Download Ohio Real Estate Exam Practice Questions and more Exams Real Estate Management in PDF only on Docsity!
Ohio Real Estate|111 Exam Practice
Questions|REVIEW
The buyer asks for information about the property. Their agent telephones you for that information, but submits an offer before you have time to respond to the call. What do you do with the offer and the information request? - ✔ ✔ CORRECT ANSWER: Respond to the offer and the information request in writing as soon as possible
The fee to amend a license to practice real estate is - ✔ ✔ CORRECT ANSWER: $
What is the fee to transfer a real estate salesperson's license from one brokerage to another? - ✔ ✔ CORRECT
ANSWER: $
The fee to apply for a real estate broker license is - ✔ ✔ CORRECT ANSWER: $
May a consumer who has been harmed by a licensee acting under her license as a real estate salesperson or broker immediately file a claim for payment from the Real Estate Recovery Fund? - ✔ ✔ CORRECT ANSWER: No, the consumer must file a lawsuit, get a final judgment, and attempt to collect
According to the Statute of Frauds, what does NOT have to be in writing? - ✔ ✔ CORRECT ANSWER: listing agreement
O.R.C. 4735.55(A) requires a broker to maintain a definite place of business with a sign indicating it as such outside of the building.
An association applying for a real estate license has three members, one of whom is licensed as a real estate broker. The association must submit what document concerning the unlicensed members in order to be issued a real estate license in the association's name? - ✔ ✔ CORRECT ANSWER: an affidavit stating the members will not Act as real estate brokers for the association
In anticipation of a property selling at sheriff's sale to the loan servicing company, Eric, a salesperson from Happy Days Realty, planted his sign in the yard and held an open house for a few hours one Sunday. The following Monday, Eric showed the property to another buyer. What other ways can Eric market the property? - ✔ ✔ CORRECT ANSWER: Eric cannot market the property without the consent of the owner
Until the sale is confirmed, the loan servicing company cannot list with any broker and Eric does not have a valid listing.
Agent Andy was so excited to be writing and presenting his first offer to the seller and listing agent that he forgot to make the offer contingent on the sale of the buyer's current
purchase, and then delivers the offer to the seller/client? - ✔ ✔ CORRECT ANSWER: With timely agency disclosure, assisting a customer does not form an agency relationship
A wife and husband may not hold title to their home as - ✔ ✔ CORRECT ANSWER: tenants at will
Tenancy at will is a leasehold estate.
What best describes personal property transformed into real property? - ✔ ✔ CORRECT ANSWER: actual annexation
Constructive annexation occurs when property is so closely related to real property that the law treats it as such, even though it is not physically attached. The fixture is the item that was transformed. Actual annexation is a physical attachment of personal property to land. Trade fixtures are equipment a tenant can remove and, thus, not real property.
RESPA does NOT - ✔ ✔ CORRECT ANSWER: allow lenders to charge undisclosed fees
If a loan amount is $160,000 and the borrower is paying two points, and the rate of interest is 6%, and the loan will be amortized for 30 years, how much will the monthly payment be if the annual taxes are $6,400 and the insurance is $ per year? - ✔ ✔ CORRECT ANSWER: $
RATIONALE
Using the amortization chart a factor of 6 is what you would take 160 x 6 = 960 + 1/12th of the taxes $533.33 = 1/12th of the insurance $70.83 = $1564.
When an applicant for a real estate license submits an incomplete or incorrect application, and is notified of the error or incomplete status by the Division, how much time does the applicant have to resubmit the corrected/completed application? - ✔ ✔ CORRECT ANSWER: 30 days
The applicant who files an incomplete or incorrect application for a license has 30 days, from the date of last notice by the Division, to submit a corrected application or the requested additional information.
The fee for renewing a broker's license is: - ✔ ✔ CORRECT ANSWER: $
What is the cost to reserve a business name with the Division of Real Estate & Professional Licensing? - ✔ ✔ CORRECT ANSWER: $
Who gets the interest generated in a property management trust account? - ✔ ✔ CORRECT ANSWER: the property owner
Statement would Cindy and Greg fill out? - ✔ ✔ CORRECT ANSWER: Section II
A transaction involving two brokers is a section I transaction. An in-company transaction is a Section II type. A transaction where one licensee is selling his own listing would require filling out Section III. There is no section IV.
A buyer is about to make a written offer on a listing. The sales agent says that, under Ohio law, $1,000 in earnest money must accompany the offer. The sales agent is guilty of - ✔ ✔ CORRECT ANSWER: misrepresentation
RATIONALE
In all likelihood, the sales agent is guilty of misrepresentation. Even though many sales agents believe the law requires earnest money with all offers, this is not true. If the sales agent knew that such a law did not exist, then he would have been lying, and guilty of fraud.
When can a property manager use a self-help eviction? - ✔ ✔ CORRECT ANSWER: Only in non-residential tenancies
RATIONALE
A landlord may only use a utility shut-off or lockout against a non-residential tenancy.
To calculate how much principal will cost with specific monthly payment - ✔ ✔ Multiply interest rate by loan amount. This is ANNUAL interest. Divide by 12. That is monthly. Now you can subtract that from the monthly payment. Subtract this from the principal. Calculate next amount, etc.
Mr. & Mrs. Boyd are approved for an $85,000 loan. Their monthly payments will be $9.75 per $1,000 for 30 years. How much interest will they pay over the life of the loan? - ✔ ✔ First, determine the amount on which the interest rate will be applied by dividing by 1,000: $85,000 / $1,000 = $85. Then, multiply that amount by the interest per 1,000: $85 x $9.75 = $828.75. Multiply that number by the total number of months the loan is for to get the total payment amount: $828.75 x 360 months (30 years) = $298,350 P & I. Finally, subtract the loan amount to determine how much of the total payment is interest: $298,350 - $85,000 = $213,350 in interest.
While the Ohio Real Estate Commissioners are appointed by the Governor, the Superintendent is appointed by the Director of the Department of Commerce.
After being issued a real estate broker's license, the licensee must obtain 10 hours of post-licensure training in what topic?
- ✔ ✔ CORRECT ANSWER: real estate brokerage
An "in-company transaction" is one in which the seller and buyer are each represented by two separate real estate agents who work for the same brokerage.
When Agent Judy decided to go to another broker after two years in the business, she packed up her belongings and left her broker. When she arrived at her new brokerage, she put all of her old files in one box and put the box in her attic at home. How long must she keep her old files? - ✔ ✔ CORRECT ANSWER: three years
Brokers and salespersons are required to keep records for a period of three years.
What duty must a licensee fulfill in representing a buyer client? - ✔ ✔ CORRECT ANSWER: seek a property at a price and with terms acceptable to the purchaser
A licensee representing the purchaser has a duty to seek a property at a price and with purchase or lease terms acceptable to the purchaser. Once the purchaser is a party to a contract or has extended a letter of intent to purchase or lease, the licensee/agent is not required to seek additional purchase or lease possibilities.
If a third party maintains a website for a licensee, places information on the website on behalf of the licensee, and that information becomes outdated or expired, how soon
must it be updated or removed? - ✔ ✔ CORRECT ANSWER: Outdated and expired information must be updated or removed within two weeks
The terms "agency" and "agency relationship" are defined by Ohio law as the relationship between a real estate licensee and the - ✔ ✔ CORRECT ANSWER: person the licensee represents
What should a salesperson do if a buyer-client, who happens to be an Hispanic American, instructs the agent to show him homes in areas where "other Hispanics" live? - ✔ ✔ CORRECT ANSWER: ask the client to specify areas of
interest
A property management account: - ✔ ✔ CORRECT ANSWER: Can earn interest
A couple is engaged to be married. Any real estate they own at the time the marriage takes place remains that spouse's property in severalty, and property acquired after the marriage belongs equally to both of them. This type of ownership is referred to as - ✔ ✔ CORRECT ANSWER: community property
Community property consists of all property, real and personal, acquired by either spouse during the marriage.
Land movement due to an earthquake is called - ✔ ✔ CORRECT ANSWER: avulsion
After issuing a bad check, the Division requires the licensee to send certified funds for all subsequent payments for a period of - ✔ ✔ CORRECT ANSWER: 5 years
How much will a licensee be fined for paying fees to the state with a bad check? - ✔ ✔ CORRECT ANSWER: $
Once a salesperson is affiliated with a broker, what are the steps to be taken to associate with another broker? - ✔ ✔ CORRECT ANSWER: the salesperson must submit an application to the Superintendent
What statement regarding condominium ownership is correct? - ✔ ✔ CORRECT ANSWER: A unit owner may devise the property
Julie is the new owner of a house and decides to remove the carpet. After doing so, she discovers there is significant pet damage to the hardwood floor beneath the carpet. Julie cuts most of the center of the floor out and replaces it with subfloor. Julie then places a Persian rug over the subfloor. When Julie sells, can she remove the Persian rug? - ✔ ✔ CORRECT ANSWER: No, anything that covers subflooring becomes real property
How would a developer/builder typically finance a development? - ✔ ✔ CORRECT ANSWER: blanket
For a conventional loan, how much of a borrower's income can be used to service debt? - ✔ ✔ CORRECT ANSWER: 36%
What document uses legal title to real property to secure debt? - ✔ ✔ CORRECT ANSWER: mortgage
According to the Lead-Based Paint Hazard Reduction Act, what can happen to a licensee if she fails to give a buyer the lead-based paint pamphlet and disclosures? - ✔ ✔ CORRECT ANSWER:
- $10,000 fine
- 3 times compensatory damages in lawsuit
- punishment
The non-breaching party to a contract has a duty by law to
- ✔ ✔ CORRECT ANSWER: mitigate damages
What would be considered evidence of the agency relationship between broker and buyer? - ✔ ✔ CORRECT ANSWER: buyer-broker contract
Harvey enters into a lease where he must pay 30 percent of the landlord's expenses. Which type of lease did Harvey sign? - ✔ ✔ CORRECT ANSWER: net lease
Which statement regarding RESPA is TRUE? - ✔ ✔ RESPA eliminates kickbacks and other referral fees, prohibits lenders from requiring excessive escrow account deposits, and provides accurate and timely information about the actual cost of buying or selling a home.
A wealthy business man whishes to change his last will and testament to exclude a relative who recently died. Which
The buyer asks for information about the property. Their agent telephones you for that information, but submits an offer before you have time to respond to the call. What do you do with the offer and the information request? - ✔ ✔ CORRECT ANSWER: Respond to the offer and the information request in writing as soon as possible
The fee to amend a license to practice real estate is - ✔ ✔ CORRECT ANSWER: $
What is the fee to transfer a real estate salesperson's license from one brokerage to another? - ✔ ✔ CORRECT ANSWER: $
The fee to apply for a real estate broker license is - ✔ ✔ CORRECT ANSWER: $
May a consumer who has been harmed by a licensee acting under her license as a real estate salesperson or broker immediately file a claim for payment from the Real Estate Recovery Fund? - ✔ ✔ CORRECT ANSWER: No, the consumer must file a lawsuit, get a final judgment, and attempt to collect
According to the Statute of Frauds, what does NOT have to be in writing? - ✔ ✔ CORRECT ANSWER: listing agreement
A property has been renting for $750 per month. Based on comparables, the GRM is 110. What is the indicated value of the property? - ✔ ✔ CORRECT ANSWER: $990,
The indicated value using a GRM (Gross Rent Multiplier) is the (monthly rent x 12 (months)) x GRM. In this case, ($750 X
- x 110 = $990,000.
While determining the net operating income of an investment property, an appraiser will not take into account
- ✔ ✔ CORRECT ANSWER: interest expense
Although tax deductible, the amount of interest an owner pays is not used to calculate the net operating income. Remember, anything related to debt service is an owner's expense.
Just one day prior to a foreclosure sale, the homeowner pays the bank all past-due payments, late charges, attorney fees, etc. The homeowner saves the property under the right called - ✔ ✔ CORRECT ANSWER: equitable right of redemption
Statutory redemption occurs after the sale has been finalized, and is recognized only in those states that have extended the right of redemption to include the period after the sale. Equitable redemption occurs prior to the sale, when the homeowner avoids foreclosure by paying all past- due payments and other monetary obligations.
An owner of a property enters into a purchase money mortgage with a buyer whereby the buyer will make
During a phone call, a salesperson discusses showing a property to a prospect. Three days later, the agent shows the property; at that time the customer reveals her financial abilities and motivation. Three days after that, the agent prepares her offer and asks the buyer to sign an agency disclosure statement stating the agent represents the seller. When should the agent have disclosed this fact? - ✔ ✔ CORRECT ANSWER: before showing the house
An agent is showing a house to a customer. The agent tells the buyer that the seller is desperate for an offer. Which duty has the agent breached? - ✔ ✔ CORRECT ANSWER: loyalty
An agent must have the client's permission to reveal such a motivation to a customer.
A lead-based paint disclosure form is required for all residential dwellings built before January 1, 1978. When applicable, who must sign the form? - ✔ ✔ CORRECT ANSWER: buyer, seller, and both agents
Chelsea is a listing agent working for the listing broker and encounters a customer at the open house. The customer asks Chelsea if she could recommend an offering price. Chelsea should recommend that the customer - ✔ ✔ CORRECT ANSWER: offer list price
A listing agent dealing with a customer has a duty only to the seller. It would not be in the seller's best interest to suggest less than list price, or that the seller should pay closing costs. The customer has to request market information from the listing agent; she cannot just volunteer that information.
If seller Adam simply decides not to go through with the closing on a sale to buyer William, what can William do about it? - ✔ ✔ CORRECT ANSWER: Sue for specific
performance and for damages
A successful lawsuit for specific performance may compel Adam to perform his responsibilities under the contract, including transferring title to William. In addition, if William can prove other damages due to Adam's refusal to perform, William may also sue to recover those damages. If the contract was executed (completed), William would have obtained equitable title, and it would not matter that closing had not occurred.
When must a buyer inspect the Closing Statement? - ✔ ✔ CORRECT ANSWER: one business day before closing
In a suit brought under the Federal Fair Housing law as amended, punitive damages may be as much as - ✔ ✔ CORRECT ANSWER: there is no limit on punitive damages
