welcome to the oklahoma real estate
practice exam
this test has 60 questions that will
help you prepare for your state exam
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and good luck
question 1 how much time is given to
pass the oklahoma salesperson exam a
two hours b three hours
c four hours d five hours
the correct answer is b three
hours candidates will be given 180
minutes or three hours
total includes state and national
portion to complete the examination
question two how many continuing
education hours are required
a 10 hours b 15
hours c 21 hours
d 25 hours the correct answer
is c 21 hours
complete 21 hours of certified real
estate continuing education courses
ce every renewal cycle question three
in order to obtain an oklahoma real
estate license you must have a high
school diploma
a true b false the correct answer is
be false you must have a good
moral character question four how often
must you renew your sales agent license
a every year b every two years
c every three years d every four years
the correct answer is c every three
years
as a real estate sales agent you must
renew your license every three years
a renewal notice will be sent out about
90 days before your expiration date
question 5 how old do you have to be in
oklahoma to obtain a real estate license
a 25 years old b 21 years old
c 20 years old d 18 years old
the correct answer is d 18 years old
you must be at least 18 years of age you
must be either a u.s citizen or a
lawfully admitted alien
meet trec's qualifications for honesty
trustworthiness and
integrity question 6 which of these is a
fixture
a refrigerator b microwave
c freestanding workbench d window
blinds the correct answer is
d window blinds
fixtures are articles of personal
property that are attached
screwed in etc and become real property
when window blinds are screwed into the
house they become part of the
improvement that is part of the real
property
question 7 a blank is a promise of real
property
kept by the lender to secure the loan a
deed b contract c
note d agreement the correct answer is
see note
the legal definition of a note as it
applies to real estate is a promise of
real property to secure a loan
while the complete term is promissory
note today's professional simply use the
term note
and you should know that it refers to
promissory note the word promise in the
question was a clue to the correct
answer
a mortgage is also a representation of
debt obligation that the borrower keeps
the lender gets the note question 8 all
of these are good examples of severance
except
a ripping up carpet b tearing down a
fence
c dividing a single room into two rooms
d removing a bathroom sink the correct
answer is
c dividing a single room into two rooms
severance is converting real property to
personal property
when it is removed it turns back into
personal property
question 9 which lien is required by law
to be paid first
a personal loan b construction lien
c home equity loan d delinquent property
taxes the correct answer is d
delinquent property taxes
government entities make sure they are
the first ones to get a crack at the
money when repayment becomes possible
question 10 which of these is not a type
of leasehold estate
a a state at will b a state for years
c a state at sufferance d a state in
perpetuity
the correct answer is d a state in
perpetuity
there is no such a state as a state in
perpetuity
all other answer choices are types of
leasehold estates
question 11 a buyer and seller agree to
wait until the seller's listing is
expired to make the sale
in order to avoid paying the broker his
share how can the broker get his
commission
a if the lending is expired the
commission is forfeited
b file an injunction with the title
company
c sue the party or parties the broker
was representing
d prove in court he was procuring cause
of sale
the correct answer is d prove in court
he was procuring cause of sale
a court will likely grant commission to
a real estate broker if he can prove he
was the procuring cause of sale
even if the listing has expired legally
this is referred to as a broker
protection clause
question 12. a contract can become
voidable if one of the parties was being
victimized because
a they were a minor b they were misled
c all of these d they did not agree
voluntarily
the correct answer is see all of these
all three provide legal cause for the
contract to be voided
question 13 which of the following is
not a requirement for a deed to be valid
a description of property b
recording in a county courthouse c
signature of grantor
d name of grantee the correct answer is
b recording in a county courthouse
although recording lets others know of
the deed's existence and is probably a
great idea
it is not required for a deed to be a
valid document
many lenders require that it be recorded
but recording is not required to make
the deed valid
question 14 an express contract is
a either written or oral b
exclusively in writing c closed faster
than a standard contract
d exclusively oral the correct answer is
a either written or oral
an express contract is created in words
either written or oral
the other answer choices are not true
question 15
a good example of an implied contract is
a an agent is told by a potential seller
that he'd like the agent to do a market
analysis
b a tenant staying despite not paying
rent
c after a written lease expires rent is
paid and the check
cashed d a tenant communicating that
they expect the full deposit back
because the landlord did not
ever note damage to the property the
correct answer is
c after a written lease expires rent is
paid and the check
cashed the owner shows through his
actions that the contract is still valid
even though it is now simply implied
question 16
which of the following is not true
regarding a contract of sale
a it must be signed by all parties b
it must be notarized c pre-printed
contracts are acceptable
d it is acceptable to refer to a
document that is in the public record
if the property description is very
complex the correct answer is
b it must be notarized
signatures on a contract of sale do not
have to be notarized
the other options are all true regarding
contracts of sale
pre-printed contracts are typically used
in residential transactions
and if something is not desired or not
applicable both parties need to initial
the alterations they make
question 17 deed restrictions and
easements on a property are considered
blank
when written into the deed a a
turnaround investment
b a consideration c a bad investment
d exceptions and reservations the
correct answer is
d exceptions and reservations
exceptions and reservations are
restrictions or limitations
explicitly described in the deed
question 18
in a real estate transaction the blank
is the current owner of the property and
is conveying his or her property to
someone else
a grantor b guarantor
c agent d landlord
the correct answer is a grantor
the grantor grants a piece of property
to the grantee to complete a transfer of
real estate
question 19. substituting a new
obligation for an existing one with the
intent to cancel the latter is called
a novation b latches
c assignment d execution
the correct answer is a novation
novation is when a new contract is used
to replace the initial contract
question 20 why are net listings
generally frowned upon in the real
estate industry
a the broker typically takes a smaller
than average commission
b all of these c they drive down the
prices of homes for sale
d they can lead to brokers taking
advantage of property owners
the correct answer is d that can lead to
brokers taking advantage of property
owners
in a net listing the seller names a
price they want for their property
and any amount above that sale price
goes to the broker
net listings are frowned upon in many
states and illegal in others
because they can lead to brokers not
acting in the best interest of the
seller
for example if a seller wanted one
hundred and fifty thousand dollars for
their home
and there was an offer for one hundred
and fifty two thousand dollars
in a net listing the broker may be
tempted to not accept the offer
because his commission on the sale would
be relatively small
question 21 a mortgage broker's primary
role is to
a sell mortgage loans b underwrite
mortgage loans
c bring borrowers and lenders together
d originate mortgage loans the correct
answer is
c bring borrowers and lenders together
the mortgage broker is an intermediary
and does not create
sell or underwrite loans which is the
job of the lender
question 22 mortgage lenders make their
money by
a all of these b charging loan
application fees
c charging loan origination fees
d charging annual loan servicing fees
the correct answer is a all of these
all three of these are common processing
and maintenance fees lenders charge
question 23 subprime loans are usually
an option for
a people with great credit who want to
remove any interest payment entirely
b people with subpar credit and come
with a lower interest rate
c people with great credit who get a
lower interest rate
d people with subpar credit and come
with a higher interest rate
the correct answer is d people with
subpar credit and come with a higher
interest rate
subprime loans carry a higher interest
rate because the bank or lender feels
they carry greater risk of full
repayment
question 24 most real estate loans deal
with simple interest
the formula for which is a rate times
monthly payment equals
annual interest b annual interest times
monthly payment equals rate
c rate times loan balance equals annual
interest
d none of these the correct answer is
c rate times loan balance equals annual
interest
the annual interest in a simple interest
setup is the balance of the loan
multiplied by the
interest rate note from our real estate
expert
when taking the real estate exam you may
need to choose from a group of answers
in which none of them is the answer you
might have in mind
when this happens find an answer that is
correct and choose that one
in this case you might have been
thinking that i equals prt
i equals principal times rate times time
and that would be correct
but it is not one of the choices be
ready for confusing questions like this
one
when you take this test question 25
which of these is a tool the federal
reserve can use to control or influence
monetary policy and supply
a setting the discount rate b
buying and selling securities on the
open market c
all of them d raising and lowering
reserve requirements for banks
the correct answer is see all of them
all three are used by the fed to
establish the monetary supply
question 26 what financial instrument is
given by a borrower to the lender as
promised to repay
a debt a a trust deed
b a lien c a mortgage d
a note the correct answer is d
a note a note or promissory note is
evidence of a debt that can be resold
question 27 a mortgage is a
a a promise to repay a debt b
written contract that allows a buyer to
own the home outright immediately
c written contract pledging real
property owned to secure a debt
d type of loan the correct answer is
c written contract pledging real
property owned to secure a debt
the mortgage along with the note are
given to the lender to obtain a loan
question 28 gradual liquidation through
periodic payments of principal and
interest is called
a a reverse annuity mortgage b
an amortized loan c a heloc
h-e-l-o-c d a take-out loan
the correct answer is b
an amortized loan amortized loans are
the norm in most residential real estate
and gradually lower the owed amount
through monthly payments to principal
and interest
question 29 how does an arm
arm mortgage differ from a fixed rate
mortgage
a the fixed rate will always be the most
fiscally smart choice
b arm stands for adjustable rate
mortgage
whose rate may vary with changes in
interest rates c
there is no difference d upon default
the borrower must give up his or her
left or right arm
the correct answer is b arm stands for
adjustable rate mortgage whose rate may
vary with changes in interest rates
fixed rate mortgages are locked in at
the same rate for the life of the loan
while arm mortgages have a rate that can
float or ride
market rates question 30 a foreclosure
sale is
a an auction sale to the highest bidder
b preceded by statutory right of
redemption period
c no different from strict foreclosure
d a notice of default the correct answer
is
a an auction sale to the highest bidder
a foreclosure sale occurs when the owner
cannot sell the property via short sale
if it doesn't sell in a foreclosure
auction it becomes property of the
lending institution
question 31 when the agent and the
principal agree that the agent will
represent the principal
it is called a express agency
b implied agency c principal
agency d representative agency
the correct answer is a express
agency with express agency
both the agent and principal must come
to a verbal or written agreement
about representation question 32
when the agent and the principal have
not officially agreed that the agent
will represent the buyer
but their actions imply this it is
called a
implied agency b alter agency
c insinuated agency d
express agency the correct answer is
a implied agency
legally if both parties have taken
actions toward a sale
then the agent and principal have
entered into an implied agency
question 33 when a principal doesn't
stop an agent from going beyond his or
her normal line of duties
this is called a agency by alteration
b agency by fair use c
agency by association d agency by
estoppel
the correct answer is d agency by
estoppel
agency by estoppel is created when
agents perform duties outside of what
they would normally do
though related to what their initial
task was question 34
when an agreement is formed between an
agent and a principal after a sale is
confirmed
this is called a agency by restitution
b agency by ratification c
agency by prior agreement d agency by
foreclosure
the correct answer is b agency by
ratification
if an agent sells a piece of property
without any contract or permission from
the principal
the principal may create an agency by
ratification by approving the sale
anyway
question 35 when an agent is invested in
a project outside his or her agent
status this is called
a agency coupled with an interest b
agency impetus c agency coupled with a
principle
d agency turnaround the correct answer
is
a agency coupled with an interest
agency coupled with an interest is when
an agent invests time or money in a
property and also agrees that before
doing so
he or she will be the agent but one is
not conditional on the other
question 36 when a broker is given the
right to collect the commission
no matter who sells a property this is
an a
secondary right to sell listing b
exclusive
right to sell listing c primary right to
sell listing
d executive right to sell listing the
correct answer is
b exclusive right to sell listing
[Music]
an exclusive right to sell listing is
very straightforward
the broker is given the exclusive right
to sell a property and will collect the
commission if someone else sells it
question 37 when a homeowner reserves
the right to sell his or her own
property
but offers the exclusive right for only
one agent this is an
a exclusive agency listing b
executive agency listing c homeward
agency listing d homebound agency
listing
the correct answer is a exclusive agency
listing
[Music]
an exclusive agency listing is almost
identical to an exclusive right to sell
listing
except the homeowner can sell the
property themselves and not have to pay
a fee to the agent
question 38 when a property owner wishes
to use multiple agents to sell a
property
this is an a open listing b
agent listing c owner operator listing
d exclusive listing the correct answer
is
a open listing an open listing is also
called a non-exclusive or general
listing
and is not exclusive question 39
when a broker is hired to sell a
property for a minimum price
then keep anything over that price this
is an
a open listing b closed listing
c blowout listing d net listing
the correct answer is d net listing
net listings are illegal in many states
while some other states require that the
amount of commission a broker can earn
is percentage based and negotiated
before the sale
question 40 blank were put in place to
make sure that property buyers rights
are protected
a broker agency agreements b
buyer agency agreements c antitrust
agency agreements
d primary agreements the correct answer
is
b buyer agency agreements
as real estate buyers became aware that
most agents were protecting the seller's
interest
buyer agency agreements were created to
protect buyers interests
question 41 which deed is used to
release rights to property in an effort
to obtain clear title
a warranty deed b reconveyance deed
c quick claim deed d bargain and sale
deed the correct answer is
c quick claim deed there is no warranty
afforded with a quick claim deed and the
grantor gives up all rights to the
property
in a bargain in sale deed the grantor
does maintain that he or she has an
interest in the property
a reconveyance deed is used when a
borrower homeowner is released from a
mortgage
records will show that the mortgage has
been paid off question 42
what is the term for restrictions
easements or liens that give others
rights to a property
a joint tenancy b as cheat
c encumbrances d emblems
the correct answer is c encumbrances
encumbrances give land use rights to
others besides the owner such as right
of ways
question 43 blank is the right to
acquire ownership of private real estate
for public use
a severance b imminent domain
c attachment d as cheat
the correct answer is b imminent domain
when a government agency or a private
entity needs land for public use
they access private land through
imminent domain question 44
blank is the right of the government to
acquire property when the owner dies
into state and has no heirs eligible to
inherit the property
a as cheat b claimancy
c severance d imminent domain
the correct answer is a as cheat
when a property owner dies without a
will or survivors
the state assumes title through as cheat
question 45
upon sale the instrument that conveys
ownership rights to personal property is
a blank
and that dealing with real property is a
blank a
land sales contract deed b
deed land sales contract c
deed bill of sale d bill of sale
deed the correct answer is d
bill of sale deed a bill of sale
transfers title to personal property
and a deed transfers title to real
property question 46
as is the case with most homes what is
the term for pledging something as
security for a loan
without the necessity of giving it up a
freehold estate b security agreement
c leaseback agreement d
hypothecation the correct answer is
d hypothecation
hypothecation allows a property owner to
use the property as security for the
loan
while still being able to occupy it
question 47
what is a right to use another's land
called a
implement b easement c
estoppel d is cheat the correct answer
is
b easement easements such as party walls
connecting adjoining dwellings
allow others the right to use another's
land question 48
blank are annual crops planted on real
property but are considered personal
property
a implements b recreation
c reversions d bargain and sale deed
the correct answer is a implements
usually for agricultural easements
emblems are crops that are considered
personal property while still being
attached to the land
question 49 what is the most desirable
deed that provides the greatest amount
of protection for the grantee
a bargain and sale deed b
warranty deed c quit claim deed
d trustee deed the correct answer is
b warranty deed when a warranty deed is
given the grantee is protected from any
person who claims it and any liens
against the property by the grantor
question 50 an estate that is of
indefinite duration is called a blank
estate a non-freehold
b freehold c leasehold
d reversion the correct answer is
b freehold the only type of estate
without constraints on duration
is a freehold estate question 51
most appraisers work a for the property
owner on a fee-for-service basis
b for the real estate agency on a
fee-for-service basis
c independently on a fee-for-service
basis
d for the real estate agency on a
retainer
the correct answer is c independently
on a fee-for-service basis to avoid
conflicts of interest
most appraisers work independently on a
fee for service basis
question 52 the property being appraised
is called
a the object property b the valuation
property
c the adjunct property d the subject
property
the correct answer is d the subject
property
the subject property refers to the
property being appraised
question 53 an appraisal will not help
you with
a imminent domain b estate valuation
c fair market interest d mortgage
approval
the correct answer is c fair market
interest
an appraisal is usually performed on a
piece of property to help with buying
selling imminent domain estate valuation
exchanges of ownership mortgage approval
property and other taxes and various
court proceedings
question 54 location is
a important in determining property
value
b unimportant in determining property
value
c the only factor in determining
property value
d irrelevant in determining property
value
the correct answer is a important in
determining property value
location is one of many factors in
determining property value and may be
the most
important question 55 the location of a
piece of property
a can both increase and decrease its
value
b does not affect its value c
can increase its value d can decrease
its value the correct answer is
a can both increase and decrease its
value
the location of a piece of property can
both increase and decrease its perceived
value
as the many factors surrounding that
location fluctuate including school
districts
crime rates traffic access to employment
and many more
question 56 heavy vehicle traffic will
a affect the value of property based on
whether it is residential or commercial
b increase the value of property c
decrease the value of property d not
affect the value of property
the correct answer is a affect the value
of property based on whether it is
residential or commercial
vehicle traffic can affect the value of
property as generally less traffic is
desired around residential property
while more of certain types of traffic
is desired around commercial property
generally businesses prefer high traffic
if it is of the type to bring additional
customers to them
types of traffic that would not be
appreciated by businesses would include
traffic produced by neighboring
manufacturing businesses
junk yards and car dealers question 57
the change in value of a piece of
property based in its location
is not affected by a hazards and
nuisances
b proximity to transportation c
amenities and services d past
performance
the correct answer is d past performance
location affects the value of property
through the following factors
access to employment amenities and
services
hazards and nuisances nearness to
transportation
neighborhood compatibility safety
schools and traffic
question 58 fair market value cannot be
established unless a transaction is
considered
a recorded b free of probate
c unilateral d arm's length
the correct answer is d arm's length
an arm's length transaction is one where
both parties are free of duress
and potential conflicts of interest only
in an arms-length transaction can the
agreed-upon value be considered fair
market
question 59 value in use is
a added property value based on a
specific person using it for a specific
purpose
b the value of using a property that
anyone can benefit from financially
c added property value based on a
government sanction
allowing it to be used for general
purposes d
added property value based on a typical
person using it for a typical purpose
the correct answer is a added property
value based on a specific person using
it for a specific purpose
value in use is an added property value
and available to the typical buyer
because it's for a specific person using
it for a specific purpose
question 60 investment value is
a the value to a specific investor with
a specific plan for the property
b the potential value increase for any
person
c the value to a typical investor with
no plan for the property
d the potential value increase for any
property
the correct answer is a
the value to a specific investor with a
specific plan for the property
investment value is the value to a
specific investor
with a specific plan for the property
unlike value in use
investment value does not presuppose a
use already in place
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