Free Oklahoma Contracts Practice Test — LicenseIQ

Question 1

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 2

A contract terminates and buyer and seller both claim the earnest money. No lawsuit is filed. Under OREC rules the broker may disburse in good faith after waiting how long from final termination, and with how much advance written notice to the parties?

Accepted Answer

OAC 605:10-13-3(b) allows good-faith disbursement after 30 days from final termination with no civil action pending, after at least 15 days' written notice to all parties. The last choice reverses the numbers.

Question 3

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 4

In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.

Accepted Answer

The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.

Question 5

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 6

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 7

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 8

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 9

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 10

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 11

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.

Question 12

The landlord accepts rent and allows the tenant to stay after a lease ends, with no other agreement. What tenancy results?

Accepted Answer

41 O.S. §111(D) creates a month-to-month tenancy when the landlord consents to holdover, unless otherwise agreed.

Question 13

A contract signed by a 17-year-old buyer is generally:

Accepted Answer

Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.

Question 14

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 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

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

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

By when must a broker deposit earnest money after an offer is accepted, absent a different written agreement of all parties?

Accepted Answer

OAC 605:10-13-1 requires escrow funds to be deposited before the end of the third banking day after acceptance or receipt.

Question 19

A broker manages a rental under a property management agreement with the landlord. What relationship does the broker have with the tenant?

Accepted Answer

OAC 605:10-15-2(d) provides this rule.

Question 20

Under the Broker Relationships Act, which relationship may an Oklahoma broker offer?

Accepted Answer

§858-355.1(B) allows services to one or both parties; §858-360(B) bars acting as agent, subagent or dual agent or offering subagency.

Question 21

A licensee buys a home for himself. What must the purchase contract include?

Accepted Answer

OAC 605:10-9-4(d) requires a licensee buying or selling for themselves to disclose licensure on transaction documents, and purchase or lease contracts must include the license number.

Question 22

After a brokerage relationship ends, which duties continue unless a written agreement says otherwise?

Accepted Answer

§858-358 lists accounting and confidentiality as the duties that survive.

Question 23

Obtaining a signature on a purchase offer lacking which item is a prohibited dealing?

Accepted Answer

OAC 605:10-17-4(5) requires a definite price, method of payment, termination date, possession date and property description.

Question 24

Which activity requires a real estate license even though the person is a party to the contract?

Accepted Answer

The owner exemption in §858-301 expressly excludes publicly marketing an equitable interest in a contract (wholesaling by assignment). The other choices are classic owner activities.

Question 25

May a party relieve a broker of the duty to present all offers and counteroffers?

Accepted Answer

§858-353(A)(2) requires timely presentation unless a party has waived the duty in writing.

Oklahoma real estate contracts practice test

1. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

2. A contract terminates and buyer and seller both claim the earnest money. No lawsuit is filed. Under OREC rules the broker may disburse in good faith after waiting how long from final termination, and with how much advance written notice to the parties?

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

4. In an option to purchase, the seller who grants the option is the and the option holder is the .

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

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

7. 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:

8. After the buyer and seller sign a sales contract but before closing, the contract is:

9. 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) .

10. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

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

12. The landlord accepts rent and allows the tenant to stay after a lease ends, with no other agreement. What tenancy results?

13. A contract signed by a 17-year-old buyer is generally:

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

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

16. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

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

18. By when must a broker deposit earnest money after an offer is accepted, absent a different written agreement of all parties?

19. A broker manages a rental under a property management agreement with the landlord. What relationship does the broker have with the tenant?

20. Under the Broker Relationships Act, which relationship may an Oklahoma broker offer?

21. A licensee buys a home for himself. What must the purchase contract include?

22. After a brokerage relationship ends, which duties continue unless a written agreement says otherwise?

23. Obtaining a signature on a purchase offer lacking which item is a prohibited dealing?

24. Which activity requires a real estate license even though the person is a party to the contract?

25. May a party relieve a broker of the duty to present all offers and counteroffers?

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