1. 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.
2. 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.)
3. An associate moves from one firm to another. Within how many days must the change be filed with the Commission?
Answer & explanation
Answer: A. OAC 605:10-11-2 requires a change of firm or office to be filed within 10 days, with a $40 fee. 30 days is the felony-notice deadline.
4. 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.
5. Does an Oklahoma licensee have a duty to independently verify a property's square footage?
Answer & explanation
Answer: C. §858-515.1(C) says a licensee has no duty to independently investigate or verify size or area information beyond that section's third-party information rules.
6. 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.
7. 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.)
8. 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.
9. When competing brokerages agree to charge the same commission rate, they commit:
Answer & explanation
Answer: D. Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.
10. An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?
Answer & explanation
Answer: D. PGI = 8 x $1,100 x 12 = $105,600; less 5% vacancy = $100,320; NOI = $100,320 - $28,320 = $72,000; value = $72,000 / 0.08 = $900,000.
11. 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.
12. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:
Answer & explanation
Answer: B. Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.
13. A new highway interchange built next to a residential subdivision lowers home values. This is:
Answer & explanation
Answer: D. Loss in value caused by factors outside the property boundaries is external obsolescence.
14. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:
Answer & explanation
Answer: B. Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.
15. Which of the following is NOT a power of the Oklahoma Real Estate Commission?
Answer & explanation
Answer: C. §858-208 lets OREC discipline, seek injunctions and issue cease and desist orders, but damages are awarded by a court. A consumer may later seek payment from the Recovery Fund only after a court judgment.
16. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?
Answer & explanation
Answer: D. Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.
17. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?
Answer & explanation
Answer: C. Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.
18. 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.
19. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?
Answer & explanation
Answer: C. Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.
20. 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%.
21. 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.
22. 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.
23. How long is the term of an Oklahoma Real Estate Commission member?
Answer & explanation
Answer: B. Members serve four-year terms and continue until a successor is appointed and qualified. Five years is the broker-experience requirement for broker members, which is why it tempts.
24. Within how many days must a licensee respond in writing to a Commission notice of complaint?
Answer & explanation
Answer: C. §858-312(26) and OAC 605:10-17-2 require a written response within 15 days. 30 days is the felony-notice deadline.
25. How many members serve on the Oklahoma Real Estate Commission?
Answer & explanation
Answer: A. 59 O.S. §858-201 creates a seven-member Commission appointed by the Governor with Senate consent. Five is tempting because five of the seven members must be brokers.
Sources
Source verification pending. Confirm current requirements with your state regulator.