1. For a tenant, an Ohio licensee needs a written agency agreement before making an offer to lease residential premises for what term?
Answer & explanation
Answer: C. ORC 4735.55(A) applies the requirement to offers to lease residential premises for a tenant for a term exceeding 18 months, consistent with the 18-month line used throughout Ohio's agency statute.
2. When an owner dies with no will and no heirs, the property passes to the state through:
Answer & explanation
Answer: C. Escheat transfers ownerless property to the state when there is no will and no heirs.
3. 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.
4. Mixing client trust funds with the broker's own business funds is:
Answer & explanation
Answer: B. Commingling client/escrow funds with the broker's operating funds is prohibited and grounds for discipline. Using those funds for personal purposes is conversion.
5. 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.
6. An applicant who has not held an Ohio license in the past four years finished prelicensing courses 11 years ago. What is the result?
Answer & explanation
Answer: A. Under ORC 4735.09(I), if the applicant has not been licensed in the prior four years, the courses must have been completed within the ten years before applying. Eleven-year-old courses fail that test.
7. Which is a requirement to apply for an Ohio broker license?
Answer & explanation
Answer: D. ORC 4735.07(B)(5) requires licensure for at least two of the five years before application and at least 20 real estate transactions (or Commission-approved equivalent experience).
8. Within what period must a housing discrimination charge be filed with the Ohio Civil Rights Commission?
Answer & explanation
Answer: D. ORC 4112.05(B)(1) requires housing charges (division (H) practices) to be filed in writing under oath within one year. Two years applies to employment charges under ORC 4112.051.
9. What information must an Ohio broker report to the superintendent about the trust account?
Answer & explanation
Answer: C. ORC 4735.18(A)(26) requires the broker to submit in writing the name of the depository, the account number, and the location.
10. An Ohio licensee wants to advertise a home listed with another brokerage. What is required?
Answer & explanation
Answer: B. OAC 1301:5-1-02 requires the owner's written permission and identification of the listing brokerage in type at least as large as that describing the property.
11. Which prelicensing course must include instruction on municipal, state, and federal civil rights law, housing discrimination, and desegregation?
Answer & explanation
Answer: D. ORC 4735.09(F)(6)(b) requires the 40-hour Ohio real estate law course to include civil rights law, housing discrimination case law, desegregation problems, and remedies for past discrimination.
12. An Ohio salesperson fails to submit proof of post-licensing education by the deadline. What happens?
Answer & explanation
Answer: A. The statute makes suspension automatic, without action by the superintendent, with a 12-month window to cure before automatic revocation. No hearing is required.
13. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:
Answer & explanation
Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.
14. 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.
15. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:
Answer & explanation
Answer: A. Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.
16. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):
Answer & explanation
Answer: D. 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.
17. Which activity may an unlicensed assistant generally perform?
Answer & explanation
Answer: D. Unlicensed staff may perform clerical tasks like typing licensee-prepared ads, but may not compose ads, negotiate or show property.
18. A licensee may manage property for an owner for a fee only if there is:
Answer & explanation
Answer: D. Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.
19. Which action may a life tenant take WITHOUT the remainderman's consent?
Answer & explanation
Answer: D. A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.
20. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:
Answer & explanation
Answer: C. Dividing territories or customers among competitors eliminates competition and is illegal market allocation.
21. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
22. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?
Answer & explanation
Answer: C. Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.
23. A salesperson receives an earnest money check from a buyer. The salesperson should:
Answer & explanation
Answer: C. The broker manages the trust account; licensees must promptly deliver trust funds to the broker.
24. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?
Answer & explanation
Answer: A. Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.
25. In a life estate, the person who receives the property when the life tenant dies is the:
Answer & explanation
Answer: A. The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.
Sources
Source verification pending. Confirm current requirements with your state regulator.