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While reviewing her purchase contract, Jeanette's client asked "what does this inspection contingency do?" How should Jeanette frame her response?
"this inspection contingency is designed to protect you in case the home inspector finds something wrong with the property that can't be fixed or makes you uncomfortable
Adam owes $125,000 on his home. It's currently worth $340,000. How much equity does Adam have in his home?
$215,000
Buyer Yun-Wah is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much will his loan origination fee be?
$3,200
Nancy and Ned, your buyers are purchasing a condo for $385,000. The transfer tax rate is $0.42 per $100 (.0042). To calculate the transfer tax, you multiply _______ by .0042 and get a transfer tax amount of $1,617.
$385,000
whats the typical useful of an underground storage tank?
15 years
Cheryl wants new carpeting for her rectangular living room. Her living room is 18 feet by 12 feet. How much carpeting does she need?
216 square feet
What's the minimum length of time you should maintain paper and electronic copies of transactional documents?
3 years ago
A vacant parcel of land is 6 square miles. How many acres is this?
3,840 acres
A licensee must pay an administrative fine within ____ to avoid the fine doubling and possible having her license suspended
30 days
In order to maintain compliance with state real estate laws, Oklahoma property manager Christian must ensure that the agreement he signs with his new property owner client contains which of the following elements?
A description of the duties that Christian owes his client
what is a company checklist?
A list of how procedures are completed within a company
What's the name of a fee a lender charges for processing a loan?
A loan origination fee
As ____ property manager, you spend most of your time on maintenance, landscaping, security issues, and enforcing HOA regulations.
A planned unit development
Licensee Amelia is working on some new advertisements to generate more business. Which of these actions would be appropriate for her to take?
Amelia includes her brokerage's name, address, and phone number in the ad, along with her direct contact information
Which of the following opinions can a real estate licensee provide?
An opinion regarding the listing price
Prior to closing on the property, Monica substituted her daughter's name, Melanie, as the buyer. Although Melanie is now listed as the buyer, Monica isn't released from her contractual obligations. What is this scenario an example of?
Assignment
Appraiser Niles uses ____ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison.
Bracketing
Which of the following terms best describes an item that is both a fixture an real property
Built in
Rhonda is interested in putting money toward a timeshare estate, which would allow her to use a condominium for two weeks each year. Timeshare estates ______.
Can be sold or passed down to heirs
Which of the following changes would NOT require a licensee to notify the Oklahoma Real Estate Commission of the change?
Change in professional association affliation
Thanks to this act, sites containing hazardous substances are identified, and responsible parties must clean them up.
Comprehensive Environmental Response Compensation and Liability Act
What is the instrument called that's generally used to covey property?
Deed
Buyer Allie wants to waive some of the duties that licensee Harry owes her. Which of the following duties is Allie not permitted to waive under Oklahoma law
Disclosing material facts about the transaction
What practice did the Fair Housing Act of 1968 attempt to eliminate?
Discrimination through blockbusting, steering, and redlining
Misrepresentation is ______
Either intentional or unintentional
Nicholas is unhappy with his listing agent, Carson. Which of these statements about terminating the agency agreement is true?
Either party can terminate the listing agreement at anytime, but there may be leagal consequences
Jasper has a new listing, and he appoints Esther as his sub-agent. Esther brings Julie, a buyer customer, to the transaction, and Julie buys Jasper's listing. What's true about the agency relationships in this situation?
Ester owes her loyalty to the seller
Which act encourages fair, truthful, non-deceptive, and evidence-supported claims in advertising?
Federal Trade Commission Act
Sandra is a real estate licensee managing Charles's property. Which of the following best described Sandra's primary goal in working for Charles?
Get the best return on Charles's investment for the property
What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?
Gross income
SARA's landowner immunity status option offers a potential relief to owners of
Hazardous waste cleanup cost on their land if it's determined that they're not at fault for it
Rafael noticed evidence of some bad flooding in the basement of his clients' property during his last tour of the home. This wasn't disclosed by the sellers. A few days later, a buyer's representative asked whether there had been any water damage to the property. What should Rafael do?
He should disclose that he had seen evidence of flooding in the basement the week prior
Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a(n) ______ contract.
Invalid
What's the purpose of zoning?
It dictates how land in a specific area can be used
Keenan signed a lease agreement that contains a right of first refusal. What does this clause do for Keenan and his landlord?
It gives Keenan the option to buy the property he's leasing before the property is sold to someone else
What is the purpose of a deed?
It is used to transfer real property from one party to another
Broker Hal enters into a listing agreement with seller Jane. Jane insists that the agreement state that only native-born U.S. citizens be allowed to buy the home. For what reason will this agreement be considered void?
It lacks lawful objective
What is the purpose of an operating budget?
It provides income and expense projections.
Which of the following is a benefit of a policies and procedures manual as a way to reduce risk?
It regulates peoples' actions
You represent a seller, Ross, and your former client makes an offer on Ross's property. What must you do?
Keep any information learned when representing the buyer confidential from the seller
What may be found in paint in homes built before 1978?
Lead
Which of these is an example of a lot and block description?
Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds
How do predatory lenders take advantage of consumers?
Making loans to consumers who can't afford them
Which of the following measurement systems is mostly used in states that were part of the original 13 colonies?
Metes and bounds
If asked directly by a purchaser whether a property has been a site of a homicide, suicide, or felony, the seller ______ disclose this.
Must
Uh-oh. You failed to present an offer on behalf of your client in a timely manner. As a result, the seller accepted a lower offer from another buyer. For which of the following could your buyer sue you?
Negligence
Which of the following statements is true regarding assignments and subleasing?
Neither assignment nor subleasing relieve the former tenant of liablity
In which type of commercial lease does the tenant pay some or all expenses seperately
Net lease
Three friends entered into a contract to buy a vacation property. The friends got into a dispute, resulting in one of them wanting out of the deal. The remaining two friends didn't want to lose the deal, but couldn't afford it on their own. They talked a fourth friend into replacing the person who backed out of the contract. The seller agreed to the substitution, and they moved forward with the purchase. What does this describe?
Novation
Which of the following is not a required element for a contract to be valid?
Offer to renew
Mary, who's suffering from Alzheimer's disease, signs a contract to buy Edgar's home. Before the deal closes, it's determined that Mary lacks legal capacity to enter into a contract. Which party is permitted to void the contract?
Only the buyer, Mary
Roger forgot to renew his Oklahoma sales associates license while he was out of state caring for his elderly parents. The lapse was only 6 months. Which of the following must Roger do to get his license reinstated?
Pay the reinstatement fee, late fee, and licensing fee.
In terms of encumbrances, what's a license?
Permission without possession, interest, or ownership
Oklahoma licensee Tristan has been accused of a license law violation, and the hearing for his case is under way. After the recitation of charges and the opening statements, what will Tristan be able to do?
Present a case in his defense
According to the Statue of Frauds, in order to be legally enforceable. a contract must be in writing, name the contracting parties, identify the subject matter of the contract, and _____.
Present the essential terms and conditions of the contract.
At a business meeting among the heads of several top brokerages in town, the keynote speaker discussed a minimum listing fee. What is this an example of?
Price fixing
Which of the following is one of your duties as a listing agent?
Promote your client's interest throughout the entire transaction
Hard copies of information can be lost, fall into the wrong hands, or be destroyed by fire or water damage. There are all reasons to do what?
Protect hard copy data
In order to complete the requirements for renewing his Oklahoma sales associate license, Jesse will complete his renewal application, pay the renewal fee, and ________. Of course, he'll need to do all these things prior to his renewal deadline.
Provide proof of completing his continuing education
Which of the following is an example of single agency?
Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty.
Real Estate, plus all of the interests, benefits, and rights included in ownership, is also known as ______.
Real property
In the sales comparison approach, the appropriateness of the carious comparable sales in relationship to the subject is considered in a process known as _____ where certain factors may be given more weight.
Reconciliation
Shaunie allows her children to use markers to draw picture son the concrete walls in the apartment's common area. Which URLTA tenant duty has Shaunie breached?
Refrain from deliberately or negligently damaging or destroying the unit
When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle of value is this?
Regression
Why is errors and omissions insurance beneficial to licensees?
Risk is an inherent part of real estate activites
What's the definition of a land contract?
Sellers provide funds or credit to buyer in order to close the transaction
Yuki is a shareholder in a cooperative building, where she lives. Which of the following is true about her situation?
She owns shares in the corporation that runs the building
Janine wants to meet with her potential buyer client face-to-face in her office. What's her reason for doing this?
She wants to make sure the buyers are serious about purchasing.
In order for a deed to be valid, which two elements are required?
Signature of the grantor and consideration
Why would a buyer want to know whether any additions or alterations were made to a property?
So the buyer can determine if permits were pulled
Which of the following did the Dodd-Frank Act accomplish?
Split residential and commercial appraisal oversight to the newly created Consumer Financial Protection Bureau (CFPB)
The duties Oklahoma licensees owe to all parties in a transaction are known as
Statutory duties
Which entity ensures that contractors perform their work according to code by inspecting their jobs sites?
The building department
Whose responsibility is it to keep track of all buyer contingency deadlines and ensure they're not missed?
The buyer and the buyer's agent
The cost approach to finding an appraised value measures ____.
The cost to acquire land and construct a reproduction
Martin received a check for earnest money on Thursday at 4pm. On friday, the buyers offer was accepted. In order to not breach his duty of properly accounting for money or property received in a timely manner, which of the following is true?
The earnest check must be deposited into the brokerage's trust account within three business days after the offer is accepted
What is a foreclosure?
The forced sale of a property due to the borrower defaulting on the mortgage loan
What happens to a joint tenant's share of property when the joint tenant dies?
The joint tenant's interest goes to the remaining joint tenants. If only one joint tenant is left, that joint tenant owns the property in severalty.
You represent Kyle, who's buyer his first home. He signs a contract to buy Wendy's home. The contract includes the following phase "time is of the essence". You correctly advise Kyle that this phase means _____.
The parties will be held in strict compliance to any timeframes specified in the contract
According to the Oklahoma Broker Relationships Act, which of the following is considered a confidential item?
The seller needs to sell quickly to move closer to an ailing family member
why would a retail tenant be willing to sign a lease in which a percentage of sales proceeds are paid to the landlord?
The tenant wants to reduce the base rent
Which of the following is a reason that wetlands are protected?
To stabilize soil and help control erosion
The ease with which property can be conveyed to another describes which factor influences value?
Transferability
What must you do to assist your clients with environmental issues
Understand the risk and disclose everything
Seller Rick signed an exclusive right-to-sell agreement with Beth, who worked very hard to find a buyer. Rick's cousin decided to purchase the house from Rick during the listing period. Is Beth owed a commission?
Yes, because Rick signed the listing agreement
Seller Randy signed a listing agreement with Barbra, who worked very hard to find him a buyer. Randy's cousin decided to purchase the house during the listing period. Is Barbara owed a commission?
Yes, if she has an exclusive right to sell agreement
When you refuse to screen prospective buyers based on their ethnicity, your client, Matt, "fires" you as his agent, and you agree to his decision to part ways. Do you still owe this guy any fiduciary duties?
Yes, you still owe him the duty of confidentiality
For which of these transactions does Oklahoma law require you to disclose your licensed status to the other parties?
You're representing your daughter, who's selling her home.
What's a contract clause?
a section of a contract covering a specific topic
What does "any public communication representing the offer of products or services for purchase or sale" define?
advertising
which of the following statements about using real estate assistants is true?
assistants can preform certian task without a real estate license.
under what circumstances may a seller legally terminate an exclusive right-to-sell listing agreement before its listing term has passed
if the listing broker agrees in writing to the termination
The earth's surface, extending downward to the center of the earth and upward to the infinity, including permanently attached natural objects, is called
land
in real estate, who does errors and omissions insurance cover for inadvertent mistakes during a real estate transaction?
licensees
You represent a buyer of a $1 million property. The seller's agent, through the seller, offers a 2.5% cooperative agent commission. Who's your client?
the buyer
which of the following is a possible result of a community growing too ittle or not at all?
the economy stalls
what's the purpose of a home inspection?
to paint a true picture of a property's condition
misdemeanor license law violations for unlicensed activity may be punished by ______
up to 6 months of jail time
Which of the following is an action that real estate licensees may take without practicing law illegally?
use existing forms that an attorney has reviewed
under which of the following conditions is it unacceptable to disclose confidential information
when you are disclosing the information after your agency relationship with the client has ended