Free Ohio Contracts Practice Test — LicenseIQ

Question 1

When a seller changes a term of the buyer's offer and returns it, this creates a:

Accepted Answer

Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.

Question 2

A buyer receives the disclosure form after signing the purchase agreement. How long does the buyer have to rescind?

Accepted Answer

ORC 5302.30(K) allows rescission by a signed, dated written document delivered within three business days after receipt of the form or amendment, subject to the closing/30-day outer limit.

Question 3

After an owner validly cancels a wholesaler contract under ORC 5301.95, the escrow or closing agent must return earnest money to the owner within how many days?

Accepted Answer

ORC 5301.95 requires the escrow or closing agent to return any earnest money to the owner within thirty days after cancellation.

Question 4

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 5

Under Ohio's 2026 wholesaler law, if a wholesaler fails to give the required disclosure, until when may the owner cancel the contract?

Accepted Answer

ORC 5301.95 lets the record owner cancel at any time prior to the close of escrow without penalty when the disclosure was not made.

Question 6

A contract clause stating that 'time is of the essence' means:

Accepted Answer

'Time is of the essence' makes performance by the stated dates essential; missing a deadline can be a breach.

Question 7

An offer or counteroffer becomes a binding contract when:

Accepted Answer

Acceptance must be unconditional and communicated back to the offeror; any change creates a counteroffer instead.

Question 8

Which is NOT a required element of an Ohio written agency agreement?

Accepted Answer

ORC 4735.55 requires the expiration date, fair housing statement, blockbusting definition, HUD logo, agency type, compensation terms, and negotiability statement. Assessed value is not required.

Question 9

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 10

A mortgage lender offers a salesperson $200 for every client referred. Under RESPA this is:

Accepted Answer

RESPA prohibits kickbacks and unearned referral fees between settlement service providers and real estate licensees, even if disclosed.

Question 11

Within how many days after termination of the rental agreement and delivery of possession must an Ohio landlord return the deposit or provide an itemized notice?

Accepted Answer

ORC 5321.16(B) requires the itemized written notice and any amount due within thirty days after termination and delivery of possession.

Question 12

A buyer received the disclosure form before making an offer, then signed a contract. Two weeks later, the buyer learns nothing new but wants out. What rescission right does ORC 5302.30 give?

Accepted Answer

ORC 5302.30(K)(3)(d) provides no rescission right when the buyer received the form before submitting the offer and signing the agreement.

Question 13

Adding a new financing contingency to an existing sales contract is done by a(n) ____, while changing the existing closing date is done by a(n) ____.

Accepted Answer

An addendum ADDs new terms; an amendment changes existing terms. Both require agreement of both parties.

Question 14

Under Ohio law, before which action must a licensee have a written agency agreement with a purchaser?

Accepted Answer

As amended effective 2024, ORC 4735.55(A) requires a written agency agreement before making an offer on residential property for a purchaser, and before advertising or showing for a seller.

Question 15

A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

Accepted Answer

The option binds only the optionor. The optionee may exercise or let it lapse (forfeiting the option money).

Question 16

Which event terminates a listing agreement by operation (force) of law?

Accepted Answer

Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Question 17

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 18

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 19

Which item must be included in every Ohio written agency agreement?

Accepted Answer

ORC 4735.55 requires an expiration date, and ORC 4735.18(A)(28) makes failure to include one a disciplinary ground. Automatic renewal would defeat the definite-expiration requirement.

Question 20

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 21

Every Ohio written agency agreement must include which fair housing element?

Accepted Answer

ORC 4735.55 requires the fair housing statement, blockbusting definition, and a copy of the HUD equal housing opportunity logotype.

Question 22

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 23

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 24

When a developer's condominium contract violates Ohio's disclosure requirements, how long may the purchaser void it?

Accepted Answer

ORC 5311.27 lets the purchaser void until the later of the two 15-day periods; the right ends when title is conveyed.

Question 25

A contract that has all legal elements but where one party may cancel is:

Accepted Answer

A voidable contract is valid but one party may rescind it (e.g., a minor, or a party induced by misrepresentation or duress). A void contract lacks an essential element and has no legal effect.

Ohio real estate contracts practice test

1. When a seller changes a term of the buyer's offer and returns it, this creates a:

2. A buyer receives the disclosure form after signing the purchase agreement. How long does the buyer have to rescind?

3. After an owner validly cancels a wholesaler contract under ORC 5301.95, the escrow or closing agent must return earnest money to the owner within how many days?

4. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

5. Under Ohio's 2026 wholesaler law, if a wholesaler fails to give the required disclosure, until when may the owner cancel the contract?

6. A contract clause stating that 'time is of the essence' means:

7. An offer or counteroffer becomes a binding contract when:

8. Which is NOT a required element of an Ohio written agency agreement?

9. Under the statute of frauds, a real estate sales contract must be:

10. A mortgage lender offers a salesperson $200 for every client referred. Under RESPA this is:

11. Within how many days after termination of the rental agreement and delivery of possession must an Ohio landlord return the deposit or provide an itemized notice?

12. A buyer received the disclosure form before making an offer, then signed a contract. Two weeks later, the buyer learns nothing new but wants out. What rescission right does ORC 5302.30 give?

13. Adding a new financing contingency to an existing sales contract is done by a(n) , while changing the existing closing date is done by a(n) .

14. Under Ohio law, before which action must a licensee have a written agency agreement with a purchaser?

15. A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

16. Which event terminates a listing agreement by operation (force) of law?

17. Under an open listing, the seller owes a commission to:

18. A contract that is missing an essential element, such as consideration, is:

19. Which item must be included in every Ohio written agency agreement?

20. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

21. Every Ohio written agency agreement must include which fair housing element?

22. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

23. Which is the most common and desirable way a real estate sales contract terminates?

24. When a developer's condominium contract violates Ohio's disclosure requirements, how long may the purchaser void it?

25. A contract that has all legal elements but where one party may cancel is:

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