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FINAL EXAM REAL ESTATE QUESTIONS WITH 100% CORRECT ANSWERS
"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, and not including the broker's commission. According to agreement, the remainder of the
amount over 240,000 goes to the broker as commission. The listing agreement is probably an -
CORRECT ANSWER exclusive agency agreement
Incorrect - See contracts (correct possibly net listing)"
"If a purchaser signs a contract under duress, it is generally - CORRECT ANSWER voidable by
the buyer" "Albert is a home-builder and seeks financing from his local bank to fund his houses so he can sell
them to a customer in the near future. What type of financing did Albert receive? - CORRECT
ANSWER Construction Loan"
"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. - CORRECT ANSWER Amortized
Loan" "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 - CORRECT ANSWER
The alienation clause"
"Which of the following is not included in the concept of eminent domain? - CORRECT
ANSWER Just compensation at fair market value"
"A homeowner wants to enclose a patio, however the roof line of the enclosed patio would violate the building code prescribing the minimum distance for a roof from the property line. What
should the homeowner apply for? - CORRECT ANSWER A variance"
"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? -
CORRECT ANSWER Open listing
Incorrect" "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 - CORRECT ANSWER has an
exposure to negligent misrepresentation" "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? - CORRECT
ANSWER Disclose the foundation crack"
"At the direction of a seller-client, an agent tells a pregnant working woman that the property is not in a good neighborhood for a single woman, particularly if she regularly works late hours. The neighborhood has an increasing crime rate, and people are moving out. What has this agent done
wrong? - CORRECT ANSWER Committed negligent misrepresentation
Incorrect - Practice of Real estate (Correct possibly engaged in steering)"
"The largest estate on can hold is a - CORRECT ANSWER fee simple estate"
"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 - CORRECT ANSWER easement by necessity"
"A miner openly lives and prospects a on 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 - CORRECT ANSWER declined since the owner was not
aware of possession Incorrect - See transferring and recording title to real estate screen 6 of 8 Property ownership" "The house of your friend that cost $185,000 has appreciated 12% over time. With a balance of
$150,000, what is the equity in the house? - CORRECT ANSWER 57,200"
"How many square feet are in the SE 1/4 of SW 1/4 of Sec 22 T11N, R2W - CORRECT ANSWER
Incorrect - Real estate calculations (possibly correct 1,742,400)" "Who is responsible for the accuracy of the Residential Property Condition Disclosure Statement?
- CORRECT ANSWER The seller" "Any real estate broker who charges and collects any fees in advance of the services provided by the broker shall provide a detailed accounting of expenditures to the person such services are
"Under what condition can confidential information be released? - CORRECT ANSWER The
party gives consent to the disclosure in writing"
"How does the Brokerage Relationship Act define a firm? - CORRECT ANSWER A sole
proprietor, corporation, association or partnership"
"A provisional sales associate is - CORRECT ANSWER allowed to enter into an agreement in
the name of the real estate broker." "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? - CORRECT ANSWER The broker must still
document that he or she has complied with the disclosure requirements" "If a broker intends to provide fewer brokerage services than those required to complete a
transaction, the broker must provide a - CORRECT ANSWER written disclosure to the party
for whom the broker is providing brokerage services" "Which of the following items could serve as a lien by the landlord against a tenant who has
refused to pay rent? - CORRECT ANSWER television"
"The landlord needs to perform a semi-annual inspection. How much notice of entry must the
landlord provide the tenant? - CORRECT ANSWER 48 hours
Incorrect - See property management (possibly 1 day)" "When does a security deposit revert to the landlord in consideration if the former tenant has not
made a written demand? - CORRECT ANSWER 6 months after tenancy termination"
"The landlord needs to serve the tenant with a notice to terminate the tenancy. To whom shall
notice be served? - CORRECT ANSWER It must be served on the tenant to be enforceable
Incorrect - See Property Management (possibly any family member over age 12)" "John and Megan rented a home and they are behind on their rent, when may the landlord bring
an action for recovery? - CORRECT ANSWER after 45 days
incorrect - See property management"
"Legal title ALWAYS passes from the seller to the buyer - CORRECT ANSWER when the deed
is delivered and accepted"
"Both the abstract and opinion method of assuring title and title insurance - CORRECT
ANSWER inform or protect the buyer against defects of record"
"When must a lender use form (H-25) Closing Disclosure? - CORRECT ANSWER When the
loan is insured or guaranteed by a federal agency"
"Which of the following must sign the deed? - CORRECT ANSWER grantor"
"Title insurance with extended coverage generally covers - CORRECT ANSWER all of the
above Incorrect - See transferring and recording title ALTA , Transfer title" "If a person dies with legal heirs and has left no valid will, what happens to real property owned
by that person? - CORRECT ANSWER it is probated and passes to the heirs by laws of
descent"
"A special warranty deed is a conveyance instrument which - CORRECT ANSWER limits any
warranties made to those defects which arose during the time the grantor owned the property being conveyed"
"Which of the following is true of a homestead? - CORRECT ANSWER A homestead is any
privately owned single family residence Incorrect - Interests and Estates Screen 4 of 8 (cannot be conveyed by one spouse)"
"What transfers real property? - CORRECT ANSWER deed"
"Albert bought a piece of property from Brian. The title of the property was transferred when the
deed was - CORRECT ANSWER delivered and accepted"
"Which of the following is NOT a requirement for a valid conveyance of real property? -
CORRECT ANSWER Habendum clause
Incorrect - Transferring and recording title screen 4 of 8" "A sale transaction on rental property closes on December 16. The landlord received the December 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 on the settlement
statement? - CORRECT ANSWER Debit to seller 345
Incorrect - See transfer title ( I get 365.5 but credit to the seller)"
"Which of the following items are paid in arrears - CORRECT ANSWER insurance and
interest incorrect - see transfer title"
"During the executory period of a sale contract, the buyer enjoys which of the following interests?
- CORRECT ANSWER Equitable title"
"Who are the parties to a Listing Agreement? - CORRECT ANSWER Seller and Broker"
"The seller makes a counteroffer. The buyer accepts and decides to reply using "snail mail" when
is a valid purchase contract created using the Post Office? - CORRECT ANSWER When the
offer puts the acceptance in the mail"
"For a contract to be enforceable it should - CORRECT ANSWER None of the above:
Incorrect - See unit: Real estate contract law Screen 2 of 6 (correct possibly in writing)" "They 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 property because of what?
- CORRECT ANSWER Acceleration Clause" "A buyer submits an offer to the seller. While the seller is considering the offer, a buyer calls and cancels the offer, saying the home was too expensive. The seller protests, claiming she was going
to accept the contract. Which of the following is true? - CORRECT ANSWER The original offer
is cancelled, the protest means nothing" "A realtor agrees by "a handshake" to sell the house of his former high school chemistry teacher. Realtor finds a buyer who submits a full price offer with no provisions. The house sells, but the Seller refuses to pay commission to realtor. What kind of contract does the realtor have with the
seller? - CORRECT ANSWER Unenforceable"
"Bill has a 2 year lease on a piece of property from Cathy with an option to purchase. Bill paid 1,500 for the option to purchase. If Bill wishes to purchase the property at the end of the lease he must inform Cathy in writing within 60 days of lease expiration. Bill sells his option to purchase to Zepeda for 10,000. Cathy does not like Zepeda and would like to not sell the property to them.
Zepeda decides to enact his option. Cathy can do what? - CORRECT ANSWER refuse to sell
and take Zepeda to court. Zepeda will most likely loose because the option was assigned to him Incorrect - See Contracts (possibly correct: contract is assignable unless specifically stated in the contract)"
"Of the following, which is NOT necessary to have a valid contract for the Sale of Real Estate? -
CORRECT ANSWER Earnest money"
"What is this: A seller may employ a number of brokers. Only the broker who produces the buyer earns a
commission. The seller may sell the property. - CORRECT ANSWER Open listing"
"When is an offer to purchase property accepted? - CORRECT ANSWER The seller accepts
and the signed contract is delivered to the buyer" "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? - CORRECT ANSWER Discount
Points" "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.. -
CORRECT ANSWER 30 days"
"In general, the borrower no longer pays Mortgage Insurance when the Loan-to-Value equals... -
CORRECT ANSWER 0.8"
"Which of the following best describes Regulation Z? - CORRECT ANSWER Regulation of
mortgage interest rates Incorrect - See Financing" "An industrious Realtor advertised a house listed for $125,000 as, "Move-in for Only $671.
/Month." Did the Realtor violate any restriction? - CORRECT ANSWER Yes. Regulation Z"
"Which of the following Secondary Mortgage Market entities can purchase FHA and VA loans? -
CORRECT ANSWER All of them: Fannie Mae, Ginnie Mae, Freddie Mac"
"Of the following sources of loan money, which does not service their loans? - CORRECT
ANSWER Mortgage Broker"
"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? - CORRECT ANSWER detrimental zoning by a city or county"
"All of the following closing expenses are allowed under the Real Estate Settlement Procedures
Act, except - CORRECT ANSWER fees paid by an escrow company to a sales associate for
referring business"
"Which statement is true regarding FHA loans? - CORRECT ANSWER FHA insures approved
lenders" "The city of Tulsa forced Bob, who is a landowner in Tulsa to sell his property to the city for public
use. The city of Tulsa was exercising it's right of.. - CORRECT ANSWER eminent domain"
"What is the primary aim of a marketing program for a managed property? - CORRECT
ANSWER To find and attract the right kind of tenants"
"The most common kind of landlord default is - CORRECT ANSWER failure to maintain the
property and provide services"
"How does the Equal Credit Opportunity Act affect property managers? - CORRECT ANSWER
Managers must be consistent and nondiscriminatory in evaluating the creditworthiness of tenant applicants"
"Which of the following is NOT a latent defect? - CORRECT ANSWER A crack in the living
room ceiling" "Typically before a mortgage company will finance a home they will want to make sure there are no encroachments on the property they are financing. To check for any encroachments the mortgage company should order a A. survey. B. a signed affidavit from the seller. C. special title
policy. D. title insurance. - CORRECT ANSWER title insurance
Incorrect - See Mandated Disclosures (correct possibly a survey)"
"All of the following are illegal activities involving fair housing except... - CORRECT ANSWER
Segregating families into buildings Incorrect - See Practice of Real Estate"
"What agency promulgates regulation Z? - CORRECT ANSWER Federal Reserve System"
"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? - CORRECT ANSWER He has
steered the family Incorrect - See Practice of Real Estate (correct possibly done nothing wrong)" "There are different employment relationships which exist in our economy. A person who is only
responsible to an employer for the results of work is - CORRECT ANSWER an employee
Incorrect - See Brokerage Business Screen 4 of 8 Practice of Real estate" "What is the time limitation for reporting alleged violations of the Federal Fair Housing Act and
Amendements? - CORRECT ANSWER 365 days"
"Exceeding the limits of the authority granted is a major risk in.. - CORRECT ANSWER The
fulfilling of listing agreements" "This law prohibited racial discrimination in the buying, selling, holding, or conveying of real and
personal property? - CORRECT ANSWER Federal fair housing act of 1968
Incorrect - See Ethics: Laws and Practices Screen 3 of 6 (correct Civil Rights Act of 1866)" "Albert who is 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? - CORRECT ANSWER Refuse to list the property"
"The illegal practice of sending potential home buyers or renters to equivalent properties areas in
order to maintain the homogeneity of an area is called? - CORRECT ANSWER steering"
"You have your license under a broker. Your broker is required to put your real estate license on
display in the office. Which of the following is your broker also required to display? - CORRECT
ANSWER A photo located at the top left side of each license
Incorrect - See Practice Real estate"
"The primary jeopardy of overpricing a property is that - CORRECT ANSWER The client's
expectations may not be achieved"
"Which statement best describes the definition of a trust account? - CORRECT ANSWER an
account for not commingling general business funds Incorrect - Practice of Real estate" "The Listing Agent decided to "spice-up" the advertisement by stating, "Only $50 down and $
a month get you a new Home!" Whats the problem? - CORRECT ANSWER Violates
Regulations Z"
"When a licensee is sued by the Federal Trade Commission, it is usually for - CORRECT
ANSWER violating antitrust laws"
"In a lien theory state - CORRECT ANSWER the lender records a lien while the borrower
retains title to the mortgaged property."
"Which of the following is a six-mile strip running parallel to the meridian - CORRECT
ANSWER Range"
"Which of the following would NOT be considered an Economic Characteristic of Land? -
CORRECT ANSWER Indestructible"
"Which of the following would NOT be considered Advertising? - CORRECT ANSWER
Conducting a seminar on Down Payment Assistance programs Incorrect - Laws and Rules affecting OK real estate"
"If a fine imposed by OREC is not paid within 30 days, what are the consequences. - CORRECT
ANSWER Both 2 and 3 are correct which is a dollar added each day and find is doubled"
"A person is not required to hold a real estate license to - CORRECT ANSWER be a resident
manager for the owner of a multi-family apartment building"
"Which statement is false? - CORRECT ANSWER OREC is exempt from being sued but may
sue."
"All of the following must possess a valid Oklahoma Real estate license except? - CORRECT
ANSWER A real estates broker employee who leases affordable housing"
"It may be cause for suspension or revocation of license to - CORRECT ANSWER guarantee
future profits from resale of real estate" "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? - CORRECT ANSWER Pass a 90 hour
Advanced Course in Real estate, back ground check, active sales associate license for past 2 years and pass state exam"
"Claire, who is a real estate broker, closes her office. Claire - CORRECT ANSWER must
terminate all advertising in the name of her firm and offering signs must be removed within 30 days"
"A real estate licensee should generally reveal the license status - CORRECT ANSWER in any
real estate transaction"
"Which of the following is NOT a requirement to obtain a Provisional Sales Associate License? -
CORRECT ANSWER be at least 18 years old"
"Which of the following situations would not require holding a real estate license? - CORRECT
ANSWER All of the above : act as an attorney for owner of real estate, renovate buildings, and
appraisal"
"Members of the Oklahoma Real Estate Commission are appointed for - CORRECT ANSWER
4 years"
"A licensed real estate associate may receive a commission from a broker other than their
sponsoring broker under which of the following conditions? - CORRECT ANSWER Under no
circumstances"
"Earl is a real estate broker and has recently changed his business address, Earl - CORRECT
ANSWER must notify the commission office within 10 days"
"One member of the Oklahoma Real Estate Commission shall be - CORRECT ANSWER The
secretary treasurer of the real estate commission Incorrect - State specific laws, Laws and rules affecting Oklahoma real estate (correct possibly is a lay person not in the real estate business)"
"Earl who is a real estate broker, decides to close his office and cease real estate business, Earl -
CORRECT ANSWER is required to notify the commission of the effective date and where the
record will be stored" "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? - CORRECT ANSWER 3 years"
"Jim is a licensed real estate sales or broker associate who has hired an unlicensed assistant. Jim's
broker, Larry is - CORRECT ANSWER responsible for Jim's unlicensed assistant"
"A broker who is duly licensed in another state and who has not obtained an Oklahoma
nonresident license may enter a cooperative brokerage agreement with - CORRECT ANSWER
a licensed real estate broker in this state" "A broker must notify the Oklahoma Real Estate Commission of their trust account(s). How many
trust accounts is a broker allowed? - CORRECT ANSWER unlimited"
"The Oklahoma Real Estate Commission shall have the powers and duties of - CORRECT
ANSWER imposing administrative fines in accordance with state statutes"
