transaction involved is consummated or terminated & proper accounting made.

At what point should the landlord apprise the tenants of the rules and regulations of the lease?

Upon entering the leasing agreement -- or when the rules are adopted (if lease has already begun)

The Listing Agent decided to "spice-up" the advertisement by stating, "Only $50 down and $500 a month get you a new Home!" Whats the problem?

Violates Regulation Z

A and B signed a contract that was based on illegal consideration, this contract is

Void

A and B signed a contract that was based on illegal consideration, this contract is A. Voidable. B. Enforceable. C. Valid. D. Void.

Void.

A coerces B to enter into a contract with him. This contract is generally A. Voidable by A. B. Valid. C. Void. D. Voidable by B.

Voidable by B.

Z signs a contract with B who is a minor. The contract Z signed with B is A. Void. Minors cannot legally contract. B. Voidable by the minor. C. Cancelled because minors cannot legally contract. D. Illegal. Misdemeaner charges may be filed against the adult.

Voidable by the minor.

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called:

Warehousing

The test for Highest and Best Use includes all of the following EXCEPT

What use will cost the most to prepare the land for constructing a structure? [CORRECT] Explain: The test for Highest and Best Use as if vacant includes: Physically possible, Financially feasible, legally permissible, and maximally productive

Under what circumstances, if any can a broker deposit personal funds into an escrow account?

When funds are necessary to service the account.

Under what circumstances an a broker have an interest bearing escrow account?

When the account is disclosed in writing to all parties and states which party receives the interest.

When must a lender use HUD's Form (HUD-1) Uniform Settlement Statement?

When the loan insured or guaranteed by a federal agency

The Seller makes a counteroffer. The Buyer accepts and decides to reply using "snail" mail. When is a valid purchase contract created using the Post Office?

When the offeree puts the acceptance in the mail

The seller makes a counteroffer. The buyer accepts and decides to reply using snail mail. When is a valid purchase contract created using the post office?

When the offeree puts the acceptance in the mail

Bob (seller) signed a listing contract. The Listing Broker brought an offer which Bob rejected. Another Realtor represented 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 is a real estate broker and changes her name. When must A report this change to the Oklahoma Real Estate Commission?

Within 10 business days.

A is a real estate broker and changes her name. When must A report this change to the Oklahoma Real Estate Commission? A. Within 30 business days. B. When his or her license renews. C. Within 72 hours. D. Within 10 business days.

Within 10 business days.

What is the time limit to appeal an OREC adverse administrative action? 605:10-1-3

Within 30 days of notice of such action or decision, a written request for a hearing.

Deeds of conveyance should be recorded within what period of time after closing?

Within a reasonable period of time.

Marissa Pauls, licensed Texas real estate salesperson in Fort Worth, is browsing real estate websites when she views an ad placed by licensed real estate salesperson Brock Jordan that promises bonus cash payments for client referrals. Brock's office is in Dallas, and Marissa has just met a young couple wishing to relocate to Dallas. Under the law, can Marissa receive cash payments for any referrals she makes to Brock?

Yes, because it is a business referral between two real estate licensees.

An owner was selling his own home. Can he advertise the down payment?

Yes, because it was his own home.

The Rose family owns a home in a semi-rural area, which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway ending 1 mile before their home. If the airport is constructed, will this diminish the value of the Rose Home?

Yes, because of economic obsolescence.

Robert Weaver's sponsoring broker has asked him to provide an appraisal for one of Odessa Realty's clients. Is Robert authorized to provide an appraisal under the Real Estate License Act?

Yes, but only if he submits the appraisal in his sponsoring broker's name and adheres to the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation -- or, in the case of providing an analysis of market value, includes the mandated written disclosure.

Rob Harrelson and his girlfriend, Ginny Boyer, signed a listing agreement with Eliott Banks of Lubbock Realty a month ago. Since then, Eliott has moved to Lone Star Realty in a neighboring town. Rob and Ginny would prefer to keep their home listed with Lubbock Realty since it's a local agency with a stellar reputation, but Eliott is telling Rob and Ginny that they are now clients of Lone Star Realty and he has an offer to present to them. Is Eliott following the law in attempting to negotiate the sale of Rob and Ginny's house since moving to a new brokerage?

Yes, if Elliot has an agreement with his former agency, Lubbock Realty, that his client's migrate with him to his new brokerage then Rob and Ginny's listing may now be held by Lone Star Realty.

Can OREC sue & be sued?

Yes.

An industrious Realtor advertised a house listed for $125,000 as, "Move-in for Only $671.00 /Month." Did the Realtor violate any restriction?

Yes. Regulation Z

A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this?

Yes. This is acceptable as long as the seller agrees.

When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called:

a balloon payment

A broker may cooperate with other brokers in a transaction, under Sections 858-351 through 858-363 of The Oklahoma Real Estate License Code. However,

a broker shall not be an agent, subagent, or dual agent and an offer of subagency shall not be made to other brokers.

A property owner in a development is required to have a shake roof. This requirement is most likely to come from

a deed restriction.

An appraiser is usually paid:

a fee based on the amount of time and effort.

Two brothers, Mike and Austin Dunn, want to buy a townhouse together in Texarkana. Both men are recent college grads with professional-level jobs. Their lender has suggested a mortgage that offers lower monthly payments in the beginning that gradually increase at predetermined times over the life of the loan. Given that they expect their incomes to increase annually, they feel this type of loan might be a good choice because they'll be able to afford a larger townhouse. What type of loan does this describe?

a graduated payment mortgage

One member of the Oklahoma Real Estate Commission shall be

a lay person

One member of the Oklahoma Real Estate Commission shall be A. a licensed home inspector. B. a lay person. C. a plumber. D. the Secretary-Treasurer of the Real Estate Commission.

a lay person.

One member of the Oklahoma Real Estate Commission is set aside for A. a layman B. a lawyer. C. a member of the OAR. D. none of the above.

a layman

A broker who is duly licensed in another state and who has not obtained an Oklahoma nonresident license may enter a cooperative brokerage agre

a licensed real estate broker in this state

A broker who is duly licensed in another state and who has not obtained an Oklahoma nonresident license may enter a cooperative brokerage agreement with A. a licensed real estate broker in this state B. a non licensed real estate broker in this state C. a seller in this state D. none of the above

a licensed real estate broker in this state

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

a mandatory requirement.

Patty rents a storefront in downtown Arlington for her day spa, Boundless Beauty. She pays $1,500 a month in rent, plus a portion of the landlord's taxes, maintenance, and insurance (which fluctuate). What type of lease does Patty have?

a triple net lease

Economic obsolescence in a property is generally:

a type of depreciation that is incurable.

It may be cause for suspension or revocation of license to

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

The zoning commission of Jefferson County requires that all new construction in a specific area adhere to a specific type of architecture. What type of zoning is this?

aesthetic

Mark Whittaker is selling his house near Wimberly so he can relocate to Florida for a new job. Unfortunately, he has been in the house only slightly longer than 2 years and has not built much equity. Two years' time has increased the house's value by $2,500 -- the same amount that he has paid towards the principal of his loan. The balance on his mortgage is about $87,900. Mark's lender calls the balance due at the sale of the property, What is this action called?

alienation clause

Q: Truth-in-Lending statutes require disclosure of (6612)

all of the above

Truth-in-Lending statutes require disclosure of A. the finance charge as an annual percentage. B. the number, amount, and due date of all payments. C. the method of computing unearned finance charges. D. all of the above.

all of the above.

Which of the following situations would not require holding a real estate license?

all of the above.

Each licensed broker or entity must register in writing to the Commission A. each vehicle that the broker uses to drive clients around. B. all trade names not used in connection with real estate activities prior to the trade name being advertised or displayed in any way. C. all trade names used in connection with real estate activities prior to the trade name being advertised or displayed in any way. D. All of the above.

all trade names used in connection with real estate activities prior to the trade name being advertised or displayed in any way.

A release clause in a mortgage A. allows portions of the property given as security to be released from the mortgage lien upon performance of specified acts. B. releases a guarantor from further liability under specified conditions. C. when a part of a document, creates a lien second only to the lien of taxes and assessments. D. provides for an option to extend its due date.

allows portions of the property given as security to be released from the mortgage lien upon performance of specified acts.

A house increases in value because of proximity to employment, schools, shopping, etc. These neighborhood sites are referred to as:

amenities

A house increases in value because of proximity to employment, schools, shopping, etc. These neighborhood sites are referred to as A. features. B. amenities. C. attachments. D. benefits.

amenities.

A business buyer wants to acquire a business in its totality, including the business identity and all rights, obligations, liabilities, and assets. The type of transaction that would accomplish this aim is

an asset sale. INCORRECT

When a lawsuit is pending and a piece of property is being legally seized pending the outcome of the lawsuit to assure payment, this seizure is referred to as A. an attornment. B. a lis pendens. C. an attachment. D. an estoppel.

an attornment..

Between the date of offer acceptance and the date of closing of the sale, what type of sales contract is in force?

an executory contract

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 A. an employee. B. all the foregoing. C. an agent. D. an independent contractor.

an independent contractor.

The revolving fund shall be audited by the State Auditor and Inspector

annually

The term REALTOR applies to

any member of the National Association of REALTORS.

The term REALTOR applies to A. any licensed real estate associate. B. any licensed real estate broker. C. any member of ARELLO. D. any member of the National Association of REALTORS.

any member of the National Association of REALTORS.

An OREC order becomes binding on all parties unless the Commission's ruling is

appealed to the district court

The applicant for a real estate examination shall

appear in person

The applicant for a real estate examination shall A. Take a written exam at the Capital. B. appear in person. C. take the exam at the Oklahoma Real Estate Commission office. D. take the exam on the internet.

appear in person.

Restrictive covenants that run with the land:

apply to and bind all successive owners of the property.

Under new law changes, the duties and responsibilities that were previously designated as belonging to transaction brokers

are now "assigned" to all brokers.

A mortgage broker:

arranges loans between borrowers and investors

What must an associate include in all advertising?

associate's Broker's name

What defines the minimal physical characteristics and construction of each OREC sanctioned Real Estate Office?

at least one enclosed room of stationary construction

A Provisional Real Estate license may be upgraded to a sales associate license A. May not be upgraded. B. annually. C. at the end of the first year. D. with permission of the Commission.

at the end of the first year

Under RESPA, a copy of "Real Estate Settlement Costs and You" must be given:

at the time of loan application, or within 3 days of application

When land is torn from a bank by the action of a violent river it is called A. alluvion. B. reliction. C. avulsion. D. accretion.

avulsion.

The maximum permissible "loan to value ratios" are:

based on sale price or appraised value, whichever is lower

A person is not required to hold a real estate license to A. sell commercial real estate he/she does not own. B. be a non-resident manager of an apartment building who is not a full time salary employee. C. be a resident manager for the owner of a multi-family apartment building. D. be a multi-property manager of real estate.

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.

By when must the Residential Property Condition Disclosure Statement be delivered to the Purchaser? (7812)

before the Seller accepts an offer to purchase

I am holding an open house for a fellow associate in my company. A buyer comes into the open house and I show her around. I am a A. transaction broker. B. single-party broker for the buyer. C. buyer\'s agent. D. single-party broker.

buyer\'s agent.

A complaint may be filed with the Commission A. by a oral complaint. B. by the legislature. C. by any person. D. by the Commission staff for too many phone calls.

by any person.

Title insurance is always paid A. by the seller. B. annually. C. by the buyer. D. only once, when the policy is issued.

by the buyer

A broker shall maintain a bookkeeping system i.e., canceled checks, check book, deposit receipts, general accounts ledger, etc. which will accurately and

clearly disclose full compliance with the Law relating to the maintaining of trust accounts

A broker shall maintain a bookkeeping system i.e., canceled checks, check book, deposit receipts, general accounts ledger, etc. which will accurately and A. clearly disclose full compliance with the Law relating to the maintaining of trust accounts for only 4 years B. clearly disclose full compliance with the Law relating to the maintaining of trust accounts for only 1 year C. clearly disclose full compliance with the Law relating to the maintaining of trust accounts D. clearly disclose full compliance with the Law relating to the maintaining of trust accounts for only 2 years

clearly disclose full compliance with the Law relating to the maintaining of trust accounts

Zane is the broker who has a listing on a property for Ben. The property is listed for $310,000. Zane finds a potential buyer and submits an offer to Ben for the full listing price, with an additional stipulation that Ben replaces the carpet in the property. Ben refuses, Zane can

collect no commission

A sales agreement to be enforceable must have

competent parties

The Oklahoma Real Estate Commission shall A. conduct an annual review of the Oklahoma Association of REALTORS. B. conduct an annual performance review of all employees of the Oklahoma Real Estate Commission. C. conduct an annual review of the Real Estate License Code and submit it to the legislature. D. conduct an annual performance review of the Executive Director and submit it to the legislature.

conduct an annual performance review of the Executive Director and submit it to the legislature.

In the event a dispute arises prior to the disbursement of any monies or other valuables held by the broker in connection with a real estate purchase contract, the broker shall A. continue to retain the money or valuables in trust until he or she has a written release from all parties. B. pay the money to the seller as liquidated damages. C. immediately return the money to the purchaser. D. keep the money or property for his commission earned.

continue to retain the money or valuables in trust until he or she has a written release from all parties.

The appraisal market approach most likely to be used in valuing a public library building would be:

cost

In appraising a single-purpose building, such as a church, the most reliable approach to an indication of its value would generally be the A. income approach. B. cost approach. C. market data approach. D. none of the above.

cost approach

A asked you to appraise their property. This property had no monthly income and had no comparables in the market. You would most likely use the A. cost approach. B. market comparison approach. C. declining balance method. D. income approach.

cost approach.

A sales associate who relies on representations of the seller, if there is reason to suspect that the information is not true A. could be guilty of negligent misrepresentation. B. is merely \"puffing\". C. has not done anything wrong. D. has committed fraud.

could be guilty of negligent misrepresentation.

A bought a piece of property from B. The title to the property was transferred when the deed was A. acknowledged. B. recorded in the paper. C. delivered and accepted. D. signed.

delivered and accepted

A mortgagee may include in a mortgage items which, when they occur, are considered a default by the mortgagor and grounds for a foreclosure action. Such items include all of the following except

detrimental zoning by a city or county

A mortgagee may include in a mortgage items which, when they occur, are considered a default by the mortgagor and grounds for a foreclosure action. Such items include all of the following except A. non-payment of real property taxes. B. negligence in caring for the property. C. detrimental zoning by a city or county. D. illegal use of the property.

detrimental zoning by a city or county.

a broker is liquidating the brokerage to retire in florida. to dispose of his personal house, what must the broker do?

disclose he is a licensed realtor

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

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

The primary purpose of the Truth-in-Lending Act is to A. disclose to the consumer the cost and conditions of the installment purchase. B. assist the federal government in controlling \"shady\" lending practices. C. save the general public money in their installment purchases. D. establish a more uniform set of charges.

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

Open house or directional signs used in conjunction with broker\'s signs A. do not have to contain the name or trade name of the associate\'s broker and broker\'s telephone number. B. are only allowed to be displayed on Saturday\'s. C. must have permission from the Oklahoma Real Estate Commission. D. do have to contain the name or trade name of the associate\'s broker and broker\'s telephone number.

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

To receive homestead tax exemption for a particular house, a person A. does not need to use the house as a principal place of residence. B. does not need to file a declaration of homestead every year. C. does not need to be an Oklahoma resident. D. needs to live in the house all year.

does not need to use the house as a principal place of residence.

which of the following is not a type of possible agency relationship in a transaction unless all parties acknowledge the relationship?

dual agency

The MacArthurs own a two-family flat in a declining section of Houston. Each section of the flat has 2 bedrooms and 2 bathrooms in addition to ample storage space and an "extra" room (8' x 10') that could be used for storage, laundry, or a small office. An electrical tower was erected on the lot adjacent to the flat about one year ago. The MacArthurs need to find a new tenant to lease the second side of their flat and are afraid the electrical tower will deter potential tenants with children as well as those who consider the tower to be an unsightly affront to the landscape. Which term best describes this situation?

economic obsolescence

When changed surroundings cause an existing house to lose value, there is A. economic obsolescence. B. functional obsolescence. C. physical deterioration. D. all of the above.

economic obsolescence.

City B forced landowner A to sell his property to the city for public use. City B was exercising it\'s right of A. eminent domain. B. escheat. C. police power. D. nonconforming use power.

eminent domain

The supreme power inherent in the state to take land from the owner by due process of law when necessary for the states use in the public welfare is

eminent domain

The illegal, wrongful extension of a structure or of any improvement, partly or wholly, on the property of another, is a(n) A. encroachment B. restriction C. encumbrance D. easement

encroachment

Any interest in, or right to, land by third persons, adversely affecting the value of the property is an A. escrow. B. encumbrance. C. encroachment. D. appurtenance.

encumbrance.

Any interest in, or right to, land by third persons, adversely affecting the value of the property is an (7397)

encumbrance. [CORRECT]

156. Q: Once an agreement of sale is signed, the purchaser has (5904)

equitable title

During the executory period of a sale contract, the buyer enjoys which of the following interests?

equitable title

Once an agreement of sale is signed, the purchaser has A. equitable title. B. real title. C. legal title. D. none of the above.

equitable title.

When title to real estate is vested in one person or entity (such as a corporation), that person or organization is said to own a(n) A. federal estate. B. estate in severalty. C. entirety estate. D. estate in future.

estate in severalty.

Two important tasks in identifying value through the cost approach are

estimating the cost of the land and the depreciation of the improvements.

A set of beliefs that guides a persons actions is called

ethics

A set of beliefs that guides a person\'s actions is called A. the \"golden rule\". B. ethics. C. an ethic code. D. standards.

ethics.

The \"secondary mortgage market\" refers to the market wherein A. secondary financing may be obtained. B. FHA loans are originated. C. existing loans are bought and sold. D. conventional loans are originated.

existing loans are bought and sold.

The secondary mortgage market refers to the market wherein

existing loans are bought and sold.

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

expressed and implied

Brownsville boasts a paved 2 mile hiking and bicycle trail that is popular with fitness enthusiasts all year long. Recently, the state legislature voted to approve a 3 mile extension to the trail. The path of extension will run through the east side of Windemoor subdivision, the only private property affected by the development plans. Most of the property owners have already sold land to the city to support the project, but one homeowner is holding out, grousing that losing the small strip of land on the east side of his property will make his landscaping look lopsided and decrease the overall desirability of his property. What can the city do if the disgruntled owner absolutely refuses to sell?

expropriate it

What is the most comprehensive ownership of the land at law?

fee simple absolute.

What is the most comprehensive ownership of the land at law? A. determinable fee. B. conditional fee. C. fee simple absolute. D. life estate.

fee simple absolute.

The largest estate one can hold in land is a A. free estate. B. life estate. C. fee simple estate. D. qualified fee estate.

fee simple estate.

A condominium estate is distinguished by (7489)

fee simple ownership of a unit and an undivided share of the common areas. [CORRECT]

All of the following closing expenses are allowed under the Real Estate Settlement Procedures Act, except A. escrow fees and closing charges. B. referral fee paid to a licensed real estate broker. C. fees paid by an escrow company to a sales associate for referring business. D. title insurance policy.

fees paid by an escrow company to a sales associate for referring business.

X has a lawsuit filed against him by Y. X currently has a piece of property that is lien free worth $500,000 he is trying to sell. In order for Y to protect herself, Y should A. file a mechanics lien against the property owned by X. B. contact the listing broker and explain the pending lawsuit against X. C. put a notice in the local newspaper about the pending lawsuit. D. file a lis pendens.

file a lis pendens.

If you engage in the sale of Real Estate before OREC issues your license, what may be the consequences?

fine of up to $1,000 or jail of not more than 6 months

An owner was building a house for himself. Due to personal preference, he decided not to put in a bathtub. This would result in:

functional obsolescence

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

general agent

Agents having a wide authority to conduct a series of transactions of a continuous nature on behalf of their clients are A. special agents. B. specific agents. C. sub-agents. D. general agents.

general agents.

It may be cause for suspension or revocation of license to

guarantee future profits from resale of real estate.

It may be cause for suspension or revocation of license to A. list a property for less than the seller\'s purchase price. B. guarantee future profits from resale of real estate. C. not tell a prospective buyer that a convicted sex offender lives next door. D. sell a property for less than the seller\'s purchase price.

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

An agent fails to discover crumbling tiles on the basement ceiling beneath a bathroom. The agent sells the property, and the buyer later sues the agent for not discovering and disclosing a clearly visible and obvious problem. In this case, the agent

has an exposure to negligent misrepresentation.

A special agent is best described as a person who

has authority to represent the principal in a specific transaciton

Each branch office shall

have a separate managing broker

Each branch office shall A. remain open at least 7 days a week. B. be owned and operated by the managing broker. C. remain under direction and supervision of the broker at the primary location. D. have a separate managing broker.

have a separate managing broker.

Under new law changes, the terms single-party broker and transaction broker (7867)

have gone away.

For a contract to be enforceable it should

have legal objective

For a contract to be enforceable it should

have legal objective.

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?

implied agency

The Oklahoma Real Estate Commission shall have the powers and duties of

imposing administrative fines in accordance with state statutes

A receives a sales associate license, A\'s license will expire A. in 24 months. B. in 12 months. C. in 36 months. D. in 48 months.

in 36 months.

Allen receives a sales associate license, Allen's license will expire

in 36 months.

The Oklahoma Real Estate Commission office(s) are located A. in Oklahoma City, Tulsa, and Woodward. B. at the State Capital. C. in Oklahoma City. D. in Oklahoma City and Tulsa.

in Oklahoma City.

A real estate licensee should generally reveal license status A. in all transactions except personal ones. B. as the licensee deems advisable. C. in any real estate transaction. D. when representing a principal to third parties.

in any real estate transaction.

Any acknowledgment before a notary public must be made A. in person. B. by mail. C. in the presence of a licensed real estate broker. D. by certified mail.

in person.

X and Y bought a piece of property and they took title as joint tenants. Y later died, X now owns the property A. in severalty. B. as a joint tenant with Y\'s heirs. C. in tenancy by entireties with Y\'s spouse. D. in joint tenancy with X\'s spouse.

in severalty.

What is a Holographic Will?

in the testator's handwriting, dated and signed

A major employer relocates, leaving many homes in an area vacant and unmaintained. This is an example of

incurable economic obsolescence

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.

A licensee who is engaged in licensed activities through social networking mediums must A. only indicate their license status. B. only indicate their broker reference as required in the Code and Rules. C. not indicate their license status and include their broker\'s reference as required in the Code and Rules. D. indicate their license status and include their broker\'s reference as required in the Code and Rules.

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

Both the abstract and opinion method of assuring title and title insurance A. inform or protect the buyer against defects of record. B. protect the buyer against encroachments by adjoining property owners. C. protect the buyer against the claim of a buyer an unrecorded land contract. D. protect the buyer against unrecorded mechanic\'s liens.

inform or protect the buyer against defects of record.

What verbiage has been added to the law section regarding the use of "agent" in trade names to expand its meaning?

"...and as a general reference for designating themselves as real estate licensees."

If an area containing a service station were changed to residential zoning, the service station A. must cease operation. B. is a variance, if approved. C. is a non-conforming use. D. is considered spot zoning.

is a non-conforming use

A borrower grosses $4,000 per month and pays $600 monthly for debt obligations. What monthly payment for housing expenses (principal, interest, taxes, insurance) can this person afford based on an FHA debt ratio of 41%?

$1,040

The seller and the buyer finally agreed to a purchase price of $203,500 with the closing to occur on June 15, 2011. The taxes for the year 2011 in the amount of $2,500 have not been paid by the seller. (Taxes are paid in arrears). How much would the tax proration amount to, and how would it appear on a full settlement statement? Base your answer on a 365 day year, and the buyer is responsible for the day of settlement.

$1,130.14 debit the seller and credit the buyer The seller would owe money, and the buyer would receive money, because the seller has not paid the taxes. $2,500 divided by 365 is $6.849315 times the actual days of 165 is $1,130.14.

The Pickets are purchasing a home for $78,000 and the lender is giving them a 90% loan at 10% interest, plus a 2% loan origination fee. How much is the loan origination fee?

$1,404 A loan for 90% of the $78,000 purchase price results in a $70,200 mortgage. Since the origination fee is based on the amount of the mortgage, not the price of the home, the fee is 2% of $70,200 or $1,404.

What is the late penalty fee for an expired license? 605:10-7-2

$10

A resident of an apartment building may receive a referral fee for referring the property for lease of not more than? A. $50 B. $500 C. It is illegal to pay a referral fee to an unlicensed person. D. $100

$100

Q: A resident of an apartment building may receive a referral fee for referring the property for lease of not more than? (6511)

$100

If OREC fines a licensee, what is the cost range of such a fine?

$100 - $2,000; shall not exceed $5,000

Canyon Properties in Killeen, Texas owns a two-family dwelling that generates a 12.5% return on its value, or an annual return of $17,000. What would the value of this property be in terms of an income approach to value?

$136,000 An income approach estimates the value of a property based on its monetary returns (or the returns it could be expected to generate). In this case, the calculation is completed by multiplying the amount of investment returns ($17,000) by the multiplier 8 (because 100% is divisible by 12.5% exactly 8 times). The product, and estimated value of the property, is $136,000.

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

If a licensee requests a certified license history, what is the OREC fee? 605:10-7-6

$15

What additional fee is charged along with the license fee and for what purpose? 605:10-7-2

$15 Education & Recovery Fund Fee

A certain investor wants an 11% return on investment from any real estate investment. A property priced at $360,000 has a gross income of $60,000 and expenses of $22,000. Approximately how much too high or too low is the price of this property for the investor to obtain her desired return exactly?

$15,000

What is the cost of a sales associate license? 605:10-7-2

$150

At a restaurant you overhear a Realtor bragging about the $12,000 commission on an 8% rate. You wonder for how much did the house sell? (7742)

$150,000 [CORRECT]

After breaking up, Don Kranz and his girlfriend Maggie Stuart sold their ranch in Uvalde for $230,000. After paying off an existing loan balance of $78,000 and remitting a 7% commission to their real estate salesperson, Don and Maggie each walked away from the transaction with proceeds of $66,200. How much did the realtor earn in commission (to the nearest dollar)?

$16,100 The real estate agent's 7% commission is calculated by multiplying the total sale price of the ranch before any deductions are made for loan payoffs, closing costs, or seller proceeds ($125,000) by a factor of 7% (or .07). The product is $16,100.

A property has a net income of $50,000, interest payments of $35,000, principal payments of $3,000, and annual cost recovery of $7,000. The property's tax rate is 28%. What is the property's annual tax on income?

$2,240

Susannah Hudson is expecting Premier Mortgage to underwrite the mortgage loan for her beachfront bungalow in Galveston. The maximum housing expense-to-income ratio is set at 35% of gross monthly income. Susannah's annual salary as a Physician's Assistant is $98,000, which is expected to continue and increase at a cost-of-living rate. What would be the maximum monthly PITI for Susannah?

$2,858.33 To calculate the maximum PITI (principal, interest, taxes, and insurance) allowed for Susannah under the underwriter's maximum housing expense-to-income ratio, take the amount of her annual salary and divide by twelve to obtain her gross monthly income ($8,167). Then multiply her gross monthly income by a factor of 0.35 (35%) to determine the maximum monthly PITI.

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

is a non-conforming use.

Prior to issuance of an inspector's license, a newly approved inspector must remit what amount to the Real Estate Inspection Recovery Fund?

$200

What is the cost of a brokers license? 605:10-7-2

$210

A house is sold for $150,000. How much will the documentary stamps be? A. $112.5 B. $175 C. $225 D. $212.5

$225

What is the OREC fee for a broker change of business address? 605:10-9-5

$25

What is the OREC fee to change a home address?

$25

What is the OREC fee to change a license

$25

What is the OREC fee to change offices? 605:10-11-2

$25

What's the OREC fee to change a broker's home address? 605:10-9-5

$25

What is the fee applied to a returned check for payment of a fee to OREC? 605:10-1-4

$35 fee

A scale drawing shows a room to be 3 inches by 4 and a half inches. Carpet, which is $15 per square yard, is to be installed in the room. If the scale is 1 inch to 4 feet, how much would it cost to install the carpet?

$360 At $10 per square foot, the tenant's base rent is $30,000. Since the total rent was $60,000, that means the remaining $30,000 was due to the gross sales percentage. Since that figure is 8%, simply divide $30,000 by .08 to arrive at $375,000.

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

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. A. $39.00. B. $39.75. C. $ 3.90. D. 75 cents.

$39.75.

Jane and Ryan Vandenbrenner obtain an FHA loan to purchase their first house. The home they wish to buy is listed for $82,800 but the sellers accept the Vandenbrenner's offer of $81,500. They will make a down payment of 3% on the house. Closing fees, will total $1,630. The lender requires an upfront MIP of 1% which the Vandenbrenners will pay at closing along with their down payment and closing costs. For what amount should they make the cashier's check for closing?

$4,866 At closing, the Vandenbrenners will need to present a cashier's check for $4,866. A 3% down payment on the purchase price of $81,500 comes to $2,445. An upfront mortgage insurance premium (MIP) of 1% on the amount financed (purchase price - down payment, or $79,055) comes to $790.55 (rounded to $791). The cashier's check will total $4,866 when $1,630 (closing costs), $2,445 (down payment), and $791 (upfront MIP) are added together.

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.

Larry is a real estate broker and decides to open a office in his home residence, this A. is not acceptable and may lead to revocation of license. B. is not acceptable according to OREC Code and Rules. C. is acceptable according to OREC Code and Rules. D. is acceptable according to OREC Code and Rules, so long as the broker has fewer than 5 sales associates.

is acceptable according to OREC Code and Rules.

Payments from the Real Estate Recovery Fund are limited to what aggregate amount for claims arising from a single transaction?

$50,000

What is the aggregate amount of payment by OREC?

$50,000

On a $50,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender?

$51,000 One point equals one percent; thus two points are two percent of $50,000, or $1,000, which becomes part of the buyer's total obligation to the lender

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? A. $500,000 B. $262,500 C. $525,000 D. $425,000

$525,000

The house of your friend that cost $185,000 has appreciated 12% over time. With a balance of $150,000, what is the equity in the house?

$57,200

What is the cost for a provisional sales associate examination?

$60

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.

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? A. $61.50. B. $31.50. C. $41.50. D. None of the above.

$61.50.

The sellers listed their property for six months on February 26 for $104,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $102,000. The seller countered the offer on April 1 at $103,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?

$7,245. Debit the seller.

What is the cost of a duplicate or replacement for a list or destroyed license? 605:10-7-2

$7.50

What is the cost for a broker examination?

$75

A borrower grosses $4,000 per month and pays $600 monthly for debt obligations. What monthly payment for housing expenses (principal, interest, taxes, insurance) can this person afford based on an FHA debt ratio of 41%?

$760

The buyer and seller agreed to a purchase price of $103,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement?

$82,800. Credit the buyer only. Mortgage monies are credited to the buyer's side of the ledger as a portion of the funds he or she will use to complete the transaction. Once all the funds have been accounted for, the monies (less appropriate deductions) transfer to the seller.

You sell a 2,300 square foot house for $192,000. What is the price per square foot?

$83.48

You sell a 2,300 square foot house for $192,000. What is the price per square foot? A. $85.00. B. $85.91. C. $83.48. D. $84.04.

$83.48

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

On September 27 of this year a broker closed the sale of a house. The sales price was $63,500. The buyer paid $500 down, assumed a loan of $52,000, and agreed to pay balance at closing. How much transfer tax was paid? A. $18 B. $95.25 C. $16.50. D. $17

$95.25

On September 27 of this year, a broker closed the sale of a house. The sales price was $63,500. The buyer paid $500 down, assumed a loan of $52,000, and agreed to pay the balance at closing. How much transfer tax was paid?

$95.25

If a seller makes any changes in an offer from a buyer prior to acceptance, the buyer, A. may withdraw the offer within the time specified in the offer B. is relieved of the original offer. C. must forfeit the earnest money if the counteroffer is not accepted. D. is still bound by the original offer.

is relieved of the original offer.

The Oklahoma Real Estate Commission shall pay into the Oklahoma General Revenue Fund of the State Treasurer every year A. 50% of the license fees collected during the fiscal year. B. 0% of the license fees collected during the fiscal year. C. 10% of the license fees collected during the fiscal year. D. all license fees collected during the fiscal year.

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

Which of the following methods describes land by stating the compass directions and distances of the boundaries? A. Recorded plat method. B. Surveyors method of metes and bounds. C. Spanish Land Grant system of property description. D. English method of metes and bounds.

. Surveyors method of metes and bounds.

For how long is the test result valid & from what starting date?

1 year from the date of examination.

For how long is a test application valid & from what starting date?

1 year from the filing date.

What are the qualifications to earn a Provisional Sales Associate License?

1. 18 years of age or older. 2. 90 hours of real estate school

What are the qualifications to earn a Brokers License?

1. 2 years experience within the past 5 years 2. 90 hours of advanced real estate instruction

What must a Provisional Sales Associate accomplish before expiration of their license?

1. 45 hours of postlicense education

What constitutes evidence of completion?

1. A certificate, and/or documents, statement & forms, as may reasonably be required by the Commission OR 2. A certified transcript

What are the limitations to course selection?

1. A particular course offering may not be taken for continuing education credit more than once from the same entity and/or instructor during the renewal period. 2. Educational courses taken for disciplinary reasons shall not count towards the normal continuing education requirements for licensees.

What duties does a broker have when a transaction is complete?

1. Account for all monies & property relating to the transaction 2. Keep confidential all confidential information received by the broker during the broker's relationship with a party.

Under what conditions is a claimant eligible?

1. An action has been filed in district court based upon a violation specified in the OREC code. 2. The cause of action accrued not more than 2 yrs prior to the filing of the action. 3. Final judgement is received by the claimant upon such action. 4. The final judgment is enforced as provided by statute for enforcement of judgment in other civil actions & that the amount realized was insufficient to satisfy the judgment. 5. Any compensation recovered by the claimant from the judgment debtor, or from any other source for any monetary loss arising out of the cause of action, has been applied to the judgement awarded by the court.

Who may not refer to themselves as a "broker"?

1. Broker Associate 2. Sales Associate 3. Provisional Sales Associate

Who must be associated with a real estate broker?

1. Broker Associate 2. Sales Associate 3. Provisional Sales Associate

Goal of continuing education is to protect consumers from what or whom?

1. Provide licensees with opportunity for obtaining necessary current information & knowledge which will enable them to conduct real estate negotiations & transactions in a legal & professional manner in order to better protect public interest. 2. To assure that the licensees are provided with current information regarding new and/or changing laws & regulations which affect the real estate business. 3. To ensure that the consumers interest is protected from unknowledgeable licensees.

Who is prohibited from participation in a real estate business?

1. Revoked or Suspended License 2. Cancelled or surrendered license

What are the requirements to obtain a broker's license? 605:10-3-4

1. Served at least 2 years as a licensed real estate provisional sales associate within the past 5 years.

What are the requirements for establishing a real estate office?

1. Specific place of business 2. Comply with all local laws &be available to the public

When is a claimant unqualified?

1. The spouse of the judgment debtor or personal representative of such spouse. 2. A licensee who acted in their own behalf in the transaction which is the subject of the claim. 3. The claimants claim is based upon a real estate transaction in which the claimant is, through their own action, jointly responsible for any resulting monetary loss with respect to the property owned or controlled by the claimant.

When & for what purpose may OREC expend Education & Recovery fund money at the Commission's discretion?

1. To promote the advancement of education in the field of real estate for the benefit of the general public & those licensed under the Oklahoma Real Estate License Code, but such promotion shall not be constructed to allow advertising of the profession 2. To underwrite educational seminars & other forms of education projects for the benefit of real estate licensees 3. To establish real estate courses at institutions of higher learning located in the state & accredited by the State Regents for Higher Education for the purpose of making such courses available to licensees & the general public. 4. To contract for a particular educational project in the field of real estate to further the purposes of the Oklahoma Real Estate License Code.

What are the basic requirements to serve as a Commissioner?

1. US Citizen. 2. Oklahoma resident for at least 3 years (all members). 3. 5 years active experience as a real estate broker & be engaged full time in the brokerage business. (5 members). 4. Lay person no in the real estate business (1 member). 5. Active representative of a school of real estate (1 member).

You list a lot which is 170 feet by 300 feet. How many acres are in the lot? A. 1.17 acres. B. 1.2 acres. C. 1 acre. D. 1.1 acres.

1.17 acres.

You sell a lot which is 75 feet by 145 feet. What part of an acre is it?

1/4 acre

Within how many days must a broker file a change of the broker's home address with OREC?

10

A square is 1/8 of a mile by 1/8 of a mile. How many acres is this?

10 acres One-eighth of a mile square is the same as 10 acres. Multiply 1/8 X 1/8 = 1/64 divided into 640 acres = 10 acres

What is the minimum number of day's notice OREC must give before a hearing?

10 days

Within how many days must a broker file a change of business address with OREC? 605:10-9-5

10 days

Within how many days must a licensee file with OREC of a change in name or firm? 605: 10-7-5

10 days

Within how many days must a new branch office broker be appointed? 605:10-7-7

10 days

Within how many days must an associate file with OREC a change in home address? 605:10-11-2

10 days

Within how many days must an associate file with OREC a change of office or firm? 605:10-11-2

10 days

Any real estate broker who charges and collects any fees in advance of the services provided by the broker shall provide a detailed accountaing of expenditures to the person such services are performed for within (7406)

10 days after the time specified to perform such services or upon written request from person for whom services are peformed for, but no longer than one year from date of contract for such services.

Lindsay is a licensed real estate broker and is purchasing a piece of real property, Lindsay

is required to write her license number on all purchase contracts and disclose in writing that she is licensed.

Any real estate broker who charges and collects any fees in advance of the services provided by the broker shall provide a detailed accounting of expenditures to the person such services are performed for within A. 15 days after the time specified to perform such services or upon written request from person for whom services are performed for, but no longer than one year from date of contract for such services. B. 2 days after the time specified to perform such services or upon written request from person for whom services are performed for, but no longer than one year from date of contract for such services. C. 10 days after the time specified to perform such services or upon written request from person for whom services are performed for, but no longer than one year from date of contract for such services. D. 5 days after the time specified to perform such services or upon written request from person for whom services are performed for, but no longer than one year from date of contract for such services.

10 days after the time specified to perform such services or upon written request from person for whom services are peformed for, but no longer than one year from date of contract for such services.

When will a real estate license applicant be eligible after conviction for fraud?

10 years

This program permits investors to defer taxes.

1031 Exchange

A hires B to put a new roof on his home. B files a mechanic lien on A\'s property. How long does B have to enforce the mechanic lien by filing suit? A. 12 months. B. 36 months. C. 48 months. D. 24 months.

12 months.

How long is the period to acquire an easement by adverse possession? A. 7 years. B. 10 years. C. 17 years. D. 15 years.

15 years

Q: How long is the period to acquire an easement by adverse possession in Oklahoma? (5909)

15 years

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

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

180 days from the date completed by the Seller.

130. Q: The American with Disabilities Act came into effect in (5829)

1990

How many clock hours must a broker candidate complete?

21 hours

What is the requirement for continuing education in relation to license reissue?

21 hours or equivalent education set forth by the Commission.

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

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? A. 40 B. 280 C. 180 D. 80

280

How much notice must a landlord give a delinquent tenant, in writingm before filing an action to evict?

3 days

57. Q: The terms of each member of the Oklahoma Real Estate Commission shall be (6494)

3 years

All members of the Oklahoma Real Estate Commission must be citizens of the United States and residents of Oklahoma for how long before appointment to the Oklahoma Real Estate Commission? A. 10 years. B. 5 years. C. 7 years. D. 3 years.

3 years

Q: A receives a sales associate license, A's license will expire (5908)

3 years

When can a licensee with a revoked license apply for a reissue?

3 years

If OREC revokes a license, how much time must pass before reinstatement can occur & what is the status of the former licensee? 605:10-7-2

3 years from the effective date of license revocation.

A was trying to get a home loan and was rejected. Because of the Federal Equal Credit Opportunity Act, A must be notified in writing for the reason she was denied within

30 days

Jake Warrant rents his above-garage studio apartment to a college student on a month-to-month basis. When Jake decides to terminate the rental agreement and convert the apartment into a private studio for his artwork, how much notice is he required to give his tenant?

30 days

With the death or disability of a broker, within how many days must advertising terminate? 605:10-9-6

30 days

A Realtor received a reprimand and $500 fine from OREC. After contemplating the action overnight, the Licensee decided to appeal. By what day must the appeal be filed after notice of OREC's action?

30 days after

The Oklahoma Residential Landlord Tenant Act provides the landlord or the tenant may terminate a month-to-month tenancy with written notice to the other at least

30 days before termination

A was trying to get a home loan and was rejected. Because of the Federal Equal Credit Opportunity Act, A must be notified in writing for the reason she was denied within A. 10 days. B. 72 hours. C. 24 hours. D. 30 days.

30 days.

What are the terms for each type of Oklahoma Real Estate License?

36 months with the exception of a provisional sales associate whose license term shall be fore 12 months.

A township contains A. 36 miles square. B. 10 miles square. C. 36 square miles. D. 10 square miles.

36 square miles.

How long is the term of an OREC member?

4 years

Members of the Oklahoma Real Estate Commission are appointed for A. 3 years. B. 4 years. C. 2 years. D. 5 years.

4 years

The terms of each member of the Oklahoma Real Estate Commission shall be A. 2 years. B. 3 years. C. 5 years. D. 4 years.

4 years

Members of the Oklahoma Real Estate Commission are appointed for

4 years.

A tract of land described as the W 1/2 of the N 1/2 of the NE 1/4 of Section 16. What is its acreage?

40 acres

On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan?

42 Months. Eight percent of $6,071 is $486 per year or $40.50 per month. $1,700 divided by $40.50 means the borrower held the loan for forty-two months.

Which of the following classes must a provisional sales associate take in order to renew their license and become a sales associate?

45 Hour Basic II Post-License Course.

Which of the following classes must a provisional sales associate take in order to renew their license and become a sales associate? A. 90 Hour Basic I Pre-License Course. B. 21 hours of real estate continuing education along with the Broker in Charge course. C. 45 Hour Basic II Post-License Course. D. 21 hours of real estate continuing education.

45 Hour Basic II Post-License Course.

How many clock hours must a provisional sales associate candidate complete? 605:10-3-1

45 hours

How many hours of post license education must a provisional sales associate complete, and what is the expiration date by which such training must be accomplished? 605:10-3-7

45 hours

Based on occupation, how is the Commission compromised?

5 real estate members 1 lay person not in the real estate business 1 active representative of a school of real estate

A broker shall maintain all records and files for a minimum of A. 4 years after consummation B. 5 years after consummation C. 3 years after consummation D. 2 years after consummation

5 years after consummation

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

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 A. 1656 B. 3864 C. 1104 D. 5520

5520

How many hours of continuing education must be from OREC directed subject matter?

6 hours

For how long is a completed national criminal history record check valid? 605:10-3-2

6 months.

You sell your house for $120,000. The commission is $7,200. What is the commission rate?

6%.

You sell your house for $120,000. The commission is $7,200. What is the commission rate? A. 6%. B. 5%. C. 4%. D. 7%.

6%.

A husband and wife own a piece of property that measures 1 mile by 1 mile. The couple owns how many acres? A. 640 B. 40 C. 160 D. 320

640

OREC has how many members?

7

The Oklahoma Real Estate Commission has how many members?

7

There are how many members on the Real Estate Commission?

7

There are how many members on the Real Estate Commission? A. 7 B. 5 C. 10 D. 9

7

What percentile is considered a passing grade?

75%

In general, the borrow no longer pays mortgage insurance when the loan to value equals

8

A house sold for $42,000. The buyer mad a 20% down payment. Monthly interest on the loan was $252. What was the interest rate on the loan?

9% With a 20% down payment of $8,400, the buyer had a mortgage of $33,600. Since interest is expressed in annual terms, multiply the monthly payment of $252 times twelve. That yields an annual interest cost of $3,024, divided by the principal balance of $33,600, yields an annual rate of 9%.

How many education hours are required to obtain a brokers license?

90 hours

118. Q: When referring to the term situs, which of the following describes this term? (5786)

: the place where something exists or originates ; specifically : the place where something (as a right) is held to be located in law

A and B enter into a verbal contract, this is an A. enforceable and legally binding. B. enforceable contract. C. expressed contract. D. implied contract.

??enforceable contract

Buyer A calls my office and wants to see one of my listings. We decide to meet at the property to show her the listing. I am a A. single-party broker. B. transaction broker. C. buyer's agent. D. single-party broker for the buyer.

?transaction broker.?

Lindsay is a licensed real estate broker and is purchasing a piece of real property, Lindsay A. is not required to disclose that she is a licensed real estate broker. B. needs to inform both the OREC and the seller that she is licensed. C. is required to write her license number on all purchase contracts and disclose in writing that she is licensed. D. is not required to write her license number on all purchase contracts and is required to disclose in writing that she is licensed.

is required to write her license number on all purchase contracts and disclose in writing that she is licensed.

Estimating the value of a house by taking the reproduction or replacement cost of the building, minus depreciation, plus the value of land would be classified as what type of approach to valuation?

A Cost Approach

A real estate licensee has a buyer agency agreement. What is the seller in this situation?

A Customer

A borrower bought a $74,000 house with no down payment. The loan was probably:

A VA loan VA loans are zero-down instruments, while FHA loans permit low down payments in the 5% range.

For whom is the broker responsible? 605:10-9-1

A broker is responsible for all real estate related activities of any unlicensed assistant working within the firm.

How can a broker be a broker for more than one firm at a time? 605:10-9-1

A broker may be the broker for more than one firm so long as the firms are at the same location.

Are brokers required by OREC to maintain a trust account? 605:10-13-1

A broker shall not be required to maintain a trust or escrow account unless monies or other depositable items belonging to others are accepted by the broker & require the broker to place the monies or items in the broker's trust account.

Physical deterioration is considered curable whenever:

it costs less to correct than the resulting value increase.

James received his sales associate license on July 8, 2018. When will James' real estate license expire?

july 31, 2021 is NOT IT June 8, 2018 is it

Which one of the following best describes a contract for deed? A. A contract to buy land only. B. A method of selling real estate whereby the purchaser pays for the property in regular installments, while the seller retains title to the property until full purchase price has been made. C. A mortgage on land. D. A means of conveying title immediately while the purchaser pays for the property in installments.

A contract to buy land only.

The hazardous substance which can damage the brain, kidneys, nervous system and red blood cells is A. asbestos. B. radon. C. formaldehyde. D. lead.

lead.

Which of the following is not a latent defect A. A crack in the living room ceiling. B. A cracked heat exchanger. C. A water leak in the slab. D. Termite damage.

A crack in the living room ceiling.

The code refers to a "Resident Referral Fee." What is this?

A fee authorized for apartment residents, but it can't exceed $100.

Estates owned by those who rent or lease property from others are A. defeasible fee estates. B. fee simple estates. C. estates in remainder. D. leasehold estates.

leasehold estates.

In an installment land contract, what type of title did the seller retain?

legal

In accordance with the statute of frauds

A five year lease must be in writing to be enforceable

What is the definition of "transient lodging facility"?

A furnished room or furnished suite of rooms which is rented to a person on a daily basis, not as a principal residence, for a period less than 30 days.

A master plan can be best described as?

A fusion of land use laws and local land use objectives and strategies.

What is a latent defect A. Functional obsolescence caused by change in taste. B. A recorded easement across a parcel owned by a neighbor. C. A hidden structural defect resulting from faulty construction. D. A cosmetic defect such as badly worn carpeting.

A hidden structural defect resulting from faulty construction.

The tenant is the same person as the

lessee

The landlord is the same person as the A. mortgagee. B. lessor. C. mortgagor. D. lessee.

lessor

The landlord is the same person as the

lessor.

How may a licensee engage in social media as a Realtor? 605:10-9-4

A licensee who is engaged in licensed activities through social networking mediums must indicate their license status & include their broker's reference as required elsewhere in this rule.

Which one of the following best describes a contract for deed?

A method of selling real estate whereby the purchaser pays for the property in regular installments, while the seller retains title to the property until full purchase price has been made.

Which of the following best describes a \"Blanket Mortgage\"? A. A mortgage that has an interest rate that changes annually. B. Two loans on one piece of property. C. A mortgage that covers more than one piece of property. D. A mortgage that succeeds another.

A mortgage that covers more than one piece of property.

What is a "resident referral fee"?

A nominal fee not to exceed $100, offered to a resident for the act of recommending the property for lease to a family member, friend or coworker.

All of the following advertising statements are unacceptable under Truth-in-Lending, except A. only $1,000 down. B. assume 8% mortgage. C. liberal terms available. D. a low 3% down payment.

liberal terms available.

Five members of the Oklahoma Real Estate Commission shall be

licensed real estate brokers.

Title insurance generally covers A. defects to the title known to the buyer. B. defects that are not in the public record. C. liens that are in the public record and listed in the policy. D. All of the above.

liens that are in the public record and listed in the policy.

A special warranty deed is a conveyance instrument which A. includes some, but not all of the promises made in a general warranty deed. B. is another name for \"quitclaim deed.\" C. limits any warranties made to those defects which arose during the time the grantor owned the property being conveyed. D. does not purport to convey title to real estate.

limits any warranties made to those defects which arose during the time the grantor owned the property being conveyed.

The rights to the water and ownership of the land up to the high water mark of land abutting or bordering navigable bodies are A. servient rights B. easement in gross C. littoral rights. D. easement by implication

littoral rights.

To receive homestead tax exemption for a particular house, a person need not A. use that house as a principal place of residence. B. be an Oklahoma resident. C. file a declaration of the homestead. D. live in that house all year.

live in that house all year.

The discount points charged by a lender on a federal VA or FHA loan are a percentage of the:

loan amount

Who can use the word "agent"?

A real estate broker & the associates of a real estate broker.

According to the Rules, what constitutes "good moral character"? 605:10-3-2

A reputation for honesty, truthfulness, trustworthiness, good moral character, & that he or she bears a good reputation for fair dealing.

In which of the following situations would Fair Housing laws allow discrimination?

A retirement community whose residents are all over 62 refuses to allow families with children to buy in the community.

How does the Brokerage Relationship Act define a firm?

A sole proprietor, corporation, association or partnership

A licensee may accept a commission from

A sponsoring broker

Which of the following is true of income earned by separate property in Texas?

A) All earnings from community property and seperate property are presumed to be community property. (Correct)

Bill Thierauf is a licensee in Mesquite. Although he is an outgoing and engaging man known for setting clients at ease and smoothing ruffled feathers, he makes constant substantive errors in anything involving mathematical calculations. After a client won a $15,000 award from the recovery fund due to Bill's incompetence, Bill is facing certain discipline. Which of the following options would NOT be available to the commission in pursuing disciplinary action?

A) Charge Bill with a class A misdemeanor for negligence (Correct)

In which of the following situations can licensee Craig Lovelace legally and ethically accept a net listing?

A) Only when the principal understands current market values and requires a net listing (Correct)

Which of the following actions would be mandated by RESPA?

A) Provision of a good faith estimate (Correct)

The Hudson family has listed their 5 bedroom, 3 bath house with Townsend Realty for $175,000 -- an excellent value for the spacious home with eat-in kitchen, formal dining room, finished basement/rec room, 3 car garage, and above-ground pool. The Wright family offers $169,000 because the house will need a new roof within the next year or so. The Hudsons make a counteroffer of $172,250 with the comment that they have just updated the central air and furnace systems in the past six months. The Wrights are considering the counter offer. Which of the following could happen next?

A) The Wrights could reject the counter offer and make one of their own. (Correct)

Mortgage "discount" points only apply if which of the following conditions are met?

A) The interest rate on the mortgage loan has been lowered by 1% for each point charged (Correct)

A buyer wants to take out an FHA loan. The broker should refer the buyer directly to:

A) any approved lending institution such as a bank or savings and loan association (Correct)

What is the time limitation for reporting allegedly relations of the federal fair housing act and amendments?

A. 365 Days

Albert has a mortgage on his property. 10 years after he receives his mortgage, the note expires and he pays a lump sum of the principal. What type of promissory note did Albert have?

A. Balloon.

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

A. Because of the deed restriction

103. Q: Which of the following best describes Regulation Z? (5863)

A. Disclosure of credit charges.

Albert is an agent and has the listing on Bill's property. Bill instructs Albert not to disclose a major mold problem in the house. Which of the following should Albert do?

A. Do not obey what Bill asked

Albert and Brenda enter into a verbal contract, this is an

A. Expressed contract.

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

A. Fiduciary relationship

In the completion of a printed form of sales contract, several words were crossed out and others inserted. In order to eliminate future controversies as to whether the changes were made before or after the contract was signed, the broker should do which of the following?

A. Have both parties initial or sign on the margin near each change.

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

A. Lien Theory

A realtor also belongs to the Vietnam veterans of America (VVA). The realtor calls people asking for a clothing donation to the VVA charity. But has the realtor violated?

A. Nothing. The realtor is not selling real estate services

A landlord agrees to pay a broker for procuring a tenant unless someone else finds the tenant first. This is an example of a(n)

A. Open listing.

A broker has a listing contract on a vacant house. It has taken longer to sell then anticipated. The broker hires a lawn company to mow and trim. Who owes the mower?

A. The broker

The listing broker has a fiduciary responsibility to

A. The seller

A licensee may except the commission from

A. The sponsoring broker

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

A. Voidable by Bill.

Bob (seller) find 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 excepted another offer. 28 days later, the deal closed. When did agency begin?

A. When the seller signed the listing contract

In accordance with the statute of frauds,

A. a five-year lease must be in writing to be enforceable.

186. Q: When a lawsuit is pending and a piece of property is being legally seized pending the outcome of the lawsuit to assure payment, this seizure is referred to as (5782)

A. an attachment Explain: The legal process of seizing the real or personal property of a defendant in a lawsuit by levy or judicial order, and holding it in court custody as security for satisfaction of a judgment.

The seller and the buyer agreed to a purchase price of $103,500 with the closing to occur on June 15. The seller's loan balance after the June 1 payment was $39,440. with an interest rate of 10%.The monthly payment was $440 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank?

loan balance $39,440; interest due $164.33 Although many types of loans can become more complex in their calculations of remaining principal and interest at a particular point in time, in this case the interest portion of the payment is calculated simply by multiplying $39,440 by 10% and dividing by twelve. That results in monthly interest of $328.66, with half that amount, or $164.33 added to the principal payment at closing.

Amy and Bob have entered into a contract for the sale of real estate. In order for this contract to be enforceable, the contract

A. must be entered into by competent parties, for a legal purpose and in writing.

A sales contract contains a one month financing contingency to allow the buyer to procure a loan. 32 days later, the buyer still has no loan commitment. At this point the seller may

A. put the property back on the market.

It's an offer he makes any alteration in an offer before excepting it,

A. the initial offer has been turned down and a counter offer is being made.

181. Q: 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. (6584)

A: $39.75. [CORRECT]

Q: 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. (6584)

A: $39.75. [CORRECT]

99. Q: 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? (5821)

A: $525,000 [CORRECT]

Q: 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? (5821)

A: $525,000 [CORRECT]

Q: 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? (6583)

A: $61.50. [CORRECT]

Q: You sell a 2,300 square foot house for $192,000. What is the price per square foot? (6595)

A: $83.48. [CORRECT]

Q: On September 27 of this year, a broker closed the sale of a house. The sales price was $63,500. The buyer paid $500 down, assumed a loan of $52,000, and agreed to pay the balance at closing. How much transfer tax was paid? (6585)

A: $95.25 [CORRECT]

144. Q: You list a lot which is 170 feet by 300 feet. How many acres are in the lot? (6593)

A: 1.17 acres. [CORRECT]

Q: You list a lot which is 170 feet by 300 feet. How many acres are in the lot? (6593)

A: 1.17 acres. [CORRECT]

106. Q: Any real estate broker who charges and collects any fees in advance of the services provided by the broker shall provide a detailed accountaing of expenditures to the person such services are performed for within (6554)

A: 10 days after the time specified to perform such services or upon written request from person for whom services are peformed for, but no longer than one year from date of contract for such services. [CORRECT]

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

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

Q: A hires B to put a new roof on his home. B files a mechanic lien on A's property. How long does B have to enforce the mechanic lien by filing suit? (5910)

A: 12 months. [CORRECT]

Q: The minimum age to get a Provisional Real Estate License in Oklahoma is? (6512)

A: 18 years of age or older. [CORRECT]

Q: 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?

A: 280

101. Q: All members of the Oklahoma Real Estate Commission must be citizens of the United States and residents of Oklahoma for how long before appointment to the Oklahoma Real Estate Commission? (6488)

A: 3 years. [CORRECT]

198. Q: The Oklahoma Residential Landlord Tenant Act provides the landlord or the tenant may terminate a month-to-month tenancy with written notice to the other at least (6590)

A: 30 days before termination. [CORRECT]

Q: The Oklahoma Residential Landlord Tenant Act provides the landlord or the tenant may terminate a month-to-month tenancy with written notice to the other at least (6590)

A: 30 days before termination. [CORRECT]

171. Q: A was trying to get a home loan and was rejected. Because of the Federal Equal Credit Opportunity Act, A must be notified in writing for the reason she was denied within (5866)

A: 30 days. [CORRECT]

139. Q: Which of the following classes must a provisional sales associate take in order to renew their license and become a sales associate? (5854)

A: 45 Hour Basic II Post-License Course. [CORRECT]

Q: 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 (6591)

A: 5520 [CORRECT]

188. Q: You sell your house for $120,000. The commission is $7,200. What is the commission rate? (6592)

A: 6%. [CORRECT]

Q: You sell your house for $120,000. The commission is $7,200. What is the commission rate? (6592)

A: 6%. [CORRECT]

Q: A husband and wife own a piece of property that measures 1 mile by 1 mile. The couple owns how many acres? (5787)

A: 640 [CORRECT]

Q: There are how many members on the Real Estate Commission?

A: 7

Q: There are how many members on the Real Estate Commission? (6491)

A: 7 [CORRECT]

Q: What is a latent defect

A: A hidden structural defect resulting from faulty construction.

Q: Which one of the following best describes a contract for deed? (6601)

A: A method of selling real estate whereby the purchaser pays for the property in regular installments, while the seller retains title to the property until full purchase price has been made. [CORRECT]

Q: Which of the following best describes a "Blanket Mortgage"?

A: A mortgage that covers more than one piece of property.

Q: Which of the following best describes a "Blanket Mortgage"? (5893)

A: A mortgage that covers more than one piece of property. [CORRECT]

Q: The Real Estate Commission may discipline licensees, instructors, and real estate schools by which of the following?

A: All of the above.

Q: Which of the following practices could have the effect of being discriminatory?

A: All of the above.

105. Q: Which of the following situations would not require holding a real estate license? (6508)

A: All of the above. [CORRECT]

133. Q: Which of the following situations would not require holding a real estate license? (6509)

A: All of the above. [CORRECT]

Q: The Real Estate Commission may discipline licensees, instructors, and real estate schools by which of the following? (6504)

A: All of the above. [CORRECT]

Q: Which of the following practices could have the effect of being discriminatory? (6558)

A: All of the above. [CORRECT]

Q: Which of the following situations would not require holding a real estate license? (6508)

A: All of the above. [CORRECT]

Q: Which of the following situations would not require holding a real estate license? (6509)

A: All of the above. [CORRECT]

124. Q: Which of the following are generally considered competent to enter into a contract? (5802)

A: An emancipated minor. [CORRECT]

Q: Which of the following are generally considered competent to enter into a contract? (5802)

A: An emancipated minor. [CORRECT]

197. Q: The net operating income of a small apartment building is $20,000. The CAP rate on this project is 13%. What is the indicated value of the property? (5807)

A: Approximately $154,000. [CORRECT]

66. Q: Which mineral has been linked to cancer and was used as insulation in older homes? (5813)

A: Asbestos. [CORRECT]

Q: ARELLO stands for

A: Association of Real Estate License Law Officials.

Q: ARELLO stands for (6596)

A: Association of Real Estate License Law Officials. [CORRECT]

74. Q: Z purchased his home in 2001 and was required to join the neighborhood association. Why was Z required to join the neighborhood association? (5815)

A: Because of the deed restriction. [CORRECT]

Q: Z purchased his home in 2001 and was required to join the neighborhood association. Why was Z required to join the neighborhood association? (5815)

A: Because of the deed restriction. [CORRECT]

162. Q: A is developing 160 acres of land and later divides it into 100 lots. A receives a mortgage for all 100 lots. Which of the following describes the type of mortgage A has? (5883)

A: Blanket. [CORRECT]

Q: The two (2) types of actual authority of agency are (6605)

A: Both 1 and 2 [CORRECT]

102. Q: Legislation that is intended to resurrect toxic industrial sites is (5835)

A: Brownfields legislation. [CORRECT]

Q: Legislation that is intended to resurrect toxic industrial sites is (5835)

A: Brownfields legislation. [CORRECT]

136. Q: A toxic waste dump is located at the edge of a town. What federal legislation would force the clean up of this area (5833)

A: CERCLA. [CORRECT]

76. Q: Z signs a contract with B who is a minor. The contract Z signed with B is (5794)

A: Cancelled because minors cannot legally contract.

91. Q: The minimum requirements to sit for the state exam to become a Provisional Real Estate Associate include which of the following: (6513)

A: Completion of 90 hours or its equivalent as determined by the Commission. [CORRECT]

Q: The minimum requirements to sit for the state exam to become a Provisional Real Estate Associate include which of the following: (6513)

A: Completion of 90 hours or its equivalent as determined by the Commission. [CORRECT]

Q: Economic obsolescence results from what factors? (5826)

A: Conditions surrounding the property. [CORRECT]

Q: B is 45 years old and wants to rent a house from you. Under the Fair Housing Law which of the following would be legal? (5828)

A: Declining to rent to B because of his lack of income. [CORRECT]

194. Q: In order for a property to have value it must have all the following characteristics except (5803)

A: Depreciation [CORRECT] Explain: Demand, utility, scarcity, and transferability

170. Q: A who is a lender wishes to make the yield on a loan lower than the current market value. What would A charge to make the loan more competitive? (5869)

A: Discount Point(s). [CORRECT]

Q: A who is a lender wishes to make the yield on a loan lower than the current market value. What would A charge to make the loan more competitive? (5869)

A: Discount Point(s). [CORRECT]

200. Q: A is a an agent and has a listing on B's property. B instructs A not to disclose a major mold problem in the house. Which of the following should A do? (5887)

A: Do not obey what B asked. [CORRECT]

Q: A is a an agent and has a listing on B's property. B instructs A not to disclose a major mold problem in the house. Which of the following should A do? (5887)

A: Do not obey what B asked. [CORRECT]

192. Q: Earl who is a real estate broker, decides to close his office and cease real estate business, (6575)

A: Earl is required to notify the Commission of the effective date and where records will be stored. [CORRECT]

Q: C buys a commercial building that is worth $3 million. Five years later the city changed the zoning surrounding the building which adversely affected the building C bought. Which of the following describes the adverse affects from the zoning? (5792)

A: Economic obsolescence. [CORRECT]

131. Q: The supreme power inherent in the state to take land from the owner by due process of the law when necessary for the state's use in the public welfare is (6614)

A: Eminent domain. [CORRECT]

52. Q: A puts a fence between his and B's property. B discovers that the fence is three feet on his side of the property line. This is termed a(n) (5902)

A: Encroachment. [CORRECT]

Q: A puts a fence between his and B's property. B discovers that the fence is three feet on his side of the property line. This is termed a(n) (5902)

A: Encroachment. [CORRECT]

Q: Following the issuance of a Provisional Sales Associate License the licensee shall submit to the Commission which of the following within one year? (6515)

A: Evidence of 45 clock hours of approved post license education prior to license expiration. [CORRECT]

60. Q: Which of the following types of listings are considered the most desirable for a broker? (5888)

A: Exclusive right to sell listing. [CORRECT]

65. Q: The kind of estate most freely inheritable and transferable is a (6625)

A: Fee simple estate. [CORRECT]

Q: Which of the following is not included in the concept of eminent domain?

A: Find out the meaning of Eminent Domain

Q: Which of the following deeds would be most preferred by the buyer? (5848)

A: General warranty deed. [CORRECT]

Q: In the completion of a printed form of sales contract, several words were crossed out and other inserted. In order to eliminate future controversy as to whether the changes were made before or after the contract was signed, the broker should do which of the following? (5878)

A: Have both parties initial or sign on the margin near each change. [CORRECT]

143. Q: The fact that no two parcels of land can occupy the same location is referred to as (5892)

A: Heterogenity [CORRECT]

Q: A is a licensed real estate broker and should reveal her license status under which of the following conditions? (5879)

A: In any real estate transaction A is involved with. [CORRECT]

98. Q: A is a home-builder and seeks financing from his local bank to fund his houses so he can sell them to a customer in the near future. What type of financing did A receive? (5884)

A: Interim Loan. [CORRECT]

140. Q: Which of the following may the Oklahoma Real Estate Commission do upon its own motion? (5855)

A: Investigate the business transactions of any real estate licensee. [CORRECT]

Q: Which of the following may the Oklahoma Real Estate Commission do upon its own motion? (5855)

A: Investigate the business transactions of any real estate licensee. [CORRECT]

Q: Joe Brown agrees to buy Mary Meeks house for $215,000. Joe Brown deposits $2,000 earnest deposit with broker Jake Claus. Mary Meeks cannot give clear title to the property. Joe Brown demands return of his earnest deposit as provided in the contract. What should Broker Jake Claus do (5844)

A: Jake Claus should return the entire amount of the earnest deposit to Joe Brown. [CORRECT]

Q: Jim has an ACTIVE real estate license and personally puts an offer on a piece of real property, (6569)

A: Jim needs to disclose in writing that he is licensed. [CORRECT]

A contract that transfers possession but not ownership is a

A: Lease

Q: Which of the following transfers possession but not ownership?

A: Lease.

Q: Which of the following transfers possession but not ownership? (5899)

A: Lease. [CORRECT]

154. Q: Depreciation is (5804)

A: Loss of value from any cause [CORRECT]

79. Q: If a house you are appraising has one bathroom valued at $2,500, and a house in the same neighborhood is very similar but has two bathrooms, you should make an adjustment to the comparable of (5812)

A: Minus $2,500 [CORRECT]

Q: If a house you are appraising has one bathroom valued at $2,500, and a house in the same neighborhood is very similar but has two bathrooms, you should make an adjustment to the comparable of (5812)

A: Minus $2,500 [CORRECT]

111. Q: The real estate brokers operation account should include which of the following? (5873)

A: Money from the broker to operate the business. [CORRECT]

Q: The real estate brokers operation account should include which of the following? (5873)

A: Money from the broker to operate the business. [CORRECT]

113. Q: The revolving fund is under the management of (6498)

A: Oklahoma Real Estate Commission [CORRECT]

Q: To gain land through adverse possession, use must be (6539)

A: Open hostile, notorious, and continuous for a statutory period of time [CORRECT]

Q: A wants to receive his real estate brokers license. Which of the following qualifications must A meet to obtain his Oklahoma real estate brokers license? (5874)

A: Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam. [CORRECT]

Q: Which of the following best describes "Amortization"? (5881)

A: Payment on a loan in regular payments of interest and principal. [CORRECT]

189. Q: Which of the following loans are not insured by a government organization? (5885)

A: Personal Loan [CORRECT]

151. Q: The Oklahoma Real Estate license law requires which of the following to have a real estate license? (5856)

A: Persons who manage or sell property for others including immediate family members. [CORRECT]

Q: The Oklahoma Real Estate license law requires which of the following to have a real estate license? (5856)

A: Persons who manage or sell property for others including immediate family members. [CORRECT]

112. Q: Mary wanted to sell her house which had a serious leak in the roof. The broker told Mary that she must replace the roof in order for the house to sell. The leaky roof is considered what kind of depreciation. (5805)

A: Physical deterioration [CORRECT] Explain: All external obsolescence is incurable. Functional obsolescence has to do with outdated features.

Q: Mary wanted to sell her house which had a serious leak in the roof. The broker told Mary that she must replace the roof in order for the house to sell. The leaky roof is considered what kind of depreciation. (5805)

A: Physical deterioration [CORRECT] Explain: All external obsolescence is incurable. Functional obsolescence has to do with outdated features.

56. Q: Which of the following deeds are typically used to help clear a cloud on the title? (5852)

A: QUIT CLAIM DEED [CORRECT]

Q: Which of the following deeds would be most rewarding to the seller?

A: Quitclaim deed.

Q: Which of the following deeds would be most rewarding to the seller? (5849)

A: Quitclaim deed. [CORRECT]

Q: Which of the following is a six-mile strip running parallel to the Indian Meridian?

A: Range.

Q: Which of the following is a six-mile strip running parallel to the Indian Meridian? (5894)

A: Range. [CORRECT]

155. Q: A who is a broker went to get a listing on a piece of property B was wanting to sell. B indicated to A that he did not want his house sold to an Hispanic. Which of the following should a do? (5865)

A: Refuse to list the property. [CORRECT]

Q: A has just made the final payment on his mortgage loan to the bank. Regardless of this fact, the bank will still hold a lien on A's property until which of the following is recorded?

A: Satisfaction of the mortgage instrument.

Q: A has just made the final payment on his mortgage loan to the bank. Regardless of this fact, the bank will still hold a lien on A's property until which of the following is recorded? (5901)

A: Satisfaction of the mortgage instrument. [CORRECT]

Q: Which of the following methods describes land by stating the compass directions and distances of the boundaries? (5790)

A: Surveyors method of metes and bounds. [CORRECT] Explain: metes and bounds is beginning at a certain point and ending at the beginning.

72. Q: Which of the following forms of ownership can only be held by a husband and wife? (5789)

A: Tenancy by the entirety [CORRECT]

Q: You have your license under a broker. Your broker is required to put your real estate license on display in the office. Which of the following is your broker also required to display?

A: The Equal Housing Opportunity Poster (EHO).

104. Q: Any person who desires to perform licensed activities in Oklahoma but maintains a place of business outside Oklahoma may obtain an Oklahoma nonresident license by complying with all applicable provisions of (6553)

A: The OREC Code and Rules [CORRECT]

Q: Depreciation applies to (5810)

A: The building only [CORRECT]

138. Q: Which of the following should an appraiser's estimate of value reflect? (5862)

A: The formal opinion of the Appraisal Qualification Board. [INCORRECT!]- A: Only the opinion of the appraiser. [INCORRECT!]

141. Q: G rents his home from C. G signs a lease with C for one year. Six months after G rents the property, C sells the property to Z. Which of the following statement is correct? (5788)

A: The lease that G signed with C is still valid during the contract time frame. [CORRECT]

Q: G rents his home from C. G signs a lease with C for one year. Six months after G rents the property, C sells the property to Z. Which of the following statement is correct? (5788)

A: The lease that G signed with C is still valid during the contract time frame. [CORRECT]

Q: Which of the following is true?

A: The mortgage is primary to the note.

Q: Which of the following is true? (6608)

A: The mortgage is primary to the note. [CORRECT]

Q: Ted and Sandy built a home on a 75' x 100' lot six years ago. A new zoning ordinance was recently enacted which requires the minimum lot size in their zoning district to be 15,000 square feet with a minimum frontage of 100 ft. Which of these statements (6621)

A: Their use is a nonconforming use, and they don't have to do anything. [CORRECT]

Q: The term USPAP stands for

A: Uniform Standards of Professional Appraisal Practice

123. Q: A broker must notify the Oklahoma Real Estate Commission of their trust account(s). How many trust accounts is a broker allowed? (5859)

A: Unlimited [CORRECT]

54. Q: A and B signed a contract that was based on illegal consideration, this contract is (5793)

A: Void. [CORRECT]

Q: A and B signed a contract that was based on illegal consideration, this contract is (5793)

A: Void. [CORRECT]

Q: A coerces B to enter into a contract with him. This contract is generally

A: Voidable by B.

Q: A coerces B to enter into a contract with him. This contract is generally (5801)

A: Voidable by B. [CORRECT]

Q: A is a real estate broker and changes her name. When must A report this change to the Oklahoma Real Estate Commission?

A: Within 10 business days.

Q: One member of the Oklahoma Real Estate Commission shall be

A: a lay person.

Q: One member of the Oklahoma Real Estate Commission shall be (6490)

A: a lay person. [CORRECT]

Q: A broker who is duly licensed in another state and who has not obtained an Oklahoma nonresident license may enter a cooperative brokerage agreement with

A: a licensed real estate broker in this state

Q: A broker who is duly licensed in another state and who has not obtained an Oklahoma nonresident license may enter a cooperative brokerage agreement with (6552)

A: a licensed real estate broker in this state [CORRECT]

120. Q: It may be cause for suspension or revocation of license to (6526)

A: accept a gift from an unlicensed neighbor for selling their house. [CORRECT]

147. Q: Each licensed broker or entity must register in writing to the Commission (6572)

A: all trade names used in connection with real estate activities prior to the trade name being advertised or displayed in any way. [CORRECT]

Q: Each licensed broker or entity must register in writing to the Commission (6572)

A: all trade names used in connection with real estate activities prior to the trade name being advertised or displayed in any way. [CORRECT]

152. Q: A release clause in a mortgage (6609)

A: allows portions of the property given as security to be released from the mortgage lien upon performance of specified acts. [CORRECT]

Q: A release clause in a mortgage (6609)

A: allows portions of the property given as security to be released from the mortgage lien upon performance of specified acts. [CORRECT]

180. Q: A house increases in value because of proximity to employment, schools, shopping, etc. These neighborhood sites are referred to as: (5820)

A: amenities. [CORRECT]

Q: A tenancy at will is (6532)

A: an estate which allows the tenant to continue in possession and the landlord can terminate at his will. [CORRECT]

50. Q: 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 (6607)

A: an independent contractor. [CORRECT]

Q: The revolving fund shall be audited by the State Auditor and Inspector (6499)

A: annually. [CORRECT]

146. Q: The term REALTOR applies to (5818)

A: any member of the National Association of REALTORS. [CORRECT]

190. Q: The applicant for a real estate examination shall (6514)

A: appear in person. [CORRECT]

Q: The applicant for a real estate examination shall (6514)

A: appear in person. [CORRECT]

Q: When land is torn from a bank by the action of a violent river it is called (6540)

A: avulsion. [CORRECT]

84. Q: A person is not required to hold a real estate license to (6510)

A: be a resident manager for the owner of a multi-family apartment building. [CORRECT]

Q: A person is not required to hold a real estate license to (6510)

A: be a resident manager for the owner of a multi-family apartment building. [CORRECT]

Q: A complaint may be filed with the Commission (6523)

A: by any person. [CORRECT]

137. Q: In appraisal, comparable properties are those which (5861)

A: can be adjusted to reasonbly match the subject property. [CORRECT]

184. Q: A broker shall maintain a bookkeeping system i.e., canceled checks, check book, deposit receipts, general accounts ledger, etc. which will accurately and (6550)

A: clearly disclose full compliance with the Law relating to the maintaining of trust accounts [CORRECT]

Q: A broker shall maintain a bookkeeping system i.e., canceled checks, check book, deposit receipts, general accounts ledger, etc. which will accurately and (6550)

A: clearly disclose full compliance with the Law relating to the maintaining of trust accounts [CORRECT]

Q: In the event a dispute arises prior to the disbursement of any monies or other valuables held by the broker in connection with a real estate purchase contract, the broker shall (5870)

A: continue to retain the money or valuables in trust until he or she has a written release from all parties. [CORRECT]

58. Q: A asked you to appraise their property. This property had no monthly income and had no comparables in the market. You would most likely use the (5827)

A: cost approach. [CORRECT]

193. Q: A sales associate who relies on representations of the seller, if there is reason to suspect that the information is not true (6560)

A: could be guilty of negligent misrepresentation. [CORRECT]

Q: A sales associate who relies on representations of the seller, if there is reason to suspect that the information is not true (6560)

A: could be guilty of negligent misrepresentation. [CORRECT]

119. Q: Title insurance generally covers (5847)

A: defects that are not in the public record. [CORRECT] Explain: Since an ALTA policy covers many "off-record" defects in title, the insurer will typically survey the property to be insured.

166. Q: A bought a piece of property from B. The title to the property was transferred when the deed was (5850)

A: delivered and accepted. [CORRECT]

Q: A bought a piece of property from B. The title to the property was transferred when the deed was (5850)

A: delivered and accepted. [CORRECT]

55. Q: A mortgagee may include in a mortgage items which, when they occur, are considered a default by the mortgagor and grounds for a foreclosure action. Such items include all of the following except (6610)

A: detrimental zoning by a city or county. [CORRECT]

Q: A mortgagee may include in a mortgage items which, when they occur, are considered a default by the mortgagor and grounds for a foreclosure action. Such items include all of the following except (6610)

A: detrimental zoning by a city or county. [CORRECT]

90. Q: The primary purpose of the Truth-in-Lending Act is to (6611)

A: disclose to the consumer the cost and conditions of the installment purchase. [CORRECT]

Q: The primary purpose of the Truth-in-Lending Act is to (6611)

A: disclose to the consumer the cost and conditions of the installment purchase. [CORRECT]

61. Q: Open house or directional signs used in conjunction with broker's signs (6566)

A: do not have to contain the name or trade name of the associate's broker and broker's telephone number. [CORRECT]

Q: When changed surroundings cause an existing house to lose value, there is

A: economic obsolescence.

Q: When changed surroundings cause an existing house to lose value, there is (6617)

A: economic obsolescence. [CORRECT]

Q: City B forced landowner A to sell his property to the city for public use. City B was exercising it's right of (5816)

A: eminent domain. [CORRECT]

Q: When title to real estate is vested in one person or entity (such as a corporation), that person or organization is said to own a(n) (6622)

A: estate in severalty. [CORRECT]

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

A: ethics.

Q: A set of beliefs that guides a person's actions is called (6564)

A: ethics. [CORRECT]

83. Q: The "secondary mortgage market" refers to the market wherein (6530)

A: existing loans are bought and sold. [CORRECT]

108. Q: The two (2) types of actual authority of agency are (6605)

A: expressed and implied. [CORRECT]

150. Q: A and B enter into a verbal contract, this is an (5799)

A: expressed contract. [CORRECT]

Q: A and B enter into a verbal contract, this is an (5799)

A: expressed contract. [CORRECT]

191. Q: What is the most comprehensive ownership of the land at law? (5896)

A: fee simple absolute. [CORRECT]

Q: What is the most comprehensive ownership of the land at law? (5896)

A: fee simple absolute. [CORRECT]

148. Q: The largest estate one can hold in land is a (6618)

A: fee simple estate. [CORRECT] Explain: In English law, a fee simple (or fee simple absolute) is an estate in land, a form of freehold ownership.

Q: The largest estate one can hold in land is a (6618)

A: fee simple estate. [CORRECT] Explain: In English law, a fee simple (or fee simple absolute) is an estate in land, a form of freehold ownership.

Q: All of the following closing expenses are allowed under the Real Estate Settlement Procedures Act, except

A: fees paid by an escrow company to a sales associate for referring business.

Q: All of the following closing expenses are allowed under the Real Estate Settlement Procedures Act, except (6559)

A: fees paid by an escrow company to a sales associate for referring business. [CORRECT]

175. Q: The relationship that exists between a real estate broker and the principal is commonly referred to as a(n) (6606)

A: fiduciary relationship. [CORRECT]

Q: The relationship that exists between a real estate broker and the principal is commonly referred to as a(n) (6606)

A: fiduciary relationship. [CORRECT]

179. Q: X has a lawsuit filed against him by Y. X currently has a piece of property that is lien free worth $500,000 he is trying to sell. In order for Y to protect herself, Y should (5783)

A: file a lis pendens. [CORRECT] Explain: Means litigation pending.

109. Q: Which of the following must sign the deed? (5853)

A: grantor. [CORRECT]

Q: Which of the following must sign the deed? (5853)

A: grantor. [CORRECT]

71. Q: It may be cause for suspension or revocation of license to (6528)

A: guarantee future profits from resale of real estate. [CORRECT]

70. Q: A special agent is best described as a person who (5839)

A: has authority to represent the principal in a specific transaction. [CORRECT]

125. Q: Each branch office shall (6522)

A: have a separate managing broker. [CORRECT]

Q: Each branch office shall (6522)

A: have a separate managing broker. [CORRECT]

Q: A good way to determine if violations or encroachments exist is to (6628)

A: have a survey performed [CORRECT]

107. Q: For a contract to be enforceable it should (5798)

A: have legal objective. [CORRECT]

Q: A receives a sales associate license, A's license will expire

A: in 36 months.

110. Q: The Oklahoma Real Estate Commission office(s) are located (6501)

A: in Oklahoma City. [CORRECT]

Q: The Oklahoma Real Estate Commission office(s) are located (6501)

A: in Oklahoma City. [CORRECT]

Q: A real estate licensee should generally reveal license status (5858)

A: in any real estate transaction. [CORRECT]

Q: Any acknowledgment before a notary public must be made (5800)

A: in person. [CORRECT]

Q: X and Y bought a piece of property and they took title as joint tenants. Y later died, X now owns the property

A: in severalty.

Q: A licensee who is engaged in licensed activities through social networking mediums must (6571)

A: indicate their license status and include their broker's reference as required in the Code and Rules. [CORRECT]

88. Q: Both the abstract and opinion method of assuring title and title insurance (6538)

A: inform or protect the buyer against defects of record. [CORRECT]

69. Q: If an area containing a service station were changed to residential zoning, the service station (5903)

A: is a non-conforming use. [CORRECT]

63. Q: If a seller makes any changes in an offer from a buyer prior to acceptance, the buyer, (6599)

A: is relieved of the original offer. [CORRECT]

159. Q: Lindsay is a licensed real estate broker and is purchasing a piece of real property, Lindsay (6570)

A: is required to write her license number on all purchase contracts and disclose in writing that she is licensed. [CORRECT]

Q: Lindsay is a licensed real estate broker and is purchasing a piece of real property, Lindsay (6570)

A: is required to write her license number on all purchase contracts and disclose in writing that she is licensed. [CORRECT]

89. Q: The hazardous substance which can damage the brain, kidneys, nervous system and red blood cells is (6556)

A: lead. [CORRECT]

Q: The hazardous substance which can damage the brain, kidneys, nervous system and red blood cells is (6556)

A: lead. [CORRECT]

67. Q: A contract that transfers possession but not ownership is a (6547)

A: lease. [CORRECT]

Q: A contract that transfers possession but not ownership is a (6547)

A: lease. [CORRECT]

96. Q: Estates owned by those who rent or lease property from others are (6619)

A: leasehold estates. [CORRECT]

177. Q: The tenant is the same person as the (6586)

A: lessee. [CORRECT]

Q: The tenant is the same person as the (6586)

A: lessee. [CORRECT]

68. Q: The landlord is the same person as the (6587)

A: lessor. [CORRECT]

Q: The landlord is the same person as the (6587)

A: lessor. [CORRECT]

81. Q: All of the following advertising statements are unacceptable under Truth-in-Lending, except (6562)

A: liberal terms available. [CORRECT]

Q: All of the following advertising statements are unacceptable under Truth-in-Lending, except (6562)

A: liberal terms available. [CORRECT]

134. Q: Five members of the Oklahoma Real Estate Commission shall be (6489)

A: licensed real estate brokers. [CORRECT]

Q: Five members of the Oklahoma Real Estate Commission shall be (6489)

A: licensed real estate brokers. [CORRECT]

73. Q: A special warranty deed is a conveyance instrument which (6543)

A: limits any warranties made to those defects which arose during the time the grantor owned the property being conveyed. [CORRECT]

Q: A special warranty deed is a conveyance instrument which (6543)

A: limits any warranties made to those defects which arose during the time the grantor owned the property being conveyed. [CORRECT]

164. Q: The rights to the water and ownership of the land up to the high water mark of land abutting or bordering navigable bodies are (6627)

A: littoral rights. [CORRECT]

Q: The rights to the water and ownership of the land up to the high water mark of land abutting or bordering navigable bodies are (6627)

A: littoral rights. [CORRECT]

149. Q: To receive homestead tax exemption for a particular house, a person need not (6546)

A: live in that house all year. [CORRECT]

Q: To receive homestead tax exemption for a particular house, a person need not (6546)

A: live in that house all year. [CORRECT]

51. Q: In agency the fiduciary duty requires the agent to (5886)

A: look out for the principal's best interest. [CORRECT]

Q: In agency the fiduciary duty requires the agent to (5886)

A: look out for the principal's best interest. [CORRECT]

Q: Earl who is a real estate broker must

A: maintain records for a minimum of five years.

126. Q: It may be cause for suspension or revocation of license to (6525)

A: make false statements in advertising. [CORRECT]

Q: It may be cause for suspension or revocation of license to (6525)

A: make false statements in advertising. [CORRECT]

153. Q: It may be cause for suspension or revocation of a license to (6524)

A: make false statements on an application for license. [CORRECT]

Q: A sales associate's website must (6567)

A: make reference to the sales associate's broker. [CORRECT]

Q: A and B have entered into a contract. In order for this contract to be enforceable, the contract (5797)

A: may be entered into by competent parties, for a legal purpose, and in writing. [CORRECT]

117. Q: 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 (6548)

A: metes and bounds. [CORRECT]

Q: 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 (6548)

A: metes and bounds. [CORRECT]

168. Q: 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 (6589)

A: month-to-month. [CORRECT]

Q: 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 (6589)

A: month-to-month. [CORRECT]

Q: The formation of ethics is driven by (6563)

A: morality, values and principles. [CORRECT]

Q: Earl is a real estate broker and his license expires next month, Earl (6582)

A: must complete 21 hours of continuing education. [CORRECT]

174. Q: Earl is a real estate broker and has recently changed his business address, Earl (6579)

A: must notify the Commission office within 10 days. [CORRECT]

64. Q: Earl is a real estate broker and has recently bought a new home and his personal residence address has now changed, Earl (6580)

A: must notify the Commission office within 10 days. [CORRECT]

92. Q: The broker lists his neighbor's house on an exclusive right to sell listing. The commission is determined by (5843)

A: negotiation between the broker and owner of the house. [CORRECT]

Q: The broker lists his neighbor's house on an exclusive right to sell listing. The commission is determined by (5843)

A: negotiation between the broker and owner of the house. [CORRECT]

169. Q: A who is a broker has an interest bearing trust account. A having this interest bearing trust account has (5871)

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

Q: A is a resident manager for a local apartment complex and is responsible for negotiating leases for the apartment complex. A is

A: not violating the law because A is exempt.

Q: A is a resident manager for a local apartment complex and is responsible for negotiating leases for the apartment complex. A is (5907)

A: not violating the law because A is exempt. [CORRECT]

62. Q: 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? (5860)

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

196. Q: Title insurance is always paid (6537)

A: only once, when the policy is issued. [CORRECT]

122. Q: Earl is a real estate broker and has recently changed his business address, Earl has notified the Commission in the proper time frame and now must (6581)

A: pay $25 for each license to be changed. [CORRECT]

Q: Earl is a real estate broker and has recently changed his business address, Earl has notified the Commission in the proper time frame and now must (6581)

A: pay $25 for each license to be changed. [CORRECT]

86. Q: C buys a house and gets an adjustable rate mortgage. C should expect to (5880)

A: pay a different monthly payment each year according to the terms of the loan. [CORRECT]

Q: It may be cause for suspension or revocation of license to

A: place a for sale sign on property without consent of the owner.

132. Q: B is a broker and has a trust account. B mixes his personal and business funds in this account. This is (5872)

A: prohibited by the Oklahoma Real Estate Commission. [CORRECT] Explain: Commingling is the act of mixing the funds belonging to one party with those of another party, especially when one party has responsibility to keep the funds separate for the other party. Spouses or business partners may legally commingle funds.

Q: B is a broker and has a trust account. B mixes his personal and business funds in this account. This is (5872)

A: prohibited by the Oklahoma Real Estate Commission. [CORRECT] Explain: Commingling is the act of mixing the funds belonging to one party with those of another party, especially when one party has responsibility to keep the funds separate for the other party. Spouses or business partners may legally commingle funds.

128. Q: In the event a transaction does not consummate, a broker shall (6551)

A: promptly disburse the earnest money or items to the proper party in accordance with the terms of the contract. [CORRECT]

Q: In the event a transaction does not consummate, a broker shall (6551)

A: promptly disburse the earnest money or items to the proper party in accordance with the terms of the contract. [CORRECT]

Q: 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 (5840)

A: promptly on receipt. [CORRECT]

97. Q: A sells his home to B which was built in 1977. Because this house was built prior to 1978, A is required to (5814)

A: provide B with a signed lead based paint disclosure form. [CORRECT]

Q: A sells his home to B which was built in 1977. Because this house was built prior to 1978, A is required to (5814)

A: provide B with a signed lead based paint disclosure form. [CORRECT]

135. Q: A received a deed from B who is the grantor and the deed contains no warranties. This deed is called a (5905)

A: quitclaim deed. [CORRECT]

157. Q: A deed that passes any title the grantor has but contains no warranties, is called a (6542)

A: quitclaim deed. [CORRECT]

Q: A deed that passes any title the grantor has but contains no warranties, is called a (6542)

A: quitclaim deed. [CORRECT]

75. Q: The Civil Rights Act of 1866 prohibits discrimination on the basis of (5846)

A: race. [CORRECT]

Q: The Civil Rights Act of 1866 prohibits discrimination on the basis of (5846)

A: race. [CORRECT]

100. Q: B has a 2 year lease on a piece of property from C with an option to purchase. B paid $15 for the option to purchase. If B wishes to purchase the property at the end of the lease he must inform C in writing within 60 days of the lease expiration. B sells his option to purchase to Z for $10,000. C does not like Z and would like to not sell the property to Z. Z decides to enact his option, C can (5796)

A: refuse to sell to Z because Z paid $10,000 to B instead of C. [INCORRECT!]- A: refuse to sell to Z because the option was assigned from B. [INCORRECT!]

187. Q: Unless there is stipulation to the contrary, when real estate subject to a lease is sold, that lease (6531)

A: remains binding upon the new owner. [CORRECT]

Q: Unless there is stipulation to the contrary, when real estate subject to a lease is sold, that lease (6531)

A: remains binding upon the new owner. [CORRECT]

160. Q: It may be cause for suspension or revocation of license to (6527)

A: represent a broker other than the sponsoring broker in a real estate transaction. [CORRECT]

Q: It may be cause for suspension or revocation of license to (6527)

A: represent a broker other than the sponsoring broker in a real estate transaction. [CORRECT]

Q: By the comparison (market data) approach to appraising, we mean value derived from

A: sales of comparable properties.

59. Q: A person is not required to hold a real estate license to (6507)

A: sell property he/she owns. [CORRECT]

Q: Real estate brokers authorized to conduct a single transaction for their principals are usually classed as (6603)

A: special agents. [CORRECT]

165. Q: Albert, who is a real estate broker, has been funneling buyers of a certain race to a certain part of the city. This practice is known as (5831)

A: steering. [CORRECT]

182. Q: Typically before a mortgage company will finance a home they will want to make sure there are no encroachments on the property they are financing. To check for any encroachments the mortgage company should order a (5851)

A: survey. [CORRECT]

Q: The Governor may select members from a list of at least three qualified persons submitted by

A: the Oklahoma Association of Realtors, Inc.

Q: Real Estate licenses are issued by

A: the Oklahoma Real Estate Commission.

Q: Real Estate licenses are issued by (6503)

A: the Oklahoma Real Estate Commission. [CORRECT]

176. Q: The revolving fund consists of all monies received by the Oklahoma Real Estate Commission except (6497)

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

Q: The cost of the national criminal history record check shall be paid by

A: the applicant.

163. Q: Members of the OREC shall be appointed by (6493)

A: the governor with the advise and consent of the State Senate. [CORRECT]

Q: Members of the OREC shall be appointed by (6493)

A: the governor with the advise and consent of the State Senate. [CORRECT]

85. Q: If an offeree makes any alteration in an offer before accepting it, (6598)

A: the initial offer has been turned down and a counteroffer is being made. [CORRECT]

Q: If an offeree makes any alteration in an offer before accepting it, (6598)

A: the initial offer has been turned down and a counteroffer is being made. [CORRECT]

142. Q: The provisions of real estate continuing education do not apply to (6519)

A: the period a real estate licensee is on inactive status. [CORRECT]

Q: The provisions of real estate continuing education do not apply to (6519)

A: the period a real estate licensee is on inactive status. [CORRECT]

115. Q: When the government gave or sold land to individual persons the government gave up almost all rights to land except: (5817)

A: the rights of police power, escheat, eminent domain, taxation [CORRECT]

Q: When the government gave or sold land to individual persons the government gave up almost all rights to land except: (5817)

A: the rights of police power, escheat, eminent domain, taxation [CORRECT]

Q: You list a home for your neighbor with an exclusive-right-to sell listing. Your relationship with the seller is

A: the seller is your client.

Q: You list a home for your neighbor with an exclusive-right-to sell listing. Your relationship with the seller is (5841)

A: the seller is your client. [CORRECT]

93. Q: The listing broker has a fiduciary responsibility to (5838)

A: the seller. [CORRECT]

Q: A licensee may accept a commission from

A: the sponsoring broker.

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

A: the street address.

Q: When writing a contract you are inserting the legal description into the contract. You should not base the legal description on (5785)

A: the street address. [CORRECT]

145. Q: All real estate licensees (except Provisional) shall be issued for a term of (6518)

A: thirty six months. [CORRECT]

Q: All real estate licensees (except Provisional) shall be issued for a term of (6518)

A: thirty six months. [CORRECT]

Q: 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, (6597)

A: this transaction is considered an offer. [CORRECT]

127. Q: Buyer A calls my office and wants to see one of my listings. We decide to meet at the property to show her the listing. I am a (5824)

A: transaction broker. [CORRECT]

87. Q: I am holding an open house for a fellow associate in my company. A buyer comes into the open house, and I show her around. I am a (5825)

A: transaction broker. [CORRECT]

Q: Buyer A calls my office and wants to see one of my listings. We decide to meet at the property to show her the listing. I am a (5824)

A: transaction broker. [CORRECT]

185. Q: Each member of the Oklahoma Real Estate Commission shall be entitled to receive (6496)

A: travel expenses. [CORRECT]

Q: Each member of the Oklahoma Real Estate Commission shall be entitled to receive (6496)

A: travel expenses. [CORRECT]

161. Q: The broker receives an earnest deposit on an offer to purchase. The offer is accepted. The broker must place the earnest deposit in his (5842)

A: trust account before the end of the third banking day after acceptance. [CORRECT]

Q: The broker receives an earnest deposit on an offer to purchase. The offer is accepted. The broker must place the earnest deposit in his (5842)

A: trust account before the end of the third banking day after acceptance. [CORRECT]

167. Q: A Provisional Real Estate license shall be issued a term of (6517)

A: twelve months. [CORRECT]

Q: An associate is prohibited from advertising (6565)

A: under only his or her name. [CORRECT]

116. Q: If a purchaser signs a contract under duress, it is generally (6534)

A: voidable by the buyer. [CORRECT]

Q: Legal title always passes from the seller to the buyer (6544)

A: when the deed is delivered and accepted. [CORRECT]

Q: You sell a lot which is 75 feet by 145 feet. What part of an acre is it? (6594)

A: ¼ acre. [CORRECT]

A standardized yardstick expressing the true annual cost of borrowing is expressed as the what?

APR

In agency the fiduciary duty requires the agent to

look out for the principal's best interest.

A recorded subdivision plat is used in the:

lot and block system

Earl who is a real estate broker must

maintain records for a minimum of five years.

It may be cause for suspension or revocation of license to A. make false statements in advertising. B. take your children with you to show property. C. be seen in a bar with a client. D. complain about a customer.

make false statements in advertising.

Who may request an extension of time for post license course completion? 605:10-3-7

Active military

What governs OREC & defines the procedures for OREC performance?

Administrative Procedures Act

It may be cause for suspension or revocation of a license to A. have lunch with a competitor. B. use business expenses as tax deductions. C. make false statements on an application for license. D. buy a competitors lunch.

make false statements on an application for license.

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

Alienation Clause

According to the Rules, what is the definition of "advertising"? 605:10-1-2

All forms of representation, promotion & solicitation disseminated in any manner & by any means of communication, to include social networking, to consumers for any purpose related to licensed real estate activity.

What is the Oklahoma Real Estate Commission Revolving Fund?

All monies received by the Oklahoma Real Estate Commission.

When must trade names be registered? 605:10-9-3

All names used in connection with real estate activities prior to the trade name being advertised or displayed in any way.

The Oklahoma Residential Landlord and Tenant Act does not govern A. occupancy under a contract for deed. B. institutional residency. C. occupancy in a hotel. D. All of the Above.

All of the Above.

199. Q: A sales associate's website must (6567)

make reference to the sales associate's broker

Any agreement between two or more brokers in competition with one another to fix, control, regulate, increase, decrease or stabilize fees, rates, commissions or other prices

All of the above

The Real Estate Commission may discipline licensees, instructors, and real estate schools by which of the following? A. Suspending or revoking real estate licensees. B. Require additional education. C. Reprimand or probation for a specified period of time. D. All of the above.

All of the above.

Which of the following practices could have the effect of being discriminatory?

All of the above.

Which of the following practices could have the effect of being discriminatory? A. Coding applications and qualifying forms in order to identify different groups of people. B. Using delaying tactics and being unwilling to provide assistance. C. Limiting privileges or use of facilities on a property. D. All of the above.

All of the above.

Which of the following situations would not require holding a real estate license? A. To be an attorney-at-law while performing the duties of attorney. B. To build an addition to a house. C. To be a landman. D. All of the above.

All of the above.

Which of the following situations would not require holding a real estate license? A. To renovate buildings. B. To appraise real estate. C. To act as attorney-in-fact for the owner of real estate. D. All of the above.

All of the above.

When may a license be reinstated after a judgement against a licensee?

All penalties paid + 7% interest a year.

A sales associate\'s website must A. be registered with both the OREC and the broker. B. make reference to the sales associate\'s broker. C. not make reference to the sales associate\'s broker. D. be registered with the OREC.

make reference to the sales associate\'s broker.

Each licensed broker or entity must register in writing to the Commission

All trade names used in connection with real estate activities prior to the trade name being advertised or displayed in any way.

The Oklahoma Real Estate Commission A. may choose whether to accept service of a summons. B. may be sued under Commission approval. C. may be sued. D. may not be sued.

may be sued.

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 A. metes and bounds. B. monuments. C. government survey. D. lot and block.

metes and bounds.

You own property which adjoins a non-navigable stream. Your property line would extend to the A. end of the dock, provided there is not interference with the beneficial use rights of adjoining landowners. B. low water mark. C. middle of the stream. D. high water mark.

middle of the stream.

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

middle of the waterway

What is the suggested strategy in dealing with brokerage agreements signed into effect and extending past November 1, 2013?

Amend existing agreements. INCORRECT

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 Buyer and Seller execute a purchase contract for $127,000. Five days later, the Buyer asks the Seller to increase the sales price to $129,730.50 to cover a funding fee. What is this to the contract?

Amendment

Special accommodations comply with what law?

Americans with Disabilities Act

What are the monthly payments for a $125,000 loan at 7.5 percent for 30 years? (Click here to view Amortization Table)

Amortization - Monthly Payments Per $1,000 Rate 15 year. 30 year 7.00% $8.99. $6.65 7.25%. $9.13. $6.82 7.50%. $9.27. $6.99 7.75%. $9.41. $7.16 8.00%. $9.56. $7.34 8.25%. $9.70. $7.51 A: $873.75 Explain: 125 x 6.99

This loan type is characterized by equal monthly payments credited first to interest due. Then, the remainder of the payment is applied to the loan balance.

Amortized Loan

Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liqiudation of debt by periodic installment until the debt is satisfied?

Amortized Loan

The clause in a trust deed or mortgage which permits the mortgagee to declare the entire unpaid sum due upon a default by a mortgagor is called:

An Acceleration Clause

Commingling is the practice of

mixing escrow funds with the broker's operating funds.

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 A. week-to-week. B. month-to-month. C. year-to-year. D. day-to-day.

month-to-month.

The formation of ethics is driven by A. governmental rules and regulations. B. morality, values and principles. C. statutory law. D. leaders of a group.

morality, values and principles.

Which of the following is the best explanation of an option?

An agreement granting exclusive right to buy, sell, or lease property at a given price within a stated period of time.

Amy and Bob have entered into a contract for the sale of real estate. In order for this contract to be enforceable, the contract

must be entered into by competent parties, for legal purpose and in writing.

Confirmation of brokerage services agreement terms

must be provided in a separate provision or document that is either incorporated into or attached to the contract to purchase, lease, option, or exchange real estate.

Earl is a real estate broker and has recently bought a new home and his personal residence address has now changed, Earl A. must notify the Commission office within 10 days. B. must notify the Commission office within 5 days. C. must notify the Commission office immediately upon address change. D. must notify the Commission office within 72 hours.

must notify the Commission office within 10 days.

When referring to the term situs, which of the following describes this term? A. A technical term describing the location of a water course.. B. An area preference within a larger geographical area. C. A commercial building in the central part of a city. D. The lot where a structure is to be built.

An area preference within a larger geographical area.

To where would a licensee's license be issued & displayed? 605:10-7-7

An associate's license shall be issued to 7 maintained in the office to which the associate is assigned.

Which of the following are generally considered competent to enter into a contract? A. An emancipated minor. B. 17 year old female. C. A minor. D. An inebriate.

An emancipated minor.

Earl is a real estate broker and has recently bought a new home and his personal residence address has now changed. Earl

must notify the Commission office within 10 days.

78. Q: Earl who is a real estate broker, decides to close his office and cease real estate business, Earl (6576)

must return the broker's license certificate and pocket identification card and all license certificates of those associated with the broker to the Commission and advise the Commission as to the circumstances involving any not returned.

What is a "bona fide offer"? 605:10-1-2

An offer in writing.

Who must complete the Broker in Charge course?

Any Broker who holds or has held a license type of Broker Manager (BM), Proprietor Broker (BP), or Branch Broker (BB) during any portion of their current license term.

Who may apply to OREC for payment from the Oklahoma Real Estate Education & Recovery fund?

Any claimant who meets all of the conditions prescribed by this act may apply.

Who may seek relief from the Oklahoma Real Estate Education & Recovery Fund?

Any claimant.

How does the Code define Real Estate???

Any interest or estate in real property, within or without the State of Oklahoma, whether vested, continent or future, corporeal or incorporeal, freehold or nonfreehold, and including leaseholds, options and unit ownership estates to include condominiums, time-shared ownerships and cooperatives; provided, however, that the term "real estate" show not include oil, gas or other mineral interests, or oil, gas or other mineral leases; and provided further, that the provisions of this Code shall not apply to any oil, gas or mineral interest or lease or the sale, purchase or exchange thereof

How does the Code define Real Estate Associate?

Any person having a renewable license and employed or engaged by, or associated as an independent contractor with, or on behalf of, a real estate broker to do or deal in any act, acts or transactions set out in the definition of a real estate broker.

How does the Code define Provisional Sales Associate?

Any person who has been license after June 30, 1993, employed or engaged by, or associated as an independent contractor with, or on behalf of, a real estate broker to do or deal in any act, acts or transactions set out in the definition of a real estate broker and subject to an additional 45 hour postlicensing educational requirement to be completed within the 12 month license term.

How does the Code define Broker associate?

Any person who has qualified for a license as a broker and who is employed or engaged by, associated as an independent contractor with, or on behalf of, a broker to do or deal in any act, acts or transaction set out in the definition of a broker.

What is the definition of a Licensee?

Any person who performs an act, acts or transactions set out in the definitions of a broker and licensed under the Oklahoma Real Estate License Code.

How does the Code define Real Estate Broker?

Any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, lists, sells or offers to sell, buy or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listing of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activites

How does the Code define continuing education? 605:10-3-6

Any real estate oriented education course or equivalent, hereinafter called offering(s) intended: 1. To improve the knowledge of licensees 2. To keep licensees abreast of changing real estate practices & laws. 3. To help licensees meet the statutory requirements for license renewal

Where can a hearing take place?

Any time & place.

Who may file a complaint with OREC alleging someone is practicing real estate without a license?

Anyone

The net operating income of a small apartment building is $20,000. The CAP rate on this project is 13%. What is the indicated value of the property? A. Approximately $180,000. B. Approximately $135,000 C. Approximately $64,000. D. Approximately $154,000.

Approximately $154,000

Claire who is a real estate broker closes her office, Claire A. must terminate all advertising in the name of her firm and offering signs must be removed within 30 days. B. must terminate all advertising in the name of her firm and offering signs must be removed within 72 hours. C. must terminate all advertising in the name of her firm and offering signs must be removed immediately. D. must terminate all advertising in the name of her firm and offering signs must be removed two weeks.

must terminate all advertising in the name of her firm and offering signs must be removed within 30 days.

Which mineral has been linked to cancer and was used as insulation in older homes? A. Asbestos. B. Radon. C. Lead. D. fiber glass insulation.

Asbestos.

Who retains custody of an associate's license? 605:10-11-2

Associate's broker.

ARELLO stands for

Association of Real Estate License Law Officials.

ARELLO stands for A. Association of Real Estate License Law Officials. B. Association of Realtors and License Law Officials. C. Global and National Association of Real Estate License Law Officials. D. Global Association of Real Estate License Law Officials.

Association of Real Estate License Law Officials.

How often is the Revolving Fund audited & by whom?

At least once a year by the State Auditor & Inspector.

When does a provisional sales associate license expire? 605:10-7-2

At the end of the 12th month, including the month of issuance.

When do all license expire, except for provisional sales associate? 605:10-7-2

At the end of the 36 month, including the month of issuance.

Who is exempt from real estate licensing?

Attorney-in-fact; Attorney-at-law; Resident Manager; Person acting on behalf of a corporation or governmental body; Eminent Domain; Affordable Housing Projects.

What happens to the license of a licensee who loses a judgment against the licensee?

Automatically revoked.

Which statement best describes a VA loan?

B) A loan backed by the U.S. Department of Veterans Affairs which offers veterans and service personnel the opportunity to buy a home with favorable terms, often with no down payment requirement (Correct)

Mark Carey is a real estate licensee who works as a residential rental locator for an El Paso property management company. In preparing advertisements of available properties, he must adhere to all of the following guidelines EXCEPT which one?

B) Advertisements placed in a publication that receives an advance/contingent fee must include a disclaimer to that end. (Correct)

Which of the following is NOT true of an easement along the Gulf Intracoastal Waterway?

B) If no clearly marked natural vegetation line exists, there is no easement. (Correct)

The Texas Real Estate Commission retains which of the following powers?

B) The power to probate, suspend, or revoke a license or reprimand or place on probation a licensee for a violation of the Act or a rule of the commission (Correct)

A broker can communicate to clients the availability of a trust to pay damages to aggrieved persons in which of the following ways?

B) Through writing via a receipt for professional services, a sign posted in the licensee's place of business, or on a brochure distributed by the licensee (Correct)

Which of the following bears a caveat emptor -- buyer beware -- warning?

B) contract for deed (Correct)

Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $500 per month. It is a custom-built home, approximately three years old. Mrs. Jones would probably give the most weight in her final estimate of value to which of the following appraisal methods?

B) market data approach (Correct)

Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan?

B) monthly payments (Correct)

RESPA would prohibit which of the following acts?

B) paying of kickbacks (Correct)

In which of the following markets may a lender sell a loan that a mortgage banker has previously originated?

B) secondary market (Correct)

A homeowner's primary residence has an assessed valuation of $150,000, and a market value of $170,000. The homestead exemption is $25,000. Tax rates for the property are 7 mills for schools; 3 mills for the city; 2 mills for the county; and 1 mill for the local community college. What is the homeowner's tax bill?

B. $1,950

B. 36 square miles. SHOULD BE CORRECT

B. 36 square miles. SHOULD BE CORRECT

A master plan can be best described as

B. A fusion of land use laws and local land-use objectives and strategies.

Which of the following is not a type of possible agency relationship in a transaction unless all parties acknowledge the relationship?

B. Designated agency

The seller has prepared a property condition disclosure statement. The realtor notices a foundation crack which the seller did not disclose. What should the realtor do?

B. Disclose the foundation crack.

The broker lists his neighbor's house on an exclusive right to sell listing. The commission is determined by

negotiation between the broker and owner of the house.

At the direction of a seller-client, an agent tells a pregnant working woman that the property is not in a good neighborhood for a single woman, particularly if she regularly works late hours. The neighborhood has an increasing crime rate, and people are moving out. What has this agent done wrong?

B. Engaged in steering

You have your license under a broker. Your broker is required to put your real estate license on display in the office. Which of the following is your broker also required to display?

B. Equal housing opportunity poster (EHO)

What is the critical specific issue with houses built before 1978?

B. Lead based paint

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?

B. Lead-based paint

Of the following sources of loan money, which does not service their loans?

B. Mortgage broker

When a municipality issues a building code that requires a hot water heater replaced a minimum of 18 inches above floor level, the Manessa Pallardy is exercising what government right?

B. Police power

An agency relationship may be terminated by all the following except

B. Reciprocity

A who is a broker went to get a listing on a piece of property B was wanting to sell. B indicated to A that he did not want his house sold to a Hispanic person hose. Which of the following should A do?

B. Refuse to list the property

A principal instructs an agent to inform any my Nordie buyer that the property was just put under contract and hour ago and is no longer available. The agent refuses to comply. In this case,

B. The agent has not violated fiduciary duty

G rents his home from C. G signed a lease with C for one year. Six months after G rents the property, C sells The property to Z. Which of the following statements is correct?

B. The lease that G signed with C is still valid during the contract time frame.

In the past, borrowers were often surprised by unexpected financing costs and charges at closing. The situation has been largely corrected through disclosure requirements mandated by which of the following laws?

B. Truth-in-lending laws

All of the following advertising statements are unacceptable under truth-in-lending, except

B. liberal terms available.

Members of NAREB are referred to as A. REALTORS. B. BROKERS. C. REALTISTS. D. MULTILINGUAL BROKERS.

BROKERS

A has a mortgage on his property. 10 years after he receives his mortgage the note expires and he pays a lump sum of the principal. What type of promissory note did A have? A. Straight-Line. B. Adjustable Rate. C. Balloon. D. None of the above..

Balloon

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.

A tenant obtains a low rental rate for a building, but agrees to pay all operating expenses. This is an example of a

net lease

A tenant obtains a low rental rate for a building, but agrees to pay all operating expenses. This is an example of a

net lease.

A is developing 160 acres of land and later divides it into 100 lots. A receives a mortgage for all 100 lots. Which of the following describes the type of mortgage A has? A. Fixed Rate. B. Blanket. C. Adjustable Rate. D. Wraparound.

Blanket.

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

Blockbusting

One who possesses a fee simple estate can do which of the following to the property?

Both 1 and 2

One who possesses a fee simple estate can do which of the following to the property? A. Sell it B. Subdivide it C. Both 1 and 2 D. Neither 1 nor 2

Both 1 and 2

A Licensee imbibed to liberally at the Brokerage Christmas Party; on the way home,she drove into another car killing the driver; got charged with vehicular homicide; and enter a Nolo Contendre plea. What's next? (7762)

Both 1 and 2 are correct. [CORRECT]

If a fine imposed by OREC is not paid within 30 days, what are the consequences.

Both 2 and 3 are correct.

What may substitute for the required subject matter, and who may complete this?

Broker in Charge course as approved by the Commission

What action with OREC must the new broker take when an associate moved? 605:10-11-2

Broker shall be required to file a consent agreement to sponsor the associate on a form provided by the Commission.

Legislation that is intended to resurrect toxic industrial sites is A. Waste field restoration. B. DNR. C. Due diligences. D. Brownfields legislation.

Brownfields legislation

For the past 30 years, the Ls have operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Ls' grocery store is located. The store is now an example of a/an:

nonconforming use.

By what date must the current year's real estate taxes be paid in order to avoid a penalty and interest on the taxes?

By January 31 of the next year.

By when must a renewal be filed? 605:10-7-2

By midnight of the date on which the license is due to expire, except in the event that date falls on a Saturday, Sunday or holiday; in such case, the next Commission working day shall be considered the due date.

Which of the following ways of specializing is common in the real estate brokerage business?

By type of property

If advertised alone, which would be in violation of Truth in Lending?

C) "No down payment required" (Correct)

Which type of loan will result in the largest reduction of the principal balance most quickly?

C) 13% over 15 years (Correct)

In judging whether previous felony or misdemeanor offenses committed by a candidate for licensure would render the candidate incapable of acting on behalf of others with honesty, trustworthiness, and integrity, the commission may take into account all of the following pieces of evidence EXCEPT which one?

C) A comprehensive independent audit of the candidate's financial status to ensure suitability as a fiduciary (Correct)

Which best describes why a buyer purchases a home using the market data approach?

C) Buyers buy after they compare the house with others (Correct)

Which of the following is NOT true of the educational requirements a candidate for licensure must meet?

C) Course credits awarded by an accredited college or university for life experience or by examination are acceptable in lieu of core real estate courses. (Correct)

All of the following scenarios involve illegal activity EXCEPT which one?

C) Kelsey Benn, an elderly widow, approaches Martin Whaler, a young attorney who is a member of her church, and asks for his assistance in finding a small home of her own. She's been living with her daughter since moving to the area a year ago. She knows she can trust Martin and hopes his legal expertise will prevent anyone from taking advantage of her. He agrees to help and tells her she does not need to engage a real estate salesperson; in return, she agrees to pay Martin a commission. (Correct)

The Hancocks, residents of McAlester, Oklahoma, have a premium parcel of undeveloped land that stretches from Oklahoma into Texas. Which of the following is true if they wish to sell the land?

C) Since they are not Texas residents, they are not obligated to engage a Texas real estate licensee to sell the property. (Correct)

All of the following are true of conventional loans except what?

C) The requirements to qualify are uniformly fixed by state law (Correct)

Which of the following belongings is an example of a fixture?

C) Window air-conditioner bolted to a window frame (Correct)

A real estate agent should tell the buyer, his customer, which of the following?

C) a pending or recent zoning change (Correct)

Which of the following is considered a conventional loan?

C) commercial bank's ARM loan (Correct)

A listing agent must disclose which of the following facts to a prospective buyer?

C) covenants, conditions, and restrictions (Correct)

Ash Mason owns a home with an expansive lawn in the Dallas suburbs and has decided to install an in ground pool for recreational and health purposes. She has chosen non-slip pavers for the perimeter of the pool (to reduce risk of falls and, thereby, her liability as property owner) and plans to add a deck at one end of the pool for lounging. Which of the following factors should she consider most carefully in deciding whether or not to erect a fence around part or all of her backyard?

C) possibility that the pool might be an attractive nuisance (Correct)

Which transaction requires a securities license?

C) selling shares in Fannie Mae (Correct)

Which is the best example of functional obsolescence?

C) steep, narrow stairway in a 1 and 3/4 story home (Correct)

A sales associate lists a property. Three weeks later, the sales associate is tragically killed in a car accident on the way to show the property. What is the status of the listing contract?

C. Agency remains unaltered

This loan type is characterized by equal monthly payments credited first to interest do. Then, the remainder of the payment is applied to the loan balance.

C. Amortized loan

Allen who is a lender wishes to make the yield on a loan lower than the current market value. What would Alan charge to make the loan more competitive?

C. Discount point(s).

City be forced landowner a to sell his property to the city for public use. City B was exercising it's right of

C. Eminent domain

Which term describes a "relationship of trust and confidence between a principal and agent"?

C. Fiduciary

While a property is under a contract for deed, the buyer, or vendee, take possession of the property and makes timely payments of principal and interest. At the end of the term, the vendee obtains a loan and uses the funds to pay off the vendor. Given the circumstances, what option does the seller have?

C. He may offer to repurchase the property after conveying title.

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. [CORRECT]

Albert has a mortgage on his home. The clause in Alberts mortgage which calls the entire balance of his mortgage immediately do if his home is sold is called

C. The alienation clause.

Ted and Sandy build a home on a 75' x 100' lot six years ago. A new zoning ordinance was recently connected which requires the minimum lot size in their zoning district to be 15,000 ft.² with a minimum frontage of 100 feet. Which of these statements is most correct regarding their situation?

C. Their use is a nonconforming use, and they don't have to do anything.

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

C. Underlying land to the middle of the waterway

I 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?

C. Yes. Implied agency

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

C. an independent contractor

Zane is the broker who has a listing on a property for Ben. The property is listed for $310,000. Zane finds a potential buyer who submits an offer to Ben for the full listing price, with an additional stipulation that Ben replaces the carpet in the property. Ben refuses, Zane can

C. collect no commission.

94. Q: Agents having a wide authority to conduct a series of transactions of a continuous nature on behalf of their clients are (6602)

C. general agents. [CORRECT]

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

C. guarantees loans made by approved lenders.

Five members of the OREC shall be

C. licensed real estate brokers

The civil right act of 1866 prohibits discrimination on the basis of

C. race

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

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

Z signs a contract with B who is a minor. The contract Z signed with B is

C. voidable by the minor.

Z signs a contract with B who is a minor. The contract Z signed with B is (5794)

Cancelled because minors cannot legally contract.

What are the OREC leadership positions?

Chairman & Vice Chairman.

A is a resident manager for a local apartment complex and is responsible for negotiating leases for the apartment complex. A is A. not violating the law because A is exempt. B. violating the law because A\'s real estate license is on inactive. C. violating the law and can be prosecuted by up to six months in the county jail. D. violating the law because A does not hold a real estate broker license.

not violating the law because A is exempt.

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

Civil Rights Act of 1866

If the Education & Recovery Fund has insufficient money, what action may OREC take?

Claims will be paid as funds become available.

Rex Kinsella has received two offers on his ranch and acreage. The sprawling Sheffield estate, replete with large Spanish colonial manor house, horse barn, several smaller outbuildings, and several acres of cleared land is a steal at only $216,500. The first offer, from Clara Walters, a young woman who wants to start a horse riding academy, is for $211,900 cash. The competing offer from the Millhouses, a middle-aged couple who need plenty of room for their grandchildrens' visits, offers $215,000 with 10% down and a request that Rex pay 2 points on their mortgage loan. Which offer would be most lucrative for Rex?

Clara Walters' offer because she is paying cash and not asking for Rex to pay any points

Z is the broker who has a listing on a property for B. The property is listed for $310,000. Z finds a potential buyer who submits an offer to B for the full listing price, with an additional stipulation that B replaces the carpet in the property. B refuses, Z can A. Collect 3% commission. B. Collect the full commission, because Z found a buyer who was willing to pay $310,000. C. Collect no commission. D. Force B to accept the offer.

Collect no commission.

The minimum requirements to sit for the state exam to become a Provisional Real Estate Associate include which of the following A. Completion of 45 hours or its equivalent in real estate education. B. Bachelor\'s degree in real estate. C. High school diploma. D. Completion of 90 hours or its equivalent as determined by the Commission.

Completion of 90 hours or its equivalent as determined by the Commission.

Economic obsolescence results from what factors?

Conditions surrounding the property.

Economic obsolescence results from what factors? A. Conditions surrounding the property. B. Elevators not working. C. Lack of air conditioning or central heat? D. Racially integrated neighborhood.

Conditions surrounding the property.

Albert is a home-builder and seeks financing from his local bank to fund his houses so he can sell them to a customer in the near future. What type of financing did Albert receive?

Construction Loan Construction Mortgage

The lender is not insured or guaranteed against a loss, by reason of the borrower's default in repayment, under which type of loan?

Conventional

A's lender denied him a home loan. Which of the following conditions could A's lender have legally denied him?

Credit history.

A\'s lender denied him a home loan. Which of the following conditions could A\'s lender have legally denied him? A. Credit history. B. Sex. C. Disabled Status. D. Age.

Credit history.

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.

Title insurance is always paid

only once, when the policy is issued.

A person who has secured the right to purchase a property at a fixed price for a designated period of time and has paid a consideration for this privilege would own a(n) A. assignment of interest. B. agreement to purchase. C. lease. D. option.

option.

Standard forms promulgated by the Texas Real Estate Commission exist for all of the following sales EXCEPT which one?

D) A large lot is intended as a future site for a multi-family (5 or more) residence complex.

Recent changes to law require the Texas Real Estate Commission to provide an online system for license application and renewals. Which of the following is NOT required for an electronically submitted license application?

D) A state-authorized photo for purposes of definitive identification (Correct)

Adam Zappa engages CharTipton of Yellow Rose Realty to list his property in Del Rio. After Char provides a market analysis to determine the estimated value of Adam's house, they decide on a listing price of $117,000 and Adam gives Char an exclusive right to sell. Adam confides to Char that he would be happy to get $115,000 since he bought the property for $95,000 three years earlier. Which of the following actions must Char take?

D) Char must keep Adam's disclosure confidential. (Correct)

Who is NOT an originator of primary loans?

D) FHA (Correct)

Connie Hart is a licensed real estate salesperson working at a small brokerage in Amarillo. Which of the following functions can she NOT perform without an agency agreement in place?

D) Holding monies for disbursement in escrow until closing (Correct)

When can a landlord evict a disabled blind or disabled tenant from the premises?

D) If the tenant has loud parties and makes too much noise (Correct)

A landlord of residential property must provide all of the following EXCEPT:

D) Installing a burglar alarm system or other protective apparatus in a unit in a documented high-crime area when the occupant requests the protection. (Correct)

Which of the following is true of a second mortgage?

D) It is usually issued at a higher rate of interest (Correct)

Forms specific to the nature of a wide variety of real estate transactions are promulgated through the Texas Real Estate Commission and must be used in all but a few circumstances. All of the following scenarios EXCEPT which one represent circumstances exempt from the use of TREC promulgated forms?

D) Orlon Smith, a licensee, is assisting the Murnans in arranging to move into their new house two weeks before the closing. (Correct)

As a broker acting as an intermediary to the sale of a single-family dwelling, Sean Noonan would be acting unlawfully and unethically if he discloses any of the following information EXCEPT:

D) That both parties have agreed to pay a portion of the broker's compensation (Correct)

Usury MOST nearly means:

D) illegal interest (Correct)

The finance charges recorded on the Truth in Lending statements would include all of the following EXCEPT:

D) recording fees and title insurance premiums (Correct)

Which of the following examples does not represent a protected class under federal fair housing law?

D. A same-sex couple recently married in Vermont.

Which of the following practices could have the effect of being discriminatory?

D. All of the above

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

D. Ethics

What agency promulgates regulation Z?

D. Federal Reserve system

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

D. General agents

A special agent is best described as a person who

D. Has authority to represent the principal in a specific transaction

An agency relationship may be terminated by all the following except A. renunciation by the agent. B. reciprocity. C. revocation by the principal. D. mutual consent.

revocation by the principal

By the comparison (market data) approach to appraising, we mean value derived from A. comparison of loans on area properties. B. original costs of comparable properties. C. comparison of architecture of properties. D. sales of comparable properties.

sales of comparable properties.

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

sell property he/she owns

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

special agents

Real estate brokers authorized to conduct a single transaction for their principals are usually classed as A. universal agents. B. special agents. C. ostensible agents. D. general agents.

special agents.

A who is a real estate broker has been funneling buyers of a certain race to a certain part of the city. This practice is known as A. blockbusting. B. steering. C. panic selling. D. redlining.

steering.

Q: B purchases a parcel of land in Tulsa, Oklahoma and sells the interests in any minerals located in the ground to an exploration company. This means that B now owns all but which of the following with regard to this property? (5889)

sub surface rights

Apartment houses in an area were selling for $100,000 and a buyer offered $100,000 for an apartment building. The buyer is operating on the principle of:

substitution

Typically before a mortgage company will finance a home they will want to make sure there are no encroachments on the property they are financing. To check for any encroachments the mortgage company should order a A. survey. B. a signed affidavit from the seller. C. special title policy. D. title insurance.

survey

The Oklahoma Real Estate Commission shall have the powers and duties of

suspending real estate licensees and approvals for a specified period of time.

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.

The Governor may select members from a list of at least three qualified persons submitted by A. the state legislature. B. existing commissioners. C. the Oklahoma Association of Realtors, Inc. D. licensed real estate agents.

the Oklahoma Association of Realtors, Inc.

Real Estate licenses are issued by

the Oklahoma Real Estate Commission.

Real Estate licenses are issued by A. the Oklahoma Real Estate Commission. B. the State Auditor. C. the legislature. D. the Governor.

the Oklahoma Real Estate Commission.

The revolving fund is under the management of

the Oklahoma Real Estate Commission.

The revolving fund consists of all monies received by the Oklahoma Real Estate Commission except

the Oklahoma Real Estate Education and Recovery Fund.

The revolving fund consists of all monies received by the Oklahoma Real Estate Commission except A. fines. B. legislative investment. C. license renewal fees. D. the Oklahoma Real Estate Education and Recovery Fund.

the Oklahoma Real Estate Education and Recovery Fund.

When an appraiser uses the phrase "effective age," he is referring to:

the age of the property based on its condition.

A principal instructs an agent to inform any minority buyer that the property was just put under contact a hour ago

the agent has not violated fiduciary duty

a principal instructs an agent to inform any minority buyer that the property was just put under contract an hour ago and is no longer available. the agent refuses to comply. in this case

the agent has not violated fiduciary duty

A has a mortgage on his home. The clause in A\'s mortgage which calls the entire balance of his mortgage immediately due if his home is sold is called A. the accelerations clause. B. the subordination clause. C. the alienation clase. D. the payout clause.

the alienation clase.

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

The cost of the national criminal history record check shall be paid bye

the applicant

The cost of the national criminal history record check shall be paid by A. the Oklahoma State Treasury. B. the Commission. C. the applicant. D. the Federal Government.

the applicant.

A strength of the sales comparison approach to value is that

the approach is based on the principle of substitution.

The primary jeopardy of overpricing a property is that

the client's expectations may not be achieved.

In valuing a single family residence by the comparison approach, an appraiser would make adjustments to:

the comparable properties.

Members shall be appointed by A. the Speaker of the House. B. the governor with the advise and consent of the State Senate. C. the Oklahoma Real Estate Commission. D. the state legislature.

the governor with the advise and consent of the State Senate.

If an offeree makes any alteration in an offer before accepting it, A. the altered offer becomes a binding contract if the offeror does not object within three business days. B. the alteration is binding upon the offeror. C. the initial offer has been turned down and a counteroffer is being made. D. none of the above.

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

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

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

158. Q: Which of the following is not one of the "bundle of rights"? (5890)

the right of unrestricted use.

When the government gave or sold land to individual persons the government gave up almost all rights to land except A. the right to build cell towers B. the right of place deed restrictions on a deed C. the rights of police power, escheat, eminent domain, taxation D. the right of consistent use

the rights of police power, escheat, eminent domain, taxation

When the government gave or sold land to individual persons the government gave up almost all rights to land except:

the rights of police power, escheat, eminent domain, taxation

No more than two members shall be appointed from A. Tulsa. B. the state legislature. C. the same congressional district. D. Oklahoma City.

the same congressional district.

The listing broker has a fiduciary responsibility to

the seller

You list a home for your neighbor with an exclusive-right-to sell listing. Your relationship with the seller is A. a subagent for the seller. B. the seller is your customer. C. the seller is your exclusive confident. D. the seller is your client.

the seller is your client.

The listing broker has a fiduciary responsibility to A. the lender. B. the seller. C. the seller\'s and buyer\'s attorneys. D. the buyer.

the seller.

A licensee may accept commission from A. the seller. B. the buyer\'s attorney. C. the sponsoring broker. D. the buyer.

the sponsoring broker.

When writing a contract you are inserting the legal description into the contract. You should not base the legal description on A. a metes and bounds legal description. B. the street address. C. the survey. D. a U.S. govenment rectangular survey.

the street address.

The economic life of an investment can be descrived as:

the time over which value generated exceeds cost of operation.

All real estate licensees (except Provisional) shall be issued for a term of A. two years. B. thirty six months. C. eighteen months. D. five years.

thirty six months.

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. [CORRECT]

A person shall not be permitted to file an application for re-issuance of a license after revocation for a period of A. five years. B. three years. C. ten years. D. two years.

three years

The broker receives an earnest deposit on an offer to purchase. The offer is accepted. The broker must place the earnest deposit in his A. operating account until the buyer has loan approval. B. special savings account for earnest deposits. C. trust account before the end of the third banking day after acceptance. D. trust account within 72 hours.

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

An associate is prohibited from advertising

under only his or her name.

An associate is prohibited from advertising A. and including his/her broker name in the advertisement. B. with the direct supervision of his/her broker. C. under only his or her name. D. All of the above.

under only his or her name.

Which of the following liens would take priority over all other liens?

unpaid real estate taxes

If a purchaser signs a contract under duress, it is generally

voidable by the buyer

If a purchaser signs a contract under duress, it is generally A. void. B. valid. C. voidable by the seller. D. voidable by the buyer.

voidable by the buyer

If a purchaser signs a contract under duress, it is generally

voidable by the buyer.

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 part for whom the broker is providing brokerage services