Ohio Real Estate Exam Practice Questions & Answers 2023-24
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-CORRECT ANSWER: No, the consumer must file a lawsuit, get a final judgment, and attempt to collect
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-CORRECT ANSWER: agency
According to the Statute of Frauds, what does NOT have to be in writing? - ANSWER-CORRECT ANSWER: listing agreement
If a third party maintains a website for a licensee, places information on the website on behalf of the licensee, and that information becomes outdated or expired, how soon must it be updated or removed? - ANSWER-CORRECT ANSWER: Outdated and expired information must be updated or removed within two weeks
After issuing a bad check, the Division requires the licensee to send certified funds for all subsequent payments for a period of - ANSWER-CORRECT ANSWER: 5 years
How much will a licensee be fined for paying fees to the state with a bad check? - ANSWER-CORRECT ANSWER: $100
Once a salesperson is affiliated with a broker, what are the steps to be taken to associate with another broker? - ANSWER-CORRECT ANSWER: the salesperson must submit an application to the Superintendent
What statement regarding condominium ownership is correct? - ANSWER-CORRECT ANSWER: A unit owner may devise the property Julie is the new owner of a house and decides to remove the carpet. After doing so, she discovers there is significant pet damage to the hardwood floor beneath the carpet. Julie cuts most of the center of the floor out and replaces it with subfloor. Julie then places a Persian rug over the subfloor. When Julie sells, can she remove the Persian rug? - ANSWER-CORRECT ANSWER: No, anything that covers subflooring becomes real property
How would a developer/builder typically finance a development? - ANSWER-CORRECT ANSWER: blanket
For a conventional loan, how much of a borrower's income can be used to service debt? - ANSWER-
CORRECT ANSWER: 36%
What document uses legal title to real property to secure debt? - ANSWER-CORRECT ANSWER: mortgage
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? - ANSWER-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 - ANSWER-CORRECT ANSWER: mitigate damages
What would be considered evidence of the agency relationship between broker and buyer? - ANSWER-
CORRECT ANSWER: buyer-broker contract
Harvey enters into a lease where he must pay 30 percent of the landlord's expenses. Which type of lease
did Harvey sign? - ANSWER-CORRECT ANSWER: net lease
Which statement regarding RESPA is TRUE? - ANSWER-RESPA eliminates kickbacks and other referral fees, prohibits lenders from requiring excessive escrow account deposits, and provides accurate and timely information about the actual cost of buying or selling a home. A wealthy business man whishes to change his last will and testament to exclude a relative who recently died. Which document will the testator use to make the change? - ANSWER-CORRECT ANSWER: codicil
RATIONALE
An addendum would signify a change in the terms of a contract. A certificate of transfer is the instrument used to convey title to a devise. A transfer on death deed transfers title of a decedent's property upon death. A codicil is used to change a last will and testament.
When a broker received an unexpected bill, he deposited a client's earnest money check into his personal account to cover the expense. This best describes - ANSWER-CORRECT ANSWER: conversion
A real estate agent has written an offer in which Luke, the buyer, asked the sellers to pay his half of the escrow fee and his three points. The sellers accepted $135,000 for the home and Luke is going to put $40,000 down. How much will the Luke pay for his points? - ANSWER-CORRECT ANSWER: $0
RATIONALE
Read carefully: The sellers, not the buyer, are paying the points. For the math practice, the formula is: Loan Amount ($95,000) x number of points ($95,000 x 0.03) = Total Amount paid for points ($2,850). Remember, one point equals 1% or 0.01.
The buyer asks for information about the property. Their agent telephones you for that information, but submits an offer before you have time to respond to the call. What do you do with the offer and the information request? - ANSWER-CORRECT ANSWER: Respond to the offer and the information request in
writing as soon as possible
The fee to amend a license to practice real estate is - ANSWER-CORRECT ANSWER: $34
What is the fee to transfer a real estate salesperson's license from one brokerage to another? - ANSWER-
CORRECT ANSWER: $34
The fee to apply for a real estate broker license is - ANSWER-CORRECT ANSWER: $135
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-CORRECT ANSWER: No, the consumer must file a lawsuit, get a final judgment, and attempt to collect
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-CORRECT ANSWER: agency
According to the Statute of Frauds, what does NOT have to be in writing? - ANSWER-CORRECT ANSWER: listing agreement
If a third party maintains a website for a licensee, places information on the website on behalf of the licensee, and that information becomes outdated or expired, how soon must it be updated or removed? - ANSWER-CORRECT ANSWER: Outdated and expired information must be updated or removed within two weeks
After issuing a bad check, the Division requires the licensee to send certified funds for all subsequent payments for a period of - ANSWER-CORRECT ANSWER: 5 years
How much will a licensee be fined for paying fees to the state with a bad check? - ANSWER-CORRECT ANSWER: $100
Once a salesperson is affiliated with a broker, what are the steps to be taken to associate with another broker? - ANSWER-CORRECT ANSWER: the salesperson must submit an application to the Superintendent
What statement regarding condominium ownership is correct? - ANSWER-CORRECT ANSWER: A unit owner may devise the property Julie is the new owner of a house and decides to remove the carpet. After doing so, she discovers there is significant pet damage to the hardwood floor beneath the carpet. Julie cuts most of the center of the floor out and replaces it with subfloor. Julie then places a Persian rug over the subfloor. When Julie sells, can she remove the Persian rug? - ANSWER-CORRECT ANSWER: No, anything that covers subflooring becomes real property
How would a developer/builder typically finance a development? - ANSWER-CORRECT ANSWER: blanket
For a conventional loan, how much of a borrower's income can be used to service debt? - ANSWER-
CORRECT ANSWER: 36%
What document uses legal title to real property to secure debt? - ANSWER-CORRECT ANSWER: mortgage
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? - ANSWER-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 - ANSWER-CORRECT ANSWER: mitigate damages
What would be considered evidence of the agency relationship between broker and buyer? - ANSWER-
CORRECT ANSWER: buyer-broker contract
Harvey enters into a lease where he must pay 30 percent of the landlord's expenses. Which type of lease
did Harvey sign? - ANSWER-CORRECT ANSWER: net lease
Which statement regarding RESPA is TRUE? - ANSWER-RESPA eliminates kickbacks and other referral fees, prohibits lenders from requiring excessive escrow account deposits, and provides accurate and timely information about the actual cost of buying or selling a home. A wealthy business man whishes to change his last will and testament to exclude a relative who recently died. Which document will the testator use to make the change? - ANSWER-CORRECT ANSWER: codicil
RATIONALE
An addendum would signify a change in the terms of a contract. A certificate of transfer is the instrument used to convey title to a devise. A transfer on death deed transfers title of a decedent's property upon death. A codicil is used to change a last will and testament.
When a broker received an unexpected bill, he deposited a client's earnest money check into his personal account to cover the expense. This best describes - ANSWER-CORRECT ANSWER: conversion
A real estate agent has written an offer in which Luke, the buyer, asked the sellers to pay his half of the escrow fee and his three points. The sellers accepted $135,000 for the home and Luke is going to put $40,000 down. How much will the Luke pay for his points? - ANSWER-CORRECT ANSWER: $0
RATIONALE
Read carefully: The sellers, not the buyer, are paying the points. For the math practice, the formula is: Loan Amount ($95,000) x number of points ($95,000 x 0.03) = Total Amount paid for points ($2,850). Remember, one point equals 1% or 0.01.
The buyer asks for information about the property. Their agent telephones you for that information, but submits an offer before you have time to respond to the call. What do you do with the offer and the information request? - ANSWER-CORRECT ANSWER: Respond to the offer and the information request in
writing as soon as possible
The fee to amend a license to practice real estate is - ANSWER-CORRECT ANSWER: $34
What is the fee to transfer a real estate salesperson's license from one brokerage to another? - ANSWER-
CORRECT ANSWER: $34
The fee to apply for a real estate broker license is - ANSWER-CORRECT ANSWER: $135
