Question: Real estate licensee Davis meets with potential buyers who want to determine what price range they can afford before looking at specific properties. During their conversation, Davis suggests conducting a pre-qualification evaluation to assess their financial situation, but they haven’t shared any specific financial documents yet. At what point must Davis provide them with the Consumer Guide to Agency Relationships?
Answer Options:
A. Only after they share their financial documents
B. Before initiating the pre-qualification evaluation
C. After completing the pre-qualification evaluation
D. Only if they decide to work exclusively with Davis
Answer: B. Before initiating the pre-qualification evaluation 44.
Question: How many members of the Ohio Real Estate Commission must be licensed real estate brokers?
Answer Options:
A. 1 member
B. 3 members
C. 4 members
D. 5 members
Answer: C. 4 members 45.
Question: A licensee is convicted of a felony for tax evasion that is unrelated to their real estate practice. What action is required, according to the Ohio Canons of Ethics for the Real Estate Industry?
Answer Options:
A. No action is required because the issue is unrelated to real estate.
B. The licensee must report the conviction only if asked directly by the Division.
C. The licensee must report the conviction only if it results in imprisonment.
D. The licensee must report the conviction to the Ohio Division of Real Estate.
Answer: D. The licensee must report the conviction to the Ohio Division of Real Estate. 46.
Question: Tina is a principal broker at ABC Realty. She decides to go back to school to get an MBA. If she wants to be a salesperson for a while, the superintendent can place her broker’s license:
Answer Options:
A. in inactive status indefinitely and reissue a new salesperson’s license.
B. in suspended status for up to three years and reissue a new salesperson’s license.
C. on deposit indefinitely and reactivate her salesperson’s license.
D. on hold for up to three years and reactivate her salesperson’s license.
Answer: C. on deposit indefinitely and reactivate her salesperson’s license. 47.
Question: A real estate licensee tells a buyer, “This neighborhood has seen property values increase by 5% annually for the past decade, and I guarantee you’ll see at least that much appreciation if you buy this home.” Under Ohio real estate license law, this statement could:
Answer Options:
A. be considered acceptable puffing because it’s based on historical data.
B. be justified if the agent genuinely believes the prediction.
C. only be problematic if the property value actually decreases.
D. result in disciplinary action for guaranteeing future profits.
Answer: D. result in disciplinary action for guaranteeing future profits. 48.
Question: A real estate licensee is listing a property where the seller has recently painted over large cracks in the basement wall. When completing the Residential Property Disclosure Form, the seller marks “No” for structural defects. What is the agent’s responsibility in this situation?
Answer Options:
A. The licensee has no responsibility, because the form must be completed solely by the seller.
B. The licensee should complete a separate disclosure form noting the observed cracks.
C. The licensee should question the seller about the discrepancy, and ensure proper disclosure.
D. The licensee should recommend that the buyer hire a structural engineer but has no disclosure obligation.
Answer: C. The licensee should question the seller about the discrepancy, and ensure proper disclosure. 49.
Question: What does the phrase “equal or greater prominence” refer to in real estate advertising regulations?
Answer Options:
A. The placement of the advertisement in the media compared to competitors
B. The ratio of text to images in digital advertisements
C. The size and visibility of the brokerage name compared to the licensee’s name
D. The size of the property description compared to the agent’s contact information
Answer: C. The size and visibility of the brokerage name compared to the licensee’s name 50.
Question: What is the maximum payout from the Real Estate Recovery Fund per licensee?
Answer Options:
A. $2,500
B. $30,000
C. $40,000
D. $50,000
Answer: C. $40,000 51.
Question: An out-of-state commercial broker wants to participate in an Ohio commercial real estate transaction. Which of the following is NOT a requirement for this broker to be exempt from Ohio licensing requirements?
Answer Options:
A. Filing an irrevocable consent to service of process
B. Obtaining an Ohio temporary practice permit
C. Providing a certificate of good standing from their state
D. Working in cooperation with an Ohio real estate broker
Answer: B. Obtaining an Ohio temporary practice permit 52.
Question: What is required regarding the display of real estate licenses in a brokerage office?
Answer Options:
A. All licenses must be available for review in a private area of the office.
B. All licenses of affiliated salespeople must be prominently displayed.
C. Licenses are not required to be displayed but must be registered online.
D. Only the broker’s license must be prominently displayed.
Answer: D. Only the broker’s license must be prominently displayed. 53.
Question: A real estate brokerage is licensed under the name HSH Realty, LLC, but it has registered the trade name Home Sweet Home Realty. Which name must appear in advertisements placed by the brokerage’s licensees?
Answer Options:
A. Home Sweet Home Realty must be used, since it’s the trade name.
B. HSH Realty, LLC must be used, since it’s the licensed name.
C. Both names must appear in all advertisements.
D. Either name can be used, as long as both are registered with the state.
Answer: A. Home Sweet Home Realty must be used, since it’s the trade name. 54.
Question: Which statement about the suspension of a real estate license is TRUE?
Answer Options:
A. It is for an indefinite period of time and will be reviewed upon application by the licensee.
B. It is for a set period of time, with reactivation by application after the suspension is lifted.
C. It is for a set period of time, with automatic reactivation when the suspension is lifted.
D. It is the permanent withdrawal of a license by the Real Estate Commission.
Answer: B. It is for a set period of time, with reactivation by application after the suspension is lifted. 55.
Question: According to Ohio law, each of the following activities can be performed for a customer EXCEPT for which?
Answer Options:
A. Offering opinions on which property represents the best value.
B. Providing contact information for several local inspectors.
C. Providing information about local schools and shopping facilities.
D. Sharing market information obtained from public records.
Answer: A. Offering opinions on which property represents the best value. 56.
Question: What is the primary purpose of the Consumer Guide to Agency Relationships?
Answer Options:
A. To create a binding contract between the brokerage and the consumer
B. To document the specific agency relationship in a particular transaction
C. To establish the commission rate for the transaction
D. To provide consumers with information about the brokerage’s agency practices
Answer: D. To provide consumers with information about the brokerage’s agency practices 57.