OHIO REAL ESTATE SALESPERSON LICENCE EXAM– QUESTIONS
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1. A real estate licensee in Ohio is representing a seller under an exclusive right-to-sell
listing agreement. During an open house, an unrepresented prospective buyer approaches
the agent and asks for help drafting an offer. What is the most appropriate course of action
for the licensee to maintain professional compliance and ethics?
A. Immediately draft the offer for the buyer while maintaining sole loyalty to the seller.
B. Explain agency relationships in Ohio, provide the Consumer Guide to Agency
Relationships form, and discuss representation options before writing any terms.
C. Act as a dual agent automatically since both parties are present in the home.
D. Refuse to assist the buyer entirely and order them to find their own representation outside the
brokerage.
Under Ohio agency law, licensees must disclose agency relationships at first substantive
contact and provide the Consumer Guide to Agency Relationships before entering into any
formal discussions or transactions, ensuring the consumer understands who the agent
represents.
2. A property owner in Columbus conveys a parcel of real estate to a local church "so long
as the land is used for religious purposes." If the church eventually decides to construct a
commercial parking garage on the site, what happens to the title under this type of estate?
A. The title automatically reverts to the original grantor or their heirs.
B. The city council takes ownership through eminent domain automatically.
C. The property ownership remains completely unaffected by the change in use.
D. The state government seizes the land for public school expansion.
This scenario describes a fee simple determinable estate, characterized by limiting language
such as "so long as." Violation of the condition triggers an automatic reversion of title back to
the grantor or their successors.
,3. Which of the following physical and economic characteristics of land refers to the fact
that real estate cannot be moved from one geographic location to another?
A. Indestructibility
B. Scarcity
C. Immobility
D. Modification
Land is physically fixed in location, meaning its geographic site is permanent and immovable,
which heavily influences real estate value and market dynamics.
4. A buyer purchases a residential home and receives a general warranty deed at closing.
Which covenant in a general warranty deed guarantees that the grantor owns the property
and has the legal right to convey it?
A. Covenant of quiet enjoyment
B. Covenant of seisin
C. Covenant against encumbrances
D. Covenant of further assurances
The covenant of seisin is the grantor's assurance that they hold the fee simple title to the
property being conveyed and possess the legal capacity to transfer ownership.
5. An investor owns an apartment building with an annual gross scheduled income of
$120,000. Vacancy and collection losses are estimated at 5%, and annual operating
expenses total $42,000. What is the net operating income (NOI) of the property?
A. $78,000
B. $72,000
C. $69,000
D. $114,000
Effective gross income is calculated by subtracting vacancy losses ($120,000 \times 0.05 =
\$6,000$) from scheduled income, yielding $114,000. Subtracting operating expenses
($42,000) from effective gross income gives a net operating income of $69,000.
,6. A commercial real estate broker lists a warehouse for rent. A prospective tenant with a
physical disability asks for permission to install a wheelchair ramp at the tenant's own
expense. Under federal accessibility laws, how must the landlord respond?
A. The landlord can legally refuse any physical alterations to the commercial property.
B. The landlord must permit reasonable modifications necessary for full enjoyment,
provided the tenant agrees to restore the property to its original condition upon lease
expiration if required.
C. The landlord must pay for the construction of the ramp entirely out of building maintenance
reserves.
D. The tenant must buy the building before making any structural changes.
Under the Americans with Disabilities Act (ADA) and federal fair housing guidelines,
commercial and residential landlords must permit tenants to make reasonable modifications at
their own expense to ensure accessibility.
7. A real estate sales associate receives an earnest money deposit from a buyer on Friday
afternoon. According to standard Ohio brokerage practice and licensing rules, when must
the principal broker deposit the funds into the brokerage trust account?
A. Within 24 hours of receipt regardless of contract status
B. Promptly, typically within a specified timeframe following contract formation or as
outlined by brokerage policy and Ohio administrative rules
C. Exactly thirty days after closing escrow
D. At the sales associate's personal discretion whenever convenient
Ohio real estate law and commission rules mandate that earnest money trust funds must be
deposited into the brokerage's designated trust or escrow account promptly following final
acceptance of the contract.
8. What type of mortgage loan requires the borrower to make regular periodic payments
that cover both interest accrued and a portion of the principal balance, resulting in a zero
balance at the end of the loan term?
A. A term (straight) loan
B. A fully amortized loan
C. A negative amortization loan
, D. A shared appreciation loan
A fully amortized loan systematically liquidates the debt through regular level payments that
cover interest and chip away at the principal until the balance is fully paid off.
9. A local zoning board grants a property owner permission to build an addition that
violates current front setback requirements because enforcing the rule would cause an
unreasonable economic hardship due to an oddly shaped lot. What has been granted?
A. A nonconforming use permit
B. A zoning variance
C. A spot zoning designation
D. A deed restriction waiver
A zoning variance provides official relief from strict compliance with zoning ordinances when
enforcement imposes an undue practical hardship on a property owner due to unique site
conditions.
10. Which of the following federal consumer protection statutes requires lenders to provide
borrowers with a standardized Loan Estimate (LE) within three business days of receiving
a completed loan application?
A. The Sherman Antitrust Act
B. The Truth in Lending Act and RESPA integrated disclosures (TRID)
C. The Fair Credit Reporting Act
D. The Equal Credit Opportunity Act
The TRID rule combines disclosures under TILA and RESPA, requiring lenders to issue a
clear Loan Estimate within three business days to help consumers understand loan terms and
closing costs.
11. An appraiser estimating the market value of an older residential property calculates the
replacement cost of the structure, subtracts accrued depreciation, and adds the estimated
land value. Which appraisal method is being utilized?
A. Sales comparison approach
B. Income capitalization approach
C. Cost approach
AND ANSWERS | VERIFIED AND WELL DETAILED ANSWERS
PLUS RATIONALES | GUARANTEED PASS | LATEST EXAM
UPDATE | EXAM PREP | STUDY GUIDE | PRACTICE TEST|
DOWNLOAD INSTANT PDF
1. A real estate licensee in Ohio is representing a seller under an exclusive right-to-sell
listing agreement. During an open house, an unrepresented prospective buyer approaches
the agent and asks for help drafting an offer. What is the most appropriate course of action
for the licensee to maintain professional compliance and ethics?
A. Immediately draft the offer for the buyer while maintaining sole loyalty to the seller.
B. Explain agency relationships in Ohio, provide the Consumer Guide to Agency
Relationships form, and discuss representation options before writing any terms.
C. Act as a dual agent automatically since both parties are present in the home.
D. Refuse to assist the buyer entirely and order them to find their own representation outside the
brokerage.
Under Ohio agency law, licensees must disclose agency relationships at first substantive
contact and provide the Consumer Guide to Agency Relationships before entering into any
formal discussions or transactions, ensuring the consumer understands who the agent
represents.
2. A property owner in Columbus conveys a parcel of real estate to a local church "so long
as the land is used for religious purposes." If the church eventually decides to construct a
commercial parking garage on the site, what happens to the title under this type of estate?
A. The title automatically reverts to the original grantor or their heirs.
B. The city council takes ownership through eminent domain automatically.
C. The property ownership remains completely unaffected by the change in use.
D. The state government seizes the land for public school expansion.
This scenario describes a fee simple determinable estate, characterized by limiting language
such as "so long as." Violation of the condition triggers an automatic reversion of title back to
the grantor or their successors.
,3. Which of the following physical and economic characteristics of land refers to the fact
that real estate cannot be moved from one geographic location to another?
A. Indestructibility
B. Scarcity
C. Immobility
D. Modification
Land is physically fixed in location, meaning its geographic site is permanent and immovable,
which heavily influences real estate value and market dynamics.
4. A buyer purchases a residential home and receives a general warranty deed at closing.
Which covenant in a general warranty deed guarantees that the grantor owns the property
and has the legal right to convey it?
A. Covenant of quiet enjoyment
B. Covenant of seisin
C. Covenant against encumbrances
D. Covenant of further assurances
The covenant of seisin is the grantor's assurance that they hold the fee simple title to the
property being conveyed and possess the legal capacity to transfer ownership.
5. An investor owns an apartment building with an annual gross scheduled income of
$120,000. Vacancy and collection losses are estimated at 5%, and annual operating
expenses total $42,000. What is the net operating income (NOI) of the property?
A. $78,000
B. $72,000
C. $69,000
D. $114,000
Effective gross income is calculated by subtracting vacancy losses ($120,000 \times 0.05 =
\$6,000$) from scheduled income, yielding $114,000. Subtracting operating expenses
($42,000) from effective gross income gives a net operating income of $69,000.
,6. A commercial real estate broker lists a warehouse for rent. A prospective tenant with a
physical disability asks for permission to install a wheelchair ramp at the tenant's own
expense. Under federal accessibility laws, how must the landlord respond?
A. The landlord can legally refuse any physical alterations to the commercial property.
B. The landlord must permit reasonable modifications necessary for full enjoyment,
provided the tenant agrees to restore the property to its original condition upon lease
expiration if required.
C. The landlord must pay for the construction of the ramp entirely out of building maintenance
reserves.
D. The tenant must buy the building before making any structural changes.
Under the Americans with Disabilities Act (ADA) and federal fair housing guidelines,
commercial and residential landlords must permit tenants to make reasonable modifications at
their own expense to ensure accessibility.
7. A real estate sales associate receives an earnest money deposit from a buyer on Friday
afternoon. According to standard Ohio brokerage practice and licensing rules, when must
the principal broker deposit the funds into the brokerage trust account?
A. Within 24 hours of receipt regardless of contract status
B. Promptly, typically within a specified timeframe following contract formation or as
outlined by brokerage policy and Ohio administrative rules
C. Exactly thirty days after closing escrow
D. At the sales associate's personal discretion whenever convenient
Ohio real estate law and commission rules mandate that earnest money trust funds must be
deposited into the brokerage's designated trust or escrow account promptly following final
acceptance of the contract.
8. What type of mortgage loan requires the borrower to make regular periodic payments
that cover both interest accrued and a portion of the principal balance, resulting in a zero
balance at the end of the loan term?
A. A term (straight) loan
B. A fully amortized loan
C. A negative amortization loan
, D. A shared appreciation loan
A fully amortized loan systematically liquidates the debt through regular level payments that
cover interest and chip away at the principal until the balance is fully paid off.
9. A local zoning board grants a property owner permission to build an addition that
violates current front setback requirements because enforcing the rule would cause an
unreasonable economic hardship due to an oddly shaped lot. What has been granted?
A. A nonconforming use permit
B. A zoning variance
C. A spot zoning designation
D. A deed restriction waiver
A zoning variance provides official relief from strict compliance with zoning ordinances when
enforcement imposes an undue practical hardship on a property owner due to unique site
conditions.
10. Which of the following federal consumer protection statutes requires lenders to provide
borrowers with a standardized Loan Estimate (LE) within three business days of receiving
a completed loan application?
A. The Sherman Antitrust Act
B. The Truth in Lending Act and RESPA integrated disclosures (TRID)
C. The Fair Credit Reporting Act
D. The Equal Credit Opportunity Act
The TRID rule combines disclosures under TILA and RESPA, requiring lenders to issue a
clear Loan Estimate within three business days to help consumers understand loan terms and
closing costs.
11. An appraiser estimating the market value of an older residential property calculates the
replacement cost of the structure, subtracts accrued depreciation, and adds the estimated
land value. Which appraisal method is being utilized?
A. Sales comparison approach
B. Income capitalization approach
C. Cost approach
