Oklahoma Broker Practice Exam

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• Under what condition can a seller cancel a listing agreement without legal liability?
• How should a listing agent respond when unrepresented buyers ask about ordering a property inspection?
• In which scenario is the doctrine of prior appropriation most likely to be followed?
• A company that leases a property to be used as a gambling casino will find the contract to be what due to state laws?
• What action should a broker take if the Annual Percentage Rate on a loan increases just before closing?
• What is the primary role of a broker when representing buyers in home transactions?
• What do local building codes aim to protect primarily?
• How can real property be converted into personal property?
• What legal document might be required to create specific use conditions for a property?
• What is the most critical information to obtain when a buyer is not going to close on a property?
• What is the most effective way for a broker to handle access to a property when buyers express urgency?
• Why might a licensee recommend a mortgage banker to a buyer with good credit and income documentation?
• Which of the following is NOT considered a violation of antitrust laws?
• If a borrower defaults and the mortgage includes an acceleration clause, what action can the lender take?
• In a unilateral contract, what is true about the obligations of the parties?
• What percentage of ownership does Moore have if the total price is $120,000, Davis contributes 40%, and Hernandez contributes $22,500?
• In a real estate transaction, what could be a betrayal of a salesperson's fiduciary duty?
• Which of the following are ordinances that specify construction standards?
• In which scenario does a buyer obtain a ready, willing, and able candidate for purchasing property?
• When purchasing a home with an adjustable-rate mortgage (ARM), how will the monthly payment be affected?
• A property owner directly benefits from which type of easement?
• According to the Truth-in-Lending Act, if any "trigger terms" are used in an advertisement, all of the following disclosures must be included EXCEPT?
• Which of the following is an example of discriminatory advertising under the Federal Fair Housing Law?
• In a gross lease, what does the tenant typically pay as part of their rent?
• Which of the following statements is TRUE regarding the situation where prospective buyers made an offer on a property but found another house they liked better?
• Which of the following is classified as a service contract in real estate?
• What does encapsulating asbestos mean in terms of property safety?
• How much additional money does a buyer need for a down payment if they saved $14,450 for a property appraised at $72,250 with an 80% loan-to-value ratio?
• A homeowner obtained the permanent right to pass over a neighbor's land to access a river. What is this legal right called?
• When is a formal appraisal ALWAYS required?
• What obligation does a licensee have to the seller when showing another company's listing?
• What action must real estate agents take concerning hazardous materials on a property?
• In a dual agency agreement, what is the traditional common-law agency duty that a licensee cannot fully perform?
• When does a seller release a buyer from an original offer?
• What is the status of a listing if hazardous chemicals are suspected on the property?
• At closing, what adjustment is made when a buyer assumes a mortgage that has been partially paid?
• If a borrower can afford $1,000 in monthly payments, what is the maximum loan amount for a 30-year mortgage at 5.5%?
• What will be the seller's credit for property taxes if they paid $960 annually and sell before March 1?
• What type of agency is formed when a principal authorizes an agent to perform a specific act?
• What must be displayed in a brokerage office to ensure compliance with equal housing opportunity laws?
• An example of a contract terminated due to inability to perform would be one in which what situation occurs?
• Which of the following is an exception to title insurance coverage?
• If a group of agents discusses their commission rates in a coffee shop, what potential violation could occur?
• Under CERCLA, who is liable for damages from hazardous waste dumping before a property sale?
• In an exclusive right-to-sell listing, how many brokers can the owner list the property with?
• What information must be reported to the IRS for closed real estate transactions?
• What role do civil rights laws play in real estate transactions?
• A legal easement may be created by all of the following EXCEPT:
• When preparing an Offer to Purchase, what is important for the broker to consider regarding contingencies?
• If a buyer has signed a counteroffer but then decides to make an offer on another property that is accepted, what is the status of the original counteroffer?
• What is a written agreement in which a purchaser agrees to buy and a seller agrees to sell referred to as?
• A lawsuit for inverse condemnation may be initiated by which of the following?
• What happens when a seller verbally seeks a price increase from a buyer after an offer is made?
• What should be documented properly when dealing with properties that have had prior asbestos issues?
• If potential buyers insist on writing an offer when their agent is unavailable, what must a broker consider?
• If a buyer is interested in a property, what action is a seller required to take if they want to negotiate a higher price?
• Which event would automatically cancel a listing agreement?
• During a listing presentation, what is stated regarding the amount of commission to be paid?
• What type of lien is created when a construction company is not paid for work done on a property?
• What is the focus for contingencies when a listing broker is preparing an Offer to Purchase?
• During a real estate transaction, what must the seller be informed about regarding the buyer's earnest money?
• What does an 80% loan-to-value ratio indicate in mortgage lending?
• How is an agency relationship between a property owner and a property manager generally established?
• What is required for a mentally disabled person to enter into a contract?
• What is a critical aspect of the property inspection process that licensees must convey?
• When can a person declared mentally incompetent by a judge enter into a contract?
• What is the term for the practice where a salesperson directs clients to specific neighborhoods based on their minority status?
• According to the principle of progression, a three-bedroom home will have a higher sales price if it is located in a neighborhood where?
• What is a potential limitation of a dual agency agreement?
• What should a broker do if they learn about a discriminatory practice involving property showings based on the buyer's nationality?
• How can real property be converted to personal property?
• In terms of real estate listings, how should a broker handle financing discussions with potential buyers?
• Which act requires disclosure of known lead paint in homes?
• What is the purpose of a counteroffer in a real estate transaction?
• Why is it important for a broker to provide accurate information about property taxes?
• If a listing expires and the property is listed with another broker, what should the first broker inform a potential showing agent?
• What should a broker do if they find old metal drums wired into the electrical system of a property they are showing?
• When should earnest money be deposited into a trust account?
• When has a broker earned their commission in MOST listing contracts?
• What principle explains why a couple's older home may increase in value due to surrounding commercial development?
• A disadvantage of a partially amortized or balloon payment loan for a buyer is?
• What could make a listing contract voidable?
• In terms of a purchase offer, what is the significance of including contingencies?
• If a property is listed with asbestos siding that has been encapsulated, what should the broker prioritize?
• If a seller takes the kitchen appliances after agreeing to include them in the sales contract, what recourse does the buyer have?
• What is a primary responsibility of a broker as an agent for a seller?
• What can lead a broker to a dual agency scenario?
• Which scenario describes a situation that can terminate a contract due to inability to perform?
• What action should a broker take if a buyer has a written agreement with another broker regarding the purchase of a home?
• What action would violate a buyer's representative salesperson's duty to their client?
• In a situation where Alex inherited property with Kent, what is true once Kent deeds the property to Alex?
• In which location is a parking lot likely to bring the highest sales price if all factors are equal?
• Which action must a broker take when a property is suspected to have hazardous substances?
• What is required of a broker when handling offers from clients who may be under an existing exclusive representation agreement?
• What could make a signed listing contract voidable?
• What type of leasehold does a tenant have if they signed a 15-month lease and continued to pay rent after it expired?
• What process do lenders typically use to calculate the maximum loan a borrower can afford based on monthly payments?
• What is typically required to establish a grocery store in a residentially zoned area?
• If a couple bought a rental house for $195,000 with an assessed value of $180,000, what is the monthly contribution required for taxes at a rate of $1.50 per $100?
• Did the salesperson act appropriately if they refused to show properties priced under $90,000 to a qualified couple?
• What must be filed to obtain a mechanic's lien?
• If conditions in a deed are violated, what is the most severe potential penalty?
• What is the purpose of “discount points” in a mortgage?
• For Federal income tax purposes, which costs of homeownership may be deducted from gross income?
• Under which circumstances is a subagency relationship most beneficial?
• How long does a typical home warranty provide coverage?
• If a buyer receives a counteroffer from the owner, under what condition can the owner accept a second, better offer?
• In a market where demand is constant, which of the three identical homes is likely to sell for the lowest price?
• What happens if a seller and buyer come to an agreement but the seller receives a better offer?
• What type of deposit is typically made by investors purchasing single family residences at low prices?
• What is a responsibility of a real estate agent when presented with an offer on a property?
• If a seller paid $1,140 in annual property tax on February 1 and sold the house on April 1, what will be the seller's credit for property taxes?
• What is the advantage of a Federal court hearing regarding damages in a Federal Fair Housing case?
• In a foreclosure auction, which statement is true regarding the second mortgagee's rights?
• What is the difference in monthly payments between a 15-year loan at 5% and a 30-year loan at 6% for a $140,000 mortgage?
• Which type of rights are automatically conveyed with property in many states?
• What should sellers provide to a prospective buyer who they want to accept an offer only if the price is increased by $5,000?
• Under what condition may a landlord legally refuse to rent to a prospective tenant?
• What is an essential item to check in a property condition disclosure when it comes to hazardous materials like asbestos?
• In the context of real estate, which entity typically benefits from a management agreement?
• What is the purpose of developing standardized policies in a real estate brokerage?
• In a triple net lease scenario, who is responsible for the yearly operating expenses?
• When does a seller typically receive the credit for property taxes already paid during a closing?
• What type of lease would BEST suit a couple who decided to rent temporarily while moving to a new city?
• What occurs to a contract for the sale of a home after it has been signed by both parties?
• Which party does an exclusive right to sell listing obtained by a broker associate belong to?
• Who is most likely responsible for paying for new sidewalks installed on one specific street?
• Depreciation in real estate is calculated based on which factor?
• If a tenant abandons premises due to its uninhabitability, what legal term describes this action?
• When a buyer assumes a mortgage at closing, how are the interest charges typically adjusted?
• What are the consequences of failing to comply with Fair Housing practices for a real estate agent?
• What must a broker do if they suspect unethical behavior in a transaction?
• To which policies must every licensee in a firm adhere to defend against discrimination accusations?
• If buyers express concern about their agent being unreachable, what should the broker reassure them about?
• To whom does a broker owe the fiduciary duty of care?
• Who does a realty firm represent when entering into an agreement to sell homes for a home builder?
• What should a broker include in the ‘Property Inspections’ section of a closing checklist?
• If property use conditions are violated, what could be the most severe penalty?
• Under what condition can a lender refuse a loan application even if the applicant’s income appears sufficient?
• After a foreclosure auction, what statement regarding the distribution of funds is FALSE?
• When hosting an open house, what is an appropriate first step if potential buyers indicate they have a buyer's agent?
• What is the formula to determine the ownership percentage for tenants in common?
• When can a buyer not legally compel a seller to complete a sale?
• Which of the following actions should a broker take if they detect a pronounced moldy odor in a new listing?
• Which type of interest is typically associated with an easement appurtenant?
• Which legal concept allows a property owner to pass property rights to heirs?
• When presenting an offer from a buyer who is a former college roommate, what should the broker do upon knowing the buyer may increase the offer?
• A contract that obliges sellers to convey title if buyers pay a certain amount by a specific date is called what?
• What do some Federal agencies, like FHA, require regarding the presence of lead paint in homes built before 1978?
• What does a broker suggest if they find a lot of mold in a residence?
• What is the principal duty of an agent representing a seller in a property transaction?
• What term describes the practice of steering minority clients away from certain properties?
• What doctrine is generally followed by states where water rights are controlled by the state?
• Which statement best defines a gross lease?
• How does an adjustable-rate mortgage (ARM) affect monthly loan payments?
• What is the significance of timely earnest money deposits?
• What should a broker do with deposit funds if sellers suggest the money be kept for future purchases?
• What type of lease would be most suitable for a couple renting temporarily while deciding where to live?
• What happens to a co-owner's undivided interest in a tenancy in common when they die?
• What is the primary use of a competitive market analysis?
• In which venue can a charge of violation of Federal Fair Housing laws be heard?
• When obtaining a fully amortized loan, what is typically a crucial factor in determining monthly payments?
• What happens to the original offer when a counteroffer is made?
• What can a buyer do if they relied on a broker’s false statement about property taxes?
• How much would Kevin recommend as the listing price for a property assessed at $575,000, considering a 9% rate of return?
• What is a key advantage of using a deed of trust for sellers lending part of the purchase price?
• What should buyers be cautious about when considering property inspections?
• What must sellers do as a protective measure when they lend part of the purchase price?
• What determines the duration of a home warranty's coverage?
• What type of listing allows a seller to pay commission to only one broker?
• In the context of real estate, what does the term "earnest money" signify?
• If a homeowner temporarily allows a neighbor to park an RV in their backyard, what type of permission is being granted?
• What should a broker do if a buyer wants to use a residential property for a day care center for seniors?
• In leasing, what does a month-to-month lease allow tenants to do?
• What action would violate a real estate salesperson's duties when representing only the buyer?
• Which type of zoning change allows a landowner to deviate from existing zoning laws?
• A deed restriction applies to the activities of which group?
• What legal requirement may render an oral agreement between a seller and a buyer unenforceable?
• Which situation typically results in a voided contract due to state law?
• What does antitrust law specifically prohibit competing brokers from doing?
• Which of the following best describes the concept of specific performance related to real estate transactions?
• A competitive market analysis primarily considers what aspect of a property?
• What does a broker consider when compiling a competitive market analysis?
• Who benefits from the fiduciary duties of loyalty and confidentiality in a real estate transaction?
• Which Federal law primarily regulates the advertisement of a lender's credit terms?
• The real estate agency relationship is best characterized as which of the following?
• What describes the relationship when a broker finances a project under the condition of exclusive sales rights?
• What should a broker do when a revised Loan Estimate shows an increased Annual Percentage Rate just days before closing?
• State laws may vary on a buyer's right to know about which of the following?
• In the context of a new home subdivision sale, with whom does a realty firm have an agency relationship?
• How should brokers act when dealing with properties that might contain hazardous materials?
• Who is ultimately responsible for a salesperson's actions in a branch office when a buyer sues for damages due to misrepresentation?
• For a deed to be valid, what is a necessary requirement?
• What does the FHA function most like?
• What is a consequence of a seller being under the influence during a contract signing?
• What is the typical outcome for a license granted to use property?
• What is another name for the Federal Truth-in-Lending laws?
• What is the primary role of a salesperson who lists a property with a contract allowing for subagency and dual agency?
• What should brokers ensure when dealing with buyers to avoid legal issues?
• What should a seller issue if they want to accept a purchase offer but only with a price increase?
• Which Federal law regulates the advertisement of a lender's credit terms?
• What significant change did the Supreme Court's decision in Jones vs. Mayer (1968) enact?
• Which of the following would NOT likely justify the need for a mutual release in a real estate transaction?
• A property manager focusing on cash flow is most likely preferred by which type of owner?
• Which aspect of a property transaction helps determine whether a buyer can be shown particular listings?
• What risk is associated with not recording a deed?