OK 45 hrs | CONT. EDU
Recovery
-Unemployment stabilizes, but remains high -Foreclosures remain high -High supply of homes on the market, but few buyers -General public unease -Home prices are undervalued
According to the fact sheet, approximately how many housing units are there in the Baltimore metropolitan area?
1 million
Sarina's firm primarily uses electronic marketing communications, including emails, Twitter feeds, and Facebook posts. Which of the following marketing tools might receive special attention
A hand-written thank you note
Banking and Insurance Analysts
Data or statistics
Federal Housing Financing Agency
Data or statistics
Which of the following is a description of leveraging?
Using a small amount of cash to obtain a loan of a larger amount
Expansion
-Companies are hiring, lowering unemployment -More buyers, heavy housing demand -Decreasing supply -Public confidence increases -Home prices rise
Over Supply/Hyper-Supply
-Unemployment low; hiring stabilizes -Many buyers -Lots of new construction, increasing supply -Public confidence very high -Home prices are overvalued
HARP
April 2010, Home Affordable Refinance Program, Allowed homeowner refinancing at more favorable rates without the need for PMI
Baby Boomers
Born 1946 to 1964 Children of the Silent Generation Products of the post-WWII baby boom, a huge explosion in the U.S. population Those over age 58 tended to purchase townhomes or condos; 80% of those under age 58 purchase single-family homes.
Gen X
Born early 1960s to early 1980s Highly educated, and are active Gen X includes the largest share of first-time homebuyers (76%) More than half used a mobile device to search for their homes, with 22% finding the home they eventually purchased via a mobile device
The supply of properties available in the market is greater than the number of buyers. What type of market does this describe?
Buyers Market
How does the consumer provide economic support to a community in the living phase of the real estate cycle?
By purchasing and consuming local goods and services
Which of the following is designed to make consumer financial products and services fair and transparent?
Consumer Financial Protection Bureau
Which of the following statements best describes disintermediation?
Consumers are withdrawing more money from banks than they are depositing.
Fannie Mae & Ginnie Mae
Educational Info
Which of the following were characteristics of the market in the late 1990s and early 2000s?
High property values & low interest rates
Which of the following was created as part of the Homeowner Affordability and Stability Plan?
Home Affordable Modification Program (HAMP)
HAMP
Home Affordable Modification Program. Included forgiving or deferring a portion of mortgage debt. Implemented in 2009 to encourage lenders to reduce monthly payments to no more than 31% of gross income
Which of the following is a possible result of a community growing too fast?
Inadequate resources to support the population
What is the general economic impact of mortgage loan payments?
Increase in economic growth
Which professionals are most utilized by the buyer prior to closing?
Lenders, title companies, appraisers, and home inspectors
Which of the following items directly influences real estate demand?
Loan Availability
Real estate is influenced at several levels, what level is zoning ordinance
Local level
In the early 2000s, before the 2007 financial crisis, how would you characterize the real estate market?
Low interest rates and high property values
Which act temporarily removed the requirement that taxpayers whose homes were sold as a result of a foreclosure had to include the loan write-off amount as taxable income?
Mortgage Forgiveness Debt Relief Act of 2007
In the secondary market, mortgages are grouped together and sold as ______.
Mortgage-backed securities
In which phase of the real estate market would you expect to see unemployment and foreclosures remain high but begin to stabilize?
National lending institutions package loans and sell them to investors. This creates additional funds to purchase more loans from the primary market.
In which phase of the real estate market would you expect to see unemployment increasing, prices falling, and foreclosures on the rise?
Recession
When are things in the real estate market going to pick up? There are so many houses on the market, with many sitting vacant because everyone is too scared to buy. This does nothing to help the increasing number of foreclosures. Deals can be had for those who are ready to buy, however. During this phase, prices tend to fall in order to encourage home shoppers to buy.
Recession
What step of the real estate cycle generally follows recession?
Recovery
There are fewer properties available in the market than there are interested buyers. What type of market does this describe?
Seller's market
Which act exempted homeowners from paying taxes on capital gains up to a specified value?
Taxpayer Relief Act of 1997
Which of the following entities support lenders in having adequate cash flow available?
The Federal Reserve and secondary mortgage markets
In response to the increase in foreclosures and losses on their balance sheets, not to mention a reduced market for subprime loans, many lenders slowed their lending activities. What was the impact of this on the overall economy?
The economy headed into a recession.
When a lender has a lien on a property via a mortgage, what rights does the lender hold?
The right to foreclose
Which of the following best describes the state of the market during the recession phase of the real estate cycle?
Unemployment increasing, prices falling, and foreclosures on the rise
Which governmental legislation established the Consumer Financial Protection Bureau?
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
Disintermediation
When bank deposits are less than bank withdrawals
What term is used to describe the housing inventory in default or foreclosure?
When property loans are defaulted or foreclosed, it's named shadow inventory.
What does longevity mean in relation to your business name?
Whether it will serve your purpose for a considerable length of time
What's the difference between your brokerage's brand identity and its image?
Your brand identity is how you visually express what your firm is; your image is how the marketplace perceives you.
four components that make up the value-based marketing model.
creating, delivering, exchanging, communicating
Supply < demand =
sellers market
Silent Generation
Born mid-1920s to mid-1940s Grew up during the Great Depression During World War II, they watched America surpass its previous economic conditions and become a global superpower. Only 55% financed their home purchases, and those who financed averaged a 23% down payment.
Tonia is buying a new home. She has a down payment of $30,000 and will obtain a $250,000 mortgage from a local bank to make up the remainder of the purchase price. What is this an example of?
Leveraging
Robert and Jill purchased a single-family home in the suburbs for $50,000 nearly 40 years ago. Considering historical property value fluctuations, what is the likely value of the property today?
More than $50k
Real estate is influenced at several levels, wha tlevel is economic events at?
any level
Real estate is influenced at several levels, what level is political events at ?
any level
Supply > demand =
buyers market
Within days, Suzanna and her staff see several sellers who are interested in their fee-for-service offerings. They also see several who are interested in the more traditional commission structure. Suzanna's licensees have expertly described both structures to all sellers, even providing examples of potential costs based on each scenario. They're careful to discuss agency relationships and the duties they'll owe to the sellers in each relationship. This is an example of ________.
communicating
Suzanna's firm deals in residential real estate. She and her staff are adding a fee-for-services structure to their traditional commission-based services, and have developed a menu consumers can choose from depending on their needs. Prices are attached to each level of service so consumers pay only for the services they use. This is an example of________
creating
As interest rates rise, the number of buyers in the market is likely to ______.
decrease
Suzanna invites business associates, friends, previous clients, and former customers to attend an open house where she and her staff show a short video and explain the new fee-based service. Her firm also develops and implements a marketing campaign to reach a broader audience. This is an example of ___________
delivering
Value tends to fluctuate up and down.
short term
Which of the following acts exempted homeowners from paying taxes on capital gains up to a specified value?
taxpayer Relief Act of 1997
Leverage
to control a large investment with a smaller amount of funds.
Real estate activities have an impact on the economy.
true
The health of the overall economy may rely heavily on construction of new properties.
true
Which act made some mortgage insurance premium deductions available to certain taxpayers?
American Taxpayer Relief Act of 2012
Echo Boomers/Generation Y
Born 1980s to 1990s Some crossover with Millennials, but many are children of Baby Boomers. Tend to delay typical adulthood rites, such as marriage, career, and family. Fully 97% of this group financed their home purchases, with 56% blaming student loan debt for their inability to save. Prefer city life, smaller condos, and tech-enabled units. Likely to look online first before making a purchasing decision; more than half used a mobile device, with 26% finding the home they eventually purchased via a mobile device.
Millennials/Generation Z
Born 1990s through 2001. Some put this group between 1982 and 2002, and others lump Millennials with Generation Y. The children of Generation X, this group saw the Great Recession, 9/11, and numerous government and industrial scandals in their formative years. Can appear to lack direction Many will likely get assistance from their parents to finance their housing purchases if and when they decide to purchase.
Reese and his staff have developed an engaging, action-oriented listing presentation to present to potential sellers. Which component in the marketing model does the listing presentation represent?
Communicating
Which of the following best describes the state of the market during the recovery phase of the real estate cycle?
High but stabilized unemployment and a high number of foreclosures
In a mortgage, the property is used as collateral for the loan. The process of pledging something as collateral is referred to as ______.
Hypothecation. Using a property as collateral for a mortgage is known as hypothecation. If it helps, think "Hypothetically, if I didn't pay my mortgage, you could take my house."
Marley wants to purchase a new home. She has $15,000 saved for a down payment, and she's confident that she'll be approved for a $150,000 loan. Without the ability to ________, she fears she'd never have the money saved to make such a large purchase.
Leverage
Historically, what do property values tend to do over long periods of time?
increase
Historically, what do property values tend to do over short periods of time?
increase & decrease
Low interest rates makes borrowing ______.
less expensive
Which of the following entities commonly acts in the primary market?
local credit unions
Real estate is influenced at several levels, what level is employment trends at?
local level
Value tends to fluctuate upward.
long term
Which generation financed their homes due to also having other debt obligations?
millennials
Susan's buyer client Naomi loves the bungalow on the corner of Elm Street. They'd just finished up their tour and gone outside when Naomi said, "Geez, a lot of the trees on this street look like they have some sort of disease. They're all dropping their leaves, and, look, they have spots all over them. Do you think it's Dutch Elm Disease?" What's the best way for Susan to respond?
"I'm no tree expert, but I know someone who is. Here's his card."
While hosting an open house, you'd like to influence a potential buyer to seriously consider making an offer. Which of these statements illustrates using the principle of authority to do this?
"I've been in real estate for a long time, and this is one of the best homes I've ever listed."
Which of the following statements is an acceptable phrase to include in an MLS listing?
"Large backyard with ample room for all your outdoor activities"
Which one of Gerry's statements to a client crosses the line into unauthorized practice of law?
"Most couples take ownership of property as joint tenants, so that's what I'd advise."
You meet a buyer who has an exclusive agency agreement with another firm. Which of the following questions can you ask the seller?
"When does your agreement with your broker expire?"
Mom's Memories is a mom-and-pop scrapbook shop in the local strip mall. It leases a 1,500-sq.-ft. space for $11 per square foot. What's Mom's monthly rent payment?
$1,375
Joe's total current assets are $278,000, his total assets are $455,000, and the equity amount on his balance sheet is $276,000. What is the total of his liabilities?
$179,000
Administrative fines in Oklahoma can range anywhere from $100 to _____ per violation.
$2,000
On January's income statement, beginning cash is $126,500, cash in is $212,000, and cash out is $97,600. What's February's beginning cash?
$240,900
You average one client from every 10 leads, and each client represents 85% of a closed transaction. Each transaction you close has an average dollar value of $6,000. Using the funnel, how much can you expect to earn from every 10 leads?
$5,100
You average one client from every seven leads, and each client represents 80% of a closed transaction. Each transaction you close has an average dollar value of $9,000. How much can you expect to earn from every seven leads?
$7,200
The gross rent multiplier extracted from an area is 122. If the monthly rent is $800, what's the estimated value of the property?
$97,600
Toby is transferring from his brokerage's Tulsa branch office to the Springfield branch, which will put him under a new sponsoring broker. Within how many days of his physical move must all his transfer paperwork be filed?
10
Under current tax law, what's the maximum tax-free gift an individual can give to another individual annually?
15,000
According to fair housing laws, the protected class of familial status refers, in part, to those with children, who are defined as anyone under the age of ______.
18
The Equal Credit and Opportunity Act was passed in __________.
1974
Jenna is the property manager at Silver River Apartment Community. The owner has asked her to evaluate the rents to see if they are in line with market rents. Her first step is to determine the GRM if comparable properties. If one of the comparables has annual rental income of $2,365,200 and sold recently for $4,499,999, what is the GRM?
22.83 (idk why but its dumb. i got 1.90)
For the greatest flexibility of behavior, and the most control in negotiations, it is best to have at least ________ choices.
3
Single-family housing sold or rented without the use of a broker is exempt from fair housing law if the individual owner owns no more than _______ such single-family homes.
3
A licensee must pay an administrative fine within _____ to avoid the fine doubling and possible having her license suspended.
30 days
On a scale of 1 to 3, with 3 being high, TLC Realty has assigned a level 3 to likelihood of occurrence and a level 3 to severity of impact for a specific risk. What is its risk exposure? Is this a high, medium, or low level of risk?
9, high
Chris is in the market for a new rental property to purchase in the Tulsa area. He reaches out to broker Kendra and asks her to represent him. What type of contract should Kendra send to Chris?
A buyer's brokerage agreement
What kind of contract is used when a buyer purchases property that's used for business, like an office building or theater?
A commercial sales contract
Buyer Jason has received a document from the title insurance company involved in his transaction. The document says that while the title to the property he intends to buy isn't entirely clear, they're still willing to offer him title insurance. What document did Jason receive?
A commitment of title
What's a real estate investment trust (REIT)?
A company that owns and operates income-producing real estate and offers investment opportunities to shareholders in those properties
What is a real estate investment trust (REIT)?
A company that owns, and usually operates, income-producing real estate
What should your website include for lead generation?
A contact form
On a balance sheet, which of the following would be considered a liability?
A debt owed
When entering into negotiations, why should you use principles of influence such as liking and reciprocity to develop a working relationship with the other party?
A good working relationship supports collaborative deal-making.
Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question?
A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur.
Which of these scenarios is legal?
A homeowner makes a room available for rent in her residence, but only interviews female applicants.
When accepting compensation, which of the following statements is most accurate, according to the NAR Code of Ethics?
A licensee shall not accept compensation from more than one party to a transaction without the consent of all parties.
Which of these actions represent a common interaction between the primary and secondary mortgage markets?
A local bank sells a mortgage to a secondary market player
When offer and acceptance has occurred, both parties enter into ______.
A mutual agreement
What's a marketable title?
A property with a title that is free and clear
Investor Shawn likes to get properties for far below asking price. What might he offer the seller to sweeten the deal?
A quick close
When structuring an offer, if a seller wants to expedite the closing process, what can a buyer offer to address this need?
A quick close
Georgina and Sam are closing on a two-story home and have some concerns about the report they've received from the title insurance company. Which of the following issues would NOT impede the transfer of title at their closing?
A recent but paid-off construction loan
What's a contract clause?
A section of a contract covering a specific topic
Which of the following is a potential ramification to the seller if a short sale is completed?
A short sale can negatively impact the seller's credit, and the lender may seek a deficiency judgment for the amount not repaid.
With this alternative to foreclosure, borrowers receive permission from their lender to sell the property for less than the amount owed on the borrower's mortgage.
A short sale is one that results in proceeds that aren't enough to cover both the amount the borrower owes to the lender and closing costs. A short sale requires lender approval.
When branding yourself remember people often connect better with ______ rather than raw data.
A story
Which of the following factors will most likely improve your chances for a successful request for funding?
A strong credit history and well-prepared financing portfolio
Natalie has been concentrating her marketing efforts in her farm area, which is ______.
A targeted market
Which of the following is an example of a cloud on a title?
A third party has staked a claim on a property
Oklahoma's statutory duties require licensees to receive and present all offers and counter-offers (with)in _____
A timely manner
Which option best describes marketable title?
A title to property that's free and clear of liens and only subject to loan payoff and any taxes owed
Your brokerage consistently seeks out young real estate licensees without families, since they have extremely flexible hours and don't mind working most evenings. This is _________.
A violation of the NAR Code of Ethics for selecting employees based on their protected class
Which type of alternative financing is also known as an all-inclusive loan?
A wrap-around loan
Which of the following provides a summary of the title history?
Abstract of title
Ryan receives an offer for his property. In order to form a contract, what must Ryan do?
Accept the offer
Edgar and his management staff identified their work with real estate contracts as a potential risk to the firm. His firm uses only contract forms approved by the regulatory agency, and his licensees just fill in the blanks. He is transferring some of his risk through his errors and omissions insurance but has decided that he doesn't need to take any other steps. What other risk management strategy is he using?
Acceptance
Rogelio and Carla's firm identified three risk sources as high level (6 and 9 on their ranking scale). They've set themselves up for disaster by using ______ as their risk management strategy.
Acceptance
Matt has a way of finding solutions to the other party's problems in a negotiation, though he expects to receive fair treatment in return. His bargaining style is most likely ______.
Accommodating
Marie's brokerage relationship with the Clarks has terminated. She has some paperwork she needs to send to them. When she provides this paperwork to them, what is this an example of?
Accounting
The duty of ______ that a licensee owes the client remains after the brokerage relationship terminates.
Accounting
Andrea is an Oklahoma licensee representing buyer client Patrick. Which of the following statutory duties does Andrea owe to the Harbenskis, who are selling the home Patrick is buying?
Accounting for money and property received in a timely manner
When you're involved in cross-cultural negotiation, which of these is a recommended approach?
Act based on the negotiating style or strategy you see, rather than culturally based assumptions.
Ashley and her sorority sisters hold wild monthly pool parties that typically run into the wee hours of the morning. Which URLTA tenant duty have they breached?
Act in a manner that doesn't disturb other tenants' peaceful enjoyment of the property.
The element of a deed that signifies the grantor's intention to transfer title to the grantee is the ______.
Act of conveyance
What does the Federal Trade Commission regulate?
Advertising
What types of advertising fall under the real estate commission's rules and regulations?
Advertising by any means
Which of these does NOT describe a type of common Oklahoma license law violation?
Advising a seller client on competitive listing prices
A property management _______ establishes the agency relationship between the property manager and the property owner.
Agreement
In Oklahoma, the statutory duty of accounting for money or property received in a timely manner is owed to whom?
All parties in a transaction
Oklahoma licensees owe the duty of honesty and reasonable skill and care to ______.
All parties involved in the transaction
Your client is making an offer on a property, but the offer is substantially lower than asking price. The seller is a family with four small children. What might you do to help increase the chances of having the low offer accepted?
Allow the family to remain in the home rent-free for a month.
Sofya wants to know more about what acts are considered prohibited dealings in Oklahoma. Which of the following falls into this category?
Allowing access to a property without the owner's permission.
Which act sets guidelines for public and common use areas at housing developments?
Americans with Disabilities Act
The benefits of networking in the community go beyond the possibility of a sale. What can community involvement contribute to your personal knowledge base?
An awareness of community issues
What type of statement summarizes income and expenses for a quarter?
An income statement
Which of the following is among common title issues that you might encounter that could interfere with the transfer of a title?
An outstanding lien
It seemed like an impossible task to create an amicable solution for the parties, with several issues to be negotiated and settled. Who would be the best negotiator in this situation?
Andrew, who uses a problem-solving bargaining style
In order to arrive at annual debt service cost, divide ______ by the debt coverage ratio.
Annual NOI
What's the best definition of a branding opportunity?
Any activity that gets your brand in front of the marketplace
What does the Federal Trade Commission consider to be an unfair ad?
Any ad or business practice that causes or is likely to cause injury
The Federal Trade Commission is concerned with all ad claims but is most likely to be most concerned with ______.
Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate
Kirby is a broker for Magic Carpet Realty. However, his reputation flew out the window when a competitor exposed his underhanded tactics in a local newspaper article. What should Kirby do?
Apologize in a letter to the local newspaper and attempt to make amends.
Carla's evaluating the real estate code of ethics. It has minimum ethical standards. This means that Carla should ______.
Apply the golden rule when interacting with consumers
Greg is careful to outline his particular skills -- and those he doesn't poses -- when talking with potential owner clients. This is an example of adherence to which NARPM® article?
Areas of Expertise
Why are credit unions able to compete with large commercial banks?
As non-profits, they have fewer regulations, which translates to greater lending flexibility.
Your client is nervous and fidgety while discussing whether or not to accept a counteroffer. You should do which of the following?
Ask about her concerns and allow her to talk it out
You're a listing agent for a property that's received a lot of interest, and the third offer today comes in when a buyer's agent calls you. This agent's offer is lower than the other two, and you ask the agent to give you the buyer's highest and best. What would you expect a good negotiator to do in response?
Ask you for information about the seller's interests.
Maisie is worried about typos in her marketing copy, so she:
Asks a colleague to proofread her copy
Which of the following is NOT an Oklahoma broker's responsibility?
Associates' business success
A property's market value as determined by reviewing comparables is an example of which negotiation factor?
Authoritative standards and norms
Licensee Mel asks the receptionist at his brokerage to forward customer inquiries to him with the introduction, "Mel's been selling real estate for 15 years." What principle is Mel using to influence customers?
Authority
Edgar and his management staff identified their work with real estate contracts as a potential risk to the firm. Which of the risk-handling strategies is NOT an option for Edgar and his staff?
Avoidance
Before starting negotiations, you should help your client identify their ______.
BATNA
The third phase of negotiation is called the ______ phase.
Bargaining
Expenses may be listed on the income statement either in order from largest to smallest or ______.
Based on the order they're listed in the general ledger
Another name for a coupon bond, which is rarely issued anymore, is the _____bond.
Bearer
Which of the following would be an appropriate marketing department goal statement?
Become the top annual sales producer in our firm's region.
At what point in the transaction when providing brokerage services are Oklahoma licensees required to describe and disclose to parties the duties owed to them?
Before a contract is signed
Jerry is working with his buyer clients, the Sloanes. At what point is he required to describe and disclose the duties he owes them as an Oklahoma licensee?
Before a contract is signed
Julian is an Oklahoma licensee who's providing brokerage services to both the buyer and the seller in the same transaction. When must he provide written notice to the parties that he'll be representing both sides?
Before a purchase agreement is signed
Garrett's seller clients are closing in just a few weeks, and Garrett's pretty stoked about getting his first commission check. He's reviewing the transaction file against the brokerage checklist when he realizes he didn't provide the disclosure of duties, responsibilities, and services owed to his clients. According to Oklahoma law, when should the form have been provided?
Before the sellers signed a listing agreement
The lender in a deed of trust arrangement is known as the ______.
Beneficiary
The negotiation was focused primarily on one thing—the property price—and time was short. Who would be the best negotiator in this situation?
Betty, who uses a competitive bargaining style
Stating or implying that property values may deteriorate because members of a specific class are moving into or out of a neighborhood is called _______.
Blockbusting
Ted, a real estate professional, takes advantage of a substantial demographic shift in a nearby area to exploit fears of homeowners and get them to list with him. What prohibited practice is he engaging in?
Blockbusting
Why is a foreclosure more likely to have title issues than a non-foreclosure?
Borrowers who can't afford loan payments may have taken out other loans against the property.
If a lawsuit is brought against supervising broker Bob's licensee Ted for misconduct, which of the following is true?
Both Bob and the licensee can be held liable for the licensee's conduct.
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and they added their signatures. Which of the following statements is correct?
Breanna accepted the offer Kathy made.
According to the NAR Code of Ethics and Standards of Practice preamble, if you believe another REALTOR® is violating the code, you should ______.
Bring the matter to the appropriate REALTOR® board or association.
Which of the following statements about Oklahoma broker responsibilities is true?
Brokers are expected to guide and assist associates.
Which U.S. Supreme Court decision consolidated five cases involving the constitutionality of state-sponsored segregation in public schools?
Brown vs. Board of Education
Which Supreme Court case involved a city ordinance that prohibited blacks from living on a block where the majority of the residents were white?
Buchanan vs. Warley
______ is an action that agents should take during the opening phase of the negotiation process.
Building rapport with the opposing party
Brian has just finished completing his loan application and has gathered supporting documentation needed to determine whether the application will be approved. Which of these parties best describes who Brian is?
Buyer
_______ pay earnest money to solidify their commitment to completing a real estate transaction.
Buyers
Many savings institutions remain local or regional with their physical operations. How do they reach a larger area to keep their institutions financially sound?
By participating in the secondary mortgage market
How does a title insurance company prove that a seller has ownership rights to a property?
By performing a title search to create a chain of title or abstract of title
Jeannie believes that Donna, a Oklahoma licensee who listed a home for sale, violated the state's license laws by misrepresenting herself as a broker when she actually holds a salesperson's license. How might Jeannie submit a complaint to the Oklahoma Real Estate Commission?
By submitting the commission's complaint form to the commission by mail, fax, or email
Which legislative act prohibits certain types of electronic communication?
CAN-SPAM
Kassie represents buyer Norma, who is over the moon about the house she's just made an offer on. When Kassie receives a note from the seller's agent saying Norma's offer was rejected in favor of another buyer, she's very disappointed but also dreads having to tell Norma. She knows Norma will be very upset. What's the best way for Kassie to handle this situation?
Call or meet with Norma and position the news as a challenge that they'll overcome together.
Carla is a licensed sales associate in Oklahoma City. She signs a listing contract after negotiating compensation with the seller. Who are the two parties to the listing contract?
Carla's broker and the client
Rachel is the listing agent for Carolyn. Dorothy is represented by Mike, who is helping her put together an offer on Carolyn's property. To whom does Rachel owe the duty of receiving and presenting all offers and counter-offers?
Carolyn and Dorothy
Ralph wanted to acquire his competitor's company, and to repair their combative relationship so they could build a better business together. Who would be the best negotiator in this situation?
Charles, who uses an accommodating bargaining style
Mutual savings banks have limitations on their lending activities, as specified in their ______.
Charter
Your goal is to "Sell as many homes as you can this year." According to the formula for achieving a desired outcome, how could you improve this goal?
Choose a target number of homes to sell
Carrie just received a new, median-priced listing in a retirement community. Which medium is best suited for marketing this listing?
Classified ads
If you are charged with violating Article 10 of the NAR Code of Ethics, what's the best defense you can provide for yourself?
Clear records that prove you treat all clients the same, regardless of protected class
Trevor supervises three sales associates and one unlicensed assistant. Which of the following would help him keep unlicensed assistants from performing activities that require a license at his brokerage firm?
Clearly stating in the policies and procedures manual which activities the unlicensed assistant may and may not perform
Which of the following is true about the security of your clients' information?
Client data can be compromised if the brokerage's computer system is compromised.
Technology poses risks for everyone, but real estate licensees need to be especially careful. Which of the following is true about risks related to computer systems?
Client data can be exposed when a brokerage's computer system is compromised.
Which of the following describes the process of making a copy of a website for the purpose of obtaining money or data from unsuspecting users?
Cloning
Ideally, the sales contract, with all terms included according to the negotiated agreement, is signed during the ______ phase of the negotiation process.
Closing
Kris is a new agent at Lakeside Reality. She was talking with Karen, who's been in the real estate business for 15 years, over coffee. Karen offered to help Kris in any way she can. What can Kris ask of Karen to help her make some new contacts for leads?
Cohost an open house.
Haley is a young professional buying her first house. Although she can afford the full listing price of the home she is making an offer on, you have advised her to offer 10% below the list price, because the market is ______.
Cold
In what type of market could the buyer's strategy be to offer 10% below list price?
Cold market
Private loan companies may charge higher interest, larger fees, and could require ______ to secure a loan.
Collateral
What is commingling?
Combining trust funds with non-trust funds into one account
Which of the following contracts is used for businesses?
Commercial sales contract
Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed?
Commingling and conversion
What is the difference between commingling and conversion?
Commingling is mixing client funds with your own; conversion is using them.
Which of the following components will appear on both the cash flow statement and the income statement?
Commissions received
Which of the following types of law encompasses the duties that Oklahoma licensee Ashely owes her managing broker, Dennis?
Common law
What is one practical way that brokers can manage risk when using unlicensed assistants?
Communicate a process for unlicensed assistants to follow if they're asked to perform a task requiring licensure.
Trendsetter Realty's website includes a short video called "Listing Your Home," which describes how the listing and sales processes work, and the services that Trendsetter provides during the sales process. Which of the following marketing components does this represent?
Communicating
When analyzing financial ratios based on the balance sheet, ______.
Comparing balance sheets over a period of time can provide information about a firm's financial health
Which of these is the best example of a procedure?
Complete transaction files by ensuring that all documents are properly signed and then uploading them to the firm's file management application.
There are three basic requirements for renewing an Oklahoma real estate license: a renewal fee, a renewal application, and ______.
Completion of the approved continuing education coursework
Of the following examples, which one describes a landlord's basic duty under the URLTA?
Comply with building and housing codes that relate to health and safety.
Robert lets his father, uncle, two cousins, and grandparents live in his two-bedroom apartment with him, even though his landlord told him that only four adults were permitted to live in the unit. Which URLTA tenant duty has Robert breached?
Comply with tenant rules concerning building and housing codes that affect health/safety.
Ann likes to find the most obvious solution that's fair to everyone when she negotiates. Her bargaining style is most likely ______.
Compromising
The ______ bargaining style is most effective when maintaining good relationships with the opposing party is a priority over winning on terms.
Compromising
The Oklahoma Real Estate Commission has the authority to do all of the following, EXCEPT which one?
Conduct an annual performance review of the governor.
Oklahoma licensee Lynette is representing new buyer clients Tom and Josie Hall. The Halls made an offer on a three-bedroom townhouse being sold by Ron Borland. Which of the following statutory duties does Lynette owe to all parties in the transaction?
Confidentiality
The licensee owes the client the duty of ______, even after agency is terminated.
Confidentiality
What duty can a seller still expect from a licensee after the brokerage relationship terminates?
Confidentiality
Which of the following duties are still owed after a listing agreement expires?
Confidentiality
Which of the following statutory duties remains in effect after the transaction closes, according to Oklahoma law?
Confidentiality
Buyer's agent Dillon has negotiated an agreement on all purchase terms with the seller's agent, Sasha. Which of these activities will Dillon still need to perform during the closing phase of the negotiation?
Confirm his client's understanding of all terms in the written agreement, and obtain the client's signature on the contract.
Connor was the seller and Duke was the buyer when Connor sold his property. Who conveyed the title?
Connor, as grantor
The Petersons are buyers who ask licensee Sylvia to show them some properties, but they're reluctant to sign a brokerage agreement with her. Sylvia tells them, "Most buyers prefer to sign an agreement with an agent, so they have representation," as she educates them about the way agency works. Her statement uses the principle of ______ to influence them to sign the agreement.
Consensus
When a listing agent presents his client with two offers with the same sales price, the agent should advise the seller to_______________.
Consider all aspects of the offer, not simply the price
A deed states, "For love and affection, the receipt and sufficiency of which is hereby acknowledged." What does this statement represent in the deed?
Consideration
Dean and Michael have an oral contract. Dean said he would sell Michael his bike in return for Michael's vinyl album collection. What does the record collection represent?
Consideration
Harvey is a respondent in an NAR ethics complaint. He is ______.
Considered innocent until proven guilty
When showing one of her listings, licensee Kate prints out some fliers for visitors to take away with them. On the flyer, she has a space for customers to write in their three favorite things about the house. Kate's hoping to use the principle of ______ to encourage people to make a decision to make an offer on her listing.
Consistency
Your seller client has accepted a buyer's offer. Which principle of influence is operating when your client later agrees to pay for some repairs identified during the buyer's home inspection?
Consistency
What's the relationship between a brand statement, identity, and image?
Consistency between your brand statement and identity help to create its image in the marketplace.
Whom does the Oklahoma Real Estate Education and Recovery Fund exist to protect?
Consumers
One of the potential issues with limited service and flat fee listing arrangements is that ______.
Consumers often don't understand the services they won't receive
A disaster recovery plan works best when paired with a ________ that contains details needed to implement the plan.
Contingency file
Jessie has been working on a drip campaign. He's sent a couple of emails and left two voicemails. What should be his next step?
Continue to reach out in various ways.
The terms of the _______ determine who receives the earnest money.
Contract
Property managers develop an estimate of market rent for residential properties by ___________ and comparing rents across the subject and comparable properties.
Converting monthly rental income to annual dollars per room
When working with commercial properties, you develop an estimate of market rent by ___________ and comparing rents across the subject and comparable properties.
Converting rental income to annual dollars per square foot
Which of the following would require a licensee to notify the Oklahoma Real Estate Commission?
Conviction of a felony
Once an offer or counter-offer is accepted, the licensee must promptly deliver ______.
Copies of the fully signed offer to purchase to each party to the transaction
As part of his lease agreement with his landlord, Alex mows the grass around his apartment building each week in return for a small reduction in rent. What is this an example of?
Covenant
Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is used?
Craig
______ is the process of working with various people and organizations to develop offerings that consumers view as valuable.
Creating
Which one of the following tasks helps Diana fulfill her property management duty of providing maintenance and completing improvements?
Creating and implementing a preventive maintenance schedule
Deed in lieu of foreclosure
Credit history
Forecasters predict a huge spring blizzard. Jarrod's not concerned about operations because everyone could use a couple of days off, anyway. The snow will melt eventually. What long-term issues could arise that would cause more damage than Jarrod realizes?
Damage to the building from the storm and melting snow could destroy Jarrod's office and records.
David received an earnest money check from a buyer and stapled it to the accepted offer in the client file. He plans to turn it over to the seller at closing. Which of the following is a true statement?
David violated his statutory duty of providing honesty and reasonable skill and care
Seller Martin is looking at his closing statement. Which one of the following items is he likely to see?
Debits
Debra engaged Tony to help her sell her house. She doesn't want to pay a commission, and all she wants Tony to do is list the property on the MLS. Who is responsible for managing the transaction until closing?
Debra
Which statement best describes an amortized loan?
Debt that is paid off by making periodic payments consisting of interest and principal
After exploring the possible actions to take when facing an ethical dilemma, what should you do next?
Decide what action to take.
Rather than be foreclosed on, Jarod turned his deed over to his bank. This is called a ______.
Deed in lieu
Dylan is in default on her mortgage. She decides to hand over the deed to her property rather than face foreclosure proceedings. This is an example of ______.
Deed in lieu of foreclosure
Select the activity that would most likely help build brand recognition among your target audience.
Defining and using a company look, including logo, style, and colors
______ is directly influenced by factors such as employment levels and wages, interest rates, population changes, confidence in the market, and availability of loans.
Demand
Which of the following is a form of commercial bank revenue related to mortgage financing?
Demand deposits
Which of the following best describes a seller's market?
Demand is greater than supply
The firm's target market information in the marketing plan includes which of the following?
Demographics
Which of the following would be an example of commingling when handling client funds?
Depositing client funds into the general business account
As a buyer's or seller's agent, which of these activities is your fiduciary responsibility during the bargaining phase of the negotiation process?
Develop suggested solutions with the other agent that you'll bring to your clients for acceptance or rejection.
You're a real estate broker supervising 24 licensees. What's the most effective way for you to protect your firm from lawsuits?
Develop, implement, and train firm members on policies and procedures.
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these actions changes the contract from executory to executed?
Dierks' lender funded the loan, and closing took place.
A fire has destroyed your office building. Which of the following plans will enable you to begin restoring operations?
Disaster recovery plan
Which of these statements about earnest money is true?
Disbursal of earnest money depends on the terms of the contract.
Oklahoma licensees owe the following statutory duties to ALL parties in a transaction: honesty and reasonable skill and care, present/receive all offers/counter-offers in a timely fashion, compliance with Oklahoma real estate licensing laws, and which of the following?
Disclose all information related to the property, and account for money received in a timely fashion.
Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and ______?
Disclosure
Oklahoma licensee Marcus and his client Trinity have both signed the listing agreement. Marcus also needs to provide a copy of the _______ to Trinity.
Disclosure to Seller or Buyer of Brokerage Duties, Responsibilities, and Services
Derrick just bought his first condo, and he's ready to crack the champagne. Which of the following will Derrick be able to deduct from his income for tax purposes?
Discount points
Joan, a real estate licensee, is working with the buyers in a transaction. She suspects mortgage fraud. Which of the following should Joan probably do first?
Discuss the situation with her broker.
How do you calculate maximum loan?
Divide annual debt service cost by loan factor
How do you calculate maximum equity?
Divide cash flow by desired rate of return
Which federal act makes phone solicitation to numbers on the Do Not Call Registry illegal unless a prior relationship or permission exists?
Do Not Call Implementation Act of 2003
The principle of reciprocity says you can ______ to make the other person feel in your debt, and therefore be more likely to say "yes" to a subsequent request.
Do a small favor
Licensee Linda manages the risk to her business by ______.
Documenting all her communications related to transactions
In contract law, partial performance occurs when a party ______.
Does some, but not all, of what the party has agreed to do
If a licensee doesn't pay an administrative fine, the fine will ____.
Double in amount
When you hit a rough patch with your client, such as when negotiations fall through on a transaction, what action taken at the beginning of the relationship will help you be effective when your client becomes emotional?
Educate your client about what to expect throughout the process.
Outcome, acuity, and flexibility are the building blocks for ________.
Effective communication and achieving your goals
When preparing to make an offer on a property for your clients, you should ______.
Encourage them to define their goals and expectations for the transaction in writing
On a cash flow statement, the beginning cash for a given month is the _____.
Ending cash from the previous month
In Oklahoma, how can a broker minimize the risk that associated licensees present?
Ensure that associates comply with company policy.
The primary purpose of succession planning is to ______.
Ensure that well-trained talent is available in the event that a critical position becomes vacant
Which of the following options best describes a marketable title?
Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed
A good way to remember what qualifies as non-trust funds is to ask whether or not the funds have been ______ to you to secure a real estate transaction
Entrusted
When housing discrimination occurs, studies show that the effect is to deny _______.
Equal access to healthy public spaces
Your clients, the Nguyens, have signed a contract for deed to purchase a property. What rights do the Nguyens receive?
Equitable title and possession of the property
If you have a REIT that receives most of its revenue from property rental, what type of REIT do you have?
Equity
The balance sheet includes assets, liabilities, and ________.
Equity
Which REIT type specializes in owning certain building types, such as apartments or office buildings?
Equity
Sherry hoped to quickly develop some trust with the other party in the negotiation, so she ______.
Established some ground rules and expectations to avoid betrayal of trust
When risk factors are known, what's the next step in risk management?
Evaluate alternatives
If the cash flow statement projects a cash deficit for the majority of the upcoming year, which of the following would be the best solution?
Evaluate the firm's overall finances and make necessary adjustments.
After determining that an ethical dilemma exists, what's the next step you should take?
Evaluate the situation.
Asking yourself who's involved in the ethical dilemma, how they're impacted, and what created the situation will help you get through which step for handling ethical dilemmas?
Evaluate the situation.
A neighborhood you work in frequently is going through a demographic shift, with many new minority residents purchasing homes. You can use this information to __________.
Evaluate your marketing and ensure that you're not inadvertently discriminating against clients who may be interested in the neighborhood
The firm's reputation is best protected by ________.
Everyone in the firm
Who's responsible for protecting the firm's reputation? Choose the best answer.
Everyone in the firm
You're attending a speech on the societal impact of fair housing and the speaker, who is an advocate for diversity in communities, begins the speech by asking who benefits from enforcement of fair housing law. Which of these is likely the answer the speaker is seeking?
Everyone, because diverse communities are stronger communities
What should a logo to do for a brokerage?
Evoke its brand and identity
Which of these actions will an agent take during the opening phase of the negotiation process?
Exchange information with the other party regarding client positions and goals.
Branding Iron Properties focuses on sales to investors, so most of the firm's sellers are experienced with the real estate transaction process. The firm uses a fee-for-services structure. Sellers can select levels of service ranging from a listing-only service to full representation, from listing to closing. Sellers pay as they go through the process. This is an example of the ______ marketing component.
Exchanging
The ______ component involves trading value for your offerings.
Exchanging
_____ is the marketing component where value is traded for offerings.
Exchanging
Charlie, a seller, just found a buyer for his house. Since he has a(n) _________listing agreement, he won't have to pay his agent any commission.
Exclusive agency
Which term describes a contract in which the parties have met all agreement terms?
Executed
Jerry and Lewis have entered into a sales contract. They're about three weeks into the transaction, with several terms of the agreement yet to be met. What type of contract do Jerry and Lewis have?
Executory
Our map of the world, our unique reality, is just a perception based on our personal ________.
Experiences and impressions
Liona is thrilled to finally be practicing real estate in Oklahoma. Which of the following should she avoid doing?
Explaining the best way to get rid of carpenter ants
What sort of agreement do you create when you enter into a written agreement with either a buyer or a seller?
Express
When Rosa enters into a written agreement with a buyer or seller, she is creating a(n) ________.
Express agreement
Which of the following is true regarding express agreements?
Express agreements may be written or verbal.
During mediation, a mediator should act as a ______.
Facilitator
Jodie has two clients who want to put in offers on the same property. She decides to submit one offer to the seller and sit on the other until she finds out how the sellers feel about the first offer. Which of the following prohibited dealings has Jodie committed?
Failing to submit a written offer as a buyer client has requested
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under the _______.
Fair Housing Amendments Act of 1988
Which of these classes do federal fair housing laws protect?
Familial status
Conventional loans may be conforming or nonconforming, depending on whether they meet ______ guidelines.
Fannie Mae and Freddie Mac
After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?
File a suit to quiet title.
Which of the following is the best financial source?
Financing tailored to a specific need
According to Oklahoma rules and laws, what must appear on every advertisement?
Firm name
Licensee Ken is working on building a foundation of understanding with his clients. In order to do that, he needs to be flexible and customer-focused, have positive intention, and _______________.
Focus on client needs
Your buyer client wants to make an offer on a house that meets all his needs, but the list price is a bit outside of his budget. When discussing the offer with the seller's agent, you ask about the seller's goals. What negotiation principle does this illustrate?
Focus on interests, not positions.
Principled negotiation encourages you to ______.
Focus on the parties' interests, not their positions
You're negotiating with another agent who's from a different cultural background than your own. How should you prevent this from becoming an obstacle in your negotiations?
Focus on the shared goal of finding an agreement satisfactory to your clients.
Any person who engages in real estate activities _______ must generally have a real estate license.
For someone else and for compensation
Any activities that are dishonest, incompetent, or fraudulent are _____ by the commission.
Forbidden
A financial ______ is a data-based prediction of internal and external business conditions that will probably impact your firm in the upcoming year.
Forecast
Robbie's lender notified him of an impending foreclosure, and told Robbie that his property will be sold at public auction. After the auction occurred, he receives a notice of eviction for which the lender had to petition a court. What does this describe?
Foreclosure by advertisement
Frances collected an earnest money check from her client, but didn't have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these statements is true?
Frances is guilty of commingling.
Stu is buying Freddie's property. What must occur for the transfer of title to take place?
Freddie must intend to convey the property to Stu.
Which type of deed is sometimes called a general warranty deed and contains all six covenants?
Full covenant and warranty deed
Which payment plan consists of the borrower paying a constant amount made up of principal and interest on a periodic basis (usually monthly)?
Fully amortized loan payment plan
What are trust funds to a real estate broker?
Funds that belong to others
Which of the following brokers is NOT committing a prohibited dealing?
Gabriella makes a point to regularly check in and supervise all of her associates.
Gail is representing Manual and Sonja in the sale of their Oklahoma property. Tracey is an interested buyer working with broker Matt. Over the weekend, Gail received an irate call from Tracey, who wanted to know why Gail hadn't provided her with the disclosure of duties, responsibilities, and services owed to her, since it's required by Oklahoma law. Tracey was pretty steamed and threatened to lodge a complaint with OREC. Which of the following is true?
Gail isn't required to provide the disclosure to Tracey.
Tony is providing brokerage services to Gayle Owens, who is selling her 1992 single-story ranch. Tracey and Brian made an offer on Gayle's home, and they're represented by Jessica. To whom does Tony owe Oklahoma's statutory duties of honesty and reasonable skill and care?
Gayle, Tracey, and Brian
The NAR Code of Ethics lists the following protected classes: race, color, religion, sex, handicap, familial status, national origin, sexual orientation, and ________.
Gender identity
What do laws use as their guiding principles?
Generally accepted ethics
Oklahoma sales associate Geri has finally gotten fed up with her sponsoring broker, Chuck. She's told him off and is going to start looking for a new brokerage at which to work. How will parting ways with her sponsoring broker affect how Geri maintains her license?
Geri's license is only active while it's held by an actively licensed sponsoring broker, so while she's between brokers, her license will be inactive.
Which of the following is an example of an Oklahoma licensee NOT executing the duty of honesty and reasonable skill and care?
Gerome agreed to list a commercial property even though his expertise is in residential real estate.
Lily is getting ready for an NAR ethics hearing. She should be prepared to ______.
Give a concise presentation
Jenny is a new licensee in Oklahoma, and she's thrilled that the Coles, newlyweds who just moved to the area, finally made an offer on one of her listings and gave Jenny a check for $2,000 in earnest money. What should Jenny do with the check?
Give it to her managing broker as soon as possible.
When you receive a check for earnest money as an Oklahoma licensee, what should you do with it?
Give it to your broker as soon as possible.
Jarrod's staff has brought in a consultant to provide training on the local impact of such topics as U.S. exports to Latin American countries. This training is focused on ____.
Global environment
Licensee Alison suspects her two new buyer clients are involved in mortgage fraud. What should she do first?
Go to her broker immediately.
Which negotiation factor requires your client to be optimistic, specific, and committed for an improved outcome to negotiations?
Goals and expectations
Which of the following individuals would be a competent party to a contract?
Graciella, a 28-year-old unemployed parolee
Julia is an unlicensed assistant in Oklahoma. Which of the following tasks is she permitted to perform?
Greet people at an open house.
When you see another agent at a seminar you've been trying to contact for the last few days, what is your plan of action?
Greet the agent and schedule a time to meet later.
Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and insurance on the building. What type of lease agreement does Charlie have with his tenants?
Gross
Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have?
Gross lease
In what type of lease does the tenant pay a base rent amount plus one or more of the taxes, insurance, and maintenance.
Gross lease
Which statement describes a code of ethics?
Guidelines for conduct
Which one of the following property manager's duties requires the property manager to remind tenants that they must provide 30 days' written notice prior to terminating their lease?
Handle move-outs/move-ins.
Which of the following best describes one of the responsibilities of an escrow agent?
Handle the holding and disbursement of funds to close the transaction.
What question can you ask that will reveal how prepared consumers are to make a buying decision?
Have you spoken with a lender?
Troy is an Oklahoma licensee who refers to himself as an agent when working with his clients. Which of the following is true?
He is allowed to do this.
Douglas is selling his home by a short sale. What likely happened recently in Douglas's life?
He lost his job.
Randy just submitted an offer of $275,000 for a home on his client's behalf. The seller's licensed representative has asked Randy if the buyer would be willing to pay more. Can Randy disclose this information?
He may not, unless the buyer gives him permission.
Bernie's client just accepted an offer on her house. Bernie is organizing all the paperwork and realizes that he hasn't discussed closing procedures with any of the parties to the transaction. To avoid any prohibited dealings, what must he tell his client and the buyer about closing costs?
He must let all parties know approximately how much they'll be expected to pay for certain closing costs and brokerage services costs.
How can you help your clients feel they have more control over an offer?
Help them identify a BATNA
Stacey is a new licensee. In order to get the most out of her marketing efforts, what she should concentrate on?
Her sphere and farm area
On a scale of 1 to 3, with 3 being high, Johanna's brokerage has identified flood damage to the office building as a level 2 for likelihood of occurrence and a level 3 for severity of impact. Is this a low-, medium-, or high-level risk?
High
A senior loan puts the lender _____.
Highest in lien priority
Licensee Amy is making a written bargaining plan to prepare for negotiating on her buyer client Ralph's behalf. What information will she need from Ralph to complete her plan?
His goals, budget, bottom line, and negotiable terms
Frederick received notification from the commission that he owes $2,000 in administrative fines. He could not pay the full amount within the 30-day deadline. Which of the following will happen now?
His license may be suspended.
Licensee Credence was involved in a case against a consumer and can't pay the judgment amount the Oklahoma Real Estate Education and Recovery Fund awarded. What will happen to his license?
His license will be revoked until he pays back the amount paid to the consumer, plus interest.
James is applying for a loan for his firm and is preparing a financing portfolio. What information should he include?
His resume
Oklahoma licensee Nick was shocked to hear of a former client's complaint against him. The commission's investigation into the matter indicated that there is evidence that Nick may very well have committed a license law violation. What is the commission likely to do next?
Hold a hearing and consider possible disciplinary actions.
Sabrina is a new licensee handling offers on her first Oklahoma listing. Which of the following is the WRONG way for her to handle the offers?
Hold all the offers until she can determine which is the best one to present.
Which of the following tasks require a real estate license in the state of Oklahoma?
Holding earnest money and security deposits
Sonya's lease expired, but she hasn't yet moved out and she's not paying rent. Walt has started eviction proceedings. Sonya is considered a(n) ______.
Holdover tenant
When communicating, it's less about what we say, and more about ______ that conveys the message.
How we say it
A broker is concerned about the potential for litigation as a result of actions his licensees may take. He's implementing a risk management plan to reduce the level of risk his firm faces. What's the first step he should take?
Identify the specific risks that are most likely or are most damaging at his firm.
What's true about bargaining styles used in negotiation?
Identifying and using the bargaining style you're most comfortable with will give you the best results in negotiations.
Maria wants to design her firm's risk management plan. What's her first step in risk planning?
Identifying specific risks for her firm.
If you're unhappy with the outcome of an NAR ethics hearing, you can request a rehearing ______.
If new evidence is found
Provide written notification to the buyer and seller that the licensee will be representing both parties
If the seller specifically waives the right to receive all offers and asks to only receive offers meeting certain criteria.
Georgina is an escrow agent who's holding funds for several transactions. Which of these statements about how she'll disburse these funds is true?
If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law.
What is the primary purpose of your firm's logo?
Immediate recognition
When is a cease and desist order effective?
Immediately upon issuance
Ron is an Oklahoma listing agent for the Brooks. The house has only been on the market for a few days, and already the offers are pouring in. When must Ron present the offers to the Brooks for consideration?
In a timely manner, or as soon as possible
How must licensees disclose that they have an interest in a transaction?
In writing
Jasmine is getting ready to meet with her seller client, Orville, at which time she will describe and disclose the statutory duties she owes him when providing brokerage services. How must she provide this disclosure?
In written form
What's an example of incorporating electronic marketing strategies into print-based marketing tools?
Including a scannable code in print materials that leads consumers to your website
Which of the following actions is an example of discrimination based on religion?
Including the phrase "Two blocks from St. Martin's Cathedral" in an MLS listing
What information does an income statement provide?
Income and expenses for a specified period
The cash flow statement most closely resembles the ______.
Income statement
Which of the following would be helpful in preparing a financial forecast for next year?
Income statements
Which of the following is a potential issue with promoting from within the firm?
Increased competitiveness for the same position.
A calculated interest rate in an adjustable rate mortgage consists of ______ plus margin.
Index
Adjustable rate mortgage interest rates are often linked with a recognized ______.
Index
What impact do marketing efforts have on sales?
Indirect
You've worked hard to market a listing, and you finally have an offer. To your surprise, the seller has denied it outright. After some pressing, the seller finally confides that he learned the offer came from a lesbian couple, and he will not sell his home to them. What do you do now?
Inform the buyers' agent that your client is denying the offer based on the buyers' sexual orientation, and discontinue your listing agreement with him.
Two real estate agents are dividing a cake. They agree that it would be fair for one agent to cut the cake, but the other agent would get to choose his piece first. This is an example of the principle of ______ when negotiating.
Insisting on using objective criteria
As a property manager, your role likely includes which task on the day the tenant moves out?
Inspect the property's condition.
Commercial banks fall into which of the following category of lenders?
Institutional lenders
Construction loans are a type of ______ financing.
Interim
Regarding commission investigations, which of the following is a prohibited dealing?
Intimidating a witness
The marketing department ______.
Is an integral part of a firm's overall business strategy
Sylvia's previous buyer clients filed an ethics complaint against her because she failed to tell them that the heating system in the home they bought wasn't up to code and needed to be redone. Sylvia recommended they hire an inspector before purchasing the property, but they'd declined. Sylvia ______.
Is probably not at fault, since agents aren't expected to have expert knowledge of heating systems
Harriet is a hard worker. Of all of the unlicensed staff, she receives the most consistently positive evaluations from her boss. She's the face of the firm, greeting walk-in and telephone clients with a friendly, efficient manner. She knows exactly where to find anything and any information she and her colleagues need. What's the first question managers should ask when determining if Harriet is suitable for promotion?
Is she interested in promotion?
Why is bargaining style important to understand when you're at the negotiating table?
It allows you to recognize the other party's bargaining style, and use strategies that are most effective against that particular style.
Which of these is an advantage of external recruiting for management positions?
It avoids the distraction of individuals within the firm competing for the same position.
Baptist Senior Living Center is operated by the Baptist Senior Living Association. Which of the following statements would be true?
It could restrict housing to members of the Baptist Senior Living Association.
Which of the following is true about errors and omissions insurance?
It covers licensees sued by consumers for inadvertent mistakes.
The Real Estate Settlement and Procedures Act requires that lenders provide borrowers with a full disclosure of closing costs in a closing statement. The closing statement must be provided three business days prior to the settlement date. Which of the following statements best describes why this requirement exists?
It gives the borrower a chance to review the statement and come prepared with the appropriate funds for the closing.
Which of these statements is true about a BATNA?
It helps a client avoid agreeing to a deal that's worse than no deal.
Why is establishing a relationship an important factor to address in negotiation?
It helps you create a collaborative outcome with the other party.
Which of the following statements is true regarding risk identification?
It involves reviewing every aspect of the firm's operations to determine what risks each poses.
When a website has an S in the "http" portion of the URL, such as: "https://www.google.com," what does it mean?
It is a secure website.
When an Oklahoma licensee transfers from one broker to another in the same firm, or from one brokerage firm to another, what happens to his physical license certificate?
It is sent to the commission until the new broker files a consent agreement form, at which point it will be sent to the new broker.
The Supreme Court decision in Plessy vs. Ferguson was significant to the concepts of human rights and fair housing because ______.
It legalized racial segregation
Which of the following best describes the non-judicial foreclosure process?
It may be used if the deed of trust includes a power-of-sale clause.
How can a home warranty help close a sale on an older home?
It may ease a buyer's concern about the cost of repairs to the home's systems.
Fictitious business names alleviate some name selection concerns, but raise other issues. Which of the following might be a concern with a fictitious business name?
It must be registered with the state.
What is an advantage to using mediation as a problem-solving tool in a contract dispute?
It offers a win-win solution because both parties come out with satisfactory results.
How does Article 2 of the NAR Code of Ethics guide the way a REALTOR® writes a listing for the MLS?
It prohibits exaggerating, misrepresenting, or concealing pertinent facts in the published listing.
Which of the following best describes the function of the Real Estate Settlement and Procedures Act?
It protects borrowers from predatory lenders by providing a transparent statement of closing costs.
How is a brokerage checklist commonly used?
It provides steps that both new and experienced agents can follow
Why would a code of ethics provide minimum ethical expectations?
It sets a baseline for ethical standards.
Which of these is the most ethical reason to comply with fair housing laws?
It shows the societal strength in diversity
The sales department of a residential real estate firm has had some foreclosure listings, but has decided to hire a licensee who specializes in distressed property sales. What's the most likely impact on the marketing department?
It will need to decide how to incorporate the new niche into the existing marketing strategy.
What distinguishes a trust item from a non-trust item?
It's held on behalf of another.
What happens to an initial offer from the buyer after a seller counters?
It's no longer in play.
Shawna received loan proceeds. Why wouldn't this appear on her income statement?
It's not revenue.
What's a good rule of thumb for determining the amount of earnest money to submit?
It's up to the buyer to decide, but 1% to 2% is fairly common.
Peeta, a listing agent, wants to post an ad for his new listing. Which of the following phrases is acceptable under fair housing guidelines?
Italian marble countertops
Jane is selling her home to Micah. What must occur for Jane to effect a transfer of title to Micah?
Jane must deliver the deed to Micah.
Which Supreme Court case found that even private individuals aren't allowed to discriminate on the basis of race when selling a property?
Jones vs. Alfred H. Mayer Co.
During litigation, who provides the binding decision?
Judge
Fairwell Lending must seek the court's permission to foreclose on a property used as collateral for a loan that is in default. What type of foreclosure process is likely being used?
Judicial foreclosure
Wrap-around loans are a form of ______ financing.
Junior
Despite neighbors' complaints about the smell coming from his unit, Harry still leaves his trash on his balcony. Which URLTA tenant duty has Harry breached?
Keep the unit clean and safe.
When Kristin went on vacation, she left her apartment windows open. While she was gone, someone had entered through a window and vandalized the apartment. Which URLTA tenant duty did Kristin breach?
Keep the unit clean and safe.
In Oklahoma, which of the following duties are owed only to parties to whom brokerage services are provided?
Keeping parties to brokerage services abreast of all transactional information.
Harry has just explained the duties and responsibilities he owes when providing brokerage services to his new clients, the Neils, who are selling their Oklahoma home. Which of the following is a duty he owes only to the Neils but not potential buyers?
Keeping the parties informed about transaction information
Krenning Realty has been found guilty of running deceptive ads. Which of these statements about the potential penalty is NOT true?
Krenning's broker may face jail time.
Seller John has a contract with Sue. John is providing Sue with financing for the property and will hold onto the property title until Sue's paid off the loan. What type of contract is this?
Land contract
Daria is representing Max, a seller. Unbeknownst to either of them, Max's home has a serious foundation issue that is only detectable by a trained professional. This type of problem is considered a(n) ______.
Latent fact
Ideally, what guides real estate licensees' behavior?
Laws and ethics
The number of ______ you put into a funnel will determine the amount of income you can make.
Leads
Which of the following statements regarding social media is true?
Learn about social media from research, training, or other licensees.
In a sale-leaseback arrangement, property owners sell to investors and _______ the property.
Lease
Using an incorrect form ________.
Leaves you open to lawsuits
Which of the following is an essential element of a valid real estate contract?
Legal purpose
In Oklahoma, if a purchase agreement isn't in writing, it isn't _____.
Legally enforceable
As you discuss a possible agreement with the buyer's agent, you sense that your client is more willing to walk away if the deal isn't to her liking. Which negotiation factor is working in your favor?
Leverage
In a negotiation, the party that has the least to lose if the deal falls through has the most ______.
Leverage
When consumers make a small down payment, borrow the remaining amount of the purchase price from a lender, and reap the rewards off of hte full investment value, they are demonstrating what concept?
Leveraging
A ______ is an obligation to pay someone an amount that's due to him.
Liability
Diego is an Oklahoma licensee representing both the buyer and the seller in the same transaction. Which of the following best describes Diego's relationship with the parties?
Licensee
Errors and omissions insurance covers _______ who are sued by consumers for inadvertent mistakes in a real estate transaction.
Licensees
Which of the following is a true statement regarding limited services arrangements in Oklahoma?
Licensees who engage in them are required to inform clients in writing of the transactional steps for which they will NOT provide brokerage services.
Which of the following statements is FALSE regarding Oklahoma license maintenance?
Licensees will need to update their personal information and photo with the commission yearly.
Samantha is a numbers person, and she's determined that for every 100 sales contracts her licensees write, 12 (or 12%) will have some sort of error. Relating this to risk analysis, what does this number represent?
Likelihood of occurrence
A property you listed has been on the market for more than three months, with just one offer from an investor, which your client refused. The problem is that your seller is a muralist and has decorated every square inch of the home's walls and outdoor spaces with murals, which he's reluctant to see painted over by a new owner. The prospective buyer's agent is quick to explain that her client loves the murals and plans to keep them as is. Which principle of influence will help you use this to adv
Liking
When consumers want to do most of the work of selling their home and just want a licensee to post the listing on the MLS and perform a few other "a la carte" services, what type of listing are they probably interested in?
Limited service or flat fee
Brendan is posting a new listing on the MLS for his clients, the Greenes. He has disclosed in writing the steps of the transaction that he WON'T be performing. What type of agreement does he have with the Greenes?
Limited services
A good strategy to build trust and rapport with the other party in a negotiation is to ______.
Listen actively to the other person
In Oklahoma, a contract that a seller and a broker enter into is called a _____.
Listing agreement
What's one advantage an MLS system provides, especially to a small brokerage?
Listing exposure and access
Based on what you know about naming a business, which of the following names would be the most appropriate for a new firm?
Live Urban Realty
Planning, construction, buying/selling, moving, and ______ are the five new-home construction phases or activities that impact the economy.
Living
What information is listed on the promissory note?
Loan amount and schedule of repayment
Which of the following components will appear on the cash flow statement but not on the income statement?
Loan proceeds
You're preparing a disaster recovery plan. Which of the following should be included?
Location of an off-site recovery site
Putting clients' interests ahead of all others describes which fiduciary duty?
Loyalty
Title companies are a useful relationship to cultivate, in part because they can provide you with ______.
Mailing lists
Bob Wolf, the firm's bookkeeper, doesn't interact with clients. His main responsibility is to manage the firm's escrow records. What's his responsibility in helping maintain the firm's reputation?
Maintain spotless escrow records.
Which one of the following duties requires the property manager to meet with contractors to obtain bids for repairs and upgrades?
Maintain the property.
Which of the following is a duty of a property manager?
Maintaining the property
All of the following are prohibited dealings in Oklahoma, EXCEPT ______.
Maintaining transaction documents for the amount of time the commission requires
Which of these is an agent's job during the bargaining phase of the negotiation process?
Make suggestions that move you closer to an agreement that's satisfactory to all parties.
When leaving a voicemail for a lead, what will help the consumer make the connection of how they know you?
Make sure your number shows up on Caller ID.
Good record retention is one way to ______ risk.
Manage
Errors and omissions insurance is an important way to do what?
Manage risk
Which of the following statements related to a firm's culture are true?
Management is responsible for developing a culture that encourages and rewards great customer service.
When making cold calls, what do you need to be ready to discuss after you have introduced yoursel
Marketing and business approach
Your brand statement, identity, and logo are ______.
Marketing tools
Dean is working with buyer client Martin, who's interested in purchasing a ranch outside of Tulsa. He found one he's fairly sure Martin will love. It's being sold by Jeremy and Sally White, who are represented by Chloe. To whom must Dean provide the disclosure of duties, responsibilities, and services owed?
Martin
Which two numbers do you add to calculate maximum price?
Maximum equity and maximum loan
A breach of contract ___________.
May or may not result in contract termination
To achieve your desired outcome, it should be ________.
Measurable
Cara is involved in a dispute with another REALTOR®, Sue. Cara prefers _______ because she wants to preserve her working relationship with Sue.
Mediation
You're meeting with a party with whom you're having a dispute. Someone is acting as a go-between and will make a recommendation at the conclusion of the meeting. What type of dispute resolution are you participating in?
Mediation
Which option is of the most concern to licensees and advertising when it comes to the Federal Trade Commission?
Misleading ads
When borrowers fail to pay property taxes, allow their property to go into disrepair, or ______, they could face loan default.
Miss scheduled mortgage payments
What is commingling?
Mixing personal and trust funds
What are trust funds?
Money belonging to others held for a specific purpose in the course of a real estate transaction
With an interest-only payment plan, ______.
Monthly payments go toward interest, not the principal
Personal beliefs, such as religious ones, have the greatest effect on what?
Morals
The tone of voice you use matters ________ the words you say.
More than
Which of these are the two primary REIT types?
Mortgage and equity
Edmund is a mortgage officer who closes loans. He is a ______________.
Mortgage banker
Which individual or entity provides borrowers with money for a home loan?
Mortgage banker
Which mortgage officer closes a loan?
Mortgage banker
Which individual matches borrowers with the lender and loan option that best meets their needs?
Mortgage broker
Bryan and Nancy are selling a home. They were excited when they discovered that the appraiser assigned to appraise their home is an old friend. Carly, the buyer's agent, is surprised when the appraised value comes in considerably higher than the competitive market analysis she prepared. Carly is concerned that this might be an example of ______.
Mortgage fraud
Which of the following types of fraud is more common to the real estate industry than to other industries?
Mortgage fraud
Becky is speaking to a group of licensees about the importance of listening skills. Which of the following is a true statement?
Most of our communication consists of body language and voice quality.
An industrial development bond is a variety of ______ bond.
Municipal
Juan listed his home with REALTOR® Petra. Juan's neighbor, Krista, is also a REALTOR® and a good friend. When Krista's buyer client is ready to make an offer on Juan's property, Krista _______.
Must bring the offer to Juan's agent, Petra
Raul has a variable commission arrangement. Per NAR Code of Ethics Standard of Practice 3-4, Raul _______.
Must disclose the agreement
A meeting of the minds is also known as ______.
Mutual assent
Sam entered into a contract to sell his home to Gina. After the inspection, Gina insisted that Sam replace the damaged roof. Sam refused, and the parties agreed to cancel the deal. This is an example of ______.
Mutually rescinding the contract
Which of the following statements is true regarding NAR ethics complaints?
NAR encourages REALTORS® to try open communication as a first step in conflict resolution.
Which organization manages and charters credit unions?
NCUA
Interpretation of and changes to the NAR Code of Ethics can only be made at what level?
National
Private loan companies may be found in many places. There are ______, regional, and local lenders, and even individual entrepreneurs who loan money.
National
What does NCUA stand for?
National Credit Union Administration
The amount of earnest money is _______.
Negotiable between the parties
A promissory note is considered a ________.
Negotiable instrument
Gavin is an unlicensed assistant for a brokerage in Tulsa. Everly is an Oklahoma sales associate, and Jordan is her supervising broker. Which of the following tasks must either Everly or Jordan perform?
Negotiate a commission with a client.
Shelly is an escrow agent in a transaction in which Bill is buying Jose's property. Who does Shelly represent?
Neither Bill nor Jose
What type of lease requires the tenant to pay the rent and all or part of the property expenses.
Net lease
How can liens, such as those created by non-payment of federal income tax, result in mortgage default?
New liens can threaten the lender's position as primary lienholder. Default can occur for this reason.
For which advertising purpose would a classified ad in a local newspaper be appropriate?
New listing
Seller Mandy is working with Oklahoma licensee Candace under a limited services agreement in which Candace has only agreed to list the property on the MLS. Mandy now has two offers and would like some advice on which one to accept. Who must advise her?
No one
Sally is selling her 1992 single-story ranch and moving to Destin, Florida to retire. Brent is representing her in the sale. Pauline is interested in purchasing Sally's home, but she hasn't engaged a licensee's services. According to Oklahoma law, which of the following is true?
No one is required to provide the disclosure of duties, responsibilities, and services owed to Pauline.
A listing ad in the Spartanville Tribune states, "Within walking distance to restaurants, nightclubs, shopping, and schools." Does this violate fair housing law?
No, because "walking distance" refers to a property-related factor.
REALTOR® Daniel's seller client confides to him that the reason he and his wife are selling their home is because they hate their neighbor, who has a large and boisterous family. As soon as Daniel discovers this information, he adds it to the listing published in the MLS. Has Daniel correctly followed Article 2 of the NAR Code of Ethics?
No, because Article 2 prohibits him from disclosing facts that are considered confidential under his agency relationship with the client.
Sherman worked with buyer client Henry in the past and knows Henry's extremely wealthy. Henry is now making a lowball offer on Sherman's current seller client's property. Can Sherman share with his seller client that Henry is actually rolling in money?
No, because confidentiality is still required.
Jerry was working with seller client Marissa. After a busy weekend, three offers had been submitted on Marissa's property by Monday morning. One of the offers was from Kyle, who was being represented by Gina. It was a very good offer—well over list price. Around noon, Jerry was getting ready to submit all three offers to Marissa when he received a call from Kyle asking him to hold the other offers and submit his first. Can Jerry do this?
No, he must submit all of the offers in a timely manner.
You want to make $50,000 in a year from your real estate business. You know that about 15% of the leads you get turn into clients. You earn an average of $8,000 on every closed transaction. Is this everything you need to know to use a funnel to determine how many leads you need to generate to get your $50,000?
No, you also need to know the percentage of clients who turn into closed transactions.
Fetneh is a salesperson with ABC Brokerage. She writes purchase offers on two different properties for her investor buyer client. Both offers call for an earnest money deposit of $2,000. Her client writes one check for $2,000 to ABC Brokerage. Fetneh makes two copies of the same check for the offers to be presented to the respective sellers. Is this appropriate?
No. Each offer must be accompanied by its own earnest money funds.
The water filtration system that Carol installed when she moved in needs maintenance, and she's asked that her landlord service it immediately. Is it his duty to do so?
No. It isn't the landlord's duty to service and maintain a tenant-controlled system.
Zetia is perfectly pleasant when working with clients and is great at sales, but she's much less pleasant when working with cooperating brokers, other business associates, and her co-workers. Her broker isn't worried, since her work with clients is the most critical. Do you agree?
No. Zetia's behavior with people other than clients can impact the firm's reputation.
Escrow funds belong to _______ after a broker has accepted them.
Nobody
Lendright Home Loans asked a trustee to begin foreclosure proceedings as permitted by the power-of-sale clause in the security instrument. This action does not need to involve the courts. What type of foreclosure process is being used?
Non-judicial foreclosure
Candace would like to sell her own home. What's the minimum real estate license she must possess?
None
Which of the following actions poses the greatest risk for your brokerage?
Not penalizing staff who don't follow policies or procedures
What will help you connect with a lead?
Note the real estate needs they listed in the contact request form.
Which of the following statements best describes a foreclosure by advertisement?
Notification of pending auction, public auction, notice of eviction
Caroline is a recently married Oklahoma licensee who's decided to change her last name. She just filed the paperwork to make the change official. What does she owe to OREC?
Notification of the change
When providing brokerage services, which of the following duties does an Oklahoma licensee owe only to parties for whom the licensee performs brokerage duties?
Notify parties of transaction costs and their amounts in writing.
If Oklahoma licensee Lucas pleads guilty to a felony charge, what must he do in accordance with Oklahoma license law?
Notify the Oklahoma Real Estate Commission.
Charley and Susan have engaged Oklahoma licensee Derek to assist them with selling their home. They want to do most of the work of selling the property themselves, and they're short on cash, so they don't want to pay a commission. They've signed a limited services agreement with Derek, who must ______.
Notify them in writing of the steps he will NOT be performing and explain in the notification that the licensee assisting the other party isn't required to complete those steps, either
Debbie is an Oklahoma licensee providing brokerage services to her seller clients, the Wilsons. Which of the following statutory duties does Debbie owe to the Wilsons, but not to the Fullers, who are buying the Wilsons' home?
Notifying them of their estimated closing costs
Following all of the client's lawful instructions describes which fiduciary duty?
Obedience
These don't have to be spelled out in the contract, though they often are just to be sure there are no misunderstandings.
Obligations
Iris is planning to purchase her first home. Based on what you know about the nature of real estate finance in our country, which approach is she most likely to use?
Obtaining a loan to purchase the home
Your buyer clients Donna and Mike are submitting an offer on a home where the seller is moving to another state and wants to expedite the closing process. What would be a good strategy for structuring an offer in this case?
Offer a quick close.
Which element of a valid contract is established by getting the signatures of all parties?
Offer and acceptance
The essential elements of a contract are ________.
Offer and acceptance, consideration, legal capacity, consent, and legal purpose
The right amount of growth is what many communities seek. Which is an action they may take to encourage growth?
Offer incentives that encourage industries or companies to do business in town.
Which of the following is a recommended negotiation strategy with sellers when you're making a low offer on behalf of a client?
Offering to close quickly
Your client, Sal, makes an offer on a property. Therefore, he is considered the ________.
Offeror
Which of the following is an example of a fixed asset?
Office equipment
The duties Oklahoma licensees owe to parties involved in a transaction were established by which of the following?
Oklahoma Broker Relationships Act
In Oklahoma, what entity receives complaints filed against a licensee?
Oklahoma Real Estate Commission
When can specific performance be enforced under a sales contract?
One party didn't meet the terms of the contract in the specified time frame, and is now being required to do exactly what was agreed to in the contract.
When does substantial performance of a contract occur?
One party has met most but not all of the terms specified in the contract, and may be required to pay damages for the terms not met
Using a company website, social media sites and apps, writing a blog, and providing electronic checklists and guides are examples of your firm's _________.
Online presence
Lucy, who is 17, entered into a contract to sell a cabin she inherited. Because Lucy is a minor _______.
Only Lucy may void the contract.
The ______ phase of the negotiation process is where you can set the stage for principled negotiations by building rapport with the other party.
Opening
For the most accurate profit and loss data, the income statement should be evaluated __________.
Over a lengthy period of time
Which one of the following commercial property managers' duties requires that they keep the property and facilities in good condition and schedule and budget for needed repairs and upkeep work?
Oversee the maintenance of buildings on the property.
Darryl is working with Pam to sell her 1980s ranch-style home. The Pomeroys, who are being represented by Michaela, are interested in purchasing Pam's house. To whom does Darryl owe Oklahoma's statutory duties?
Pam and the Pomeroys
Joe is working with buyer client Pamela. The Dietrichs, who are selling their home, are represented by Noel. Pamela is interested in making an offer on the Dietrichs' home. According to Oklahoma's statutory duties, who must Joe keep informed about transaction information?
Pamela
Eileen entered into a contract to buy Peter's home. The contract specified that Peter must leave the refrigerator with the home, and he must replace the roof before closing. During the pre-closing walk-through, Eileen confirmed the house had a nice new roof, but also found that Peter took the refrigerator with him. Eileen decided she didn't want the refrigerator that much anyway so she didn't make a fuss. This is an example of ______ of the contract.
Partial performance
In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. This is an example of _______.
Partial performance
Which payment plan consists of the borrower making payments of interest and principal on a periodic basis, with a large amount due at the end of the loan term?
Partially amortized payment plan
Life insurance companies sometimes like to insure their investment in commercial projects by insisting on an equity position. This is known as ______ financing.
Participation
Patty is writing an online ad for several condos she's selling. "More than 3,000 square feet!" she writes. She's pretty sure that this is the average size of the condos. She included her brokerage firm and her license status on the advertisement, as well. How did Patty do?
Patty could be held responsible for misrepresentation if her estimate is incorrect.
Mary has a contract to buy her mother's house when her mother is finally ready to move to a senior living community. This way, the house stays in the family. After her mother finds a suitable senior apartment and moves, Mary writes a check for the agreed-upon amount, and her mother transfers the deed to Mary. What is happening in this scenario?
Performance
The owner of ABC Construction entered into a contract to build two homes for brothers Jack and John. The contract specified that the homes must be completed by April 1. ABC finished the homes on March 30. This is an example of ______ of the contract.
Performance
Megan's lease renews every year unless she informs he landlord that she intends to vacate. What time of lease is this?
Period to period
All negotiators approach the table with one of five bargaining styles based on their ______.
Personal approach to handling conflict
Testimonials from past clients can be helpful in branding your business. What can testimonials provide for future clients?
Personal trust
Select the true statement regarding fair housing law and persons with disabilities.
Persons with disabilities shouldn't be prevented from making reasonable accommodations and may also request accessibility accommodations.
Which of the following best describes foreclosure by writ of entry?
Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed
Which of the following best describes foreclosure by entry and possession?
Petition to enter, repossession, notice of eviction
If a borrower fails to keep homeowners insurance on the collateral property, which of the following are actions the lender can take?
Place lender-acquired insurance on the property and bill the borrower
Louis is compiling the information about the property his client wants to buy, as well as his client's goals, budget, and bottom line. Which phase of the negotiation process is Louis working in?
Planning and preparation
Prepare your clients for the negotiation process by educating them about what to expect, the types of items other than price that will be negotiated, and what will happen in best- and worst-case outcomes.
Planning and preparation
What are the four phases of the negotiation process?
Planning and preparation, opening, bargaining, closing
Fair housing legislation was, in part, the result of a long history of Supreme Court decisions. Which Supreme Court case determined that separate facilities for blacks and whites were constitutional as long as they were "equal"?
Plessy vs. Ferguson
Within the firm, in what document(s) would a licensee find information about the company's risk management processes?
Policies and procedures manual
The more ________ that exist for accomplishing your goal, the better your chances for success.
Possibilities
Some states have passed laws stating that real estate professionals must use ________.
Preprinted contracts prepared by legal professionals
To reduce her risk of liability, Jill, a real estate professional, relies on ________.
Preprinted forms
Which of the following is a legitimate reason to counter an offer?
Price
What pricing strategy could work well in any market, primarily by generating buyer interest?
Price below market.
In a neutral market, what pricing strategy may generate interest in the property, possibly prompting multiple offers?
Pricing below market value
Mortgage bankers are mostly ______ enterprises.
Private
Carrie likes to share information with the opposing party in a negotiation, which helps her develop creative solutions that provide value for everyone at the table. Her bargaining style is most likely ______.
Problem-solving
The ______ bargaining style is most effective when the negotiation is complex and requires collaborative information sharing and creative solutions.
Problem-solving
Which of the following statements in a financing portfolio is most likely to receive a positive response from your lender or investors?
Profits increased from $189,000 in 2018 to $287,000 in 2019.
According to Oklahoma license law, ______ are defined as any acts that are untrustworthy, improper, fraudulent, or dishonest.
Prohibited dealings
Oklahoma licensees are required to present offers to the seller when?
Promptly after receipt of each offer
Karen was recently hired from out of town to become the new supervising broker for a small brokerage firm, Homes by Design. At a community luncheon, two of Karen's table mates began openly discussing the reputation of several licensees at Homes by Design, not knowing who Karen was. Their comments are sharply negative and quite detailed, and they imply that Karen has a lot of work ahead of her. What's Karen's first step?
Promptly investigate the comments.
Which of the following is a responsibility of an escrow agent?
Proper recordkeeping
Two areas of vulnerability for the lender occur when homeowners insurance is allowed to lapse. What are they?
Property damage and judgment liens
Albert decides to manage a property for the property's owner. They sign a(n) ________.
Property management agreement
When an expense that has been either prepaid or accrued is adjusted on the closing statement to reflect portions that the buyer and the seller each owe, usually based on the closing date, what is the term used to describe the adjustment?
Proration
Which of the following is a power of the Oklahoma Real Estate Commission?
Prosecuting any person who violates license law
Pete, Carmen's managing broker, is frustrated because Carmen once again almost missed an important deadline that could impact a client transaction. What's the best approach for Pete?
Provide coaching and mentoring to help Carmen be more efficient.
When a firm's reputation is unfairly attacked, what is the best response?
Provide honest, thorough information wherever the negative publicity appears.
Which of the following statutory duties is owed to all parties in a transaction?
Provide honesty and reasonable skill and care.
In order to represent both the buyer and the seller in the same transaction, Oklahoma licensees must ______.
Provide written notification to the buyer and seller that the licensee will be representing both parties
Karen just completed the first part of her real estate education in the state of Oklahoma. She is now eligible to take the exam for which type of license?
Provisional sales associate
Jamal wants to become a real estate professional in Oklahoma, so he spoke to a friend who has been in the business for several years. Jamal's friend told him to start at the bottom and work his way up. What kind of license would Jamal's friend have told him he needs to obtain first?
Provisional sales associate license
Chet and Martin were staying at Chet's vacation cabin. Martin told Chet that he so rarely used the cabin that he was thinking of selling it. Martin said that he'd buy it from Chet for $80,000, and Martin agreed that was a fair price. It's two months later, and Chet is upset that Martin now says he won't buy it. Why isn't this contract enforceable?
Purchase agreements must be in writing.
If you and a sibling both inherited your father's property when he died, what type of deed would you need to get from your sibling in order to be the sole owner of the property?
Quitclaim deed
Which REITs make money by incurring short-term debt to acquire longer term mortgage securities, earning the spread between the two rates?
REMTs
Which of the following is protected under the federal Fair Housing Act?
Race
The Oklahoma duty of honesty and reasonable skill and care assumes that licensees can provide expert advice to their clients in which area?
Real estate
Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?
Real estate contracts must be in writing.
Julie includes some seller-favorable terms with her buyer's offer to encourage its acceptance. This strategy attempts to influence the seller using the principle of ______.
Reciprocity
Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property?
Record the deed in his name.
Tracey's client has asked her advice on a legal matter. What should Tracey do?
Refer her client to an attorney.
Connie and her staff had just moments to evacuate the building when fire alarms sounded. Everyone's safe, but her office was destroyed. What's Connie's first step in managing this disaster?
Refer to a prioritized list of restoration functions.
Without consulting with his landlord, John took down the partition between the dining room and living room. Which URLTA tenant duty has John breached?
Refrain from deliberately or negligently damaging or destroying the unit.
A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do?
Refuse to rent to a female tenant.
A mortgage lender has landed in hot water for fair housing discrimination. Which of these actions might have gotten the lender in trouble?
Refusing to provide literature about loans to consumers with poor English language skills
Which of the following is a requirement for license maintenance in Oklahoma?
Renewing the license on time
______ is an example of non-trust funds.
Rent received from a broker or licensee-owned property
Gilda and Ray purchased a newly constructed home. The home warranty provided by the builder covers the cost of ____________.
Repairs due to structural or system defects in the home
Kristoff got a bit behind on his mortgage and missed several payments. He and his lender devised a schedule that gives Kristoff an opportunity to make up those delinquent payments. What is this an example of?
Repayment plan
Which alternative to foreclosure is being utilized when a lender creates a schedule for the borrower to catch up on delinquent mortgage payments?
Repayment plan
Jose is helping Kristi, a new agent, set a personal schedule. He's trying to describe "Einstein window" tasks to Kristi. What are some adjectives he can use to help her categorize them?
Requiring full attention and energy
Which type of manager lives on site?
Resident manager
In Oklahoma, what kind of contract does a buyer use to purchase a previously owned single-family home?
Residential
Which paragraph in a sales contract puts the parties on notice that they are individually and jointly responsible for fulfilling the terms of the contract?
Responsibility and Non-assignability
Which of the following is an example of discrimination?
Restricting families with children to a certain area of a building or complex
Which of these types of tenants most often uses a percentage lease?
Retail
Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money?
Rigby
Brandon is managing a brainstorming session with his staff. On the white board, they've listed items such as licensee safety, embezzlement, agency relationships, and foreclosure sales. What topic is the group likely discussing?
Risk identification
Which of the following is a reason all licensees should have errors and omissions insurance?
Risk is an inherent part of real estate activities.
________ is a non-profit organization dedicated to education and mentoring for small businesses.
SCORE
What is an optional arrangement on a sale-leaseback arrangement?
Sale-leaseback buyback
Upon moving in, Jocelyn noticed a bad smell coming from the bathroom. She saw black discoloration behind the toilet and reported this to the landlord. Which of these would be an appropriate response from the landlord?
Scheduling mold testing and any necessary remediation
JoJo wants to make her social media marketing efforts as easy as possible, so she opts to use ___________ to help manage her posts and updates.
Scheduling software
Lauren wants to make her social media marketing efforts as easy as possible, so she opts to use ___________ to help manage her posts and updates.
Scheduling software
As a property manager, Lisa most likely provides which of the following services?
Screening new tenants
Jones is sending marketing emails to generate leads. What approach should he take in his email marketing campaign?
Segment email campaigns based on consumers' needs.
A lender initiated a foreclosure action against a borrower. What purpose is this action intended to serve
Sell the property to recover monies owed.
Carmen is transferring a title to real property in return for some form of consideration. Which party is she considered on the contract?
Seller
You're representing a seller, and you receive a buyer's offer through an agent you've run into before. She rubs you the wrong way, and while you know you must present the offer to your seller, you hope it's not accepted. Unfortunately, it's a good offer, and you think it might be perfect for your client with a couple tweaks to the terms. Which negotiation principle will help you best represent your client in this situation?
Separate the people from the problem.
If you're bargaining with a party who has an aggressive, take-no-prisoners style, what's the best approach to use?
Separate the person's approach to negotiation from the problem you're negotiating, and focus on your goal.
The negotiation principle of ______ is useful because parties in a negotiation tend to have strong emotions, or be driven by ego.
Separating the people from the problem
When you're building your brand, what can you do to connect with consumers on a personal level?
Share a unique personal story.
Oklahoma licensee Arlene is meeting with her buyer clients. When working with her clients, which of the following is true?
She can refer to herself as an agent for general purposes, but she won't function in the capacity of an agent, subagent, or dual agent.
Lisa is representing Tom and Angie, who are buying their first home. As she works with them in the transaction, which of the following is a true statement?
She isn't required to abide by common law fiduciary duties.
Luke, a REALTOR®, is in a dispute with Jill, who's a licensed real estate professional but not an NAR member. What does this mean for Jill?
She isn't subject to the NAR Code of Ethics.
Oklahoma licensee Julia wants to call all of the telephone numbers in her area code as part of her latest advertising campaign. Which of the following statements is true?
She may not call phone numbers that are registered with the Oklahoma Attorney General on the Oklahoma Do Not Call List.
Felicia is an Oklahoma broker who wants to purchase a new house in Bixby and give it to her elderly mother. Which of the following statements is true?
She must disclose her licensed status to any seller on whose property she'd like to make an offer.
Which of these scenarios shows landlord Kate fulfilling one of her duties?
She promptly fixes a faulty smoke detector in a tenant's bedroom.
Percy is losing his house because he can't make his payments. He owes more than it's worth and just wants to get out from under it. He decides to put it on the market and hope for the best. Percy will likely sell his home through ______.
Short sale
Ray is in a bit of a predicament. He owes more on his mortgage than his property is worth, but can no longer afford the payments. He receives permission from his lender to sell the property for less than what he owes. What is this an example of?
Short sale
Which of the following is true about the order in which photographs should appear in the MLS and on other sites?
Show pictures in order, as if giving a tour of the property.
A recommended way to make a negotiation go smoothly is to ______ at the opening phase of the negotiation process.
Show that you're a reliable, trustworthy professional
In marketing terms, your logo is the firm's ____.
Signature
The UETA makes it legal and binding for contracts to be ______.
Signed electronically
Why does an Oklahoma licensee who works under a limited-services or flat fee arrangement have to disclose in writing the steps of the transaction which the licensee will NOT perform?
So that the seller knows what services won't be provided if choosing the limited services arrangement.
Todd is opening a new brokerage firm that will target young, career-minded individuals who are interested in urban living. Of the following, which medium is best suited for this market?
Social media
A landlord refuses to show available units to certain applicants based on their race. What makes this type of housing discrimination a problem that extends beyond the damage to the individual applicants?
Society must spend time and resources to try to fix the damage.
When participating in a negotiation, you can establish rapport with the other party by ______.
Spending a few minutes at the start making non-business small talk
Which of the following networking activities shows your support in the community and doubles as free advertising?
Sponsoring a sports team
Melanie is a buyer who has agreed to purchase Stan's property using a contract for deed. Who holds legal title to the property during the term of the loan?
Stan
Helping a client understand why you took the action you did to address an ethical dilemma is which step of the process?
State the reasoning.
The income statement might also be called the ______.
Statement of profit or loss
Jerry and Simon signed a contract so that Jerry could purchase all of Simon's restaurant equipment for one price after Simon closes his restaurant next month. The contract contains a provision that states Jerry has one year from the purchase date to file a suit relative to the purchase. After the year is up, Jerry forfeits the right. What kind of contract clause is this?
Statute of limitations
The duties Oklahoma licensees owe to all parties in a transaction are known as ______.
Statutory duties
Oklahoma licensees must abide by ______ when dealing with all parties in a transaction.
Statutory duties as defined by the Oklahoma Broker Relationship Act
Buyer's agent Angela has just delivered the bad news to her clients: Their offer was rejected, and another buyer's offer was accepted. The clients are reacting emotionally. What can Angela do to repair this situation and get her clients back on track?
Stay calm and share a plan for moving forward together.
Licensee Ernie is working with his seller client Bertha, an elderly but spry woman. Bertha loves to chat about her garden, her grandchildren, and her neighbors—topics that Ernie doesn't find very interesting. What should Ernie do to best serve his seller client?
Stay customer-focused and try to understand Bertha's model of the world.
Oklahoma licensees are required to provide the duty of honesty and reasonable skill and care to all parties in a transaction. While performing this duty, it's important for a licensee to ______.
Stay within their scope of expertise
One of the aspirational goals of the NAR Code of Ethics preamble is ______.
Staying informed
Which of the following is a component of a marketing plan for a brokerage?
Strategies and tactics
Lorenzo just received a prestigious fellowship to study abroad for a year! However, he still has six months left on his one-year apartment lease. His landlord has given him permission to draw up a new agreement with his sister Maggie, whereby Maggie will live in the apartment, pay rent to Lorenzo, and then Lorenzo will pay the landlord. This is an example of ______.
Subleasing
______ planning focuses on identifying and developing the skills of individuals who are suitable for lateral or vertical job changes.
Succession
Samantha is a real estate licensee. She's showing her client a property. The client asks about some spots on the ceiling and wonders if they're an indication of a roof leak. What should Samantha do?
Suggest that her client contact a roofing expert to make a determination.
DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______.
Suing for specific performance
Which of the following is NOT a license type for real estate professionals in Oklahoma?
Supervising broker
An individual's license may be _____ if he can't pay an administrative fine within the 30-day deadline.
Suspended
Brokerage firms must continually evaluate and adapt to change. Which of the following represents a currently emerging trend that must be addressed by firms?
Sustainability
Smart Home brokerage provides mileage reimbursement to licensees who use electronic and hybrid vehicles. Which emerging trend is this brokerage trying to address?
Sustainability
Some MLS systems now allow licensees to include a building's LEED certification level. This is an example of a response to which current trend?
Sustainability
Delroy promoted a listing across multiple platforms. Now that the transaction is closed, he should:
Take down old content in a timely manner
What, in addition to ensuring that rent is paid on time, is a tenant obligated to do?
Take reasonable care of the property.
The term "sticky website" refers to ________
Techniques for getting consumers to return to your site
Real estate licensees who want to uphold the Fair Housing Act should make a habit out of which of the following actions?
Tell potential clients in their initial meeting that they are committed to upholding fair housing laws.
How could you use the principle of scarcity to influence a potential buyer for a property you've listed?
Tell the buyer, "We anticipate multiple offers on this property, given how nice it is and the state of the market, so I suggest you get your offer in quickly."
Your buyer client wants to enter a low bid on a property. He asks you to say, on his behalf, "The property is hardly worth that much, considering how many illegals live nearby." You should ______.
Tell your client that you aren't allowed to make discriminatory comments like this
Which of these points do you NOT need to consider when creating online real estate advertising?
That you use the standard font size and colors that OREC requires
This act added familial status and disability (both physical and mental) to the existing federally protected classes.
The Fair Housing Amendment Act
Regardless of where else you market it, where will most consumers first encounter your listing?
The MLS
The McCalls just signed the real estate purchase contract on their first house. What are the ramifications of signing the contract?
The McCalls are now obligated to purchase the house because the contract will be binding as soon as the seller signs it.
Oklahoma licensee Sarah has made a big mistake and is being investigated for a license law violation, of which she knows she's guilty. Who or what entity will be deciding on the disciplinary action she'll receive?
The Oklahoma Real Estate Commission
Administrative fines that licensees pay to the commission after being found guilty of license law end up funding ______.
The Oklahoma Real Estate Education and Recovery Fund
Which act encompasses a series of laws intended to lay out the standardized responsibilities and rights of both tenants and landlords but isn't mandatory?
The Uniform Residential Landlord Tenant Act
Troy is representing the Wilsons, who have accepted an offer on their home from Tom and Amy Lang. The Langs are being represented by Derek. To whom does Troy owe Oklahoma's statutory duty of confidentiality?
The Wilsons and the Langs
What does legal purpose mean?
The agreed-upon result of a contract must be legal.
Which parties must be identified on the promissory note?
The borrower and the lender
Which of the following features is shared by the mortgage and the deed of trust?
The borrower is required to maintain the property and pay property taxes and insurance.
What's a promissory note?
The borrower's promise to repay another party under specified terms
Who is ultimately responsible for an affiliated Oklahoma broker's actions?
The broker
Which of the following is true regarding the names that must be displayed on any real estate advertisement?
The brokerage's name must be displayed on all advertisements.
Which of the following is a potential concern of a buyer who's entering into a contract for deed with a seller?
The buyer could lose the property after missing only one mortgage payment.
Which of these is NOT a circumstance that would result in earnest money being released from an escrow account?
The buyer needed his earnest money back in order to pay for the inspection
Which piece of client information will help you focus on interests rather than positions during negotiations?
The client's reasons and needs behind the sale or purchase
You're representing buyer Edward in a condo purchase, and the closing date is approaching. Both Edward and the seller will have costs to pay at closing. Edward asks you how he'll know who is paying what, and he wants to know the final amount he'll need to provide at closing. Which of the following documents will show these numbers?
The closing statement
A multibillion dollar online retail distributor has decided to set up operations in Ashland. The population of Ashland is 22,000. What is the potential impact to the area?
The community is potentially put at risk
Consent is not present when _______.
The contract is signed under duress or undue influence
Which of the following specifically demonstrates the firm's ability to meet its current liabilities?
The current ratio
Why is it more effective to evaluate financial ratios and net profit over time instead of from a single set of financial statements?
The cyclical nature of revenue and expenses may result in inconsistent results if evaluated for just a single accounting period.
Which of these statements accurately represents one of the required elements in a deed?
The deed includes an act of conveyance.
Your client, Blake, asks you the purpose of a deed of trust. What should you tell him?
The deed of trust is held by a third party known as the trustee. If the borrower defaults on the loan, the lender can direct the trustee to sell the property to repay the debt.
What does LEED certification indicate?
The degree of building eco-friendliness
Debra's listing agent, Raj, just called to tell her that he'd received an offer on her house and an earnest money check for $4,500. "I'm on my way over to go through the offer with you. I think you'll like it!" Debra's excited, and she knows exactly what she wants to spend that $4,500 on. What's wrong with Debra's thought process?
The earnest money doesn't belong to Debra. It will be held in an escrow account.
Gary represents Sally, who is selling her 200-year-old Oklahoma farmhouse. Sally asked Gary not to disclose the fact that her basement leaks in the spring when it rains hard, since there's no evidence of water damage. Which of the following is a true statement?
The fact that the basement leaks is a material fact that Gary must disclose to potential buyers.
Of the following statements, which one best represents how the concept of value relates to a firm's marketing strategy?
The firm must determine how to create value within each of the four marketing components.
With an interest-only loan, what happens after the specific period of time that interest-only payments are made is over?
The full principal of the loan is due.
A buyer client has just given Oklahoma licensee Linda an earnest money check. Which of the following is true?
The funds will go toward the buyer's down payment if all goes well.
Edith is glad that she has a home warranty when ________, since it will cover most of the repair cost.
The home's heating system breaks down
The marketing department created a campaign targeting first-time homebuyers. The campaign emphasized assisting people in locating suitable financing and a bundle of other services designed to streamline and simplify the home buying process. In subsequent months, the sales staff noted an increase in the number of first-time homebuyers they saw. What were the likely direct results from the marketing campaign?
The increased number of first-time homebuyers
The elevator at Morningside Apartments is broken. Who is responsible for making sure it's repaired?
The landlord
How does the "break-even point" relate to percentage leases?
The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point.
Who's the mortgagee in a mortgage?
The lender
Bonnie has a mortgage on her investment property, but she allows the homeowners insurance to lapse. Which of these is a possible consequence of this action?
The lender can place Bonnie's loan in default.
Roberto has a mortgage on his investment property, but allows the property to fall into disrepair while his focus is on other properties he owns. Which of these is a possible consequence of this action?
The lender can place Roberto's loan in default.
When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage? The lender execut
The lender executes and records a satisfaction of mortgage and returns the note to the borrower.
Which of the following statements best describes the judicial foreclosure and sale process?
The lender must seek the court's permission to foreclose on the property used as collateral for the loan.
n risk analysis, what does severity of impact mean?
The level of damage the firm could incur
Abegayle is representing Dale and Colleen in the sale of their home, and she's also representing the buyer, Clementine. What does Oklahoma law say about representing both parties in a transaction?
The licensee owes both parties statutory duties
If a licensee does not pay an administrative fine within 60 days, what will happen?
The licensee's license will automatically be revoked.
What happens to an Oklahoma real estate licensee who is involved in a case and can't pay the judgment amount, and the consumer is awarded money from the Oklahoma Real Estate Education and Recovery Fund?
The licensee's license will be revoked until the amount paid to the victim, plus interest, is paid back.
When an Oklahoma licensee transfers to a new broker, what must the former broker send to the Oklahoma Real Estate Commission?
The licensee's physical license certificate
When a loan pre-approval is provided to a buyer, what does it mean?
The loan has been approved based on the buyer's current financial status.
Janie and Sam are newly married and are looking for their first home. They're fortunate that Janie's mom set aside some money to help with this purchase. Janie's mom says it's a loan, though, and they will have to pay her back. What's wrong with this?
The loan will go against their debt load.
Fixed-rate loans are fully amortized. What does that mean?
The loan will pay off its entire principal by the end of the term.
Which of these situations would be exempt from most provisions of the federal Fair Housing Act?
The local Elks club owns a property that's rented only to Elks club members.
Thom is nearing retirement but hopes to keep his brokerage firm intact when he retires. He's concerned that no one on his existing staff has the skills, aptitude, or interest necessary to take over the management role. What's the disadvantage of hiring an external candidate to manage the firm?
The longer transition and training time
Jake and Eddie have a promissory note agreement that states that Jake will pay back the money he owes Eddie, with interest. Who's required to sign the note?
The maker only
What is the relationship between the marketing department's efforts and those of other departments in the firm?
The marketing department is an integral component of the firm's activities.
What is maximum equity?
The maximum amount the borrower is willing/able to invest
When it comes to communication, which of the following is a true statement?
The message we convey is not always the intended one.
If a minor enters into a contract with an adult, which of the following is true?
The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.
The average commission you earn from each transaction is $6,000, and 20% of your leads turn into clients. Using the funnel, what else do you need to know to calculate how many leads you will need if you want to earn $50,000 in a year?
The percentage of clients who turn into closed transactions
One of the firm's best defenses against damage to its image is ______.
The policies and procedures manual
Which of the following is a true statement about when a promissory note is sold?
The promissory note is endorsed to the new owner of the loan.
Why do lenders care so much about property condition?
The property is collateral for the mortgage.
How can lapsed homeowner's insurance lead to default of the mortgage loan?
The property was used as collateral for the loan and is an asset for the lender. A lapse in homeowner's insurance puts the lender's investment at risk.
Some states do not require an express agreement to be in writing to be binding, unless the agreement is for ________.
The purchase of real property
Eric is making an offer on his dream home. He is ready to write the earnest money check. To whom should he make the check out?
The real estate brokerage firm
Preparing for negotiations by asking your client to identify ______ will help you explore options for mutual gain with the other party's agent.
The reasons and needs for selling or buying
To be an effective communicator, you must understand that the most important part of communication is ________.
The response
You must know ________ before you can measure results.
The result you want
Which term refers to the tenant's right to live in a rental property without harassment or trespass by the landlord?
The right of quiet enjoyment
Larry obtained a mortgage from State Bank. Larry owns the property, controls it, and has all the rights that come along with real property ownership. State Bank has an interest in the property and ______.
The right to foreclose if the borrower defaults
Jessica is just about ready for the closing date on what will soon be her new condo. She asks you about her responsibilities around property taxes when she takes ownership. Which of the following is the most accurate explanation you can give her?
The seller is responsible for property taxes prior to but not including the sale date, and Jessica is responsible for taxes on and after the sale date. If prepaid by the seller, Jessica will owe a prorated amount at closing.
Which of the following scenarios best describes how capital gains affect the taxes of a home seller?
The seller, who's lived in the home for the last three years, won't have to declare the capital gains as income for tax purposes if it is less than $250,000.
When state and federal laws differ, as they sometimes do with fair housing and/or human rights, which of these statements is true?
The state law may not remove rights granted to citizens under the federal law.
Gary is an Oklahoma licensee offering flat fee listing services. Which of the following is he required to disclose to the consumers he serves?
The steps of the transaction for which he will NOT provide brokerage services.
How are accrued real estate taxes that have been assessed but not yet due handled in a real estate transaction?
The tax bill will be prorated to the day of closing.
The value of a service or product, according to the value equation, is equal to the benefits received, less price plus ______.
The time and effort put into the shopping process
You know that a title search will need to be performed before a title insurance policy will be issued and your buyer's loan can be funded, but who or what entity can your client expect to conduct the title search?
The title insurance company
When a title is insurable but not marketable, which of the following is true?
The title insurance company has decided to insure it even though there may be a cloud on the title.
While inspecting the grounds at Seaside Apartments, the landlord noticed the following issues: The washing machine in the common area needs repair, the walkway to the parking garage is damaged, there's trash on the balcony of apartment 12, and the sprinklers are leaking. Which of these items is the tenant responsible for?
The trash on the balcony
When a borrower has paid off the loan, how is the release handled if the security instrument is a deed of trust?
The trustee executes and records a deed of reconveyance and the lender returns the note to the borrower.
Forecasting is _____.
The use of data and information to guide your firm's finances and operation
Monty is advertising a number of listings in the local newspaper and includes the fair housing logo in the ad. What else is required?
The verbiage, "Equal Opportunity Housing"
Jerry's client Selma is selling her Oklahoma home to move to Georgia to be close to her grandkids. The big house she's living in is just too much for her to maintain, and she really can't afford it anymore. Which of the following is Jerry allowed to reveal to prospective buyers?
The year Selma bought the home
In your conversations with your existing network of acquaintances, friends, and family, what can you ask of them that will help build the relationship?
Their expertise
If buyers have a loan-to-value ratio of 90/10, what does it mean?
Their loan is 90% of the value of the real estate used as collateral, and they're putting 10% down.
With whom do Oklahoma licensees have an agency relationship?
Their managing brokers
The second phase of negotiations is called the ______ phase.
There are four phases of negotiation. The second phase is the opening phase, which comes after planning and preparation and before bargaining.
What special concern do foreclosed properties often present?
There could be hidden title issues.
Darnell is an Oklahoma licensee working with the Thompsons to sell their 1920 farmhouse. He has a written brokerage agreement in place with the Thompsons and just received an offer to present to them. Which of the following is true?
There is a brokerage relationship in place, but no agency relationship.
When a buyer client is considering purchasing a foreclosure, which of the following is an issue the buyer might face that would interfere with closing.
There may be unpaid tax liens.
Which of the following is NOT considered confidential information according to the Oklahoma Broker Relationships Act?
There will soon be a large highway expansion nearby
How are mortgage interest, taxes, insurance, and other similar expenses prorated?
These are usually prorated based on a 360-day calendar year (30 days x 12 months).
When it comes to fiduciary duties, which of the following is a true statement regarding Oklahoma licensees?
They are not required to abide by common law fiduciary duties.
What value do videos offer in marketing?
They can lead to more sales than just pictures alone.
Which of the following is a benefit of legal counsel as a preventive measure?
They can review policies, procedures, practices, documents, etc., and identify risk areas.
If Twin Falls decided to pass laws regarding fair housing, what would have to be true of those laws?
They may be more restrictive than federal laws.
Anne has provided written disclosure of the statutory duties she owes to her clients, seller Barb and buyer Kim. According to Oklahoma law, which of the following is true?
They must confirm the duties and responsibilities owed to them by signing a separate document that will be attached to the contract.
Shawna is representing Trent and Lily, who are selling their Oklahoma property. She's presented them with the Disclosure to Seller or Buyer of Brokerage Duties, Responsibilities and Services form, but Lily isn't sure she wants to sign anything just yet. Which of the following is true?
They must sign the disclosure before they sign a listing agreement.
Buyers Hamish and Megan want to meet with an individual private lender. Why might they need an individual private lender's assistance?
They're unable to find complete financing elsewhere.
In Oklahoma, trust funds must be deposited in a designated trust or escrow account within ______ banking days after an offer is accepted.
Three
Samantha is a licensed real estate broker associate, and her license is about to expire, so she's getting ready to renew. How long has it been since she got her license for this license cycle?
Three years
How might you indirectly convey a brand statement to your market?
Through word of mouth
Your buyer client Avery is about to close on his first home, and he's worried about a litany of things, including the possibility of his ownership coming into question down the road, and the possible financial ramifications if that happens. Which of the following would you describe to Avery to assure him he's protected in such an occurrence?
Title insurance
What is the purpose of developing a marketing plan for your brokerage?
To analyze the competition.
Why is it important to try to view the world from your client's perspective?
To avoid misunderstandings
Jeff has filed a quiet title suit against Roger. What's the purpose of this suit?
To clear up a cloud on title
What's the goal of the planning and preparation phase of a real estate negotiation?
To collect information that will support your position and allow you to strategize during negotiations
Ralph's income statement for his firm showed a nice profit for the quarter. How can Ralph best use this information?
To compare to other quarters
The primary purpose of underwriting loans is ____________.
To ensure that neither the lender or the borrower is assuming too much risk
What is the trustee's role when a deed of trust is used to secure property for a loan?
To hold legal title to the property on behalf of the beneficiary until the loan is repaid
Jerry is meeting with a prospective buyer client, Anna. After he's provided Anna with the necessary disclosures, Jerry is ready to present Anna with a buyer's brokerage service agreement. What will he say is the purpose of the contract?
To identify the terms of the buyer brokerage relationship
What's the goal of the cash flow statement?
To match income to expenses in a given month
The purpose of the closing phase of the negotiation process is ______.
To put the negotiated agreement in writing for the clients' signatures
Why would a financing portfolio be needed?
To request funding from lenders or investors
What is the purpose of earnest money?
To show the seller the buyer is serious
Investor Susan has offered to purchase a property as-is, waiving the inspection and appraisal. Why might she do this?
To soften the blow of a low-ball offer
Why might an investor offer to purchase a property as-is, waiving the inspection and the appraisal as part of their negotiating strategy?
To soften the blow of a low-ball offer
As an Oklahoma licensee, which of the following best describes your statutory duty of honesty and reasonable skill and care?
To use your professionalism to perform your duties competently and stay within your scope of expertise.
What numbers comprise the current ratio?
Total current assets and liabilities
A calculation that looks at all recurring (or installment) debt—such as monthly mortgage, car, credit, and loan payments—as a percentage of the borrower's monthly gross income, is called ______ ratio.
Total debt
Edgar and his management staff identified their work with real estate contracts as a potential risk to the firm. If Edgar hires an attorney to review every contract written in his office, which risk-handling strategy does this represent?
Transfer
Your buyer client, Leah, asks you when she'll need to pay the transfer tax on the property you've helped her purchase. Which of the following would be the best answer for her?
Transfer taxes are due when the deed is recorded, but it may be payable by the buyer, the seller, or both depending on what's been negotiated.
According to Article 1 of the NAR Code of Ethics, the obligation to protect and promote the interests of your client is primary, but this doesn't relieve you of your obligation to __________.
Treat all parties honestly
Sammy is acting as a buyer's licensee. To fulfill his Oklahoma statutory duties, which of the following must he do?
Treat all parties with honesty.
You have a client who's leasing commercial space. The lease terms call for him to pay a portion of the landlord's taxes, insurance, and maintenance. What type of lease does your client have?
Triple net lease, A lease in which the tenant pays taxes, insurance, and maintenance (TIM) is a triple net lease.
What's another name for an escrow account?
Trust account
Who or what is the person or entity that holds "legal" title in a deed of trust arrangement?
Trustee
The preamble to the NAR Code of Ethics and Standards of Practice notes that it's in both REALTORS®' and consumers' best interest when REALTORS® _____________.
Try to eliminate unfair business practices
Data encryption is important because it _______.
Turns information into indecipherable code
If your client makes a promise in exchange for a reward, what type of promise is he making?
Unilateral promise
The federal Fair Housing Act includes protections for people with disabilities. It requires multi-family buildings constructed for occupation after March 13, 1991 to have seven special features. Which of the following is one of those features?
Unit and internal doors that are usable by persons in wheelchairs
,In Oklahoma, which of the following statements about unlicensed assistants and the tasks they can perform is true?
Unlicensed assistants may not perform activities that require a license.
What is another name for debentures?
Unsecured bonds
Ursula, a REALTOR®, is sending postcards to her contact list and includes an old lead, Henry. Henry is currently working with Jan, another REALTOR®, but Ursula has no knowledge of their relationship. Which of the following is true?
Ursula is allowed to make general mailings as long as she is unaware of Henry's relationship with Jan.
Risk mitigation means ______.
Using a system to reduce the risk's likelihood or severity
Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law?
Using approved fill-in-the-blank forms
Katrina and Greg are selecting a firm and a licensee to help them sell their home. They're comparing commission-based and flat-fee listing services. The commission-based service will cost more, but they'll have a licensee who performs most of the work. The flat-fee listing service costs much less, but they'll have to do more of the work. What marketing model concept will their decision represent?
Value
Urban Connection Realty is refining its brand and identity. The firm has implemented a focus on transparency to the consumer, a fee-for-services payment option, and a series of presentations around the processes involved in real estate brokerage transactions. Which emerging trend is this brokerage trying to address?
Value
What legal concept relates to a broker's responsibility for licensee misconduct?
Vicarious liability
If a contract is for an illegal purpose, it's ______.
Void
What type of contract is never binding based on the theory that it was never properly formed?
Void
Rather than face foreclosure, Tony decides to cut his losses. He voluntarily conveys his property to his lender. What type of foreclosure alternative is this?
Voluntary conveyance of deed
With this alternative to foreclosure, a borrower hands over the property to the lender rather than face foreclosure proceedings.
Voluntary conveyance of deed
Dani is in love with the ranch-style home on Cardinal Avenue, says she simply must have it, and is willing to pay cash. The seller is concerned about an appraisal. Which of the following would be a good strategy for structuring her offer?
Waive the appraisal.
If a seller is concerned about an appraisal, what can a buyer do to address this need when structuring the offer?
Waive the appraisal.
What's vicarious liability as it applies to real estate in Indiana?
When a broker is held responsible for the actions or omissions of their licensees
Oklahoma licensees are required to notify represented parties of transaction costs and amounts in writing. When must they do this?
When an offer is made
Buyer Susie's a little nervous about the $20,000 earnest money check she just deposited with the title company. When should she expect to see this money applied toward her purchase of the property?
When conditions are met at closing
When can an ethical violation result in jail time?
When it also breaks the law
When do borrowers tend to go with a private loan company?
When they can't secure financing through traditional means
Tasks in which an assistant is asked to negotiate or interpret real estate _______.
Will generally always require a real estate license
A fixed expense _______.
Won't change for a period of one year
In what ways do people communicate?
Words, tones, gestures, body language, and facial expressions
You're preparing to contact a listing agent to make an offer on behalf of your client. You know this listing agent was raised in a culture different from your own, so you're concerned that you'll hit some cross-cultural obstacles working through the transaction. What's the best way to avoid such obstacles?
Work hard to communicate clearly with the listing agent, and be aware of how easily signals might be misinterpreted.
Workplace fraud includes which of the following?
Working with a vendor to falsely increase invoice costs, and splitting the difference Continue to Unit 1: The Basics Return to Section 11: Risk Management View Exam Results
Writing checks to a vendor that doesn't exist and then cashing those checks for personal use is an example of ______.
Workplace fraud
To safeguard against potential conflicts of interest, Elizabeth always relies on ______.
Written disclosures
Xavier deposited a $3,000 earnest money check into his personal account for safekeeping while he was on vacation. The balance in his account when he left on vacation was $4,200, and when he returned, it was $2,800. He withdrew enough funds from his savings account to cover the earnest money check and delivered the funds to the escrow agent. Which statement best represents Xavier's issue?
Xavier is guilty of commingling and conversion.
REALTOR® Brad signed an exclusive right-to-sell agreement with Cathy. Her home is older, but it's nothing special in terms of its construction or compared to other homes in the neighborhood. Cathy insists that Brad describe the property as having "historical significance" in the MLS listing. Brad complies with his client's wishes, even though she can't provide any evidence of the home's historical significance. Has Brad violated the NAR Code of Ethics?
Yes, because Article 2 prohibits Randy from exaggerating or misrepresenting pertinent facts about the property.
Broker Jordan just helped Lucy purchase a new home. Because their agreement is completed, the brokerage relationship terminates. Should Lucy expect Jordan to send her title documents?
Yes, because Jordan owes the duty of accounting until all documents and funds are accounted for.
Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical?
Yes, but only if all of the involved parties have full knowledge and provide consent.
Candace wants to purchase a property that she has listed for a seller client. Is this permitted under Oklahoma license law?
Yes, she can purchase the property as long as she discloses her interest to the owner and receives the owner's approval.
Siobhan, a sales associate, made a mistake during a transaction that caused her client to lose money. The mistake was unintentional and Siobhan didn't know she was at fault until after the transaction had closed. Is Siobhan's broker liable?
Yes, the broker is always responsible for associate actions, whether intentional or not.
Sari, a licensee for Tynan Realty, is placing a listing ad in the Presbyterian Outlook. Is this a potential fair housing violation?
Yes, unless she also places the ad in publications that reach a broader market.
When a group of teenagers spray paints graffiti on the common area playground, the residents ask the landlord to have it cleaned up. Is this one of the landlord's duties?
Yes. It is a landlord's duty to keep all common areas clean and safe.
Oklahoma licensed sales associate Ophelia has told her clients that a property is zoned as residential, even though she knows it's zoned as commercial. Has she committed a license law violation?
Yes. She willfully misrepresented a material fact about the property and also behaved in a dishonest manner.
Who has the most valuable information about your firm's operations to assist in identifying potential risk?
You and your staff
Which scenario would best be solved with long-term financing?
You have an opportunity to purchase a competitor's firm, and you want to retain complete control of your operations.
What does attending real estate events show fellow real estate professionals?
You're invested in your business.
What do marketers consider to be your firm's signature?
Your logo
Your foundation of understanding with a client is built upon all of the following EXCEPT ________.
Your maximum profit potential
Alternatives to foreclosure include deed in lieu of foreclosure, short sale, or ______.
bankruptcy
Who or what entity directs the activities of credit unions?
board of directors
Who's the mortgagor in a mortgage?
borrower
Who has the ultimate responsibility for the brokerage relationship?
broker
General brokerage and listing-specific advertising and signage must contain which of these?
brokerage name
Which of the following itemizes income to expenses for a given month?
cash flow statement
Janine took a photograph of a lovely, sweeping estate and wants to use the photo as her logo. Which of the following would a graphic artist indicate as the primary concern?
complexity of the image
One alternative to foreclosure is a voluntary conveyance of ______.
deed
In which area of the U.S. will you find the greatest number of mutual savings banks?
east
Business at Vista Brokerage is slow so you've initiated a new marketing campaign to pull in more clients. What impact should you expect from your marketing efforts
indirect
What type of loan is a carry-back loan?
junior
Private loan companies may place a ______ on the property for which the loan is being taken.
lien
Turns information into indecipherable code
manage risk
Monica and Daniel Nicks have applied and been approved for a mortgage loan. Who will provide them the money for the loan?
mortgage BANKER
The ______ phase of the negotiation process starts when the buyer's agent contacts the seller's agent to initiate an offer.
opening
Licensee Rafael just received notice that a previous client made a complaint against him. What entity sent him this notice?
orec
Things in the real estate market are starting to improve. Foreclosures are still high, but not increasing. The same is true with unemployment. The public is still generally uneasy about the economy, but we've made it through the worst.
recovery
The federal Fair Housing Act prohibits discrimination in any form against which of the following classes?
sex
Which of the following means a short statement that describes your brand's purpose?
tagline
Which of the following mediums is best suited for establishing name recognition?
tv ads
In addition to photographs of the property's interior and exterior, include a(n) ______ of your listings, if possible, to give buyers a sense of the property's amenities and layout.
video tour
Recession
-Unemployment increases -Foreclosures increase -Supply exceeds demand, more properties sit vacant -Public confidence falls -Home prices fall
Althea is starting her own candle business. Her plan is to rent a space to sell her products for several years, with the hope of expanding. In this scenario, which item represents supply?
Commercial space for lease
In which phase of the real estate market would you expect to see an increase in hiring and employment, increased public confidence, and an increase in buyers in the market?
Expansion
Local lenders may sell loans they have issued to national institutions as a way to generate more money to make additional loans.
False
Secondary mortgage market players purchase securities from investors, then package and resell them to local lenders
False
Which of the following is the best example of the economic principal of leveraging, as it applies to a real estate transaction?
Making a down payment
Carissa is opening a new brokerage firm and knows she has a lot of planning to do. When should she create her marketing plan?
She should create her mission statement and business plan first.
What term is used to describe loans that were approved for borrowers with lower incomes and poor credit histories?
Subprime
Which of the following best describes a buyer's market?
Supply is greater than demand
The secondary market may act as a balancing mechanism by making money available in hot local markets and providing a safe avenue for cold local markets to unload excess funds.
True
The construction of ______ is one of the largest indicators on the country's economy.
New homes
Which act, which was the first act passed to address the subprime mortgage crisis and was also known as "the stimulus package," sought to create new jobs and save existing ones, spur economic activity and invest in long-term growth, and foster new accountability and transparency in government spending?
American Recovery and Reinvestment Act of 2009 (ARRA)
Avalanche Developing is building a new urban, mixed-used development that will cater to young singles and couples who are just starting their careers. Of the following, which is the best advertising medium for marketing this upcoming development?
Billboards
Which of the following items directly increases the supply of real estate properties on the market?
Conversion of properties
As foreclosures increased in 2007, what was the response from lenders?
Decrease lending activity. Lender balance sheets were negatively impacted by the increase in foreclosures. When the secondary market stopped buying subprime loan packages, lenders slowed their lending activities.
An extended period of time during which banks experience more withdrawals than deposits is called ______.
Disintermediation
Real estate professionals keep a multitude of other professionals busy during the buying and selling process. Which of these professionals or entities are most active during the construction phase of real estate?
General contractors
Which of the following is a true statement about the Hardest Hit Fund?
It was available in the states with the most underwater homeowners.
What would likely happen to the real estate market if there were no lenders?
New construction and home purchases would greatly decrease.
In which phase of the real estate market would you expect to see properties selling for more than they're worth, many buyers in the market, and lots of new construction?
Over supply. Over supply is a phase that sees homes selling for more than their value. There are lots of buyers and lots of construction trying to keep up with the demand. This phase can't be sustained, and eventually the market heads toward a recession.
Which of the following best describes the state of the market during the over supply phase of the real estate cycle?
Properties selling for more than their appraised value, many buyers in the market, and lots of new construction
In what phase of the real estate cycle do foreclosures rise and home prices fall?
Recession
Now, let's suppose that low construction costs have led to an increase in the construction and conversion of new homes. Demand hasn't changed during this time. Generally, what is the effect on home prices?
prices fall
In which phase of the real estate market cycle would you expect to see property under valued and a large supply of homes on the market?
recovery
