PSI Oklahoma Real Estate Practice Test Flashcards

PSI Oklahoma Real Estate Practice Test Flashcards A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should tell the seller that the buyer will pay more.A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when the seller accepts the offer.A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called an option contract.A major difference between freehold and nonfreehold estates is that all freehold estates are of indeterminable duration.At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?Debit seller $300; credit buyer $300.During the listing presentation, the seller questions the amount of commission to be paid and is told the amount of commission is negotiable.If an older building cannot be air-conditioned, it is an example of functional obsolescence.An investment property returns 12% of its value or $21,000 annually. What is the value of the property?

$175,000

When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should have short deadlines.Which of the following real estate contracts is a service contract?a listing agreement When preparing a market data estimate of value, which of the following categories of adjustment is NOT essential?The original cost of the building.Antitrust laws prohibit competing brokers from all of the following EXCEPT receiving compensation from both the buyer and the seller.A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should tell the seller to disclose the termite treatment on the property disclosure.Three people buy a house as tenants in common.Subsequently, two of the owners want to sell, but the third discourages each potential purchaser. The two owners who wish to sell the house can file an action for partition against the third owner.

MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller name(s) and social security number(s) and the sale price An Environmental Impact Statement (EIS)projects the impact on the environment of a proposed project.Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT indemnification.Davis, Hernandez, and Moore are vested as tenants in common on a parcel of land. Each received a pro-rata undivided interest in the parcel. The total price was $120,000. Davis put up 40% and Hernandez put up $22,500. What percentage does Moore own (to the nearest tenth of a percent)?

41.2% A salesperson in a branch office is sued for damages by a buyer after the salesperson misrepresents a property. Who has the ultimate responsibility for the salesperson's actions?the supervising broker To be valid, every deed mustbe executed by the grantor.In the sale of property, there is often confusion over whether an item is a fixture or personal property. What is the best way to avoid this confusion?Specify questionable items of property in the written sales contract.A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as steering.The FHA functions MOST likean insurance company.In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT more variety of loan programs available.A seller's statement in a property disclosure document means the owner is disclosing known latent defects.A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable?The seller is heavily under the influence of alcohol at the time of signing.Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which

of the following is TRUE?Both contracts are valid.Even after an offer has been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?The buyer finds a better property for better terms.

MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller name(s) and social security number(s) and the sale price.To what party or parties does the broker owe the fiduciary duty of care?the party or parties employing the broker An agency relationship between a property owner and a property manager is usually created by a management agreement.A deed restriction is applicable to the activities ofpresent and future owners.A prospective buyer made an offer to purchase a property.The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if the owner withdraws the counteroffer before it is accepted.Earnest money should be deposited into a trust accountin a timely manner, according to state laws.An owner hired a construction company to build a swimming pool at a new home. The owner failed to pay the bill once the work was completed and the construction company filed a lien to obtain payment of the debt. The encumbrance created is called a mechanic's lien.While an agent is showing a listed property, the seller and the buyer enter into an oral agreement for the purchase of the home. If a dispute over the terms arises later, the agreement may be unenforceable because the agreement does not comply with the Statute of Frauds.A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes cash flow or income over the maintenance of value?An individual entrepreneur who owns several apartment buildings.When a principal authorizes an agent to perform a particular act or transaction, it is an example of a special agency.A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision.The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with the builder.The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, require the buyer to acknowledge disclosure of the presence of any known lead paint.A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the listing broker at the other company?Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer.