Question: Which of the following is one of the requirements for a real estate licensee to have the federal income tax status statutory nonemployee?
Answer Options:
A. Their employer must provide benefits.
B. Their income must be based on hours worked.
C. They cannot be supervised by a principal broker.
D. They must be properly licensed.
Answer: D. They must be properly licensed. 2.
Question: A seller who is a retired real estate attorney wants to handle all negotiations directly with potential buyers. What must happen for a buyer’s agent to legally communicate an offer directly to this seller?
Answer Options:
A. The buyer’s agent must become a transaction broker for this specific deal.
B. The seller must sign a dual agency agreement with the buyer’s agent.
C. The seller must terminate their listing agreement before direct negotiations can occur.
D. The seller’s broker must provide written authorization for the buyer’s agent to negotiate directly.
Answer: D. The seller’s broker must provide written authorization for the buyer’s agent to negotiate directly. 3.
Question: Seller Susan confesses to her listing agent Albert that the home was once used for illegal methamphetamine drug manufacturing, but she believes any issues have been fully remediated. What should Albert do?
Answer Options:
A. Disclose the past illegal use, as it might psychologically impact a buyer’s decision.
B. Disclose the property’s past use, as it could potentially be a health hazard.
C. Provide detailed reports of the remediation process, but not the reason behind it.
D. Nothing, as the illegal use does not currently affect the property’s physical condition.
Answer: B. Disclose the property’s past use, as it could potentially be a health hazard. 4.
Question: Marissa lives in one unit of her duplex in Columbus and wants to rent out the other unit without accepting families with children. Which of the following statements is correct?
Answer Options:
A. Marissa is exempt from familial status protections under both federal and Ohio law.
B. Marissa is exempt under federal law but not under Ohio law.
C. Marissa is not exempt under either federal or Ohio law.
D. Marissa is exempt under both laws only if she doesn’t advertise or use a real estate licensee.
Answer: B. Marissa is exempt under federal law but not under Ohio law. 5.
Question: Agent Morgan is a dual agent for both buyer and seller. The seller’s basement has a crack that is hidden behind the furnace and not readily observable during showings. What must Morgan do regarding this issue?
Answer Options:
A. Advise the seller to fix the crack before any more showings.
B. Disclose the crack only if the buyer specifically asks about foundation issues.
C. Disclose the latent material defect to the buyer.
D. Nothing, as disclosing this would harm the seller’s negotiating position.
Answer: C. Disclose the latent material defect to the buyer. 6.
Question: What happens if a licensee fails to reactivate their suspended license within the 12-month grace period?
Answer Options:
A. They can apply for a six-month extension.
B. They must pay an additional penalty fee.
C. The license is automatically revoked.
D. They must complete additional continuing education.
Answer: C. The license is automatically revoked. 7.
Question: A new real estate licensee is unfamiliar with a particular county where their client wants to purchase property. According to the Ohio Canons of Ethics for the Real Estate Industry, what is the BEST approach for the licensee to take?
Answer Options:
A. Advise the client based on general market knowledge, without specific research.
B. Partner with an agent who has geographic competency in that area.
C. Refer the client to another licensee who specializes in that county.
D. Research the county thoroughly before advising the client.
Answer: D. Research the county thoroughly before advising the client. 8.
Question: Which is one of the responsibilities of the Ohio Division of Real Estate & Professional Licensing?
Answer Options:
A. Issue real estate licenses
B. Promote the Canons of Ethics for the Real Estate Industry
C. Review education requirements for brokers and salespersons
D. Set licensing standards
Answer: A. Issue real estate licenses 9.
Question: A real estate team called Elite Home Group places an advertisement featuring photos of all five team members but lists the names of only the three licensed agents. The ad includes the brokerage name prominently. Is this advertisement compliant?
Answer Options:
A. No; all team members shown in photos must be named in the advertisement.
B. No; the unlicensed team members must be identified as “non-licensed.”
C. Yes, it is compliant as long as the brokerage name is displayed with equal or greater prominence compared to the team name.
D. Yes, the advertisement is fully compliant with Ohio regulations.
Answer: C. Yes, it is compliant as long as the brokerage name is displayed with equal or greater prominence compared to the team name. 10.
Question: A homeowner is meeting with a real estate licensee to list their house. During their discussion, the licensee walks through their brokerage listing agreement form. Each of the following is a required element in a written agency agreement for a residential real estate transaction in Ohio EXCEPT for which?
Answer Options:
A. A definite expiration date
B. A guarantee that the property will sell within the listing period
C. A statement about illegal blockbusting and fair housing laws
D. A statement that broker fees and commissions are not set by law and are fully negotiable
Answer: B. A guarantee that the property will sell within the listing period 11.
Question: A buyer’s agent is showing a property and notices what appears to be new drywall and paint in the basement. The Residential Property Disclosure Form indicates no history of water damage. What should the agent do?
Answer Options:
A. Advise their buyer client that no further investigation is needed.
B. Ask the listing agent about the recent basement work.
C. Nothing, because the disclosure form doesn’t mention water damage.
D. Tell their buyer client not to worry because the work looks professional.
Answer: B. Ask the listing agent about the recent basement work. 12.
Question: A broker wants to assign supervisory duties to a management level licensee. Which statement is TRUE?
Answer Options:
A. The brokerage is relieved of all responsibilities.
B. The management level licensee can operate independently.
C. Only someone with a broker’s license can be a management level licensee.
D. The principal broker retains ultimate responsibility.
Answer: D. The principal broker retains ultimate responsibility. 13.
Question: What can happen if a buyer refuses to consent to dual agency?
Answer Options:
A. The broker automatically becomes the buyer’s agent.
B. The buyer can ask the seller to request a new agent.
C. The buyer can request a new agent or find a new brokerage.
D. The licensee must note that on the Agency Disclosure Statement and inform their broker.
Answer: C. The buyer can request a new agent or find a new brokerage. 14.
Question: Kyle is a sergeant in the Ohio National Guard. When filing out an application for a new lease, he tells the property manager that he will likely be deployed later that year. Can the manager deny the application due to concerns about potential early lease termination?
Answer Options:
A. Yes, this is an acceptable excuse because early termination would create a financial hardship.
B. Yes, this is an acceptable excuse if the manager offered Kyle a month-to-month lease instead.
C. No, this is not an acceptable excuse because military status is a protected class.
D. No, this is not an acceptable excuse since source of income is a protected class.
Answer: C. No, this is not an acceptable excuse because military status is a protected class. 15.