Question: In Ohio, each of the following is a fiduciary duty that can be waived, EXCEPT for which?
Answer Options:
A. The duty to disclose all material facts
B. The duty to present all offers to purchase
C. The duty to answer the client’s questions regarding offers
D. The duty to assist the client in developing, communicating, and presenting offers
Answer: A. The duty to disclose all material facts 72.
Question: Who promulgates the Ohio Canons of Ethics for the Real Estate Industry?
Answer Options:
A. Ohio Association of REALTORS®
B. Ohio Division of Real Estate and Professional Licensing
C. Ohio Real Estate Commission
D. Ohio Supreme Court
Answer: C. Ohio Real Estate Commission 73.
Question: A buyer’s broker receives a commission directly from a listing broker without discussing it with their buyer client. This action:
Answer Options:
A. is acceptable as long as the amount is reasonable and customary.
B. is standard practice in the industry and requires no special disclosure.
C. only requires disclosure if it exceeds a certain percentage of the sale price.
D. violates the statutory duties to buyers without their knowledge and consent.
Answer: D. violates the statutory duties to buyers without their knowledge and consent. 74.
Question: When must an Ohio licensee enter into a written agency agreement with a buyer in a residential real estate transaction?
Answer Options:
A. Before showing property other than at an open house
B. Only after the buyer has been pre-approved for financing
C. Prior to making an offer to purchase residential real property
D. Within 24 hours of the first meeting with the buyer
Answer: C. Prior to making an offer to purchase residential real property 75.
Question: A real estate licensee notices a “for sale by owner” property in a desirable neighborhood. Without contacting the owner, the licensee updates their website to add the property’s exterior photo and text suggesting that interested buyers contact them for details. Would this be a violation of the Ohio Canons of Ethics for the Real Estate Industry?
Answer Options:
A. No, as long as the licensee doesn’t claim to be the listing agent in the posting
B. No, as long as the licensee finds a buyer for the property
C. No, as long as the licensee gets the permission of their principal broker
D. Yes, the licensee would be advertising the property without proper authorization.
Answer: D. Yes, the licensee would be advertising the property without proper authorization. 76.
Question: Which statement accurately reflects the composition of the Ohio Real Estate Commission?
Answer Options:
A. Four total members appointed by the governor, all four of whom are licensed real estate brokers
B. Four licensee members appointed by the governor and one non-licensee member appointed by the superintendent
C. Five total members appointed by the superintendent, four of whom are licensed real estate brokers
D. Five total members appointed by the governor, four of whom are licensed real estate brokers
Answer: D. Five total members appointed by the governor, four of whom are licensed real estate brokers 77.
Question: Maria has passed the Ohio real estate salesperson license exam, and her license is issued. What must happen before she can begin practicing real estate?
Answer Options:
A. She must attend a mandatory orientation at the Division of Real Estate.
B. She must complete a 30-day internship.
C. She must be properly associated with a principal broker.
D. She must wait for a 10-day cooling-off period to elapse.
Answer: C. She must be properly associated with a principal broker. 78.
Question: What is an exception to the rule that management level licensees in a brokerage become dual agents when the brokerage represents both buyer and seller?
Answer Options:
A. If the transaction closes within 30 days
B. When both parties sign a waiver of dual agency
C. When the management level licensee is the purchaser
D. When the transaction involves commercial property
Answer: C. When the management level licensee is the purchaser 79.
Question: Pam, a real estate salesperson, has her license terminated by her principal broker. What happens to her license?
Answer Options:
A. It is automatically placed in inactive status.
B. It is immediately revoked.
C. It is placed on deposit.
D. It remains active for 30 days to allow for transfer.
Answer: A. It is automatically placed in inactive status. 80.
Question: Real estate licensee Maureen notices that the For Sale sign at a house in a neighborhood where she frequently works has been there for almost three months. Upon approaching the owner, she discovers that their exclusive listing agreement with another brokerage expires in 30 days. What is Maureen’s ethical obligation?
Answer Options:
A. Contact the current listing broker to verify the expiration date before discussing future representation with the seller.
B. Leave her business card and ask the owner to call her when they’re ready to switch agents.
C. Offer to list the property immediately at a lower commission.
D. Tell the owner to cancel their current agreement so they can work together immediately.
Answer: A. Contact the current listing broker to verify the expiration date before discussing future representation with the seller. 81.
Question: A real estate licensee is hosting an open house and offers a $25 restaurant gift card to everyone who attends, regardless of whether they make an offer. Is this considered an inducement that must be disclosed in any resulting purchase agreement?
Answer Options:
A. Yes, because it’s something of value offered by the agent
B. Yes, but only if the value exceeds $20
C. No, because it’s available to everyone, regardless of whether they make an offer
D. No, but it must be reported to the broker as a marketing expense
Answer: C. No, because it’s available to everyone, regardless of whether they make an offer 82.
Question: A seller tells their agent that they’ve never had water issues in the basement. Later, the agent notices fans drying the basement floor after a rainstorm, but the seller has already signed a Residential Property Disclosure Form claiming no water problems. What is the agent’s liability in this situation?
Answer Options:
A. The agent has liability because they have actual knowledge of false information.
B. The agent has liability only if the buyer specifically asks about water issues.
C. The agent has no liability because they didn’t help prepare the disclosure form.
D. The agent has no liability unless they personally witnessed water entering the basement.
Answer: A. The agent has liability because they have actual knowledge of false information. 83.
Question: When a payment is made from the Real Estate Recovery Fund for a claim against an Ohio real estate licensee, what is the outcome for the licensee?
Answer Options:
A. The licensee incurs a fine issued by the Ohio Division of Real Estate & Professional Licensing.
B. The licensee’s license is automatically suspended.
C. The licensee’s license is automatically revoked.
D. The licensee must complete 100 hours of real estate education.
Answer: B. The licensee’s license is automatically suspended. 84.
Question: The Success Team at XYZ Realty consists of three licensed agents and two unlicensed assistants. The team leader wants to set up a compensation structure in which team members receive direct payments based on their contributions to closed transactions. Which of the following statements is accurate?
Answer Options:
A. All team members must be paid through the broker, regardless of license status.
B. Both licensed and unlicensed team members can receive compensation directly from the team.
C. Only unlicensed team members can receive compensation directly from the team; licensed members must be paid through the broker.
D. The team can establish an LLC to pay all members directly, bypassing broker payment requirements.
Answer: C. Only unlicensed team members can receive compensation directly from the team; licensed members must be paid through the broker. 85.