OKLAHOMA REAL ESTATE LATEST QUESTIONS WITH 100% CORRECT ANSWERS

: According to the common law of agency, a licensee has which of the following obligations to an individual that prefers to remain a customer rather than become a client? - Answer-HONESTY AND FAIR DEALING "Without both parties' written consent, the broker is prohibited from representing both a seller and a buyer in the same transaction," defines: - Answer-DUAL AGENCY 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 - Answer-COST APPROACH (REPLACEMENT) 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%? - Answer-4,000 * 41% = 1,640 1,640 - 600 = 1,040 A broker and sales person agree to a 40-60 commission split. This commission rate is a result of - AnswerNEGOTIATION BETWEEN THE BROKER AND SALES PERSON 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 - AnswerCOMMERCIAL MORTGAGE A BUYER - BROKER AGREEMENT IS MOST LIKELY TO CREATE WHAT TYPE OF AGENCY RELATIONSHIP - Answer-BUYERS AGENCY 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? - Answer-90,000 X .08 = 7,200 (INT PER YEAR) 7,200/12 = 600 INT PER FIRST MONTH 745-600= 145 PRINCIPALA 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? - Answer-BUYERS DEFAULT A CONVEYANCE INSTRUMENT WHICH limits any WARRANTIES made to those defects which arose during the time the grantor owned the property being conveyed IS - Answer-A special warranty deed A couple with a modest combined income and strong employment history is having difficulty qualifying for a conventional loan to purchase a home due to their income and limited cash. Which of the following sources of real estate funding is MOST likely to meet their needs? - Answer-FHA LOW DOWN PAYMENT A developer approaches a municipality with a plan to purchase an available lot in a growing neighborhood if they will allow it to be used for a combination laundry and convenience store. Which of the following characteristics of value is MOST apparent in this developer's plan? - Answer-UTILITY USEFULNESS, DESIRE FOR POSSESSION A fusion of land use laws and local land use objectives and strategies. - Answer-DESCRIBES A "MASTER PLAN" A HOMEOWNER WITHOUT ANY LIENS ON THE PROPERTY ARRANGES FOR A LOAN THAT PROVIDES A SERIES OF SMALL MONTHLY PAYMENTS TO THE OWNER RATHER THAN A SINGLE LARGE PAYMENT THAT MUST BE PAID BACK IN INSTALLMENTS - Answer-REVERSE ANNUITY A husband and wife own a piece of property that measures 1 mile by 1 mile. The couple owns how many acres - Answer-640 ACRES A SECTION IS 1 MILE BY 1 MILE WHICH EQUALS 640 ACRES A landlord agrees to pay a broker for procuring a tenant unless someone else finds the tenant first. This is an example of a(n) - Answer-OPEN LISTING A lender is MOST likely to require a borrower to pay for private mortgage insurance in which of the following situations? - Answer-The loan amount is for 90% of the property's valueA licensed real estate associate may receive a commission from a broker other than their sponsoring broker under which of the following conditions? - Answer-UNDER NO CIRCUMSTANCES A licensee takes an "as-is" listing on a residential property downhill from an abandoned industrial site. The licensee finds a buyer for the property who discovers after closing that residual industrial waste has been leaching into the house's water supply for several years. In this situation, which of the following parties is MOST likely to have liability for the expense of correcting this problem - Answer-SELLER AND SELLERS AGENT A LOT 75FT BY 145FT IS WHAT PART OF AN ACRE? - Answer-75*145=10,875 10,875 / 43,560 =.25 1/4 ACRE A person is not required to hold a real estate license to - Answer-AN INVESTOR SEARCHING FOR A PROPERTY TO BUY BECAUSE THE INVESTOR IS NOT ACTING ON BEHALF OF ANOTHER PARTY 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) - Answer-CONTRACT FOR DEED - OPTION TO PURCHASE A person who owns a house in SEVERALTY dies intestate. This person's spouse has also passed away, and one of their three children ran away from home and has not been heard from in over twenty years. Which of the following statements about the transfer of this property is CORRECT? - Answer-PASSES TO HIS HEIRS SEVERALTY = POSSESSION BY ONE PERSON, SOLE OWNER 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? - Answer- $15,000 180,000+7,000+18,000=205,000 (TOTAL EXPENSES) 220,000 - 180,000= 15,000A property deed indicates that the easternmost boundary includes a fifteen-foot right of way allowing owners farther from the main road the right to cross the property. The property across which the others are allowed to pass is known as a - Answer-SERVIENT TENANT A property has a net income of $50,000, interest payments of $35,000, principal payments of $3,000, and annual cost recovery of $7,000. The property's tax rate is 28%. What is the property's annual tax on income? - Answer-TOTAL EXPENSES = 35,000+7,000 = 42,000 50,000-42,000=8,000 8,000*28% = 2,240 A property owner built a house on a 7,500 square foot lot several years prior to the enactment of new zoning that requires at least 20,000 square feet for residential properties in that area. A CORRECT statement about this situation is that the - Answer-THE HOUSE WILL BE 'GRANDFATHERED" AND ALLOWED TO REMAIN 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 - Answer-ASSEMBLAGE A property owner clears brush along a property line that borders an unimproved, wooded lot and puts a fence three feet inside the neighboring property. This fence is an example of - Answer-ENCROACHMENT A property owner in a development is required to have a shake roof. This requirement is most likely to come from - Answer-DEED RESTRICTIONS OR CONDITIONS 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? - Answer-122,500 X 85% = 104,125 127,800 - 104,125 = 23,675 23,675 - 5,000 = 18,675 A Provisional Real Estate license shall be issued a term of - Answer-1 YEARA Realtor agrees by a "handshake" to sell the house of his former high school Chemistry teacher. The Realtor finds a Buyer who submits a full price offer with no provisions. The house sells, but the Seller refuses to pay a commission to the Realtor. What kind of contract does the Realtor have with the Seller? - Answer-UNENFORCEABLE A Realtor goes through the entire transaction with a Buyer without signing a contract to represent the Buyer. Is this legal; and if so, what type of agency exists? - Answer-YES IMPLIED AGENCY A Realtor had his license revoked by OREC on February 14, 2010. What is the earliest date the former licensee can apply for reissuance - Answer-FEBRUARY 14, 2013