Ohio Real Estate Exam Practice Questions Flashcards

Ohio Real Estate Exam Practice Questions Flashcards When must a buyer inspect the Closing Statement? CORRECT ANSWER: one business day before closing

The fee to amend a license to practice real estate isCORRECT ANSWER: $34

A property has been renting for $750 per month. Based on comparables, the GRM is 110. What is the indicated value of the property?

CORRECT ANSWER: $990,000The indicated value using

a GRM (Gross Rent Multiplier) is the (monthly rent x 12 (months)) x GRM. In this case, ($750 X 12) x 110 =

$990,000.

Which best describes a layer of clay or other impermeable material installed over the top of a closed landfill to prevent entry of rainwater and minimize leachate?

CORRECT ANSWER: capThe capillary fringe is the zone

above the water table within which the porous medium is saturated by water under less than atmospheric pressure.A capillary action is the movement of water through very small spaces due to molecular forces called capillary forces. A carbon absorber is an add-on control device that uses activated carbon to absorb volatile organic compounds from a gas stream. A cap is a layer of clay or other impermeable material installed over the top of a closed landfill to prevent entry of rainwater and minimize leachate.According to the Statute of Frauds, what does NOT have to be in writing?

CORRECT ANSWER: listing agreement

The phrase "right of survivorship" is closely associated with which type of co-ownership?

CORRECT ANSWER: joint tenancyThe right of

survivorship is one of the distinguishing characteristics of joint tenancy. As each successive joint tenant dies, the surviving joint tenants acquire the interest of the deceased joint tenant. A trust is a device with which one person transfers ownership of property to someone else to hold or manage for the benefit of a third party. A corporation is an artificial person or legal entity, created under the authority of the laws of the state from which it receives its charter.Tenancy in common refers to a parcel of real estate owned by two or more people--each of the owners holds an undivided fractional interest in the property without the right of survivorship.An owner of a property enters into a purchase money mortgage with a buyer whereby the buyer will make payments to the seller and the seller will continue making payments to the mortgagee. Which clause does the lender enforce when sending a notice to the seller that the loan is due and payable?

CORRECT ANSWER: alienationThe mortgage clause that

allows the lender to declare the loan due and payable in the event of a transfer is the alienation clause.Acceleration is the result of borrower default.Ben has been given revocable permission to hunt on his neighbor's land. Which does Ben have?

CORRECT ANSWER: licenseAn encroachment is an

object on someone else's land. A leasehold estate is how the law describes the landlord and tenant relationship. An

easement is a right to use another's property. A license is revocable permission to use another's property.

What should a salesperson do if a buyer-client, who happens to be an Hispanic American, instructs the agent to show him homes in areas where "other Hispanics" live?

CORRECT ANSWER: ask the client to specify areas of

interest John is a successful bidder at a sheriff's foreclosure sale.At the sale, he receives a certificate of sale, but does not know what it means. John's lawyer explains that

CORRECT ANSWER: he is entitled to a deed upon

confirmation of sale by the court, if the land is not redeemed by the original owner during the redemption period 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?

CORRECT ANSWER: $1564RATIONALEUsing 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.What approach to value would be most appropriate when appraising a vacant factory?

CORRECT ANSWER: cost approachUnusual structures,

where comparable properties are not readily available, are best appraised using the cost approach to value. If the structure was being rented, then the income approach would be best.An agent's duties to all customers include CORRECT ANSWER: good faith and fair dealing 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?

CORRECT ANSWER: Eric cannot market the property

without the consent of the ownerUntil the sale is confirmed, the loan servicing company cannot list with any broker and Eric does not have a valid listing.Building codes can be enforced byCORRECT ANSWER: the issuance of permitsBuilding codes set construction standards; building plans must comply with the code for a permit to be issued. Failure to comply with the permit may result in a stop order, fines, and/or injunctions. Zoning laws set forth permitted uses.Licenses allow certain activities. Letters of approval are not a method of enforcement.If seller Adam simply decides not to go through with the closing on a sale to buyer William, what can William do about it?

CORRECT ANSWER: Sue for specific performance and for

damagesA successful lawsuit for specific performance may compel Adam to perform his responsibilities under the contract, including transferring title to William. In addition, if William can prove other damages due to Adam's refusal to perform, William may also sue to recover those damages. If the contract was executed (completed), William would have obtained equitable title, and it would not matter that closing had not occurred.A buyer is about to make a written offer on a listing. The sales agent says that, under Ohio law, $1,000 in earnest money must accompany the offer. The sales agent is guilty of

CORRECT ANSWER: misrepresentationRATIONALEIn all

likelihood, the sales agent is guilty of misrepresentation.Even though many sales agents believe the law requires earnest money with all offers, this is not true. If the sales agent knew that such a law did not exist, then he would

have been lying, and guilty of fraud.