1. Which official administers licensing, receives complaints, and directs investigations in Ohio?
Answer & explanation
Answer: D. The superintendent heads the Division of Real Estate and Professional Licensing, which handles licensing and investigations. The Commission president presides over the policy and disciplinary board but does not run day-to-day administration.
2. For a licensee's first discriminatory practice violation, what is required before the Commission may discipline under ORC 4735.18(A)(7)?
Answer & explanation
Answer: D. ORC 4735.18(A)(7) conditions discipline for a first violation on a final court adjudication that the licensee violated civil rights law in a real estate matter.
3. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
4. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?
Answer & explanation
Answer: A. Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.
5. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?
Answer & explanation
Answer: B. Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.
6. How many members serve on the Ohio Real Estate Commission?
Answer & explanation
Answer: C. ORC 4735.03 provides for five members appointed by the governor with Senate consent. Seven is a common distractor borrowed from other states' commissions.
7. For a housing violation, what is the maximum Ohio Civil Rights Commission civil penalty for a respondent with one prior final violation within the preceding five years?
Answer & explanation
Answer: A. ORC 4112.05(G)(1)(b) sets $10,000 as the base, $25,000 with one prior violation in five years, and $50,000 with two or more in seven years. $2,500 is the Real Estate Commission's fine cap.
8. A house with only one bathroom and very small closets in a market expecting more suffers from:
Answer & explanation
Answer: C. Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.
9. What is the maximum fine the Ohio Real Estate Commission may impose per violation of ORC 4735.18?
Answer & explanation
Answer: C. ORC 4735.051 authorizes a fine not exceeding $2,500 per violation. $10,000 is the base Ohio Civil Rights Commission housing civil penalty, a different enforcement scheme.
10. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?
Answer & explanation
Answer: C. Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.
11. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?
Answer & explanation
Answer: C. Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.
12. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?
Answer & explanation
Answer: D. $20,000 x 0.50 = $10,000 to the buyer's broker.
13. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?
Answer & explanation
Answer: B. LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.
14. On a $250,000 loan, how much is 2 discount points?
Answer & explanation
Answer: A. 1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.
15. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?
Answer & explanation
Answer: B. Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)
16. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?
Answer & explanation
Answer: A. Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)
17. An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:
Answer & explanation
Answer: C. Only the building depreciates: $350,000 - $75,000 = $275,000; $275,000 / 27.5 = $10,000. Using the full price gives $12,727 (wrong).
18. No more than how many Ohio Real Estate Commission members may belong to the same political party?
Answer & explanation
Answer: B. ORC 4735.03 caps same-party membership at three of the five members, guaranteeing at least two members from outside the majority party.
19. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?
Answer & explanation
Answer: A. At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.
20. A home sells for $400,000 with a 5% total commission. What is the total commission?
Answer & explanation
Answer: B. $400,000 x 0.05 = $20,000.
21. A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?
Answer & explanation
Answer: D. Area = 330 x 660 = 217,800 sq ft; 217,800 / 43,560 = 5 acres.
22. An Ohio salesperson is owed an earned commission that the seller has refused to pay. Whom may the salesperson sue?
Answer & explanation
Answer: C. ORC 4735.21 bars a salesperson from suing anyone for a commission except the broker under whom the salesperson was licensed when the cause arose. The broker pursues the seller.
23. When may the Ohio Real Estate Commission levy a special assessment on renewing licensees for the Recovery Fund?
Answer & explanation
Answer: C. ORC 4735.12 permits a special assessment of up to $10 per year of each licensing period only if the fund is below $250,000 on July 1.
24. An Ohio licensee is found to have committed a second discriminatory practice violation. What must the Real Estate Commission impose?
Answer & explanation
Answer: B. ORC 4735.18(A)(7) requires, for a second violation, suspension of at least two months or revocation; for any subsequent violation, revocation.
25. Which statement about commissions must appear conspicuously in an Ohio written agency agreement?
Answer & explanation
Answer: C. ORC 4735.55 requires a conspicuous statement that broker fees are not set by law, are fully negotiable, and may be paid by any party or third party or split between brokers.
Sources
Source verification pending. Confirm current requirements with your state regulator.