OHIO REAL ESTATE 2025 EXAM PRACTICE QUESTIONS WITH CORRECT DETAILED ANSWERS ALREADY GRADED A+ < LATEST VERSION >

OHIO REAL ESTATE 2025 EXAM PRACTICE QUESTIONS WITH CORRECT DETAILED ANSWERS ALREADY GRADED A+ &lt; LATEST VERSION &gt; 1. 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 : No, the consumer must file a lawsuit, get a final judgment, and attempt to collect 2. 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 : agency 3. According to the Statute of Frauds, what does NOT have to be in writing? - ANSWER : listing agreement 4. Mary has been working with her buyer client for several months when the buyer finally finds a property of interest. Mary shows the property and writes the offer, then calls the listing agent and leaves a message to be called back. Several hours later Mary still has not heard from the listing agent. Finally, Mary calls the seller directly to present the offer. The seller accepts the offer. What is the problem, if any? - ANSWER CORRECT ANSWER: Mary cannot negotiate directly with the owner 5. If the loan value is 80%, and the property is appraised at $86,500 and sold for $88,000, how much would the purchaser be permitted to borrow? - ANSWER The loan value is based on the appraised value, not the sale price. The appraised value is $86,500 and 80% of that amount is $69,200. This would be the maximum the purchaser would be permitted to borrow. 6. A property is appraised at $150,000 and assessed for tax purposes at 35% of value. Calculate the semi-annual tax bill if the mills total is 80. - ANSWER CORRECT ANSWER: $2,100 Don't forget to divide the answer by two as a final step 7. At your listing appointment, your seller asks you if you will always represent her. She mentions she has heard about this "dual thing" regarding real estate agents. Your response is - ANSWER CORRECT ANSWER: "Yes Dual agency is nothing to be afraid of, but you should be aware of its downsides" 8. The power to set continuing education standards is vested with - ANSWER CORRECT ANSWER: the Ohio Real Estate Commission The Ohio Real Estate Commission is vested with the power to set licensing exam standards and continuing education standards. The Superintendent reports to the Commission, and is charged with administering license laws. 9. Agent Brenda took out a quarter page ad in the local newspaper. In the ad, Agent Brenda's name was the same size as the broker's logo. What will be the likely outcome for Brenda? - ANSWER CORRECT ANSWER: agent Brenda will have no consequences The law states that the broker's name must be equal or greater in prominence. 10. Broker Dan decides to save the costs of overhead by increasing the share of commissions his salespersons receive. He also decides to close down the office and have his agents work from home. Which of the following best describes the situation? - ANSWER CORRECT ANSWER: Broker Dan has violated license law O.R.C. 4735.55(A) requires a broker to maintain a definite place of business with a sign indicating it as such outside of the building. 11. An association applying for a real estate license has three members, one of whom is licensed as a real estate broker. The association must submit what document concerning the unlicensed members in order to be issued a real estate license in the association's name? - ANSWER CORRECT ANSWER: an affidavit stating the members will not Act as real estate brokers for the association 12. In anticipation of a property selling at sheriff's sale to the loan servicing company, Eric, a salesperson from Happy Days Realty, planted his sign in the yard and held an open house for a few hours one Sunday. The following Monday, Eric showed the property to another buyer. What other ways can Eric market the property? - ANSWER CORRECT ANSWER: Eric cannot market the property without the consent of the owner Until the sale is confirmed, the loan servicing company cannot list with any broker and Eric does not have a valid listing. 13. Agent Andy was so excited to be writing and presenting his first offer to the seller and listing agent that he forgot to make the offer contingent on the sale of the buyer's current residence. After an investigation and disciplinary hearing, all of the following could happen EXCEPT - ANSWER CORRECT ANSWER: six months probation There are a number of disciplinary actions that can be taken against a licensee ranging from a simple reprimand to permanent revocation of license. Criminal actions would only take place after indictment and prosecution. 14. Agent Arthur showed a property to a buyer who wanted to make an offer. Before Agent Arthur set up the appointment to meet the buyer to execute documents, he got into a heated argument with his broker and decided to leave the brokerage to go to a new one. The day after he signs on with a different broker, Agent Arthur writes the offer with the buyer and presents the offer on behalf of his new broker. The seller accepts the offer. Which of the following choices best describes the situation? - ANSWER CORRECT ANSWER: agent arthur may get punished Since a salesperson can only transact real estate business on behalf of a broker, Agent Arthur may be punished for withholding the broker's client from him. ORC 4735.18 (18) 15. Identify the agency relationship formed when a listing salesperson receives a telephone call from a prospective purchaser, shows the listed property to the prospective customer, helps the prospective purchaser write an offer to purchase, and then delivers the offer to the seller/client? - ANSWER CORRECT ANSWER: With timely agency disclosure, assisting a customer does not form an agency relationship 16. A wife and husband may not hold title to their home as - ANSWER CORRECT ANSWER: tenants at will Tenancy at will is a leasehold estate. 17. What best describes personal property transformed into real property? - ANSWER CORRECT ANSWER: actual annexation Constructive annexation occurs when property is so closely related to real property that the law treats it as such, even though it is not physically attached. The fixture is the item that was transformed. Actual annexation is a physical attachment of personal property to land. Trade fixtures are equipment a tenant can remove and, thus, not real property. 18. RESPA does NOT - ANSWER CORRECT ANSWER: allow lenders to charge undisclosed fees 19. If a loan amount is $160,000 and the borrower is paying two points, and the rate of interest is 6%, and the loan will be amortized for 30 years, how much will the monthly payment be if the annual taxes are $6,400 and the insurance is $850 per year? - ANSWER CORRECT ANSWER: $1564 RATIONALE Using the amortization chart a factor of 6 is what you would take 160 x 6 = 960 + 1/12th of the taxes $533.33 = 1/12th of the insurance $70.83 = $1564. 20. Chris agreed to pay 2% per transaction for broker fees out of each commission earned. What is the brokers share of a commission when Chris sells a property for $280,000 at a rate of 3.5% and Chris receives 50% of the commission? - ANSWER CORRECT ANSWER: $4802 RATIONALE 280,000 x 3.5% = 9800 total commission on the sale 9800 - 2% Transaction fee = 9604.00 9604.00 divided by 2 or 50% split = 4802.00 21. What is the body of law that governs negotiable instruments? - ANSWER CORRECT ANSWER: Uniform Commercial Code The Uniform Commercial Code sets out certain requirements for negotiable instruments in order to be transferrable to the secondary market, for example. 22. An agent's duties to all customers include - ANSWER CORRECT ANSWER: good faith and fair dealing 23. A prospective buyer who has previously always lived in the city is looking at a rural property with a real estate agent. The buyer admits that she doesn't know anything about rural properties. The buyer likes the back yard because it is very large but remarks that a small patch of the yard seems to grow more, and much healthier, grass than any other part of the yard. The agent should recommend a - ANSWER CORRECT ANSWER: well and septic inspection The lush grass just in one spot of the yard should be a red flag to the real estate agent. If the septic tank leaks or is overfull, it causes fertile spots on the lawn. The agent cannot determine why the grass is much greener, which is why he should recommend a well and septic inspection. 24. Emily had signed a one-year lease, but after living in the apartment for three months, she transferred her right of possession for the remainder of the lease to her friend. Which type of arrangement does Emily have with her friend? - ANSWER CORRECT ANSWER: assignment A gross lease describes the arrangement between landlord and tenant. In a sublease the tenant will regain possession before the tenancy ends. A novation would require the consent of the landlord and the withdrawing tenant would be relieved of liability. In an assignment the tenant will not regain possession of the lease before it ends. 25. A counteroffer constitutes a - ANSWER : change RATIONALE A counteroffer is a rejection of, and changes to, the original offer. An offer must be accepted in total without any changes. Any change constitutes a rejection and counteroffer. There is no contract at all; thus there is no voidable or void contract. "Void" means a contract never existed, while "voidable" means capable of becoming void at a later date. 26. A person discriminated against under the Civil Rights Act of 1866 must file a lawsuit in what court? - ANSWER CORRECT ANSWER: federal district court RATIONALE The federal district court is the only court with jurisdiction over the Civil Rights Act of 1866.