OK PSI Exam Test Questions
A property has a net income of $50,000, interest payments of $35,000, principal payments of $7,000. The property's tax rate is 28%. What is the property's annual tax on income?
$2,240
What is the total interest your friend will pay over the life of the $185,000 loan at 6.0% interest for 30 years? The monthly P&I is $109.17. The monthly taxes are $321.
$214,301.20
You have bought a house for $149K with a 10% down payment. The house appraised at 4163K. What is the amount of equity?
$28,900; take sales price and subtract the 10% down payment. 149,000-14,900= 134,100, then take appraised minus 134,100. 163,000-134,100=28,900
If the GRM of a property is 120 and generates a semi-annual income of $15,000.00 what is the property sales price?
$300,000
You list a lot which is 170 feet by 300 feet. How many acres are in the lot?
1.17 acres
At what date is the Residential Property Condition Disclosure Statement no longer valid?
180 days after completion
A township contains
36 square miles
When does a security deposit revert to the landlord in consideration if the former tenant has not made a written demand?
6 months after tenancy termination
How many acres are in the SE 1/4 of SW 1/4 & SW 1/4 of SE 1/4 of Sec 22 T11N, R2W
80 acres
What are the 6 guidelines to adverse possession?
Actual possession- physically present, using property; continuous period- not off and on but continuously used; hostile- no permission has been granted by landowner; open and notorious- not hiding from landowner; exclusive possession- possession maintained by single party; color of title- good faith belief that they own the property
Who is considered in a party?
Buyer(s) or Seller(s)
Federal laws that prohibit discrimination in housing are covered by
Civil Rights Act of 1968
A sale transaction on rental property closes on Dec 16. The landlord received the Dec rent of $713 on Dec 1. Assuming the closing day is the buyer's, and that the 365-day method is used for prorating, which of the following entries would appear in the settlement statement?
Credit buyer $368.00
An investor is considering the purchase of a seven unit strip mall in a well traveled road. What appraisal method is likely to provide the most accurate result?
Income Capitalization Approach
Which of the following can the OREC do upon its own motion?
Investigate the business transactions of any real estate licensee
How does the ECOA affect property managers?
Managers must be consistent and nondiscriminatory in evaluating the creditworthiness of tenant applicants
The most probable price a property will bring in a competitive market, allowing for a reasonable time to find a knowledgeable purchaser with neither party under duress and payment in cash or the equivalent, is associated with
Market Value
A sales associate has a license due to expire this month. BY what day and time must renewals be filed?
Midnight the last day of the month
The taxable income from an investment property is estimated by using which of the following formulas?
Net income minus interest and depreciation
Allan has just made the final payment on his mortgage loan to the bank. Regardless of this fact, the bank will still hold a lien on Allan's property until which of the following is recorded?
Satisfaction of the mortgage instrument
Allan has just made the final payment on his mortgage loan to the bank. Regardless of this fact, the bank will still hold a lien on allans property until which of the following is recorded?
Satisfaction of the mortgage instrument
Which of the following statements would not be cause for censure of a RE license?
Submitting all offers to the seller prior to acceptance of any offer
Which of the following items are paid in arrears?
Taxes and interest
When hearing a complaint before the commission, upon whom does the burden of proof fall?
The moving party
There is a subdivision restriction which prevents persons of African descent from buying a home in that particular neighborhood. This restriction was written in 1925 and is due to expire in 2025. This restriction is
Unenforceable
When a quitclaim deed is given, the grantee receives
Whatever interest and benefit the grantor had if any
If a broker deliberately misleads a buyer about the property boundary lines, is he guilty of fraudulent misrepresentation?
YES
What is a selling broker?
a broker who is licensed by the OREC and has entered into a broker relationship with the buyer
What is the RESPA (Real Estate Settlement Procedures Act)?
a consumer protection statute, 1st passed in 1974. purpose: to help consumers become better shoppers for settlement services in connection with their real estate loan and to eliminate kickbacks and referral fees that unnecessarily increase costs of certain settlement services
The Indian Meridian is located
about midway through the state running north and south
A broker, receiving a deposit of earnest money , should
deposit it in a trust account
unities of time, title, interest & possession are essential to
joint tenancy
Limited partners are
limited as to their liability for debts of the partnership
Earl is a real estate broker and has recently bought a new home and his personal residence address has now changed. Earl
must notify the commission office within 10 days
A licensee in Oklahoma may
provide broker services
To resolve all "clouds" on title is
suit to quiet title
Filing for homestead in Oklahoma will exempt from the assessed valuation of the property the amount of
$1,000
A borrower grosses $4,000/month and pays $600/month for debt obligations. What monthly payment for housing expenses (principal, interest, taxes, insurance) can this person afford based on an FHA debt ratio of 41%?
$1,040
If a broker is found guilty of violation of the Federal Fair Housing laws, he will likely be penalized
$10,000
The OK Real Estate License Code specifies that it is acceptable for any person who is a resident of a rental unit may be paid a "residential referral fee" of not more than
$100.00
Ten years ago, an office building cost $500,000 to build plus $200,000 for the land. Yesterday an appraiser estimated the replacement cost at $the 650,000 and a useful life of 50 years. What is the depreciation to date?
$130,000
A principal residence is bought for $180,000. A new porch is added, costing $7,000. Five years later the home sells for $220,000, and the closing costs $18,000. What is the homeowner's capital gain?
$15,000
The closing date is July 10th. The yearly taxes are $660. The taxes chargeable to the seller are
$345.37; divide 660 by 365 (one year)= 1.8082 then take 1.8082 x 191 (how many days have passed already in the year)= answer
Mal Content and his wife Charity bought property 8 years ago for $65K and are listing it with Beacon Real Estate for 30% more than they paid. If the property sells for 95% of that amount and the brokers commission is 6%, how much will he net if his expenses associated with sale total $675?
$4,141.50; 65,000 (OG price) x .30 (30%- the difference in listing price vs bought price)= 19,500, add 19,500 to 65,000= 84,500, 84,500 x .95 (95%, what property could sell for)= 80,275, 80,275 x .06 (commission rate)= 4,816.50, 4,816.50-675 (expenses)= answer
An apartment building has an effective income of $150,000. Its bills total $64,000, and depreciation is an additional $12,000. Interest payments on the loan total $40,000, and principal payments are $5,000. What is the property's pre-tax cash flow?
$41,000
One of your tenants has asked permission to install a window air conditioner in the space he rents from you. You give him permission. In order to buy the correct size air conditioner, he must figure the cubic feet of the area to be cooled. Their room is 10ftx60ftx90ft. How many cubic feet are in the room?
$54,000
What is the value of a commercial building that generates a monthly net operating income of $4,000 on a 15 year loan at 8% interest? The Cap rate is 6%.
$800,000
Mr. Johnson's house sold for $55,000 and the total commission was 6% of that amount. The broker received 3/4 of the commission and the sales associate received 1/4. How much was the sales associate's commission?
$825; 55,000x.06 = 3,300 then 3,300 x .25= $825
Under our land system, we have certain rights which are called "bundle of rights." Which of the following is included in the "bundle of rights?"
-The Right of possession -The right of control (w/in the law) -The right of exclusion -The right of enjoyment -The right of disposition
Revenue stamps cost
.75 cents per each $500, or portion thereof, on gross sales price. Divide sales price by 500. Round up. Multiply by .75 cents
In general, the borrower no longer pays mortgage insurance when the loan-to-value equals
0.8
The landlord needs to perform a semi-annual inspection. How much notice of entry must the landlord provide the tenant?
1 day
What is the minimum height of the letters on a real estate office's identification sign?
1 inch
A land description reading: The North one-half (N 1/2) of the South one-half (S 1/2) of the Southwest quarter (SW 1/4) of the Northeast quarter (NE 1/4) of a Section would contain
10 acres
The membership of the contract Forms Committee is made up of
11 total members; 3 members appointed by OREC, 3 appointed by the OK Bar Association, 5 appointed by the OK Association of Realtors, Inc
If a house rents for $900 per month and it sold for $126,000, what is the gross rent multiplier?
140; 126,000/900= 140, to calc GRM divide the selling price or value of property by the subject property gross rent
If the OREC denies an application for a real estate license, the OREC will notify the applicant of the denial within
15 days
A tract of land described as SW 1/4 of the SE 1/4 of the NE 1/4 if the NW 1/4 of Section 1 contains
2.5 acres
A realtor had his license revoked by OREC on Feb 14, 2010. What is the earliest date the former licensee can apply for re-issuance?
2/14/2013 (36 months)
All members of the Oklahoma Real Estate Commission must be citizens of the United States and residents of Oklahoma for how long before appointment to the Oklahoma Real Estate Commission?
3 years
Adam was trying to get a home loan and was rejected. Because of the Federal Equal Credit Opportunity Act, Adam must be notified in writing for the reason she was denied within
30 days
All real estate licensees (except PSA) shall be issued for a term of
36 months
What is the time limitation for reporting alleged violations of the Federal Fair Housing Act and Amendments
365 days
For a parcel of land to have value it must have
4 economic characteristics: utility, scarcity, transferability, demand; 3 physical characteristics: uniqueness, immobility, indestructibility
Members of the OREC are appointed for
4 years
A tract of land is described as the W 1/2 of the N 1/2 of the NE 1/4 of section 16. What is the acreage?
40 acres
Three investors for a syndicate pool their money to purchase an investment property. The purchase price is $250K. One investor provided $80K another provided $59K. How much ownership did the 3rd investor purchase?
44%
Which of the following classes must a provisional sales associate take in order to renew their license and become a sales associate?
45 hour Basic II Post-License Course
Richard has been a real estate broker for the past 15 years. On Jan 20, 2020, Richard's brokerage had three transactions close. Richard shall maintain all records for a minimum of
5 years after consummation
The section in the NW corner of a township is numbered
6
Define township lines
6 miles square of two parallel lines running East and West that defines the North and South borders of a township
There are how many members on the Real Estate commission?
7
A broker sold a residence for $56K and received $3,920 as her commission in accordance with the terms of the listing agreement. What % did she receive?
7%
What is specific performance?
A court ordered remedy requiring precise fulfillment of a legal or contractual obligation when monetary damages are inappropriate or inadequate, as when the sale of real estate or a rare article is involved. It is also an equitable remedy that lies within the common-law remedy is insufficient, either bc damages would be inadequate or damages couldn't be established
Which of the following is NOT a latent defect?
A crack in the living room ceiling
What is a warranty deed?
A deed containing one or more covenants of title; especially, a deed that expressly guarantees the grantors good, clear title and that contains covenants concerning the quality of title, including warranties of seisin, quiet enjoyment, right to convey, freedom of encumbrances and defense of title against all claims
Which of the following is true of a homestead?
A homestead interest is a form of legal life estate
What is an attorney title opinion?
A legal opinion on the state of title for a given piece of real property, usually describing whether the title is clear and marketable or whether is is ecumnered
Which one of the following best describes a contract for deed?
A method of selling real estate whereby the purchaser pays for the property in regular installments, while the seller retains title to the property until full purchase price has been made
Agent
A person who acts or does business for another called the principal
What is a residential service agreement?
A service that covers a home for a period of time against items listed in the policy
Seller Henry Abbott and Broker Walter Hall enter into an open listing agreement. Under such agreement
Abbott must pay Hall a commission if Hall finds a buyer for the property; Abbott does not have to pay Hall a commission if Abbott finds a buyer
The buyer signs a Contract for Deed; but five years after making all monthly payments, the buyer fails to submit a payment. The seller gets a judgement to reclaim the property because of what?
Acceleration Clause
A couple bought their Dream Home in June 2005 with an ARM that reset in 2010. However, in 2009 they both became unemployed and lost their house to Foreclosure in February 2011. Why?
Acceleration clause
For the last 5 years you have been crossing your neighbors farm to reach a remote section belonging to you. Your neighbor has recently decided to make some improvements to his farm which will interfere w/ your customary route. Since you have met the statutory period for having used the property, you may be able to obtain prescriptive rights to continue using the route even if it means your neighbor may have to cancel his plans. What is the legal condition called that best describes your ability to continue the route?
Adverse possession
When may a licensee begin operations in the real estate business?
After being issued a numbered active license certificate
A sales associate lists a property. Three weeks later, the sales associate os tragically killed on the way to show the property. What is the status of the Listing Contract?
Agency remains unaltered
The Buyer and Seller execute a purchase contract for $127,000. Five days later, the Buyer asks the Seller to increase the sales price to $129,730.50 to cover a funding fee. What is this to the contract?
Amendment
This loan type is characterized by equal monthly payments credited first to interest due. Then, the remainder of the payment is applied to the loan balance
Amortized Loan
What is a contract?
An agreement between 2 or more competent persons having as its purpose a legal objective, wherein the parties agree to act in a certain manner
Which of the following is the best explanation of an option?
An agreement granting exclusive right to buy, sell, or lease property at a given price within a stated period of time
The County Board of Supervisors announced State and Federal Funding to widen a road. Within a month, property values along the route yielded a 10% gain. This an example of which Principle of Valuation?
Anticipation
The County Board of Supervisors announced State and Federal Funding to widen a two lane road to four lanes. Within a month, property values along the route yielded a 10% gain. This is an example of which Principle of Valuation?
Anticipation
The landlord needs to serve the tenant w/ a notice to terminate the tenancy. To whom shall the noticed be served?
Any family member over the age of 12
John and Megan rented a home and they are behind on their rent, when may the landlord bring an action for recovery?
Anytime
When is a Lender required by FIRREA to directly engage the services of an appraiser
Anytime the transaction is federally related
A sales associate license on a 3 year term, issued on May 15th is valid until
April 30th, 36 months later. 3 years after the previous (before) month.
Zoro purchased his home in 2001 and was required to join the neighborhood association. Why was Zoro required to join?
Because of the deed restriction
A toxic waste dump is located at the edge of town. What federal legislation would force the clean up of this area?
CERCLA
Steering
Channeling prospective buyers or tenants to particular neighborhoods based upon their race, religion, national origin, or ancestry.
This law prohibited racial discrimination in the buying, selling, holding, or conveying of real and personal property?
Civil Rights Act of 1866
a broker is liquidating the brokerage to retire in florida. to dispose of his personal house, what must the broker do?
Disclose the broker is a licensed realtor
The seller has prepared a property condition disclosure statement. The realtor notices a foundation crack which the seller did not disclose. What should the realtor do?
Disclose the foundation crack
Which of the following best describes Regulation Z?
Disclosure of credit charges
Allen who is a lender wishes to make the yield on a loan lower than the current market value. What would Allen charge to make the loan more competitive?
Discount Points
A black prospect asks a broker to see homes in a predominantly white neighborhood. How should the broker respond to the prospects request?
Do your job and don't discriminate
Which of the following is NOT a type of possible Agency Relationship in a transaction unless all parties acknowledge the relationship?
Dual Agency
-A sales associate owes all of these duties -Name one that they are NOT responsible for
Duties: to obey all legitimate instruction from the broker concerning the transaction, to be loyal to the interests of the principal, to disclose material facts concerning the sale to the broker and the principal; NOT responsible for: preparing the deed for the transfer of title
You have your license under a broker. Your broker is required to put your real estate license on display in the office. Which of the following is your broker also required to display?
EHO Poster
Over time, a parcel of land lost access to a county road. The land owner had to obtain access to the road by court action. This is an example of
Easement by Necessity
Chris buys a commercial building that is worth $3M. Five years later the city changed the zoning surrounding the building which adversely affected the building Chris bought. Which of the following describes the adverse affects from the zoning?
Economic obsolescence
At the direction of a seller-client, an agent tells a pregnant woman that the property is not in a good neighborhood for a single woman, particularly if she regularly works late hours. The neighborhood has an increasing crime rate, and people are moving out. What has this agent done wrong?
Engaged in steering
Under what right or rights may the government take reality if an individual dies intestate?
Escheat (NOT police power, taxation or eminent domain)
A seller and a broker signed a contract to market a house. After 63 days on the market, the seller called the broker to say, "Thanks," but the seller had found a buyer. What kind of listing is this?
Exclusive Agency Listing
The Realtor and Buyer had a written contract. After the contract expired, the Buyer bought a house the Realtor had shown her but with another broker. The Buyer had to pay Realtor #1 a commission. Why?
Exclusive Rights Agreement
Fair Housing Amendments Act of 1988
Expansion of the Fair Housing Act to include families with children and those that are handicapped (alcoholics as well)
Mr. Freno lived next door to a real estate broker. Mr. Freno lived next door to a real estate broker. Mr. Freno referred his sister to the broker next door, and she purchased a house costing $120K, to show appreciate the broker may
Express appreciation to Mr. Freno (no money allowed)
Which agency investigates Mortgage Fraud?
FBI
Which statement is true regarding FHA loans?
FHA insures approved lenders
Which of the following is true of FHA loans?
FHA loans cannot be assumed
A mortgagor can get direct financing from all of the following except
FNMA and/or GNMA (Fanny May or Ginny May)
In order to renew an active real estate license, each licensee must complete certain required courses. The courses are
Fair Housing, professional standards, broker relationships act
Hardluck has various liens against him. Which of the following is a general lien?
Federal Estate Tax
What agency promulgates regulation Z?
Federal Reserve System
When a broker has a relationship of trust and confidence with a client it is called?
Fiduciary
Which of the following Secondary Mortgage Market entities can purchase FHA and VA loans?
Frannie Mae, Ginnie Mae, Freddie Mac
What are security deposits?
Funds paid in advance by a person who is leasing real property to guarantee the performance of an obligation
Fred owns a life estate and George has been named as the remainderman. When Fred dies
George will hold title to the property
In completion of a printed form of the sales contract, several words were crossed out and others inserted. In order to eliminate future controversy as to whether the changes were made before or after the contract was signed, the broker should do which of the following?
Have both parties initial or sign on the margin near each change
A family is looking for a home in a certain price range. The wife suggests several listing on the east side of town, and the agent agrees to show the family the suggested properties. En route to the targeted neighborhood, the agent drives a certain route to show the family certain retail services and two schools. What has the agent done wrong?
He has done nothing wrong
While a property is under a contract for deed, the buyer, or vendee, takes possession of the property and makes timely payments of principal and interest. At the end of the term, the vendee obtains a loan and uses the funds to pay off the vendor. Given these circumstances, what option does the seller have?
He may offer to repurchase the property after conveying the title
No two parcels of land are exactly alike because no two parcels can occupy the exact same position on the earth. This physical characteristic of land is
Heterogeneity
Which of the following is NOT required to obtain a Provisional Sales Associate License?
High School Diploma or GED
You have given an option to Fred to purchase a 140 acre property for the purpose of possibly building a shopping center. Which of the following is NOT true about the option?
If Fred chooses to not buy the property, he must give the money for the option back to you
What is the Alternative Dispute Resolution System?
In OK it is currently made up of 12 community based mediation centers and I11 programs developed by state agencies. The purpose of the system as stated in the act is "to provide to all citizens of this state convenient access to dispute resolution proceedings which are fair, effective, inexpensive, and expeditious." The act also helps alleviate back log of cases.
What is the Oklahoma Housing Foundation?
In general, it is a non-profit foundation that donates funds to charities for education, research and housing assistance for the homeless. The foundation receives interest accrued from brokers funds that are placed in an interest bearing account
What new section has been added to the law section on broker compensation?
In the event a broker receives a fee or compensation from any party to the transaction based on a selling price or lease cost of a transaction, such receipt does not constitute a breach of duty or obligation to any party to the transaction
All of the following would not be considered an economic characteristic of land?
Indestructible
Blockbusting
Inducing property owners to sell or rent their holdings due to an impending downturn in their property values, often owing to a change in the area's ethnic or social composition.
What are wood destroying insects?
Insects other than termites which damage or destroy wood or other cellulose materials. Including but not limited to carpenter ants, carpenter bees, and certain beetles. This term shall not include other fungi which inhabit but do not damage or destroy wood or other cellulose materials, health hazard molds or stain fungi
Which of the following may the OREC do upon its own motion?
Investigate the business transactions of any real estate licensee
If a person dies with legal heirs and has left no valid will, what happens to the real property owned by that person?
It is probated and passed to the heirs by laws of descent.
Lindsay passed her RE exam on Jan 25, 2020, and on Feb 7, 2020, Lindsay paid the OREC her license fee. The OREC issued Lindsay her PSA license on Feb 8, 2020. When does her license expire?
Jan 31, 2021 (12 months from month of passed exam)
Jim has an ACTIVE real estate license and personally puts an offer on a piece of real property,
Jim needs to disclose in writing he is licensed
Jim has an INACTIVE real estate license and personally puts an offer on a piece of real property,
Jim needs to disclose in writing he is licensed
The Supreme Court case most cited for prohibiting racial discrimination in the sale of rental housing is styled
Jones vs Mayer
James received his sales associate license on July 8, 2020. When will James's real estate license expire?
June 30, 2023
Henry dies directing in his will that his factory be sold, and that his friend, Kenneth, be appointed executor of the sale. The court authorized Kenneth to act as Henry has directed.
Kenneth may sell the factory and be compensated for his work without having a real estate license
You give your house to your brother for the rest of his life and, when he dies, the house is to go to his daughter. Your brother's interest in the property is a
Life Estate
In anticipation of a breach of contract, the parties may specify in the contract the amount of damages to be paid in case of a breach. This is known as the
Liquidated damages clause
Depreciation is
Loss in value from any cause
The real estate brokers operation account should include which of the following?
Money from the broker to operate the business
Of the following sources of loan money, which does not service their loans?
Mortgage Broker
Which is true concerning multiple listing services?
Most are a function of a local Board of Realtors
Mrs. Ching buys a parcel of land. Along with the land, she acquires an easement appurtenant to travel across her neighbor's property to reach hers. Which of the following statements is true regarding this easement?
Mrs. Ching holds dominant tenement
A section in township are numbered in a "Snake" like pattern that always begins in what corner of the township?
NE
When is blockbusting not a discriminatory practice?
NEVER, it is always discriminatory
Conventional mortgage loans are
NOT guaranteed or insured by any government agency.
Simpson sings a real estate contract without first reading it. This allows him to later break the contract on the basis of
NOTHING, Simpsons mistake or ignorance is on him
Under authority of a signed exclusive representation listing, Broker Davis diligently advertised to sell the home of owner Johnson. Prior to the expiration date of the listing Johnson sold her home through her efforts to a friend and refused to pay Davis any commission whatsoever. Johnson is legally obligated to pay broker Davis
No commission (exclusive right to sell would have to pay)
Sparkling River, broad and deep, and considered a navigable river, forms the boundary between Farmer Brown's property and that of neighbor Ann. Ann allows canoeists to cross her property to gain access to the river. The water traffic annoys Farmer Brown. Does Farmer Brown have any right to stop the canoeists from using the river?
No, since sparkling river is a navigable river
The Ad reads, "Your new home has the most stunning view in the county." Is there a problem?
No. This is puffing.
The provisions of the Oklahoma Real Estate License Code originated in the state legislature. The agency created in 1950 to administer and enforce the code is the
OREC
What are the Estimated Expenses of Transactions (net to seller/cost to buyer)?
OREC rule requires that a real estate licensee inform the buyer/seller at the time an offer is presented, that the buyer and/or seller will be expected to pay certain closing costs. Brokerage service cost and approximate amount of said costs
Which statement is true regarding failed PSI exam?
One hour to review the exam
Al wants to receive his real estate brokers license. Which of the following qualifications must Al meet to obtain his Oklahoma real estate brokers license?
Pass a 90 hour Advanced Course in Real Estate, background check, active sales associate license for the past 2 years, and pass the state exam
What are fixtures?
Personal property that is attached to land or building and that is regarded as an immovable part of the real property, such as a fireplace built into a home
The Oklahoma Real Estate license law requires which of the following to have a real estate license?
Persons who manage or sell property for others including immediate family members
Mary wanted to sell her house which had a serious leak in the roof. The broker told mary that she must replace the roof in order for the house to sell. The leaky roof is considered what kind of depreciation?
Physical Deterioration
What is Comparable Market Analysis (CMA)?
Prior to selling or purchasing real estate the seller or buyer may engage the services of a real estate licensee who will render a CMA giving the parties an idea of the value of the property they desire to sell or purchase. The CMA is based on sales that have occurred recently in proximity to the property. The CMA should not be confused with the real estate appraisal that must only be prepared by a person licensed w/ the OK Insurance Dept
Which of the following deeds are typically used to help clear a cloud on the title?
Quitclaim deed
Which of the following deeds would be less restrictive to the seller?
Quitclaim deed
Real Estate described as the NE 1/4 of the SW 1/4 of Section 4, Township 3 North, Range 2 East of the Cimarron Meridian would be which legal description?
Rectangular Survey
Name something that is NOT a violation of the 1968 Civil Rights Act?
Refusing to rent to a family with children
Which of the following is a right given to a homeowner whose home has been sold for taxes or sold in a foreclosure auction to buy the property back?
Right of redemption
Some of the characteristics of land are
Scarcity, improvements, area preference
OREC has all these powers of EXCEPT
Spend Revolving Fund Money only with Legislative approval
An Air Force Officer arrived at his new assignment and decided to build a new home. As a place to reside temporarily, the Officer rented a house for six (6) months. This type Leasehold Estate is called
Tenancy for Years
The decision as to what the highest and best use to which a particular property could be put is determined by which of the following?
That use which would produce the greatest amount of amenities or net income in future years
A broker has a listing contract on a vacant house. It has taken longer to sell than anticipated. The broker hires a lawn company to mow. Who owes the mower?
The Broker
Which choice must possess a valid license?
The Cooperating Sales Associate in a land deal exceeding $1 million
Any person who desires to perform licensed activities in OK but maintains a place of business outside OK may obtain OK non-resident license by complying with all applicable provisions of
The OREC Code and Rules
When is an offer to purchase property "accepted"?
The Seller accepts, and the signed contract is delivered to the Buyer
What is the Residential Property Condition disclaimer statement?
The Seller states the Seller has never occupied the property, has no knowledge of any defect concerning the property, and makes no disclosure
What action, if any, must a broker take if he or she is involved in a transaction but did not prepare the contract to purchase document?
The broker must still document that he or she has complied with the disclosure requirements
The buyer discovers, after closing, that the seller failed to disclose several problems existing with the property. The buyer demands the seller take back the property and refund the buyer's money. The seller refuses. What is the probable outcome?
The buyer may sue for damages but not rescission of the property purchase
What is the principal of conformity?
The max value of a parcel of real estate will be found when a lot has been developed in much the same way as the adjacent neighborhood
Under what condition can confidential info be released?
The party gives consent to the disclosure in writing
A licensee received a PSA license but failed to complete the 45 hour Basic II Post License course within the first year of having the PSA license. What is the consequence?
The provisional sales associate shall apply and qualify as an original applicant
A gated community has a restrictive covenant that dictates fences can be no taller than 5 feet. The city code states a max height of 6 feet. A homeowner in the community builds a 6-foot high fence. The Board of Director's sue. What is the Court's ruling?
The restrictive covenant takes precedence because it is more restrictive
What are riparian rights?
The right of ownership on non-navigable waterways is to its midpoint. The title is to the river bed at midstream. This right comes when a natural water way is abutting or crossing owners land
When a Seller makes a Counter-Offer, what is the "essence" of such an action?
The seller rejects the buyer's offer
What is a Residential Property Condition DISCLAIMER statement?
The seller states that the seller has never occupied the property, has no actual knowledge of any defect concerning the property, and makes no disclosure
What is a pin stake survey?
There are different types of surveys and the buyer's cost will depend on the type of survey selected by the buyer. Ex: a boundary (staked survey) is the physical location of boundary corners, and some details such as fence lines, platted easements, and other easements given to the surveyor.
A Buyer had a contingency in a purchase contract to sell the Buyer's house in 120 days. On day 121, the Seller informed the Buyer the Seller would keep the Earnest Money but sell the house to another Buyer. What did the original Buyer violate?
Time is of the Essence
What is the primary aim of a marketing program for a managed property?
To find and attract the right kind of tenants
What is the major purpose of the Oklahoma Real Estate Education and Recovery Fund?
To reimburse any person adjudged by a court to have suffered loss due to a licensee violating the Code and Rules
Tully owns a property on the Red River. During the last rains, the river flooded and the current transferred 20 cubic yards of soil from Parker's property to Tully's property. Who owns the 20 cubic yards of soil now?
Tully
A property abuts a non-navigable stream. What does the owner own?
Underlying land to the middle of the waterway
A realtor agrees by a "handshake" to sell the house of his former high school chemistry teacher. The realtor finds a buyer who submits a full-price offer with no provisions. The house sells, but the seller refuses to pay a commission to the realtor. What kind of a contract does the realtor have w/ the seller?
Unenforceable
A broker must notify the Oklahoma Real Estate Commission of their trust account(s). How many trust accounts is a broker allowed?
Unlimited
As far as its validity between grant and grantee is concerned, a deed that is not dated, acknowledged, or recorded is
VALID despite these omissions
A contract having no legal force or binding effect is said to be
VOID
The Listing Agent decided to "spice-up" the advertisement by stating, "Only $50 down and $500 a month get you a new Home!" Whats the problem?
Violates Regulation Z
Allison and Barbara signed a contract that was based on illegal consideration, this contract is
Void
Amy coerces Bill to enter into a contract with him. This contract is generally
Voidable by Bill
Mr. Week made a bonafide offer to buy property list with you. As the agent, you present the offer the next morning and leave the principal and leave your principal a signed copy of the acceptance. That afternoon you are shocked to learn that Mr. Week died the previous night. Based on this information, which statement would best describe this situation?
Week's death terminated the offer
When must a lender use form (H-25) Closing Disclosure?
When the loan is insured or guaranteed by a government agency
When must lender use form (H-25) Closing Disclosure?
When the loan is insured or guaranteed by federal agency
The seller makes a counteroffer. The buyer accepts and decides to use "snail" mail. When is a valid purchase contract created using the Post Office?
When the offeree puts the acceptance in the mail
Williams rents his neighbor's house to a prospect. The neighbor buys Williams a lobster dinner as promised
Williams comes under the statutory definition of a "real estate broker"
A realtor goes through the entire transaction with a Buyer w/o signing a contract to represent the buyer. Is this legal; and if so, what type of agency exists?
Yes Implied Agency
An industrious realtor advertised a house listed for $125,000 as, "Move-in for only 671.00/month." Did the realtor violate any restriction?
Yes. Regulation z
The MLS Property Details said. "As Is." The listing broker, who once owned the house, neglected to tell anyone about the old well that he had covered over 7 years earlier. The new owner dog fell through the rotted well cover and drown. Did the realtor do anything wrong according to the Code and Rules?
Yes. The agent is probably guilty of substantial misrepresentation
The owner of five parcels of real property desires a mortgage loan and offers all five parcels as security. The mortgage he will be required to execute generally is called
a blanket mortgage
Which of the following would NOT be a violation of the Federal Fair Housing laws?
a broker refusing to show a property to a potential buyer because of the buyers sexual preference
Discounts or "points" on mortgages are usually
a charge to increase the yield on money invested (if seller doesn't pay for them they may not be worth using by the time the buyer pays them off. Buyer must do the math)
What is the title insurance commitment and policy?
a comprehensive indemnity contract under which title insurance company warrants to make good a loss arising through defects in title to real estate or any liens or encumbrances thereon
What is a the closing date?
a date agreed upon by the parties to the contract to close the transaction
What is earnest money?
a deposit paid (usually in escrow) by a prospective buyer to show a good faith intention to complete the transaction, and ordinarily forfeited if the buyer defaults. Although earnest money has traditionally been a normal sum (such as nickel or dollar). It is not a mere token
What is a Wood Infestation Report?
a document issued which contains statements or certifications as to the presence or absence of damage. The report doesn't include a bid or proposal for treatment. The person completing report must be certified or licensed and is under jurisdiction if the OK Agricultural Dept. Each report must be in compliance w/ standards set by the Dept. The business responsible for the report must have a current license in structural pest control
What does executed mean?
a document that has been signed
The kind of estate that is the most freely inheritable and transferable is
a fee simple estate
In accordance with the statute of frauds
a five-year lease must be in writing to be enforceable
A real estate market may be described as
a free market, local market, market that is slow to react to change in supply and demand
What is a foundation?
a fund established for charitable, educational, religious, research, or other benevolent purpose and endowment
A master plan can be best described as
a fusion of land use laws and local land use objectives and strategies
A property manager renting apartments for an owner and can sign contracts for the owner is
a general agent
An instrument which transfers possession of property but does not transfer ownership is
a lease
The Real Estate Settlements and Procedures Act prohibits
a lender from paying a fee to a broker for referring a borrower to the lender
What is a conditional loan approval?
a letter whereby a financial institution advises that the applicant has made application for pre-approval of a loan amount and based on information ex: pay stubs, bank statements, credit report etc. The institution indicates that the applicant is pre-approved for a particular loan amount
An example of government lot is
a parcel of lan, along the shore of a lake or river usually containing less than 40 acres
A mortgage is
a pledge of security for the repayment of a debt
What is Owner's Title Policy (title insurance)?
a policy protecting the equity of the buyer against monetary loss resulting from unknown defects
A listing agreement without a date of termination is
a prohibited dealing
All of the following must possess a valid license except?
a real estate broker's employee who leases affordable housing
GRMs show
a relationship between sales price and MONTHLY gross rent
A buyer representative locates a suitable property through an owner broker. The buyer buys the property; the seller pays a commission and the two agents split the commission. In this instance, the owner broker is acting as
a single agent for the owner
How does the Brokerage Relationship Act define a firm?
a sole proprietor, corporation, association or partnership
A charge against an owner of real estate property to cover his proportionate share of street paving is
a special assesment
After much negotiation, Jones and Dudd agree that Jones will deliver a deed that assures good title through her time of ownership only. The deed agreed upon was
a special warranty deed
What is a section?
a subdivision of a public land survey township measuring one mile square (640 acres)
What is an abstract of title?
a summary of all recorded instruments pertaining to a property. Usually prepared for a mortgagee or purchaser of real property, summarizing the history of a piece of land, including all recorded conveyances, interests, liens, and encumbrances that affect title to the property
What is special assessment?
a tax levied for a unique special purpose
A woman devised her house to her daughter and son as tenants in common. The daughter married and had title to her share put in a joint tenancy with her new husband. Her brother is now
a tenant in common with a half interest in the property
What is a Good Faith Estimate (GFE)?
a three page form designed to encourage you to shop for a mortgage loan and settlement services so you can determine which mortgage is best for you. It shows the loans terms and settlement charges you will pay. It shows you which charges can change and which must remain the same. It may be provided by the broker or lender. Until you let the loan originator know you want to move forward. They can only charge you for cost of credit report
What is a deed?
a written instrument by which title to land is conveyed. At common law, any written instrument that is signed, sealed and delivered and that conveys some interest in real property. There are carious types of Deeds ex: general warranty, special warranty, quitclaim and others. Each is a unique and has different provisions
The clause in a mortgage which permits the mortgagee to declare the entire unpaid sum due upon a default is an
acceleration clause
It may be cause for suspension or revocation of license to
accept a gift from an unlicensed neighbor for selling their house
For a conveyance by deed between private parties to be valid, the deed must be
accepted by grantee
Agent to principal responsibilities
act in person, be loyal to the principal, obey instructions, account for money/property, not be negligent
A broker operates under express and implied authority. Both of these authorities are covered under
actual authority
Which of the following would be used to determine if an item of personal property has become a fixture and thus real property?
adaptation of the item to the premises, an agreement between the parties, the intention of the parties
The NAR Code of Ethics reflects the relations of the agent to the public- agent to fellow broker- and
agent to client
Title insurance protects the insured against loss from
all defects up to the present date which are not specifically excluded in the policy
A release clause in a mortgage
allows portions of the property given as security to be released from the mortgage lien upon performance of specified acts
When seller Sandy hires broker Bob to sell her home their listing contract gives Bob an exclusive Right-to-Sell two weeks later, Sandy sells the home to her friend, Frank. What is true?
although Sandy has sold the house, Bob will receive his commission
A house increases in value because of proximity to employment, schools, shopping, etc. These neighborhood sites are referred to as
amenities
Which statement best describes the definition of a trust account?
an account for depositing client funds
What is a trust account?
an account held by a real estate broker to deposit items (monies or other valuables of others) held in regard to the real estate transaction
A declaration, made by a person before a notary, that he freely and voluntarily executed the instrument is
an acknowledgment
A clause making the entire balance of a loan due if property is sold and/or title is transferred is
an alienation clause or due on sale clause
Under the Federal Truth-in-Lending Law, the cost of credit for loans or purchases on time is expressed as
an annual percentage
An adverse interest affecting title is known as
an encumbrance
Robert E Hart conveyed title to the City of Marietta w/ the provision that if the property so conveyed was ever used for any purpose other than a city park, title would revert back to Hart or his heirs. The estate held by the City of Marietta would be described as
an estate on condition subsequent
A tenancy at will
an estate which allows the tenant or landlord to terminate the agreement at any time
When an offer is presented, real estate licensees are required to provide the seller and buyer
an estimate of the amount of the closing costs
You enter into a listing contract which provides that no matter who sells the property you get a commission. This type of listing is
an exclusive right-to-sell listing
There are different employment relationships which exist in our economy. A person who is only responsible to his employer for the results of his work is
an independent contractor
An Oklahoma broker may operate under
an oral and written agreement
According to the guidelines outlined in the Truth in Lending Act (Reg Z) it is required that the interest charged in a loan be expressed as an
annual percentage rate
The revolving fund shall be audited by the State Auditor and Inspector
annually
Describe termites
any numerous pale-colored, soft-bodied insects that live in colonies consisting of winged or wingless forms that feed on wood, and are very destructive to wooden structures and trees
The applicant for a real estate examination shall
appear in person
In order to enjoy some of the benefits of incorporation, yet retain the partnership form of ownership, it is possible to form a "limited partnership." This can be achieved only by filing a formal certificate. Limited partners
are not responsible for firm debts beyond their individual investment
What is are multiple listing arrangements?
arrangements among brokers in which they agree to share listings and split commissions on cooperated sales
The appraiser's statement of market value is considered accurate
as of the date of the appraisal only
What must an associate include in all advertising?
associate's Broker's name
What defines the minimal physical characteristics and construction of each OREC sanctioned real estate office?
at least one enclosed room of stationary construction
A new Realtor received the Provisional Sales Associate License on June 25, 2012. When does the License expire?
at midnight on 5/31/2021
What is certified?
authenticated or verified in writing; attested as being true or as meeting certain criteria
When Mother Nature tears away a portion of land from a farm, it is called
avulsion
When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called
balloon payment
A person is not required to hold a real estate license to
be a resident manager for the owner of a multi-family apartment building
Before a broker is entitled to claim or sue for a commission on the sale of real property he must meet which of the following requirements?
be licensed as a broker prior to offering to sell; be employed by seller by a valid listing agreement
A person who assumes an existing mortgage
becomes a co-guarantor along with the original main mortgagor
By when must the Residential Property Condition Disclosure Statement be delivered to the Purchaser?
before the seller accepts an offer to purchase
Describe an FHA loan
borrower is charged a mortgage insurance premium; lender is insured against loss; maximum mortgage debt is determined by a formula; maximum interest rate is set by HUD
An executed contract, in contrast to an executory is one where
both parties have completely performed; executed- done; executory- process of
"Time of the essence" means
both parties must perform within specified time or be guilty of breach
When brokers and associates have disagreements over fees, they have the right to
bring action in court
Functions of a Property Manager include
budgeting and controlling expenses; collecting rents; maintaining the premises; preparing periodic reports for the owner
Which of the following will a zoning ordinance not regulate?
building codes and construction standards
The usual procedure is to deposit an earnest money check
by the end of the 3rd banking day after acceptance of a contract
The expression that the purchasers must examine the property and search the public records to determine the interest of the person is
caveat emptor
A broker shall maintain a bookkeeping system i.e., canceled checks, check book, deposit receipts, general accounts ledger, etc. which will accurately and
clearly disclose full compliance with the law relating to the maintaining of trust accounts
Zane is the broker who has a listing on a property for Ben. The property is listed for $310,000. Zane finds a potential buyer who submits an offer to Ben for the full listing price, with an additional stipulation that ben replaces the carpet in the property. Ben refuses, Zane can
collect no commission
An appraiser using the market data approach would compare the subject property with
comparable properties in the same neighborhood
What are examples of termination of contracts by the acts of the parties?
completion of the contract, revocation by the principal, mutual consent
In which of the following circumstances would a contract be terminated by act of the parties?
completion of the objective
In which of the following circumstances would a contract be terminated by acts of the parties?
completion of the objective
What are littoral rights?
concern properties which border large navigable lakes, oceans, or seas. owners have the same non-exclusive rights to use adjacent waters as riparian owners but it does not extend to the middle of the water way. ownership stops at high tide or water mark
The factor which generally exerts the greatest influence on mortgage interest rates is the
condition of the money market
A person bought an apartment in a large building and received a deed conveying a fee simple title, plus a fractional share of common elements, and a tax bill on the apartment. This type of living unit is a
condominium
The OREC shall
conduct an annual performance review of the Executive Director and submit it to the legislature
A mortgage that is not insured or guaranteed by a division of the federal government is a
conventional mortgage
Amy asked you to appraise their property. This property had no monthly income and had no comparables in the market. You would most likely use the
cost approach
What are the Title Examination Standards of the OK Bar Association?
criteria by which a real estate title can be evaluated to determine whether it is defective or marketable. Many states, through associating or conveyancers and real estate attorneys have adopted title standards
In the appraisal of real estate, the market approach to value is the method based on
data related to sales of comparable properties
What are four reasons that would permit a seller to cancel a listing agreement
death of a broker; destruction of the house by fire; lack of diligence by a broker in trying to procure a purchaser; the refusal of a broker to reduce the list price of a house
What is a reason that would permit an owner to cancel a brokerage relationship?
death of the broker or the destruction of the property, refusal of the broker to reduce the listed price, lack of diligence by the broker in procuring a buyer
Circumstances a contract be terminated by act of the parties do NOT include
death, destruction of property, or bankruptcy by either party
All of the following are illegal activities involving fair housing except
declaring an apartment complex only for 62 y/o or over
What transfers real property?
deed
Restrictions placed on property by subdivides that limit a landowners ability to exercise absolute control over the condition and use of his real property are known as
deed restrictions
Title insurance with extended coverage generally covers
defects that are not in the public record
One investment advantage of owning a principal residence is that the owner may be able to
defer capital gain tax
Albert bought a piece of property from Brian. The title to the property was transferred when the deed was
delivered and accepted
What is the delivery of deed?
delivery and acceptance is required; a deed should be recorded at the county clerks office
The characteristics required for a property to have value include
demand, scarcity, transferability
In order for a property to have value it must have all of the following characteristics except
depreciation
A mortgagee may include in a mortgage items which, when they occur, are considered a default by the mortgagor and grounds for a foreclosure action. Such items include all of the following except
detrimental zoning by a city or county
When someone dies intestate they have
died without leaving a will (written will)
The primary purpose of the Truth in Lending Act part of TRID is to
disclose to the consumer the cost and conditions of the installment purchase
A title examination
does NOT guarantee good title to property and does NOT locate all possible clouds on the title
The OREC maintains a standing committee to
draft and revise residential real estate purchase contracts
Responsibilities of principals to agents are
duty to perform, reimburse expenses, indemnify for loss, compensate for services, respondent superior
Which of the following types of funds is illegal to keep in a broker's trust account?
earned commissions
What can be kept in a trust account?
earnest money deposits, rents of property you are managing for others, security deposits on property you are managing
An airport routing was changed, with the result that airplanes flew over a residential area. The subsequent loss in value caused by the airplane noise would be best described as
economic obsolescence
Four general groups of forces that affect the value of a given property are
economic, social, physical, and political
The State Dept of highways has made you an offer to purchase a strip across your farm for the purpose of building a new highway. You do not like their offer. The State may acquire your property by exercising its right of
eminent domain
The government may take private property provided it pays a just compensation for the property and the property must be for public use. What gives the government this right?
eminent domain
Farmer Brown puts up a fence between his and the property of Farmer Jones. Jones discovers that the fence is 2ft on his side of the property line. This is called
encroachment
Any interest in or right to land by third person adversely affecting the value of the property is an
encumbrance
Anything that adversely affects or limits the fee simple title to or the value of a property is an
encumbrance
A claim, lien, charge or liability attached to and binding upon real property such as a judgement, mortgage, mechanic's lien, lien for unpaid taxes or right of way is an
encumbrance and an easement
Any interest in, or right to, land by third persons, adversely affecting the value of the property is an
encumburance
An amortized loan allows for
equal monthly payments over the entire term of the loan
The function of a board of equalization is to
equalize millage rates
You buy a property on a land contract. Until you get it paid for you have a
equitable estate
During the executory period of a sale contract, the buyer enjoys which of the following interests?
equitable title
Once an agreement of sale is signed, the purchaser has
equitable title
Susan made an offer on Mary's property. Mary accepted Susan's offer. At this point, before closing, Susan has
equitable title
Once a contract for sale has been signed, the purchasers have
equitable title to the real estate
When the title to real estate is vested in one person or entity (such as a corporation), that person or organization is said to own an
estate in severalty
Capitalization is the process by which the estimated future annual net income is used as the basis to
estimate value
Under a special agency agreement, a broker is not authorized to
execute a contract for sale agreement
A broker receives a bonafide offer to buy property. The purchase agreement is signed by both parties, but the title has not yet passed. The status of this contract is
executory
Which of the following is not property included in the concept of the power of eminent domain?
exercise of zoning authority, includes: right of gov to take property from owner, just compensation at fair market value, condemnation proceeding
Multiple listing services are benefited because they
expose properties to the prospects of many participating brokers
The two (2) types of actual authority in the common law of agency are
expressed and implied
Albert and Brenda enter into a verbal contract, this is an
expressed contract
The most common kind of landlord default is
failure to maintain the property and provide services
The most complete estate is
fee simple absolute
Real estate occupied as a home by an owner who enjoys special rights and privileges is a
fee simple estate
The largest estate one can hold in land is a
fee simple estate
All of the following closing expenses are allowed under the Real Estate Procedures act, except
fees paid by an escrow company to a sales associate for referring business
The usual listing contract authorizes a broker to
find a purchaser and accept a deposit with an offer to purchase
A provisional sales associate must successfully complete 45-hour post license course during
first year of licensure
Before communication to the prospective purchaser of the sellers acceptance of an offer, the prospective purchaser may withdraw the offer at any time
for any reason (bc theres no acceptance)
The Alldoral System refers to individual ownership of land classified as
freehold or leasehold
A house loses value because it no longer appeals to changing tastes. This is called
functional obsolescence
Depreciation resulting from outmoded design such as tall ceilings that make a home expensive to heat is classified as
functional obsolescense
Agents have a wide authority to conduct a series of transactions of continuous nature on behalf of their clients are
general agents (general agents think property managers)
What does devise mean?
gift of real property by will or to plan bu careful thought
Mary, Susan, and Fred buy a property as tenants in common Fred dies. His share
goes to his heirs or others according to his will
If the seller back out of a transaction the earnest money deposit
goes to the buyer (buyer backed out the money goes to seller)
Which of the following must sign the deed?
grantor
What are the main things necessary for a valid deed?
grantors signature, delivery and acceptance, designation of grantee
The Veterans Administration assists numerous qualified mortgage loan applicants because it
guarantees loans made by approved lenders
An agent fails to discover crumbling tiles on the basement ceiling beneath a bathroom. The agent sells the property, and the buyer later sues the agent for not discovering and disclosing a clearly visible and obvious problem. In this case, the agent
has an exposure to negligent misrepresentation
Between contract time and delivery of a deed, the purchaser
has equitable title in the real estate involved
If the applicant fails to pass the appropriate examination, the OREC
has no waiting period before taking the test again
Each branch office shall
have a separate managing broker
A good way to determine if violations or encroachments exist is to
have a survey performed
A sales associate should always obtain an earnest money deposit with a purchase offer in order to
have evidence of the offeror's good faith
For a contract to be enforceable it should
have legal objective
The primary function of agency is to
have someone do for another what that person can legally do for himself
When a purchaser of real estate assumes the seller's existing loan
he becomes responsible for the repayment of the debt (along with the original borrower)
If a property is held by 2 or more owners as tenants in common, upon death of the owner, ownership of the deceased would pass to the
heirs or whoever is designated under the deceased owners will
Skimpy took a real estate class and learned about adverse possession. He decided that he would apply his knowledge to acquire a parcel of vacant land near his home. If he is successful, his possession over the statutory period of time must be
hostile, continuous, open and notorious
What is not a major acceptable means of describing property?
house number
When you offer your property or house for security for a loan without giving up possession of it is called
hypothecation
Any advertisement for a specific parcel of real property by a licensee must
identify the advertiser as a licensed broker or sales associate
Harry hands Charlie a deed with the intent to pass title and asks Charlie not to record the deed until Harry dies. when is the deed valid?
immediately
A real estate sales associate receiving a deposit on any transaction in which the associate is engage on behalf of a broker shall
immediately turn over the deposit to the broker
A real estate licensee should generally reveal license status
in any real estate transactions
The homeowners used their house as collateral for a loan. Thus created a lien
in favor of the mortgagee (mortgagee-lender, mortgagor- borrower)
What is closing?
in real estate, the final transaction between the buyer and seller, whereby the conveying documents are concluded and the money and property are transferred
Sandy Jacobs and Eva Cole bought a store building and took title as joint tenants. Cole died testate. Jacobs now owns the store
in severalty
What are considered fences?
includes chain link, stockade, metal, electrical, includes sub-surface electric and components
The practice of charging points in connection with mortgage loans is because of the lenders desire to
increase the effective yield, close the gap between market rate and fixed rates, obtain the market yield
The availability of real property loans may be affected importantly by which of the following actions of the Federal Reserve Board?
increase the reserve requirements of member banks of the Fed Reserve Bank; sell US gov securities in the open market; increase the discount rate charged members banks of the Fed Reserve bank system
A major employer relocates, leaving many homes in an area vacant and unmaintained. This is an example of
incurable economic obsolescence
Both the abstract and opinion method of assuring title and title insurance
inform or protect the buyer against defects of record
The Federal Reserve System does NOT
insure savings and loan association accounts
An FHA mortgage is
insured by FHA
If you die without a written will, you die
intestate
Under the Federal Fair Housing Law, HUD may
investigate when it appears discrimination may have occurred; investigate incidents reported to them
If an area containing a service station were changed to residential zoning, the service station
is a non-conforming use
In a property management agreement where you represent the landlord, the tenant
is a party to whom all party duties are owed
A government lot
is irregular-sized parcel of land, usually containing less than 40 acres
Any agreement between two or more brokers in competition with one another to fix, control, regulate, increase, decrease or stabilize fees, rates, commissions or other prices
is price fixing, illegal, and cannot be defended on any grounds
A broker and sales person agree to a 40-60 commission split. This commission rate
is probably a reflection of a competitive market conditions
If a seller makes any changes in an offer from a buyer prior to acceptance, the buyer
is relieved of the original offer
Lindsay is a licensed real estate broker and is purchasing a piece of real property, Lindsay
is required to write her license number on all purchase contracts and disclose in writing that she is licensed
It is not essential for a valid deed that
it be dated and acknowledged
Which of the following is true concerning a metes and bounds description
it begins and ends at the point of beginning
What is accertion?
it is the gradual and imperceptible addition of land by alluvial deposits of soil through natural causes. This added land becomes the property of the riparian or littoral owner
Four widowers decided to buy a home and live together. They took the title in equal shares but agreed that as each of them died, his share would pass to the remainder of the group until only one was left who would then own the entire property. The men took title to the home as
joint tenants
In general, a broker who receives earnest money deposits is required to do the following except
keep operating funds in a trust account
When real estate is sold under an installment land contract (contract for deed) possession is usually given to the buyer. Title is
kept by the seller until the full purchase price is paid
The definitions of real property includes all of the following
land and improvements, mineral rights, buildings attached to the land
A parcel of Real Property includes
land and improvements; mineral rights, trees, houses, and specific tanks; airspace, surface and ground beneath the surface
Estates owned by those who rent or lease property from others are
leasehold estates
The provisions requiring a person to be licensed as a real estate broker or sales associate shall apply to any person who for compensation
leases, offers to lease, rents or offers to rent real estate & solicits prospective purchasers of real property
A Contract for Deed does not give the purchaser
legal title to the property
Name 4 compliances that RESPA require
lenders must give copy of a special information booklet to each loan applicant; lender must provide the borrower with a good faith estimate of settlement cost; paying a kickback is prohibited; loan closing must be prepared on a uniform settlement statement
Unintentional misrepresentation is generally considered
less serious than intentional fraud but still a violation to be punished
All of the following advertising statements are unacceptable under Truth-in-Lending, except
liberal terms available
A special warranty deed is a conveyance instrument which
limits any warranties made to those defects which arose during the time the grantor owned the property being conveyed
Public notice that an action at law is pending that may affect the title to specific land or other property is known as
lis pendens
The practice of redlining refers to
loans
Earl who is a real estate broker must
maintain records for a minimum of five years
The purpose of regulation z
make loan cost info available to consumer borrowers
The fiduciary responsibility places many serious obligations upon the agent when dealing with third parties. Name 3 things that need to be avoided by the salesperson
making fraudulent and misleading statements; failing to fully disclose all known hidden defects; using the buyers trust to unfairly facilitate the sale
A real estate licensee in another state
may apply for an Oklahoma nonresident license
What is an exclusive right to sell?
means that a commission would be owed to the listing brokerage when the property is sold to a buyer regardless who brings the buyer
What is square footage?
measurements of a dwelling can vary from a few ft to several hundred ft regardless of the source. Buyer shall satisfy that the size and/or SF of the dwelling is acceptable to the buyer. If a real estate licensee discloses SF info as allowed in Title 59 OK Statutes, Sec 858-515.1, the licensee is required to disclose the source of the info
Real property described by beginning at a certain point and measuring and indicating the direction and length of the boundaries of the property until the point of the beginning again is reach is called
metes and bounds
When the broker commingle funds they
mix the funds of clients with personal or operating funds
Commingling is the practice of
mixing deposits from multiple transactions into a single account
What are reasons for valid consideration for the creation of a contract?
money to be paid, promise to do or not do a certain thing, services to be performed (NOT services that have already been performed)
A legal description of property using physical feature is called a description by
monuments
What is an open listing?
more than one broker has an employment contract`
A lender wanting insurance coverage on property on which it was making a loan would ask for a
mortgagee's policy
An arrangement in which brokers pool their listings and commissions are divided between the listing broker and the selling broker is
multiple listing
Confirmation of brokerage services agreement terms
must be provided in a separate provision or document that is either incorporated into or attached to the contract to purchase, lease, option, or exchange real estate
Earl is a real estate broker and his license expires next month, Earl
must complete 21 hours of continuing education
A branch office manager
must have a broker license
The brokerage relationship will last until its purpose has been fulfilled or it is otherwise terminated. What are some reasons the relationship would be terminated?
mutual consent, death of the principal, revocation by the broker
In the transfer of title, the required elements of a deed include
names of the parties, grantor and grantee
If a minority prospect asks not to be shown homes located in a white neighborhood, a licensee
need not service the prospect at all
A property owner wants to put $240,000 in the bank after selling a property and accounting for all expenses. A broker finds a buyer and sells the property for $280,000. Closing costs come to $10,000, not including the broker's commission. According to agreement, the remainder of the amount over $240,000 goes to the broker
net listing
A seller lists property for sale with a broker. In the listing contract which is legal in OK, it is stipulated the seller will receive $162K net, with all the proceeds above that going to the broker. This type of listing would be called a
net listing
In an appraisal of residential property the cost approach is most appropriate in the case of
new property
Broker Smith had an exclusive brokerage listing agreement with Mr. Mover. Prior to the expiration date, the owner sold the home to old friends and refused to pay Broker Smith a commission. Mr. Mover is obligated to pay Broker Smith
no commission
A quitclaim deed has
no expressed or implied warranty and guarantees nothing
In your 1st 3 months you are quite successful as a listing agent but you decide that you would like to transfer to another brokerage firm. Once you are licensed w/ new broker. You ask old broker to transfer those listings you personally obtained while in his office. He states that you have no right to take them w/ you. What rights do you have to those listings?
none, as a result of your transfer your forfeit all rights to the listings
A Buyer inquires to the Listing Broker (who reps the seller) why the seller is selling and what is the lowest price the seller would accept. The listing broker should
not answer the questions as loyalty to the seller
Jackson Tire company has a manufacturing plant located in an area that recently has been zoned residential. The company is allowed to operate under the new zoning ordinance. If the plant is destroyed by fire or torn down, Mr. Jackson may
not construct another tire plant in the neighborhood without first applying for a zoning variance
During the listing appointment the seller told the broker that he was Catholic and would not sell the property to anyone who was not a catholic. The broker should
not take the listing
A who is a broker has an interest bearing trust account. A having this interest bearing trust account has
not violated the law because A has disclosed in writing to all parties that the trust account bears interest and who receives the interest
Arnold is a resident manager for a local apartment complex and is responsible for negotiating leases for the apartment complex. Arnold is
not violating the law because Arnold is exmept
A licensee imbibed too liberally at the brokerage party; on the way home, she crashed and killed someone and pled no contest. What's next?
notify OREC within 30 days after the plea and notify OREC within 30 days of sentencing
Rental income is based upon
number of paying tenants. (income received)
In order to create a homestead right in Oklahoma, the claimant must
occupy the property
The right of an owner to use property without interference is guaranteed by the covenant
of quiet enjoyment
What advertising practice is allowed by law in Oklahoma?
offering a free home warranty plan as a premium for listing with a firm
The OREC may conduct investigation of license activity
on its own motion, as a result of a complaint, as a result of a complaint from a licensee
Albert has his real estate license revoked by the Oklahoma Real Estate Commission. How many days does Albert have to turn in his pocket card?
on or before the date the suspension/revocation becomes effective
What is an offeror?
on that makes an offer
What are counterparts?
one of two or more copies or duplicates of legal instrument that may be executed by a party, each of which may be considered an original.
What are range lines?
one of two parallel lines running north and south that define the east and west borders of a township
What is title insurance?
one time premium paid at closing and protects the insured against loss from all defects up to policy's effective date which are not specifically excluded in the policy
The term realtor refers to
only brokers and associates who are members of the National Association of Realtors
A couple wants to sell their house. They want a broker to show the property, but they would like property, but they would like to be able to sell the house themselves w/o paying a brokers commission. What form of listing would allow them to use the services of several brokers and not pay commission if they sell themselves?
open listing
A landlord agrees to pay a broker for procuring tenant unless someone else finds the tenant first. This is an example of a(n)
open listing
A person who has secured the right to purchase a property at a fixed price for a designated period of time and has paid a consideration for this privilege would own an
option
The Buyer pays the Seller $5000 to purchase within 120 days an apartment building containing 18 units. This action is an
option
The concept of the right to buy without the obligation to do so is expressed in an
option
In the law of agency the agents express authority may be given to him by the principal
orally, in writing, by the principals conduct
The agent's express authority may be given to him/her by the principal
orally, in writing, the principals conduct
Ten businessmen buy a resort property as joint tenants, not as tenants in common. As the years pass, one after the other dies. The last man standing now
owns the resort in severalty
Under the Oklahoma Brokerage Relationship Act, a person who is a seller, buyer, landlord, or tenant or a person who is involved in an option or exchange is called a
party
When a person dis testate, the real property
passes by devise
Tom is a real estate broker and has recently changed his business address. Tom has notified the Commission in the proper time frame and now must
pay $40 for each license to be changed
There are certain things which can consistently be said about property. One of these is that property is always
personal if it is not real
Bill and Ester Martin are building a new enclosed front porch to their home. The lumber dealer with whom they are contracting has just unloaded a truckload of lumber in front of their house that will be used to build the porch. At this point, the lumber is considered to be
personal property
Chattel refers to
personal property
Property of temporary or moveable nature is
personal property
Forces which influence value resulting from government regulations such as zoning, building codes, and government loans are known as
political forces
To shift some of the risk inherent in recommending vendors to consumers, a licensee is advised to
present a broad range of choices and allow the consumer to make the selection
The nature and import of the agency relationship should be disclosed to the client
prior to completing a listing agreement
What are utility districts?
private utility companies that provide service to local residents wherein no public service is available
The making of a listing contract without a date of termination is a
prohibited dealing
The written instrument known as the "debt instrument" that usually accompanies the mortgage is the
promissory note
What are ad valorem taxes?
property taxes. taxes that are levied annually according to the value of property.
In order to be protected against the claims of others for property purchased what are conditions that need to exist?
purchaser must be innocent of any knowledge to prior claims; purchaser must pay a reasonable price; purchaser must win the race to the courthouse
The money for making Federal Housing Administration loans is provided by
qualified lending institutions
The process of determining the desire, ability and need of a prospective property is called
qualifying the buyer
Determining the needs and abilities of the prospective purchaser with a suitable property is known as
qualifying the prospect
The right of an owner to use a property without interference is guaranteed by the covenant of
quiet enjoyment
The Civil Rights Act of 1866 prohibits discrimination on the basis of
race
Which of the following is a six-mile strip running parallel to the meridian?
range
What are some requirements of as qualification for a licensed sales associate?
reached the age of 18, a minimum pre-license education requirement, a passing score on the state licensing examination
A mechanics lien claim arises when a general contractor has performed work or provided material to improve a parcel of real estate on the order of the owner and the work has not been paid for such contractor has a right to
record a mechanics lien and file a court suit within the time required by the state law
What is the main thing NOT necessary for a valid deed?
recording
Wilfried J Bannister has just made the final payment on his mortgage loan to the Bank of America. Regardless of this fact, the savings and loan association will still hold a lien on Bannister's mortgaged property unity which of the following is recorded?
recording of satisfaction or release of the mortgage
A discriminatory lending practice in which lenders refuse to make loans in certain areas is known as
redlining
Albert who is a broker went to get a listing on a piece of property Bill was wanting to sell. Bill indicated to Albert that he did not want his house sold to an Hispanic. Which of the following should Albert do?
refuse to list the property
Under the 1968 Fair Housing Act, if such acts are based on race, color, religion, sex, or national origin, it is illegal to
refuse to sell, rent, negotiate or deal with any person; differentiate terms or conditions for buying or renting houses
A real estate broker as an agent for the seller should
render faithful service to the seller and handle the sale of the property just as if it were his/her own
The OREC may discipline real estate licensees by
reprimand or probation for a specified period of time, require additional education, suspending or revoking real estate licensees
If you were to calculate the cost of rebuilding structure using exactly the same material used in the original construction you would determine the cost of
reproduction
The Statute of Frauds
requires real estate contracts to be in writing to be enforceable
Should a seller of real estate refuse to deliver a deed according to the terms of the contract of sale, the buyer may
rescind the contract, sue for specific performance
What are appurtenances?
rights, privileges and improvements that belong to and pass with the transfer of real property.
According to the OREC Rules, the primary purpose of the OREC is to
safeguard the public interest, provide quality service by assisting and providing resources, investigating and sanctioning licensed activites
Sources of funds for mortgages would include
savings and loan associations, pensions funds and credit unions, commercial banks and private parties
The covenant in a deed stating that the grantor has full possession of the premises in fee simple, or any other estate he chooses to convey, is called the covenant of
seizin
An important function of the secondary mortgage market is to
sell mortgage-backed securities in order to buy pools of loans
If the buyer fails to consummate a real estate transaction, forfeiture of the earnest money is at the option of the
seller
In the absence of a contractural provision to the contrary, and if a house under contract for sale is destroyed by fire, in OK, the loss falls upon the
seller
Who are the parties to a listing agreement?
seller and broker.
The 1988 Amendments to the Civil Rights Act of 1968 adds all of the following to the protected classifications except
sexual preference
Stewart is working with a broker and is in the process of making an offer on a home located in Tulsa, Oklahoma. Stewart asks his broker if anyone has ever been murdered in the house he wants to purchase. Stewarts broker
should follow the steps as described in the OREC rules concerning requirements for furnishing psychological factors
Occupation of real property may evolve into legal title by adverse possession, but the adverse possessor must, in all cases
show in a manner of possession that is it is hostile to the owner's title
Which of the following is NOT required as a qualification for a licensed sales associate?
some credible work experience, preferably in the real estate field
When a realtor and a seller sign a listing contract, the broker becomes
special agent
The real estate broker who is authorized to conduct a single transaction for his principal is usually classed as a
special agent; one who has limited authority granted to him or her through principal
Real estate brokers authorized to conduct a single transaction for their principals are usually classed as
special agents
"X" and "Y" enter into a contract whereby "X" agrees to sell his house to "Y". "X" thereafter changes his mind. "Y" then sues to force "X" to go through with the contract. This is known as a suit for
specific performance
The illegal practice of sending potential home buyers or renters to equivalent properties in particular areas in order to maintain the homogeneity of an area is called
steering
When a prospective buyer who is a member of a racial minority is shown homes only in neighborhoods inhabited primarily by that minority, the broker may be guilty of
steering
A lessee generally may
sublet only if the lease permits it
Which of the following statements would not be cause for censure of a real estate license?
submitting offers to the seller prior to acceptance of any offer
The recommended use by a broker or sales associate of a fictitious or false contract for the purpose of inducing a lender or government agency to loan or insure any sum of money shall be construed as
substantial misrepresentation (fraud)
Listing contracts may be terminated by the Acts of the parties. What is an example that is NOT an act of party?
supervening illegality (court ordered so not acts of parties)
A kind of insurance that provides coverage for losses resulting from the criminal acts of an employee is
surety bond
A kind of insurance that provides coverage losses resulting from the criminal acts of an employee is
surety bond
Typically before a mortgage company will finance a home they will want to make sure there are no encroachments on the property they are financing. To check for any encroachments the mortgage company should order a
survey
The OREC shall have the powers and duties of
suspending real estate licensees and approvals for a specified period of time
Which of the following items could serve as a lien by the landlord against a tenant who has refused to pay rent?
television
You are renting apartments for your principal/owner. You are showing an apartment to a couple. You are about to inform the couple that they must have the apartment to a couple. You are about to inform the couple that they may have the apartment when you get a call from the owner. He asks about the race of the prospective tenants. What is your best respons?
tell him you can not answer that question
You list a property for $120,000. After several weeks, the seller asks you to drop the price to $105,000 to possibly encourage a quick sale. You do a new CMA and discover the property is probably worth $115,000. Your best course of action is to
tell the seller the property is probably worth $115K
A tenants lease has expired. The tenant has neither vacated nor negotiated a renewal lease, and the landlord has declared that does not want the tenant to remain in the building. This tenancy is called
tenancy at sufferance
The lowest form of estate is a
tenancy at sufferance
The tenancy which makes no provision for survivorship is
tenancy in common
If a building you have listed burns down this would result in
termination of the listing contract by operation of law
The Oklahoma Broker Relationships Act provides that confidential info may not be disclosed without consent of the appropriate party. Confidential info includes
that a party is willing to pay more or accept less than what is being offered
Fiduciary duties require
that the agent always acts in the best interest of the principal. 5 things- Performance, Loyalty, Obedience, Duty of Account (kept on file 5 yrs), Care and Skill
Land in Oklahoma, under the governmental survey, is described by
the Cimarron Meridian and the Indian Meridian
OREC commissioners are appointed by the
the Governor with advice and consent of the Senate
A principal instructs an agent to inform any minority buyer that the property was just put under contract an hour ago and is no longer available. The agent refuses to comply. In this case,
the agent has not violated fiduciary duty
When the agent is working for an undisclosed principal
the agent is liable for the contract with a third party
Albert has a mortgage on his home. The clause in Albert's mortgage which calls the entire balance of his mortgage immediately due if his home is sold is called
the alienation clause
A strength of the sales comparison approach to value is that
the approach is based on the principle of substitution
When financing a real estate transaction, the prudent lender usually seeks assurance that
the borrowers credit is satisfactory and he has adequate ability to repay the loan; the market value of the real property is used as security for the loan is, more then the amount borrowed; title to the real property used as security for the loan is good
A broker has a listing contract on a vacant house. The broker hires a lawn company to mow and trim. Who owes the mower?
the broker
When a licensed sales associate is working for a broker as an employee. What is NOT a characteristic of an employee?
the broker may not require sales associates to attend sales meetings
A sales associate received a deposit together with a written offer to purchase and delivered both to the employing broker. The seller signed and accepted the offer. Without consent of, and through no fault of the sales associate the buyer and seller got together, cancelled the agreement, and the seller instructed the sale's associate's employing broker to return the deposit. What is true?
the broker may sue the seller, but must return the deposit
The primary jeopardy of overpricing a property is that
the client's expectations may not be achieved
In the market data approach to appraising. When a comparable property is inferior to the subject property?
the comparable property is adjusted properly
A valid contract must have legality of objective give an example of legality of objective
the contract must not be for an illegal purpose or against public policy
A,B, and C are joint tenants, each enjoying a one-third share of their jointly owned property. C dies suddenly. In her will, she specified that her husband (D), who is not a member of the tenancy, should inherit her share of the property. A & B meanwhile, protest that the deceased tenants' share is rightfully theirs, to be split equally between them. What is true?
the court will rule in A & B's favor; A & B are now co-equal joint tenants, with one-half tenants shares; Husband (D) acquires no interest in the tenancy as a result of his wife's will
What date is customarily used for adjusting expenses such as insurance premiums, taxes, and mortgage interest on a closing statement?
the date of closing
What is the time reference date?
the date on which a contact or other instrument becomes enforceable or otherwise takes effect, which sometimes differs from the date on which it was signed
What is the expiration of offer?
the date on which an offer or the like cease to exist
In title theory states
the deed is in escrow
Requirements for transfer of deed (valid)
the deed must: describe the real property, name the party transferring the property (grantor), name the party receiving the property (grantee), be signed and notarized by grantor, must be delivered and accepted, must be delivered and accepted to complete conveyance (transfer), deed needs to be recorded
What is a real estate listing?
the employment of a broker by an owner to sell or lease
What is NOT a true statement regarding condominium ownership?
the entire condominium regime is responsible for any tax default
The closing statement may be defined as
the final accounting of funds to all parties
Truth-in-Lending statutes require disclosure of
the finance charge as an annual percentage; the number, amount, and due date of all payments; the method of computing unearned finance charges
Exceeding the limits of the authority granted is a major risk in
the fulfilling of listing agreements
What is the Oklahoma Broker Relationship Act?
the general law in OK which governs the relationship between the sellers and the broker to market the sellers property
Under a general warranty deed, what is true?
the grantor guarantees to defend the title
What is a Fee Simple Estate/Fee Simple Absolute?
the greatest and most complete ownership of land
If a property is held by two or more owners as tenants in common, one owner's interest would pass upon his or her death to which of the following?
the heirs or whoever is designated in the decedents will as the devisee
What is market value?
the highest estimated price that a buyer would pay and a seller would accept for an item in an open, competitive market
Who is an Escrow holder?
the holder of a document, property, or deposit. A third party depository of an escrow
The acceleration clause in a note is
the holder's right to call all the balance due in event of default
The granting of an option to purchase a farm does not require
the holding of a real estate license
Which of the following statements is true regarding the residential property disclosure statement?
the information is a declaration of the seller
If an offeree makes any alteration in an offer before accepting it
the initial offer has been turned down and a counteroffer is being made
Discount Rates
the interest rate that banks pay to the Fed to borrow from it
A couple enters into an open listing agreement with Snaildust Realty. Later the sellers find a buyer themselves and notify the broker. Which would be true?
the listing agreement is terminated
What is avulsion?
the loss of land when a sudden or violent action of nature results in its washing away
What is equity?
the money value of a property in excess of claims or liens against the property
Oklahoma is a lien theory state. This means that
the mortgagor holds the deed
You notice the house next door to your new listing seems to have a part of its roof extending on your listing's property. The seller of the house you have listed has never noticed the encroachment and it appears to have been there for the las several decades. What describes this situation?
the neighbor may have the right to obtain prescriptive rights to allow the encroachment to remain
Adverse possession ("squatter rights") is
the occupation of land to which another person has a title with the intention of possessing it as one's own. The individual must occupy the property for 15 years. Landowner has 2 years to challenge.
The offeror died four hours after the seller accepted the offer to purchase. What statement is true with respect to the status of the negotiations?
the offer was revoked by operation of law on the offeror's death
The term "contractual ability" means what?
the parties to the contract are competent to enter into a valid agreement
If a fire destroys a home after the contract of sale is signed by both parties but prior to closing, all of the following is true under the Uniform Vendors and Purchasers Risk Act
the party in possession generally bears the risk of loss, seller bears the risk of loss if in possession and holding legal title at the time of loss
A broker shall disclose to the party for whom the broker is providing services that
the party is not vicariously liable for the acts or omissions of the broker
What is hypothecation?
the pledge of property as security for payment of a loan, must be in writing, mortgage is recorded
What is the initial point?
the point of intersection of a principal meridian and a base line
The definition of value is
the power of a good or service to command other goods or services in return
What characterizes a bilateral contract?
the promise of one party is given in exchange for the promise of the other party
What are three true statements about promissory notes?
the promissory not creates the personal liability for the mortgagor to fulfill mortgage covenants; the promissory note is a separate instrument; the promissory note will remain in effect until the mortgage is discharged
What is an exclusive brokerage (agency) listing?
the property is exclusively listed with the brokerage firm but the seller retains the right to sell the property. If the property is sold through the efforts of any real estate broker the seller agrees to pay commission. If the property is sold by seller then no commission.
As required for contract validity a "valuable consideration" may be
the rendering of services by one or both parties; anything which the parties themselves deem to be of value; one dollar or more
What is the final walk through?
the right given to the buyer to re-inspect the property just prior to closing
Who is responsible for the accuracy of the Residential Property Condition Disclosure Statement?
the seller
Deed restrictions are a means by which
the seller can limit or control the buyers use
What is something that a broker should not disclose?
the seller has AIDs
L and M entered into a contract for the sale of certain lands. L breached the contract. M's attorney informed him that while, at one time, he had the right to sue L, he no longer has the right. Chances are
the statute of limitation has run out
When writing a contract you are inserting the legal description into the contract. You should not base the legal description on
the street address
A lease is automatically terminated when the lease terms are fulfilled what two things do NOT terminate a lease?
the tenant or landlord dies, the property is sold
An easement by prescription
the use to be continuous known and permitted by the owner for a period of time
An easement by prescription requires that
the use to be continuous, known, and permitted by the owner for a period of time
The market data approach to appraisal is
the value of the property is based on sales of comparable properties
Two persons make an oral agreement. A day later they put it in writing with several small changes. What is true about the agreement in a court of law?
the written one
What are built in appliances?
they are appliances wherein normally a structure surrounds multiple sides of it and includes slide in ranges
When a form of real estate sales contract has been agreed to and signed by the purchasers and given to the seller's broker with an earnest money check
this transaction is considered an offer
A person shall not be permitted to file an application for re-issuance of a license after revocation for a period of
three years
For the buyer of the property, the basic reason for choosing a general warranty deed over a special warranty deed or a quitclaim deed is
to define the covenants which will bind the grantor
Which statement best describes why instruments affecting real estate are recorded with the registrar of deeds in the county where the property is located?
to give constructive notice to the world of the rights to a particular parcel of real property
A store tenant firmly attaches appropriate appliances for his restaurant business on leased premises. The appliances are
trade fixtures and remain personal property
Brokers in OK have the duty to
treat all parties with honesty
A miner openly lives and prospects on a 20,000-acre ranch. After twenty years, the owner notices the miner and kicks him off the property. The miner makes a claim of ownership to the property. This claim will likely be
upheld, because the possession was not concealed
When a licensee is sued by the Federal Trade commission, it is usually for
violating antitrust laws
What is a breach of contract?
violation of contractual obligation, either by failing to perform one's own promise or by interfering with another party's performance
A contract that has no legal effect because it does not contain all the essential requirements of a contract is
void
Generally, if a purchaser has signed a contract under duress, the contract is
voidable by the buyer
If a purchaser signs a contract under duress, it is generally
voidable by the buyer
Zelda signs a contract with Billie who is a minor. The contract Zelda signed with Billie is
voidable by the minor
The Doctrine of Prior Appropriation applies to
water rights
Permanence of investments refers to such items as
water, sewer and electrical service
In arriving at their final value estimate, appraisers
weigh each approach according to its suitability
The decision as to what the highest and best use to which a particular property could be put is determined by
what use would produce the greatest net income in future years
What is escheat?
when a person dies without a will and has no heirs, the property goes to the state
What is economic obsolescense?
when changed surroundings caused an existing property to lose value
Legal title to real property passes from the seller to the buyer
when the deed is delivered and accepted
Death of the principal
will terminate the agency relationship
All of the following establish independent contractor status
works a specific number of hours weekly in real estate
If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker must provide a
written disclosure to the party for whom the broker is providing brokerage services
If you forget to record your deed
your interest is not fully protected against 3rd parties
Police power may be defined as a power of government to enact and enforce laws for the order, health, safety, morals and general welfare of the public. Which of the following is an exercise of police power?
zoning by municipality
