Ohio Real Estate COMPREHENSIVE TEST BANK
EXAM 2026/2027 COMPLETE ACCURATE REAL EXAM
QUESTIONS WITH WELL ELABORATED ANSWERS
AND RATIONALES (100% CORRECT VERIFIED
SOLUTIONS) GUARANTEED PASS A+|BRAND NEW!
Ben has been given revocable permission to hunt on his neighbor's
land. Which does Ben have?
CORRECT ANSWER: license
An encroachment is an object on someone else's land. A leasehold
estate is how the law describes the landlord and tenant relationship. An
easement is a right to use another's property. A license is revocable
permission to use another's property.
Building codes can be enforced by
CORRECT ANSWER: the issuance of permits
Building codes set construction standards; building plans must comply
with the code for a permit to be issued. Failure to comply with the
permit may result in a stop order, fines, and/or injunctions. Zoning laws
set forth permitted uses. Licenses allow certain activities. Letters of
approval are not a method of enforcement.
,What is the legal process by which potentially responsible parties who
contributed to contamination at a Superfund site can be required to
reimburse the trust fund for money spent during any clean up actions
by the federal government?
CORRECT ANSWER: cost recovery
The Core Program Cooperative Agreement is an assistance agreement
whereby the EPA transfers money, property, services, or anything of
value to a state for the accomplishment of authorized activities.
Corrective action is the EPA's requirement for treatment, storage, and
disposal facilities handling hazardous waste. A cost/benefit analysis is a
quantitative evaluation of the costs which would be incurred by
implementing an environmental regulation versus the overall benefits to
society of the proposed action. Cost recover is the legal process by
which potentially responsible parties who contributed to contamination
at a Superfund site can be required to reimburse the government for
any money spent during clean up.
A legatee is a person who receives
CORRECT ANSWER: money as a gift through a will
RATIONALE
A person who receives title to real property is a devisee. A person who
receives personal property (including jewelry) has received a bequest.
A legacy is money left to a legatee in a last will and testament.
,Local ordinance requires a 20-foot rear and front setback. The
ordinance also requires a 10-foot side set back. If the lot measures 100'
x 200' and a developer wants to build a three-story office building,
which is the maximum allowable square footage of the office building?
CORRECT ANSWER: 38,400 square feet
From the 100' frontage, subtract the 10' per side setback (100' - 20' =
80'). From the 200' depth, subtract the 20' rear and front setback (200' -
40' = 160'). 80 feet of frontage x 160 feed of depth = 12,800 square feet
allowed by local ordinance. Remember, the developer wants to build a
three-story building on the lot, so multiply that figure by three floors:
12,800 square feet x 3 stories = 38,400 square feet allowed by local
ordinance.
A buyer has obtained a mortgage in which the LTV is 95% of the first
$40,000 of the sale price and 90% of the remainder of the sale price.
What are the buyer's costs on a $185,000 sale if the lender charges a 2%
loan origination fee and 2 points?
There are several steps in calculating the answer to this question. First,
determine the amount by which the first $40,000 is reduced; $40,000 x
0.05 = $2,000 (100% - 95% = 5% not covered). Next, determine the
remainder of the loan; $185,000 - $40,000 = $145,000. Now, calculate
the amount by which the remaining $145,000 is reduced; $145,000 x 0.10
= $14,500 (100% - 90% = 10% not covered). Next, determine the amount
to apply toward the loan origination fee and discount points; $185,000 -
$2,000 - $14,500 = $168,500. Now, calculate the origination fee;
$168,500 x 0.02 = $3,370. Next, calculate the points charged; $168,500 x
0.02 = $3,370. Finally, add the origination fee and points together to
calculate the buyer's total cost; $3,370 + $3,370 = $6,740.
, 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
EXAM 2026/2027 COMPLETE ACCURATE REAL EXAM
QUESTIONS WITH WELL ELABORATED ANSWERS
AND RATIONALES (100% CORRECT VERIFIED
SOLUTIONS) GUARANTEED PASS A+|BRAND NEW!
Ben has been given revocable permission to hunt on his neighbor's
land. Which does Ben have?
CORRECT ANSWER: license
An encroachment is an object on someone else's land. A leasehold
estate is how the law describes the landlord and tenant relationship. An
easement is a right to use another's property. A license is revocable
permission to use another's property.
Building codes can be enforced by
CORRECT ANSWER: the issuance of permits
Building codes set construction standards; building plans must comply
with the code for a permit to be issued. Failure to comply with the
permit may result in a stop order, fines, and/or injunctions. Zoning laws
set forth permitted uses. Licenses allow certain activities. Letters of
approval are not a method of enforcement.
,What is the legal process by which potentially responsible parties who
contributed to contamination at a Superfund site can be required to
reimburse the trust fund for money spent during any clean up actions
by the federal government?
CORRECT ANSWER: cost recovery
The Core Program Cooperative Agreement is an assistance agreement
whereby the EPA transfers money, property, services, or anything of
value to a state for the accomplishment of authorized activities.
Corrective action is the EPA's requirement for treatment, storage, and
disposal facilities handling hazardous waste. A cost/benefit analysis is a
quantitative evaluation of the costs which would be incurred by
implementing an environmental regulation versus the overall benefits to
society of the proposed action. Cost recover is the legal process by
which potentially responsible parties who contributed to contamination
at a Superfund site can be required to reimburse the government for
any money spent during clean up.
A legatee is a person who receives
CORRECT ANSWER: money as a gift through a will
RATIONALE
A person who receives title to real property is a devisee. A person who
receives personal property (including jewelry) has received a bequest.
A legacy is money left to a legatee in a last will and testament.
,Local ordinance requires a 20-foot rear and front setback. The
ordinance also requires a 10-foot side set back. If the lot measures 100'
x 200' and a developer wants to build a three-story office building,
which is the maximum allowable square footage of the office building?
CORRECT ANSWER: 38,400 square feet
From the 100' frontage, subtract the 10' per side setback (100' - 20' =
80'). From the 200' depth, subtract the 20' rear and front setback (200' -
40' = 160'). 80 feet of frontage x 160 feed of depth = 12,800 square feet
allowed by local ordinance. Remember, the developer wants to build a
three-story building on the lot, so multiply that figure by three floors:
12,800 square feet x 3 stories = 38,400 square feet allowed by local
ordinance.
A buyer has obtained a mortgage in which the LTV is 95% of the first
$40,000 of the sale price and 90% of the remainder of the sale price.
What are the buyer's costs on a $185,000 sale if the lender charges a 2%
loan origination fee and 2 points?
There are several steps in calculating the answer to this question. First,
determine the amount by which the first $40,000 is reduced; $40,000 x
0.05 = $2,000 (100% - 95% = 5% not covered). Next, determine the
remainder of the loan; $185,000 - $40,000 = $145,000. Now, calculate
the amount by which the remaining $145,000 is reduced; $145,000 x 0.10
= $14,500 (100% - 90% = 10% not covered). Next, determine the amount
to apply toward the loan origination fee and discount points; $185,000 -
$2,000 - $14,500 = $168,500. Now, calculate the origination fee;
$168,500 x 0.02 = $3,370. Next, calculate the points charged; $168,500 x
0.02 = $3,370. Finally, add the origination fee and points together to
calculate the buyer's total cost; $3,370 + $3,370 = $6,740.
, 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
