OKLAHOMA REAL ESTATE EXAM PREP

.75 FOR EVERY $500 THEREFORE 40,635/500=81.27 81.25*.75=60.96 (ROUND UP) - answer-Sam Seller sold his duplex for the sum of $40,635 on an assumption type sale. When the transaction was closed, the mortgage assumed was $20,000. What was the cost of documentary tax stamps attached to the deed $15,000 180,000+7,000+18,000=205,000 (TOTAL EXPENSES) 220,000 - 180,000= 15,000 - answer-A principal residence is bought for $180,000. A new porch is added, costing $7,000. Five years later the home sells for $220,000, and the closing costs $18,000. What is the homeowner's capital gain? $2,000 - answer-What is the maximum administrative fine OREC may impose for a SINGLE violation 1 YEAR - answer-A Provisional Real Estate license shall be issued a term of 1 YEAR (365 DAYS) - answer-What is the time limitation for reporting alleged violations of the Federal Fair Housing Act and Amendments? 1% OF LOAN AMOUNT - answer-How much is a discount point? 1031 EXCHANGE - answer-This program permits investors to defer taxes 12,000/8% = 150,000 - answer-At a restaurant you overhear a Realtor bragging about the $12,000 commission on an 8% rate. You wonder for how much did the house sell 122,500 X 85% = 104,125 127,800 - 104,125 = 23,675 23,675 - 5,000 = 18,675 - answer-A PROSPECTIVE BUYER HAS OFFERED $127,800 FOR A CONDO THAT APPRAISES FOR $122,500 AND HAS MADE A DEPOSIT OF $5,000. IF THE BUYER ARRANGES A MORTGAGE FOR 85% OF THE APPRAISED VALUE AND ASKS THE OWNER FOR SELLER FINANCING ON THE DIFFERENCE HOW MUCH WILL THAT BE? 158,000 185,000*40%=74,000 DEPRE 185,000-74,000= 111,000 VALUE 111,000 + 47,000 LAND = 158,000 TOTAL VALUE - answer-An appraiser determines that a subject thirty-year-old residence has a replacement cost of $185,000 and is on a parcel of land worth $47,000. The structure's accrued depreciation from physical deterioration and functional obsolescence is estimated at approximately 40%. Given this information, which of the following BEST represents the property's value? 170*300=51,000 51,000 / 43650 = 1.17 1.17 ACRES - answer-You list a lot which is 170 feet by 300 feet. How many acres are in the lot 180 DAYS AFTER THE SELLER COMPLETES IT - answer-At what date is the Residential Property Condition Disclosure Statement no longer valid? 250,000 FOR SINGLE FILERS 500,000 FOR MARRIED FILING JOINT - answer-MAXIMUM AMOUNTS OF ANY PROFIT THAT WOULD BE EXEMPT FROM CAPITAL GAINS TAX IS 250,000*80%=200,000 200,000/1,000=200 200*27=5,400 ANNUAL 5,400/12=450 MONTHLY - answer-The $250,000 house is taxed at 80% Assessed Value. If the house is taxed at $27 per $1,000, what is the MONTHLY property tax? 30 DAYS - answer-With a Tenancy at Will, how many days notice is mandated to terminate the tenancy? 4,000 * 41% = 1,640 1,640 - 600 = 1,040 - answer-A borrower grosses $4,000 per month and pays $600 monthly for debt obligations. What monthly payment for housing expenses (principal, interest, taxes, insurance) can this person afford based on an FHA debt ratio of 41%? 5 WILL BE LICENSED REAL ESTATE BROKERS 1 WILL BE A LAY PERSON 1 WILL BE A MEMBER OF AN APPROVED REAL ESTATE SCHOOL - answer-MEMBERS OF REAL ESTATE COMMISSION SHALL BE MADE UP OF 5 YEARS - answer-Earl who is a real estate broker must keep records for a minimum 5,280 FT IN A MILE 43,560 SQ FT IN AN ACRE 1/4 ACRE = 5280/4 = 1320 FT 3/4 ACRE = 1320 X 3 = 3960 FT 3/4 BY 3/4 = 1320 X 1320 = 15,681,600 15,681,600/ 43,560 = 360 ACRES - answer-The advertisement said the land measured "3/4 of a mile by 3/4 of a mile." How may acres of land are for sale? 57,000 185,000*12%=22,200 (APPRECIATION) 185,000-150,000=35,000 (EQUITY) 22,200 + 35,000 = 57,000 TOTAL EQUITY - answer-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? 6% 7,200/120,000=.06 COMMISSION / SALE AMOUNT - answer-You sell your house for $120,000. The commission is $7,200. What is the commission rate? 640 ACRES A SECTION IS 1 MILE BY 1 MILE WHICH EQUALS 640 ACRES - answer-A husband and wife own a piece of property that measures 1 mile by 1 mile. The couple owns how many acres 7 - answer-THERE ARE HOW MANY MEMBERS ON THE REAL ESTATE COMMISSION 75*145=10,875 10,875 / 43,560 =.25 1/4 ACRE - answer-A LOT 75FT BY 145FT IS WHAT PART OF AN ACRE? 80 LOOK UP CALCULATIONS 4X4=16 640/16 =40 + 4X4=16 640/16=40 40+40=80 - answer-How many acres are in the SE 1/4 of SW1/4 & SW 1/4 of SE 1/4 of Sec 22 T11N, R2W 90,000 X .08 = 7,200 (INT PER YEAR) 7,200/12 = 600 INT PER FIRST MONTH 745-600= 145 PRINCIPAL - answer-A BUYER ARRANGES FOR A $90,000 MORTGAGE LOAN WITH AN ANNUAL INTEREST RATE OF 8% AND A FIXED MONTHLY PAYMENT OF $745. HOW MUCH OF THE PAYMENT WILL REPRESENT PRINCIPAL? 90% 250,000*10%=25,000 250,000-25,000=225,000 225,000/250,000=.90 LOAN AMOUNT / VALUE OF HOME - answer-The house sold for $250,000. The Buyer made a 10% down payment. What was the house Loan to Value Ratio? A CAR DEALERSHIP LOCATED DOWNWIND FROM A NEW HOG FARM - answer-AN EXAMPLE OF A PROPERTY SUFFERING FROM EXTERNAL (ECONOMIC) OBSOLESCENCE IS A DEFECT THAT WOULD AFFECT A BUYERS DECISION TO PURCHASE OR AFFECT THE PROPERTIES VALUE - answer-WHAT BEST DEFINES A MATERIAL DEFECT A HISTORY OF MAJOR CRIME ON THE SITE - answer-In the preparation of a competitive market analysis (CMA) or appraisal, which of the following situations is MOST likely to be interpreted as a stigmatizing property condition A mortgage that COVERS more than one piece of property - answer-Which of the following best describes a "Blanket Mortgage"? A SINGLE PARENT WITH AN INFANT CHILD - answer-UNDER FEDERAL FAIR HOUSING ACT REQUIREMENTS A PROPERTY MANAGER OF A RESIDENTIAL MULTI-UNIT PROPERTY MAY LEGALLY REFUSE TO APPROVE RENTING A UNIT IN A PROPERTY EXCLUSIVELY OCCUPIED BY PERSONS OVER 65 TO A special warranty deed - answer-A CONVEYANCE INSTRUMENT WHICH limits any WARRANTIES made to those defects which arose during the time the grantor owned the property being conveyed IS A STATEMENT FROM AN OWNER THAT HAS NEVER OCCUPIED THE PROPERTY - answer-What is a Residential Property Condition DISCLAIMER STATEMENT? A TENANT HAS LEFT A PROPERTY AFTER A LANDLORD HAS ALLOWED IT TO BECOME UNINHABITABLE - answer-AS USED IN PROPERTY MANAGEMENT THE TERM "CONSTRUCTIVE EVICTION" IS BEST UNDERSTOOD TO MEAN ACCELERATION - answer-Which of the following terms identifies the clause that allows a lender to call the entire remaining loan balance due in the event of buyer default? ACCOUNTABLE CARE / SKILL OBEY LEGAL INSTRUCTIONS LOYAL TO CLIENT DISCLOSE PERTINENT INFO - answer-The acronym ACOLD will help you remember your duties in a fiduciary relationship. AFTER 6 MONTHS - answer-When does a security deposit revert to the landlord in consideration if the former tenant has not made a written demand all trade names used in connection with real estate activities prior to the trade name being advertised or displayed in any way - answer-Each licensed broker or entity must register in writing to the Commission AMERICANS WITH DISABILITIES ACT (ADA) - answer-ACCESS RAMPS TO GOVERNMENT BUILDINGS, GRAB BARS IN PUBLIC REST ROOMS AND A ROW OF PAY PHONES WITH SEVERAL PLACED LOWER ARE EXAMPLES OF COMPLIANCE WITH WHAT FEDERAL LAW An appraisal is an unbiased or objective opinion of value supported by data and following approved methods or the most likely price that a probable buyer will pay for a property in an open market sale. - answer-Which of the following should an appraiser's estimate of market value reflect? an estate which allows the tenant to continue in possession and the landlord can terminate at his will. - answer-A tenancy at will is An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process. - answer-DEFINE APPRAISED VALUE AN INVESTOR SEARCHING FOR A PROPERTY TO BUY BECAUSE THE INVESTOR IS NOT ACTING ON BEHALF OF ANOTHER PARTY - answer-A person is not required to hold a real estate license to APPEALED IN DISTRICT COURT - answer-An OREC order becomes binding on all parties unless the Commission's ruling is ...? ASSEMBLAGE - answer-A property owner buys an adjacent parcel and combines it with the original parcel to create a property with a higher value than the total of the two separate property values. The operative principle of value in this situation is called AVULSION - answer-When land is torn from a bank by the action of a violent river it is called BAGGAGE OR OTHER PROPERTY BELONGING TO THE TENANT THAT MAY BE IN THE RENTAL UNIT - answer-Which of the following items could serve as a lien by the landlord against a tenant who has refused to pay rent? BALLOON - answer-Albert has a mortgage on his property. Ten years after he receives his mortgage, the note expires, and he pays a lump sum of the principal. What type of promissory note did Albert have? BARGAIN AND SALE DEED - answer-Which of the following deeds would be less restrictive to the seller? Be in writing to be enforceable. Explain: A lease for a period exceeding one year cannot be oral but must be in writing to be enforceable. - answer-IN ACCORDANCE WITH THE STATUTE OF FRAUDS A 5 YEAR LEASE MUST BEST VIEW OF THE MOUNTAINS IN TOWN - answer-PUFFING IS AN EXAGGERATION OF GOOD POINTS. AN EXAMPLE IS BRIDGE LOAN - answer-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? BROKERAGE SERVICE AGREEMENT - answer-What signed document changes a customer into a client BUNDLE OF RIGHTS - answer-The total collection of rights which may be claimed by private ownership is best described as: BUYERS AGENCY - answer-A BUYER - BROKER AGREEMENT IS MOST LIKELY TO CREATE WHAT TYPE OF AGENCY RELATIONSHIP BUYERS DEFAULT - answer-A Buyer had a contingency in a purchase contract to sell the Buyer's house in 120 days. On day 121, the Seller informed the Buyer the Seller would keep the Earnest Money but sell the house to another Buyer. What did the original Buyer violate? BY TYPE OF PROPERTY - RESIDENTIAL COMMERCIAL ETC - answer-Which of the following ways of specializing is common in the real estate brokerage business? can be adjusted to reasonbly match the subject property - answer-In appraisal, comparable properties are those which CAP RATE = NET ANNUAL OPERATING INCOME / VALUE - answer-CAP RATE FORMULA COMMERCIAL MORTGAGE - answer-A business buyer wants to acquire a business in its totality, including the business identity and all rights, obligations, liabilities, and assets. The type of transaction that would accomplish this aim is CONDUCT AN ANNUAL PERFORMANCE REVIEW OF THE EXECUTIVE DIRECTOR AND SUBMIT THE REPORT TO THE LEGISLATURE - answer-The Oklahoma Real Estate Commission shall CONSTRUCTIVE NOTICE - answer-The recording of an instrument gives: CONSTRUCTIVE NOTICE OF TRANSFER - answer-WHEN A DEED OR LIEN IS PLACE IN PUBLIC RECORDS IN ORDER TO MAKE THEM AVAILABLE TO ANYONE SEARCHING IS KNOWN AS CONTRACT FOR DEED - OPTION TO PURCHASE - answer-A person who has secured the right to purchase a property at a fixed price for a designated period of time and has paid a consideration for this privilege would own a(n) CONTRACT IS ASSIGNABLE UNLESS SPECIFICALLY STATED IN THE CONTRACT - answer-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 the 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 Zepeda. Zepeda decides to enact his option, Cathy can COST (REPLACEMENT) APPROACH - answer-The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the replacement cost of the building, less depreciation. COST APPROACH - answer-Add the estimated land value and cost of improvements and subtract the accrued depreciation of the improvements. THIS BEST DESCRIBES WHAT TYPE OF APPROACH TO APPRAISEL COST APPROACH - answer-Which of the following appraisal methods would be the MOST appropriate one to use in the valuation of a twenty-year-old post office? COST APPROACH (REPLACEMENT) - answer-A asked you to appraise their property. This property had no monthly income and had no comparables in the market. You would most likely use the CRACKED FOUNDATION - answer-Which of the following general property conditions is MOST likely to be categorized as material CREATES A PROPERTY LIEN AS SECURITY FOR THE NOTE WHICH GIVES THE DETAILS OF BOTH THE AMOUNT OF THE DEBT AND THE TERMS OF REPAYMENT - answer-THE BEST STATEMENT ABOUT THE RELATIONSHIP BE