Real Estate Law Test

How are independent contractors compensated and their income reported?


1. Independent contractors do not receive a salary and must pay self-employment taxes.
2. Independent contractors do not receive a salary, and the broker pays federal and state unemployment taxes on the workers’ behalf
3. Independent contractors receive a salary and must pay self-employment taxes.
4. Independent contractors receive a salary, and taxes are withheld from their pay.

Independent contractors do not receive a salary and must pay self-employment taxes.

Which of the following it true regarding Ohio brokerage trust accounts?


1. They may hold both operating funds and trust funds.
2. They must be in an Ohio financial institution.
3. They must earn interest.
4. They must not be charged service fees.

They must be in an Ohio financial institution.

Ohio’s fair housing law includes nine protected classes, adding ______ to the seven federally protected classes.


1. Ancestry and disability
2. Ancestry and military status
3. Familial status and military status
4. Religion and sex

Ancestry and military status

Andrew is entering into an agreement with new clients to help them sell their property. What type of contract will Andrew use to identify the terms of his agency relationship with his clients?


1. Buyer agency agreement
2. Listing agreement
3. Option agreement
4. Sales contract

 Listing agreement

The listing agreement is the contract used to identify the terms of the listing agent/seller agency relationship.

The listing agreement is the contract used to identify the terms of the listing agent/seller agency relationship.


1. Manufacturing
2. Residential
3. Retail
4. Triple Net

Retail

Mixing escrow funds with personal funds is illegal. What's this practice called?


1. Conversion
2. Commingling

Commingling

Kelvin, an Ohio real estate licensee, works independently instead of under a principal broker. This means that he’s licensed as _______.

A broker

A corporate broker

An associate broker

A salesperson

A Broker

Ohio property management trust accounts ______.

May be opened in out-of-state financial institutions

May earn interest

May not earn interest

Must be opened in the name of the property owner

May earn interest

Marnie decided the listing she was representing would be perfect for her family. She had her brother buy it, and after closing, he sold it to her. What is this an example of?

\
An anti-trust violation

  Illegal self-dealing

  Legal self-dealing

  Usury

Illegal self dealing

Which buyer negotiation strategy is unlikely to work in a hot market?

\
 Ask the seller to pay closing costs.

 Offer a quick close.

 Offer full price.

 Waive the appraisal.

Ask the seller to pay closing costs.

The landlord generally pays taxes, maintenance, and insurance with which type of lease?

\
Gross lease

Net lease

 Percentage lease

 Triple net lease

Gross Lease

What’s the first thing the Ohio real estate superintendent does after receiving a complaint against a licensee?

\
Acknowledges receipt of the complaint

Determines whether a violation has occurred

Lines up an available hearing examiner

Sends copies to the real estate commissioners

Acknowledges receipt of the complaint

The Ohio Real Estate Commission may impose fines on licensees as a disciplinary sanction for violating licensing laws. If a licensee is also convicted of a felony in relation to the violation, what may be imposed?

\
 Actual monetary damages

 An additional $2,500 fine

 Jail time

 Requirement to retake licensing exam

An additional $2,500 fine, The court system that found the licensee guilty of the felony may impose a $2,500 fine in addition to any sanctions the commission levied.

Against whom does this listing information discriminate? “The Mill District comprises many of the historic industrial structures that made this city a world leader in paper mills. Today, this district is undergoing a spectacular transformation. Once serving as the center for Russian immigrants, it's now been revitalized into a desirable neighborhood.”

\
Mill owners

  Millworkers

  No one

  Russian immigrants

Russian Immigrants

Licensee Nick presented a copy of the agency disclosure form to consumer Angela. For how long must Nick’s brokerage maintain this disclosure?

\
Five years

  Four years

  Seven years

  Three years

Three Years

Which type of buyer usually has a fixed income and is looking for a home with little to no maintenance?

\
First-time buyer

  Retiree

  Trade-down buyer

  Trade-up buyer

Retiree

How is the Supreme Court case of Brown vs. Board of Education significant in the way fair housing laws are implemented today?

\
 The court found that racially segregated school buses were unconstitutional.

  The court legalized racial segregation through the “separate but equal” doctrine.

  The court’s decision made segregated school boards illegal.

  The decision overturned the doctrine of “separate but equal.”

The decision overturned the doctrine of “separate but equal.”

What's your relationship with a buyer who's not a client but is a customer?

\
You have no agency relationship with the buyer.

  You're a buyer's agent representing the buyer.

  You're a buyer's agent representing the seller.

  You're a dual agent representing both the buyer and the seller.

You have no agency relationship with the buyer.

Ohio licensee Brooke receives a $1,000 bonus from the seller when she encourages her buyer client to purchase the seller’s property. She doesn’t let her client know about the bonus. Has Brooke committed a violation, and if so, what violation has she committed?

\
No, she hasn’t committed a violation.

  Yes, she’s committed the violation of blockbusting.

  Yes, she’s committed the violation of secret profit.

  Yes, she’s committed the violation of self-dealing.

Yes, she’s committed the violation of secret profit.

Agents are guilty of secret profit when they receive compensation of any form for a transaction without disclosing this to the principal.

Tina is in the midst of handling an ethical dilemma with her seller client. To help her client understand why she chose the action she did, which step should she complete?

\
Decide what action to take.

Determine whether she faces an ethical dilemma.

Evaluate the situation.

State the reasoning behind her choice.

State the reasoning behind her choice.

As Tina puts her plan into place, she’ll want to explain the reasoning behind her choice to help those involved understand her decision see that she did it with all parties’ best interests in mind.

Which type of buyer tends to know little about the homebuying process and has limited funds?

\
First-time buyer

  Retiree

  Trade-down buyer

  Trade-up buyer

First-time buyer

When advertising real estate, make sure any language you use is ______. Phrases like, “perfect for families,” “great Italian neighborhood,” and “several great schools nearby,” focus on specific groups.

\
Exclusive

  Inclusive

  Narrow

  Posh

Inclusive

Make sure any language you use is inclusive and doesn’t allow for any possible discrimination against any of the protected classes.

Jamal is a real estate licensee. What's his responsibility regarding household lead hazards?

\
He must disclose to buyers that there's lead-based paint in a home, but only if he's positive that it's there.

  He must ensure his sellers know how to hide the presence of lead-based paint.

  He must make sure all lead is removed, even if he has to personally remove it.

  He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978.

He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978.

What type of emails are prohibited by the CAN-SPAM Act?

\
Customer service emails

  Emails containing more than three hyperlinks or attachments

  Junk emails

  Subscriber emails

Junk emails

Enrique is in the midst of handling an ethical dilemma. He’s checking his brokerage’s code of ethics to see what it says about the situation and has also looped in his mentor. What step is Enrique currently completing?

\
  Determine whether an ethical dilemma exists.

  Evaluate the situation.

  Explore ethical choices.

  State the reasoning.

Explore ethical choices.

Drawing on resources, such as mentors, peers, and managing brokers, and a code of ethics is helpful when exploring the actions you can take to handle an ethical dilemma.

Jose, a listing agent, wants to write an ad for his new listing. Which of the following phrases is acceptable under fair housing guidelines?

\
"Asian neighborhood"

  "East-facing window for morning prayers"

  "Spanish-style home"

  "Walking distance to ethnic food store"

Spanish style home

Douglas represented Wynn as she looked for a house. After an extensive search, Douglas realized that he could no longer work with Wynn for personal reasons. His representation of Wynn ended for which reason?

\
  Expiration

  Incapacitation

  Mutual agreement

  Renunciation

Renunciation

What’s the purpose of a suit to quiet title?

\
To add a cloud to a title

  To have a lien placed on a property

  To have a title’s ownership history deleted

  To remove or modify clouds on a title

To remove or modify clouds on a title

What’s considered a passing score on the Ohio broker’s license examination?

\
  70%

  75%

  80%

  85%

75%

Which of the following is the term for negligent misrepresentation or concealment of a material fact?

\
  Accidental fraud

  Actual fraud

  Constructive fraud

  Puffing

Constructive fraud

Even though constructive fraud is accidental and there’s no intent to deceive, it can still be considered fraud

Janine wants to meet with her potential buyer clients face-to-face in her office. What's her reason for doing this?

\
  She wants the buyers to meet her office mate.

  She wants to make sure the buyers are serious about purchasing.

  She wants to run a credit check on the buyers.

  She wants to sell the buyers on a local neighborhood that she likes.

She wants to make sure the buyers are serious about purchasing.

Which of the following forms explains the types of agency recognized in Ohio, the types of agency performed by your brokerage, and other agency issues?

\
  Buyer brokerage agreement

  Consumer Guide to Agency Relationships

  Federal lead-based paint disclosure

  Listing agreement

Consumer Guide to Agency Relationships

Which of the following occurs when a property owner dies without having a will in place, and no heirs or creditors can be found?

\
 Eminent domain

  Encroachment

  Escheat

  Estoppel

\

Escheat

Certain properties are exempt from fair housing law requirements. Which of the following properties is NOT exempt?

\
A church

  Housing designated as housing for older persons

  Housing operated by organizations and private clubs that limit occupancy to members

  Owner-occupied buildings with fewer than four units being marketed by a real estate licensee

Owner-occupied buildings with fewer than four units being marketed by a real estate licensee

Which term involving trespassing is used when someone other than the owner claims title to real property?

\
Adverse possession

  Dedication by deed

  Judgment lien

  Lien holder

Adverse possession

Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn't want prospective buyers to know this. Which action best demonstrates good faith in this scenario?

\
 Isabelle decides not to take the listing, since the property will be impossible to sell.

  Isabelle takes the listing and, per her client's instructions, doesn't tell prospective buyers about the planned road construction.

  Isabelle takes the listing, tells the seller she won't discuss the new freeway, then discloses this fact to prospective buyers, since it's material to the property.

  Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.

Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.

Manny has a client who wants to purchase a commercial building. Manny doesn't have any experience negotiating commercial purchases. Which action should Manny take to demonstrate his good faith and most ethical behavior toward his client?

\
 Continue to work with the client, but not tell the client about his lack of experience.

  Continue to work with the client, but secretly consult with a commercial broker when he has questions.

  Decide to no longer represent the client.

  Tell the client about his inexperience, but say that he’d like to continue the relationship and will consult with a professional commercial broker throughout the transaction.

Tell the client about his inexperience, but say that he’d like to continue the relationship and will consult with a professional commercial broker throughout the transaction.

Peter is a broker with a listing agreement with the sellers, the Averys. Under the terms of the listing agreement, Peter will earn his commission whether he, the Averys, or another brokerage finds a buyer for the property. What type of listing agreement did the Averys sign?

\
  Exclusive agency listing

  Exclusive right-to-sell listing

  Net listing

  Open listing

Exclusive right-to-sell listing

In Ohio, how are transaction file audits triggered?

\
Either randomly or after the division receives a complaint

  Every fourth year after a broker’s date of licensure

  Only if a consumer files a complaint

  Upon license renewal

Either randomly or after the division receives a complaint

______ is a leasehold estate of definite duration that terminates automatically and is inheritable.

\
  Holdover tenancy

  Periodic tenancy

  Tenancy at will

  Tenancy for years

Tenancy for years, Tenancy for years is a leasehold estate of definite duration that terminates automatically and is inheritable.

Martin is licensed in both Ohio and West Virginia, which is a reciprocal state. He’s designated as a principal broker in Ohio. What must he have in both states?

\
Business offices

  Post office boxes

  Referral networks

  Trust accounts

Trust Accounts

Last week, The Rialdis’ listing agreement ended after months on the market, with not even a single offer to show for it. Today, they received a call from Mindy, a real estate professional who would like to relist the property and has some new ideas for getting it sold. What approach is Mindy using to find listings?

\
  Expired listings

  Farming

  Owner sales

  Referral

Expired Listings

What is self dealing?

\
Having undisclosed personal interest in a transaction

  Insinuating your interest into a contract

  Profiting from the purchase of a property

  Profiting from the sale of a property

Having undisclosed personal interest in a transaction

Which type of buyer tends to rely on knowledge from previous homebuying experiences, and is often looking for a better location or a home with more space?

\
First-time buyer

  Retiree

  Trade-down buyer

  Trade-up buyer

Trade-up buyer

Seller Randy signed a listing agreement with Barbara, who worked very hard to find him a buyer. Randy’s cousin decided to purchase the house during the listing period. Is Barbara owed a commission?

\
No, because sellers don’t have to pay a commission if a relative purchases the property.

  Yes, because Randy is not a licensee.

  Yes, because she worked hard for Randy.

  Yes, if she has an exclusive right-to-sell agreement.

Yes, if she has an exclusive right-to-sell agreement.

Licensee John fails to provide an agency disclosure to consumer Carlos. Which of the following is true of this situation?

\
  If John can prove he had a good reason for not providing the disclosure, he won’t get into trouble.

  John must provide the agency disclosure as soon as he remembers to, even if it’s after the transaction has concluded.

  This is considered prima facie evidence of fraud.

  This is considered prima facie evidence of misconduct.

This is considered prima facie evidence of misconduct.

Ryan oversees trust or escrow money. What is his role?

\
Escrow agent

  Escrow master

  Mortgage agent

  Special agent

Escrow agent

What is the term used to describe a lien, encroachment, or other issue on a title?

\
  Cloud

  Good

  Gray

  Marketable

Cloud

What's the term for illegally using escrow funds, such as earnest money, for other than its intended purpose?

\
  Capping

  Commingling

  Conforming

  Conversion

Conversion

Jose, who is 16, entered into a contract to sell a condo he owned. Because Jose is a minor, ______.

\
Either Jose or the buyer may void the contract due to Jose's minority

It makes no difference; if he signed the agreement, he must abide by it

Only Jose may void the contract

The contract is void

Only Jose may void the contract

When Ohio purchase agreements contain a provision to return disputed earnest money funds to the buyer, what’s the deadline for the broker to do this?

\
  December 31 after the two-year anniversary of deposit

  September 1 after the two-year anniversary of deposit

  The one-year anniversary of deposit

  The two-year anniversary of deposit

September 1 after the two-year anniversary of deposit

Which of the following is a violation of federal fair housing law?

\
A landlord refuses to rent to anyone under the age of 30.

  A private homeowner advertises a private house share using the phrase: “No minorities.”

  A private homeowner lives in a duplex and won’t rent the other half to a pregnant woman.

  A private homeowner lives in a triplex and won’t rent one of the units to a family.

A private homeowner advertises a private house share using the phrase: “No minorities.”

Discriminatory advertising is never allowed

The Real Estate Settlement Procedure Act (RESPA) applies to what types of real estate transactions?

\
All cash sales 

Sales invovling seller financing

Federally related mortgage loans

All of the above 

Federally related mortgage loans

\
RESPA applies to federally related mortgage loans. Because nearly all loans on residential properties are federally related, RESPA regulations cover the vast majority of residential loans.  Here are some of the loans that are considered federally related: VA guaranteed loans, FHA insured loans, loans intended to be sold onto the secondary mortgage market, lenders with FDIC, etc. \n \n A, B, and D are incorrect. These incorrect answer choices are examples of loans not subject to RESPA. Other exempt loans include: commercial loans, business loans, land contracts, and loans for land tracts of 25 or more acres, etc

What right does the lender hold in a lien theory state?

\
Equitable title

  Legal title

  No rights

  Right to foreclose

Right to foreclose

Dan is buying Chuck’s property, which is listed with Nevin’s brokerage. Who are the parties to the exclusive right-to-sell listing agreement?

\
Chuck and Nevin's brokerage

  Dan and Chuck

  Dan and Nevin

  Dan, Chuck, and Nevin

Chuck and Nevin's brokerage

Mario doesn't want to include a religious preference in his listing ad, so which of the following phrases should he use?

\
Apartment available for members of attached temple

  Close to Catholic cathedral

  Jewish community

  Within walking distance to a mosque

Apartment available for members of attached temple

From whom or what entity do licensees receive compensation for brokerage services once a transaction is closed?

\
 Each receives a separate check at closing—the licensee representing the buyer receives a check from the buyer, and the licensee representing the seller receives a check from the seller.

  The brokerages for both sides receive their share of brokerage fees and disburse licensee shares to them.

  The buyer's attorney provides a cashier's check for the buyer's agent; the seller's attorney provides a cashier's check for the seller's agent.

  The seller pays the seller's agent directly at closing; the buyer's agent receives a check from the closing agent at closing.

 The brokerages for both sides receive their share of brokerage fees and disburse licensee shares to them.

Henrietta makes an offer for $250,000 on Ollie’s bungalow. Ollie has until June 21 to respond to her offer. Before Ollie responds, Henrietta finds a house she likes better, and she withdraws her offer to Ollie. Which of the following is true of this situation?

\
  Henrietta has acted within her legal rights.

  Henrietta has breached the purchase contract, and may lose her earnest money.

  Henrietta is already committed to purchasing Ollie’s property, so she may not withdraw her offer.

  Henrietta must not withdraw her offer until after June 21. If Ollie hasn’t responded by then, Henrietta may withdraw her offer.

Henrietta has acted within her legal rights.

Which of the following is an example of voluntary license deactivation in Ohio?

\
  Forgetting to renew on time

  Having your license deactivated during a military deployment

  Having your license suspended after a hearing

  Placing your license on inactive status with the division

Placing your license on inactive status with the division

\
Licensees can voluntarily place their licenses on inactive status with the division of real estate.

If the Ohio Real Estate Commission affirms a decision by the superintendent to dismiss a complaint against a licensee, how many days does the commission have to notify the complainant?

\
10 days

  15 days

  Five days

  Seven days

Five days

If a complainant requested that the commission review a dismissed complaint, but the commission affirms the decision, the complainant must be notified within five days.

What must occur to effect a transfer of title?

\
  The grantee must sign the deed.

  The grantor must accept the deed.

  The grantor must deliver a valid deed to the grantee.

  The grantor should acknowledge the deed.

 The grantor must deliver a valid deed to the grantee.

Ohio offers two real estate license levels: broker and ________.

\
  Associate broker

  Licensee

  Principal broker

  Salesperson

Salesperson

A _______ occurs when a lessor transfers part or all leasehold rights to a third party temporarily for part of the lease term.

\
  Assignment

  Novation

  Replacement

  Sublease

Sublease

**Which one of the following options best defines voluntary alienation?**

  A person dies without a will.

  A property is taken from a property owner due to failure to pay real property taxes.

  A property owner intentionally transfers property to another.

  Someone takes possession of another’s property by adding a previous claim to their own.

A property owner intentionally transfers property to another.

The security deposit serves what purpose for the landlord?

\
A bonus for allowing the tenant to possess the premises

  Extra money on hand for ordinary maintenance

  Insurance against potential damages beyond regular wear and tear

  To encourage the tenant to pay rent by the first of the month

 Insurance against potential damages beyond regular wear and tear

Which of the following is considered an act of discrimination under federal fair housing laws?

\
Renting only to Catholics

  Renting to a married lesbian couple

  Renting to a white man who has good credit

  Showing a property to qualified buyers only

Renting only to Catholics

How does discrimination still occur, even though it's illegal?

\
  Discrimination is human nature.

  Discrimination is often not visible to the public.

  Discrimination makes good business sense.

  Not all laws make sense.

Discrimination is often not visible to the public.

f the Ohio Real Estate Commission decides to impose a fine on a licensee who’s found guilty of a license law violation, what’s is the maximum fine per violation?

\
  $1,000

  $10,000

  $2,500

  $5,000

$2,500

In Ohio, each real estate brokerage must have at least one ___________

\
  Administrative assistant

  Intern

  Licensed assistant

  Principal broker

Principal Broker

After their last child leaves the nest, Ohio residents Jack and Shirley Robin decide to downsize. Which of the following elements must be in their listing agreement with their broker?

\
  A place for the buyer to sign

  A statement that it’s illegal to violate fair housing law

  A statement that they must pay the minimum Ohio commission of 6%

  The definition of antitrust, and a statement that antitrust violations are illegal

A statement that it’s illegal to violate fair housing law

Rose and Santiago agreed to the terms of their Ohio non-binding mediation agreement that resulted from a complaint Santiago filed against Rose. The agreement stipulated that Rose would attend six hours of additional education on fair housing before participating in other transactions. Santiago discovered by chance that Rose was working on a transaction for an acquaintance before completing her assigned education. Once Santiago reports this to the division, what will happen?

\
Rose and Santiago will have to go back to the mediation table.

  Rose’s fine will be doubled.

  Rose will be found guilty of a misdemeanor as a summary judgment.

  The superintendent will launch a formal investigation of Rose.

 The superintendent will launch a formal investigation of Rose.

In a typical real estate transaction, what's the name of the person receiving the title?

\
Conveyee

  Grantee

  Grantor

  Title clerk

Grantee

Occasionally a license law violation will result in financial loss to the aggrieved party. What can the Ohio Real Estate Commission do in such cases?

\
They are not allowed to mention financial loss or damages in their opinions or notifications.

  They may alert the complainant of the option to sue for damages.

  They may alert the courts of a possible civil lawsuit.

  They may impose monetary damages when determining disciplinary sanctions.

They may alert the complainant of the option to sue for damages.

**Gus has acted as an implied agent for Carson for the past month before the two decide to acknowledge their relationship in writing. This is known as ______.**

  Consent

  Estoppel

  Ratification

  Vicarious liability

Ratification

Marcus is representing a seller client. Which of the following is a true statement?

\
He isn’t required to review the offers he receives, just to present them to the seller.

  He must present and explain all offers.

  He must present only offers that meet the seller’s pre-defined criteria.

  He should advise his client to share information about the offers received on social media.

He must present and explain all offers.

\
Licensees must present and explain all offers. Sharing information about offers on social media sites is not a good idea, and sellers and buyers should be cautioned to avoid doing this, as it may harm their position.

Which of the following inducements must be disclosed, according to Ohio law?

\
  A commission rebate offered to sellers to enter into a listing agreement

  A commission rebate offered to the first buyer who signs a buyer representation agreement

  A free trip offered to the first buyer to sign a purchase agreement

  A new television offered to the prospective buyer who wins a drawing at the open house

\
A free trip offered to the first buyer to sign a purchase agreement

\
The key here is whether the inducement is used to convince a consumer to enter into a purchase agreement. These must be disclosed.

In a typical real estate transaction, who is the seller?

\
  Conveyee

  Grantee

  Grantor

  Title clerk

 Grantor

Which IRS forms are independent contractors and employees required to complete?

\
Independent contractors fill out W-4s, and employees fill out W-2s.

  Independent contractors fill out W-4s, and employees fill out W-9s.

  Independent contractors fill out W-9s, and employees fill out W-2s.

  Independent contractors fill out W-9s, and employees fill out W-4s.

Independent contractors fill out W-9s, and employees fill out W-4s.

\
Independent contractors complete form W-9, which is the Request for Taxpayer Identification Number. Employees complete form W-4, the Employee’s Withholding Allowance.

Who is responsible for ordering an appraisal, completing the loan application, ordering a home inspection, and obtaining homeowners insurance before closing?

\
The buyer

  The lender

  The seller

  The title insurance company

The Buyer

Who should ensure that all deadlines are met, all contingencies are cleared, and all paperwork is fully executed and delivered before closing?

\
Buyer's attorney

  Client

  Licensees and their clients

  Seller's attorney

 Licensees and their clients

What's your responsibility as a licensee in regard to household lead hazards?

\
 Disclose that there's lead-based paint to a buyer, even when you don’t know for sure it's there

  Disclose to the buyer that there's lead-based paint when you know about it

  Make sure all lead is removed, even if you have to personally remove it

  Make sure your sellers know how to hide the presence of lead-based paint

Disclose to the buyer that there's lead-based paint when you know about it

ven though sixty-eight percent of Ohio’s population own their own homes, ______ are still prevalent in Ohio.

\
  Additional protected classes

  A majority of renters

  Equal housing opportunities

  Racial and ethnic lending inequalities

Racial and ethnic lending inequalities

The Ohio Division of Real Estate and Professional Licensing handles complaints about real estate salespeople and brokers, and who else?

\
Government mortgage consultants

  Real estate appraisers

  Real estate developers

  Unlicensed people acting as brokers

Unlicensed people acting as brokers

\
The division has the authority to investigate complaints about unlicensed individuals who may be performing real estate brokerage services.

Which of the following is an example of positive misrepresentation?

\
  An agent knowingly made a false statement that caused harm.

  An agent made an unintentional error that resulted in a positive outcome.

  An inadvertent error occurred.

  It results in a positive outcome.

An agent knowingly made a false statement that caused harm.

How does Ohio define foreign real estate?

\
  Any real estate outside of Ohio

  Any real estate outside of the United States

  Any real estate owned by nonresidents of Ohio

  Any real estate with tax abatements

Any real estate outside of Ohio

When a buyer hands over an earnest money check to you as the buyer's agent, what's your responsibility?

\
Account for all monies placed in your trust and follow proper procedures.

  Deposit it in your personal account.

  Return it to the buyer to hold onto.

  Spend it.

Account for all monies placed in your trust and follow proper procedures.

Which of the following is required on a real estate lease?

\
Description of the premises

  Lessee and lessor rights

  Maintenance and repair policy

  Pet policy

Description of the premises

Who or which entity is responsible for testing private wells for water safety?

\
Property owners

  The DDOE

  The EPA

  The local water utility

Property owners

A(n) ______ transfers all of the lessor's leasehold rights to another party for the remainder of the lease term, but the original tenant is still ultimately liable for the lease.

\
Assignment

  Novation

  Replacement

  Sublease

Assignment

An assignment transfers all of the lessor's leasehold rights to another party for the remainder of the lease term.

Given all of the laws prohibiting discrimination in housing, why does it still occur?

\
  It makes good business sense.

  It often happens outside of the public eye.

  It's usually warranted.

  Some states allow it.

It often happens outside of the public eye

You’re writing an offer for your buyer client in a cold market. What would be a good negotiation strategy?

\
Ask the seller to pay closing costs.

  Offer a quick close.

  Offer full price.

  Waive the appraisal.

Ask the seller to pay closing costs.

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**When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client?**

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Never

  When covering the options for terms and contingencies

  When determining the amount of the purchase offer

  When discussing the amount of earnest money to place as a down payment

Never

A(n) ________ is a set of guidelines for ethical conduct.

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Code of ethics

  Contract

  Option

  Rule book

Code of Ethics

Ohio brokerage audits should include a review of trust account handling and procedures. In which situation are multiple trust accounts required?

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When the broker is a company rather than an individual

  When the firm has associate brokers

  When there are multiple branches

  When there are multiple closings in one month

When there are multiple branches

Which party to the transaction pays earnest money to solidify his or her commitment to completing a real estate transaction?

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The broker

  The buyer

  The lender

  The seller

The Buyer

The state of Ohio faces several challenges when it comes to its protected classes and fair housing. The main challenge is a(n) ______, while fair housing education could use some work.

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  Act implemented by Congress

  Lack of affordable rental units

  Low percentage of homeowners

  Over-burdened fair housing committee

Lack of affordable rental units

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A lack of affordable rental units is Ohio’s greatest current challenge, with fair housing education coming in a close second.

In Ohio, if a landlord breaches the lease covenant of ______, the tenant may either rescind the lease or wait to move in.

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Possession

  Quiet enjoyment

  Renewal

  Security deposits

Possession

Which of the following is an example of a limited agent?

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  Attorney

  Escrow officer

  Facilitator

  Transactional broker

Escrow Officer

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A limited agent who's completing escrow duties acts on behalf of both parties to a transaction in a limited role. The escrow officer doesn’t represent either party, and when the transaction is complete, the escrow officer’s relationship with the parties ends.

These federal courts, known as the trial courts, try and decide cases.

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  Appellate courts

  Circuit courts

  District courts

  Statutory courts

District Courts

One aim of the Ohio Civil Rights Law is to ban ______.

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Discrimination in the sale or rental of vacant land or residential properties in Ohio

  Education on fair housing for Ohio’s general population

  Gentrification of older neighborhoods in Ohio

  Integration of minorities into more affluent neighborhoods in Ohio

Discrimination in the sale or rental of vacant land or residential properties in Ohio