Question: A state law that requires certain real estate contracts to be in writing to be enforceable by the courts is the:

Answer Options: A. doctrine of part performance. B. parol evidence rule. C. specific performance. D. statute of frauds.

Answer: D. statute of frauds.

Question: A couple sold their house for $285,600. In their state, the transfer tax is 55 cents for every $1,000 or fraction thereof. What is the transfer tax on this transaction?

Answer Options: A. $102.25 B. $157.30 C. $192.90 D. $519.27

Answer: B. $157.30

Question: A buyer submits an offer to their agent, who gives it to the listing agent for delivery to the sellers. The sellers like the offer and sign their acceptance. They then hand the accepted offer to their agent with instructions to deliver the accepted contract back to the buyer. Has a contract been created?

Answer Options: A. No, because the sellers’ acceptance has not been communicated to the buyer B. Yes, because the listing agent now has possession of the accepted offer C. Yes, because the offer has been delivered to the buyer D. Yes, because the offer was accepted

Answer: A. No, because the sellers’ acceptance has not been communicated to the buyer

Question: Joel contracts with Ash Tree Realty to sell his house. The following week, he runs into an old friend and tells her that his house is on the market. She has always loved that house and makes an offer on the spot. When the transaction closes, Joel must pay a commission to Ash Tree Realty, even though his listing agent did not find the buyer for his property. Which type of listing agreement did Joel sign?

Answer Options: A. Exclusive agency B. Exclusive right to sell C. Net listing D. Open listing

Answer: B. Exclusive right to sell

Question: For a real estate licensee to be classified as an independent contractor by the Internal Revenue Service (IRS) for tax purposes, they must be compensated based on:

Answer Options: A. a fixed monthly salary. B. the number of hours worked. C. the number of sales closed and commissions earned. D. their years of experience in the real estate industry.

Answer: C. the number of sales closed and commissions earned.

Question: Lois is looking for a commercial property of approximately 8,000 square feet that will give her the most access to the road possible. She’s comparing the following four properties (frontage price indicated). She can’t spend more than $50,000. Which property is she MOST likely to buy?

Answer Options: A. 70′ × 120′ / $400 per front foot B. 80′ × 100′ / $600 per front foot C. 90′ × 90′ / $550 per front foot D. 120′ × 65′ / $460 per front foot

Answer: C. 90′ × 90′ / $550 per front foot

Question: Which of the following BEST describes how encumbrances can affect real property?

Answer Options: A. They always increase property value by adding legal protections. B. They can decrease property value and marketability. C. They have no impact on property transferability. D. They only affect commercial properties, not residential ones.

Answer: B. They can decrease property value and marketability.

Question: Which situation is LEAST likely to be confidential information that you, as a real estate agent, must protect?

Answer Options: A. Your buyer client’s lease is up in one month, and they are desperate to buy. B. Your buyer client lost their job and will not likely qualify for a loan. C. Your seller client has a new job out of town and is highly motivated to sell. D. Your seller client is getting a divorce and wants to unload the house quickly.

Answer: B. Your buyer client lost their job and will not likely qualify for a loan.

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.

Question: If a real estate licensee wants to transfer from their current brokerage to a new one, what must they do first, according to Ohio regulations?

Answer Options: A. Complete additional continuing education requirements. B. File a transfer application with the Division of Real Estate & Professional Licensing. C. Provide written notice to their current principal broker. D. Return their license to the superintendent.

Answer: C. Provide written notice to their current principal broker.

Question: The optionee in an option to purchase real estate:

Answer Options: A. has no obligation to purchase the property. B. is the prospective seller of the property. C. must purchase the property but may do so at any time within the option period. D. is limited to a refund of the option consideration as a matter of right if the option is not exercised.

Answer: A. has no obligation to purchase the property.

Question: What is the timeframe within which an Ohio landlord must return a residential tenant’s security deposit after the tenant moves out?

Answer Options: A. 14 days B. 21 days C. 30 days D. 45 days

Answer: C. 30 days