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Ohio Real Estate Exam Practice
Questions With 100% Correct Answers
Already Passed!!
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? Answer- CORRECT ANSWER: No, the consumer must file a
lawsuit, get a final judgment, and attempt to collect
A listing agreement in which the agent may possibly be in competition with the
client to see who can sell the house first is an exclusive Answer- CORRECT
ANSWER: agency
According to the Statute of Frauds, what does NOT have to be in writing? Answer-
CORRECT ANSWER: listing agreement
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on behalf of the licensee, and that information becomes outdated or expired, how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? Answer- CORRECT ANSWER: Outdated and
expired information must be updated or removed within two weeks
After issuing a bad check, the Division requires the licensee to send certified funds
for all subsequent payments for a period of Answer- CORRECT ANSWER: 5 years
How much will a licensee be fined for paying fees to the state with a bad check?
Answer- CORRECT ANSWER: $100
Once a salesperson is affiliated with a broker, what are the steps to be taken to
associate with another broker? Answer- CORRECT ANSWER: the salesperson
must submit an application to the Superintendent
What statement regarding condominium ownership is correct? Answer- 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? Answer- CORRECT ANSWER: No, anything that covers
subflooring becomes real property
How would a developer/builder typically finance a development? Answer-
CORRECT ANSWER: blanket
: https://www.stuvia.com/user/Lectdavian
,https://www.stuvia.com/user/Lectdavian
For a conventional loan, how much of a borrower's income can be used to service
debt? Answer- CORRECT ANSWER: 36%
What document uses legal title to real property to secure debt? Answer- 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?
Answer- 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 Answer- CORRECT
ANSWER: mitigate damages
What would be considered evidence of the agency relationship between broker and
buyer? Answer- 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? Answer- CORRECT ANSWER: net lease
Which statement regarding RESPA is TRUE? Answer- 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 document will the testator use to make the
change? Answer- CORRECT ANSWER: codicil
RATIONALE
An addendum would signify a change in the terms of a contract. A certificate of
transfer is the instrument used to convey title to a devise. A transfer on death deed
transfers title of a decedent's property upon death. A codicil is used to change a last
will and testament.
When a broker received an unexpected bill, he deposited a client's earnest money
check into his personal account to cover the expense. This best describes Answer-
CORRECT ANSWER: conversion
A real estate agent has written an offer in which Luke, the buyer, asked the sellers to
pay his half of the escrow fee and his three points. The sellers accepted $135,000 for
the home and Luke is going to put $40,000 down. How much will the Luke pay for his
points? Answer- CORRECT ANSWER: $0
RATIONALE
Read carefully: The sellers, not the buyer, are paying the points. For the math
practice, the formula is: Loan Amount ($95,000) x number of points ($95,000 x 0.03)
= Total Amount paid for points ($2,850). Remember, one point equals 1% or 0.01.
: https://www.stuvia.com/user/Lectdavian
, https://www.stuvia.com/user/Lectdavian
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? Answer- 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 Answer- CORRECT ANSWER:
$34
What is the fee to transfer a real estate salesperson's license from one brokerage to
another? Answer- CORRECT ANSWER: $34
The fee to apply for a real estate broker license is Answer- CORRECT ANSWER:
$135
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? Answer- 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? Answer-
CORRECT ANSWER: listing agreement
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? Answer- 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 Answer- 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? Answer- CORRECT ANSWER: ask the client to specify areas of interest
A property management account: Answer- 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
Answer- 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 Answer- CORRECT ANSWER:
avulsion
: https://www.stuvia.com/user/Lectdavian
Ohio Real Estate Exam Practice
Questions With 100% Correct Answers
Already Passed!!
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? Answer- CORRECT ANSWER: No, the consumer must file a
lawsuit, get a final judgment, and attempt to collect
A listing agreement in which the agent may possibly be in competition with the
client to see who can sell the house first is an exclusive Answer- CORRECT
ANSWER: agency
According to the Statute of Frauds, what does NOT have to be in writing? Answer-
CORRECT ANSWER: listing agreement
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? Answer- CORRECT ANSWER: Outdated and
expired information must be updated or removed within two weeks
After issuing a bad check, the Division requires the licensee to send certified funds
for all subsequent payments for a period of Answer- CORRECT ANSWER: 5 years
How much will a licensee be fined for paying fees to the state with a bad check?
Answer- CORRECT ANSWER: $100
Once a salesperson is affiliated with a broker, what are the steps to be taken to
associate with another broker? Answer- CORRECT ANSWER: the salesperson
must submit an application to the Superintendent
What statement regarding condominium ownership is correct? Answer- 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? Answer- CORRECT ANSWER: No, anything that covers
subflooring becomes real property
How would a developer/builder typically finance a development? Answer-
CORRECT ANSWER: blanket
: https://www.stuvia.com/user/Lectdavian
,https://www.stuvia.com/user/Lectdavian
For a conventional loan, how much of a borrower's income can be used to service
debt? Answer- CORRECT ANSWER: 36%
What document uses legal title to real property to secure debt? Answer- 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?
Answer- 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 Answer- CORRECT
ANSWER: mitigate damages
What would be considered evidence of the agency relationship between broker and
buyer? Answer- 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? Answer- CORRECT ANSWER: net lease
Which statement regarding RESPA is TRUE? Answer- 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 document will the testator use to make the
change? Answer- CORRECT ANSWER: codicil
RATIONALE
An addendum would signify a change in the terms of a contract. A certificate of
transfer is the instrument used to convey title to a devise. A transfer on death deed
transfers title of a decedent's property upon death. A codicil is used to change a last
will and testament.
When a broker received an unexpected bill, he deposited a client's earnest money
check into his personal account to cover the expense. This best describes Answer-
CORRECT ANSWER: conversion
A real estate agent has written an offer in which Luke, the buyer, asked the sellers to
pay his half of the escrow fee and his three points. The sellers accepted $135,000 for
the home and Luke is going to put $40,000 down. How much will the Luke pay for his
points? Answer- CORRECT ANSWER: $0
RATIONALE
Read carefully: The sellers, not the buyer, are paying the points. For the math
practice, the formula is: Loan Amount ($95,000) x number of points ($95,000 x 0.03)
= Total Amount paid for points ($2,850). Remember, one point equals 1% or 0.01.
: https://www.stuvia.com/user/Lectdavian
, https://www.stuvia.com/user/Lectdavian
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? Answer- 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 Answer- CORRECT ANSWER:
$34
What is the fee to transfer a real estate salesperson's license from one brokerage to
another? Answer- CORRECT ANSWER: $34
The fee to apply for a real estate broker license is Answer- CORRECT ANSWER:
$135
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? Answer- 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? Answer-
CORRECT ANSWER: listing agreement
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? Answer- 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 Answer- 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? Answer- CORRECT ANSWER: ask the client to specify areas of interest
A property management account: Answer- 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
Answer- 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 Answer- CORRECT ANSWER:
avulsion
: https://www.stuvia.com/user/Lectdavian
