OKLAHOMA REAL ESTATE - EXAM QUESTIONS & ANSWERS RATED 100% CORRECT

: 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? - 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: - 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 - 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%? - 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 - NEGOTIATION 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 - COMMERCIAL MORTGAGE A BUYER - BROKER AGREEMENT IS MOST LIKELY TO CREATE WHAT TYPE OF AGENCY RELATIONSHIP - 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? - 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? - 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 - 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? - 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? - UTILITY USEFULNESS, DESIRE FOR POSSESSION A fusion of land use laws and local land use objectives and strategies. - 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 - REVERSE ANNUITY A husband and wife own a piece of property that measures 1 mile by 1 mile. The couple owns how many acres - 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) - OPEN LISTINGA lender is MOST likely to require a borrower to pay for private mortgage insurance in which of the following situations? - The loan amount is for 90% of the property's value A licensed real estate associate may receive a commission from a broker other than their sponsoring broker under which of the following conditions? - UNDER NO CIRCUMSTANCES