Oklahoma Real Estate Licensing and Land Concepts, Exams of Nursing

Download Oklahoma Real Estate Licensing and Land Concepts and more Exams Nursing in PDF only on Docsity! 1 Oklahoma Real Estate Test Questions verified exam |2024 In general, when the supply of a certain commodity increases - ANS Prices tend to drop The cyclic changes in the national economy & the law of supply and demand - ANS The real estate market is subject to The typical real estate licensee must have specialized knowledge of a variety of subjects which include of the following - ANS Financing,Contracts & Valuation The regulatory body established by the legislature and empowered to carry out the provisions of the Oklahoma Real Estate License Code - ANS Oklahoma Real Estate Commission(OREC) Which of the following is usually exempt from real estate licensure? - ANS Owners of real estate handling their own property, or delegating such right to an attorney-in-fact. When brokers hire associates as employees, they are responsible for paying which of the following on behalf of the associates? - ANS FICA tax, State unemployment tax & Federal income tax withheld Persons who are only responsible to their employer for the results of their work - ANS Independent contractors A successful career in real estate is based on ethical conduct and service to others. A successful career in real estate is based on knowledge of a great variety of subjects. - ANS Which of the following is an accurate statement regarding a successful career in real estate? The NAR Code of Ethics reflects the relations of the licensee to public, licensee to fellow brokers and licensee to - ANS Clients The term REALTOR is a registered trademark term and can be used by - ANS only members of NAR Association of Real Estate License Law Officials - ANS ARELLO The largest number of licensed people in the real estate industry are in involved in - ANS Home sales 2 Property managers must be skilled in - ANS Tenant relations, maintenance of property, negotiations In Oklahoma, appraisers are licensed or certified by the Appraisal Board, administered under the Oklahoma Department of - ANS Insurance Urban planners usually have an appropriate degree and employed by - ANS Local Governments Which is usually not exempt from real estate licensure? - ANS Manage property belonging to another & sell property belonging to another May vary after meeting certain production goals - ANS Commission splits Which specialized type of law sets forth the ground rules by which the Commission must function to ensure orderly procedures and equal treatment for all. - ANS Administrative Law The OREC has the power to - ANS Sell their computer testing system to other states How many years are the Oklahoma Real Estate Commissioners appointed to serve? - ANS 4 The National Association of Real Estate Brokers was established in 1947 (NAREB). Its members are REALTISTS - ANS Primarily African Americans & Minority real estate licensees Exchange of information, exchange of ideas regarding licensing, regulation and adoption of similar policies and standards for all states. - ANS The main emphasis of ARELLO is the Which association provides in-depth courses for persons interested in learning about commercial real estate? - ANS CCIM In the United States, about what percentage of the population lives within one hundred miles of a coastal line? - ANS 70% For the individual, what factors would weigh heavily in determining an offer price? - ANS Types of mortgages available, interest rates, closing dates Land and improvements. mineral rights, trees,houses and septic tanks. Airspace, surface, and ground beneath the surface. - ANS A parcel of real property may include Which of the following are ownership rights as contemplated by the "bundle of rights"? - ANS To use, sell, or lease the property. 5 Three economic characteristic of land are - ANS Scarcity Long life so improvements Location The rights of the owner of property located along the banks of a non-navigable river are called - ANS Riparian rights Many stated determine the order of water rights according to which users of the water hold a recorded beneficial use permit. This allocation of the water rights is determined by - ANS The doctrine of prior appropriation. In reference to land it can be said that it is - ANS Durable & Indestructible. Full and complete ownership of land exists most nearly in a - ANS Simple fee absolute A fee simple estate includes an owner's right to do of the following with the property except to - ANS Condemn it A fee simple estate includes an owner's right to do of the following with the property - ANS Sell it, lease it, finance it Liz Pendens, a widow devised a piece of property through her will to the Church for so long as the property is to be used for church purposes. Several years later the church conveyed this property to Chico El Bueno who began restaurant operations. Chico El Bueno received - ANS No interest at all in the property For the duration of life of the grantee or the life of someone other than the grantee. - ANS A life estate may be granted Winkin conveys a house to Blinkin for life, then to Lincoln. Blinkin's heirs have - ANS No estate or interest In order to protect a family from the financial irresponsibility of the head of household, Oklahoma provides a form of relief form creditors called - ANS Homestead Exemption In order to create a homestead right in Oklahoma, the claimant must - ANS Own and occupy the property as the principal residence. The declaration of homestead in Oklahoma, filed by the head of a family by March 15, will exempt from the assessed valuation of the property the amount of - ANS $1,000 When homestead properly is sold, both spouses should sign the deed. - ANS Regarding Homestead rights 6 A person hold title to real property in severalty would most likely have - ANS Sole ownership Real property owned by public corporations, such as cities, counties, and school districts, in generally owned in - ANS Severalty Concurrent ownership of real property by two or more persons, each of whom has an undivided interest (not necessarily equal) without right of survivorship, is - ANS Tenancy in common Ann and her brother, Bob, inherited under their mother's will title to a house in joint tenancy. Ann married and had title to her share put in joint tenancy with her husband. Bob is now - ANS A tenant in common owning an undivided 1/2 interest Marlene and Alice own property as tenants in common. This means that if Marlene dies, she can leave her interest to - ANS Anyone she wants to. Tenants in common must - ANS share possession of the property Which is true if two sisters, Mary and Kate, inherit real property with no conditions except the stipulation that one-third of the property is to go to Mary and two-thirds to Kate? - ANS Mary and Kate are tenants in common A, B, and C are joint tenants, each enjoying a one third share of their jointly owned property. C dies suddenly. In her will she specified that her husband, D, who is not a member of the tenancy, should inherit her share of the property. A and B, meanwhile, protest that the deceased tenant's share is rightfully theirs, to be split equally between them. Which of the following is true? - ANS The court will rule in A and B's favor. A and B are now co-equal joint tenants. Husband D acquires no interest in the tenancy as the result of his wife's will. In order to create a joint tenancy, the - ANS deed or will must definitely state the intention to create a joint tenancy. Four unities of time, title, interest, and possession must be present. The so-called "grand incident" of the joint tenancy is the right of - ANS Survivorship Mrs. Quirk is now a widow whose husband owned an office building jointly with right is survivorship with Tom and Sam. Upon her husband's death, his will devised al his property to her. Mrs. Quirk... - ANS She has no interest at all. Spice and Zesty bought a building and took title as joint tenants. Spice died testate. Zesty now owns the building - ANS In severalty 7 To mortgage property held in a tenancy by the entirety, it is necessarily to have the mortgage signed by the husband and - ANS Wife both. Because neither alone has the power to deal with the property The establishment of a condominium - ANS is accomplished by a series of deeds to various owners, establishing fee simple interest in their respective units. Must be done in strict accordance with state statutes because the condominium is not recognized under common law. Max sells his house and moves into a condominium. Shorty after moving in, he learned that Noah, his next door neighbor, has failed to pay his real estate taxes. If Noah does not pay his taxes, - ANS the only lien that can be placed against the property is against Noah's unit and his interest in the common areas. Ownership in a cooperative apartment usually requires purchase of shares of stock in the cooperative association. Individual apartment in a condominium are conveyed and are financed as if they were single family dwellings on separate pieces of land. - ANS Which is true concerning apartment ownership? Title to property or the right to use property for a specific interval each year. - ANS Time sharing is best explained as Estates owned by those who lease property from others are - ANS Leasehold estates A tenant's lease has expired. The tenant has neither vacated nor negotiated a renewal lease, and the landlord does not want the tenant to remain in the building. The tenant is a - ANS Tenant at sufferance Which of the following are personally liable to creditors for debt of the business? - ANS Members of a general partnership. In order to enjoy some of the benefits of incorporation, yet retain the partnership form of ownership, it is possible to form a "limited partnership." This can be achieved only by filing a formal certificate. Limited partners - ANS are not responsible for firm debts beyond their individual investment. There are _____________ square feet in one acre. - ANS 43,560 runs East and West in the Southern part of the state. - ANS The main base line in Oklahoma Land in Oklahoma, under the governmental survey, is described by - ANS The Cimarron Meridian The Indian Meridian 10 paid only at the time of issuance of the policy a non-recurring premium. - ANS The cost of Title Insurance is buyer still cannot be absolutely certain that the title is good. - ANS When the title search indicates a clear title, In the states such as Oklahoma, which practice the "lien theory" in mortgages, title to the real property which is mortgaged is in the - ANS Mortgagor Mortgagor - ANS Buyer Mortgagee - ANS Seller The priority of a mechanic's lien over such liens as mortgages and other non-tax liens is determined by the date of - ANS Work of improvement commences A general lien is a lien against all of the debtor's property, while a specific lien covers only a certain piece of the property. - ANS What is difference between a general lien and a specific lien? The illegal, wrongful extension of a structure or of any improvement, partly or wholly, on the property of another, is a(n) - ANS Encroachment May cause the improvement to be removed and may collect for any damage to the property caused by the removal. - ANS Should a person erect an improvement on the land of another by mistake and in good faith, the owner of the land on which the encroachment has occurred An acquired legal privilege or right of use or enjoyment, falling short of actual ownership, which a party may have in the land of another is - ANS An easement Deed restrictions - ANS Restrictions placed on property by subdividers which limit a landowner's ability to exercise absolute control over the condition and use of real property are Queenie, owner of a 40-lot tract of land, conveys each lot with a restrictive covenant requiring the owner to use the land for residential purposes. One of her grantees, Prince, later sells his lot to Duke, who wants to build a gas station. - ANS Duke will be bound by the restrictive covenant in Prince's deed. Police powers - ANS The ability of the state to enact and enforce zoning ordinances stems from its They establish minimum standards in design, structural systems, and construction materials. - ANS Which statement about building codes is true? 11 Forced to tear down the buildings. - ANS Should landowners develop their land without first obtaining building permits, they could be The commercial use was a pre-existing non-conforming use. A variance is authorized by the zoning board for a new non-conforming use. - ANS Even though an area is zoned for single-family dwelling units only, some commercial use may be permitted if The seller is responsible for both liens. - ANS Before selling a property, the broker told the buyer of an existing certified lien against the property in the amount of $900 for new paving and curbs in the neighborhood. Two days before the sales contract was signed by both buyer and seller, the city council notified the seller by mail of a pending lien in the amount of $400 to pay for the installation of a recently completed municipal sewer system. Neither of the two liens was mentioned in the sales contract. Which is most correct? All of the seller's interests in the property belong to the buyer. - ANS The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that They guarantee marketable title - ANS Which of the following is NOT true regarding public records? They give notice of encumbrances. They establish priority of liens. They provide constructive notice about interests in the property. - ANS Which of the following is TRUE regarding public record? a lis pendens - ANS When a lien against a parcel of real estate may result from a lawsuit currently before the court, a person examining the public records would look for When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n) - ANS mechanic's liens Includes any interest or estate in real property, within or without the state of Oklahoma, whether vested, contingent or future, corporeal or incorporeal, freehold or nonfreehold, including leaseholds, options and unit ownership estates to include condominiums, time-shared ownerships and cooperatives - ANS Real estate Shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee - ANS Real Estate Broker 12 Include any person who has qualified for a license as a broker and who is employed or engaged by, associated as an independent contractor with, or on behalf of, a broker to do or deal in any act, acts or transaction set out in the definition of a broker - ANS Broker associate Include any person having a renewable license and employed or engaged by, associated as an independent contractor with, or on behalf of, a broker to do or deal in any act, acts or transaction set out in the definition of a broker - ANS Real estate sales associate include any person who has been licensed after June 30, 1993. 45 hour course nonrenewable - ANS Provisional Sales Associate (PSA) prelicense, postlicense, and distance education courses in which n approved public or private school entity has examined the individual, to the satisfaction of the entity and standards as established by the Commission, in relation to the course material presented during the offering. - ANS Successful completion Refer to a sales associate who is a holder of such license or to a provisional sales associate who has completed both the the prelicense and postlicense educational requirements within the required time period as stated in the Code - ANS Renewable license Refer to a provisional sales associate (PSA) - ANS nonrenewable license Refer to a real estate license which is surroundered, upon the request of the licensee, due to a pending investigation or disciplinary proceedings - ANS Surrendered license Refer to a real estate license which is canceled, upon the request of the licensee and approved of the Commission, due to a personal reason or conflict. - ANS cancelled license include any person who person who performs any act, acts or transactions set out in the definition of a broker and licensed under the Oklahoma Real Estate License Code - ANS Licensee Oklahoma Real Estate Commission - ANS Commission Oklahoma Real Estate Commission - ANS OREC Include and mean every individual, partnership, association or corporation, foreign or domestic - ANS Person a broker associate, sales associate or provisional sales associate. - ANS Associate 15 A broker who is the Sole Owner of a real estate business. - ANS Sole proprietor The name a firm is to be known as and which is used in advertising by the firm to promote and generate publicity for the firm. A firm may or may not do business in the name under which their license is issued but must register with the Commission all trade names used by the firm. - ANS Trade name A reputation for honesty, truthfulness, trustworthiness, good moral character, and that he or she bears a good reputation for fair dealing. - ANS Applicant must be of good moral character. The original examination application shall be valid for one (1) year from the date of filing. After such date, an applicant must complete a new original application form - ANS Application valid for one year A limited liability company shall be considered as an association. - ANS Limited Liability Company LLC If a broker maintains one or more places of business, the additional places of business shall be referred to as a branch office. Each associate's license shall be issued to and available upon request in the office to which the associate is assigned whether that be the main place of business or branch office. - ANS Branch offices The office may be in the residence of the broker. - ANS Office located at residence Associates are not permitted to have a place of business, but must be registered with a place of business maintained and registered in the name of the broker. - ANS Associates not permitted to have an office A broker may be the broker for more than one firm so long as the firms are at the Same Location. - ANS Broker may be broker for more than one firm A broker is responsible for all real estate related activities of any unlicensed assistant working within the firm. - ANS Broker is responsible for acts of unlicensed assistants. Escrow - ANS Earnest Money Same - ANS Earnest Money & Escrow = All Escrow funds shall be deposited before the__________________ following acceptance of an offer by an offered Unless Otherwise Agreed To In Writing By All Interested Parties. - ANS Third (3rd) banking day Trust Account of the ___________ Broker. - ANS Listing 16 The grant of title by a government body to individual persons is known as - ANS A patent discovery, occupancy, conquest or cession - ANS Sovereign nations acquire original title to land by Subsequent transfer of title to real property occurs by ________________ whereby the ownership, title or interest in real estate is conveyed to a alienee who receives the legal rights, obligations, and remedies as the grantor. - ANS Alienation The transfer occurs by _____________, normally by a deed or by will. - ANS voluntary alienation The transfer may also come from _______________ /against the will of the owner/, such as transfer by a tax sale or nonpayment of taxes, by adverse possession, or by eminent domain. - ANS Involuntary alienation The "owner" possessor has the right of possession, exclusion, occupy and use, restricted use, devise by will,etc - ANS Bundle of Rights Ownership or title is the possession of - ANS Rights title is held by the state. Derivative title is held by individual or others than the state. - ANS Original Is held by a buyer in a purchase contact, contract for deed or other installment sales contract. Is transferable by assignment and, upon performance of the contact, may become legal title. - ANS Equitable Title A Written legal instrument which, when property executed and delivered, conveys all rights, title and interest in realty from the grantor to the grantee. - ANS A Deed General warranty deeds Special warranty deeds Quitclaim deeds - ANS Most common types of deeds Covenant of Seizen Covenant against Encumbrances Covenant of Quiet Enjoyment Covenant of Further Assurance Covenant of Warranty Forever - ANS General warranty deed 17 The grantors warrant or guarantee the title only against defects arising during the period of their tenure and ownership of the property, and not against defects existing before that time. - ANS Special Warranty Deed Warrants Nothing - ANS Quitclaim Deed Only Six 6 Written Words Sellers/Buyers Legal Description Signature of Grantor Delivery & Acceptance - ANS For A Deed to be Valid "to have and to hold" - ANS The Habendum Clause If one dies With a valid will - ANS Testate If one dies Without a will - ANS Intestate The legal process of reversion of the ownership of property to the state - ANS Escheat The most typical occasion giving rise to __________ is when the property owner dies intestate/no will/ and without heirs capable of inheriting /no legal heirs. - ANS Escheat The government has the power to property in time of emergency or war, without compensation. - ANS Confiscation The acquisition of land due to the gradual accumulation of soil /alluvion/ by natural causes, resulting in stream or river shoreline changes. - ANS Accretion The loss of land, due to the sudden removal of a considerable quantity of soil by an act of nature, such as a flash flood tearing away a sizeable portion of land. - ANS Avulsion A Possession of private property which is inconsistent with and detrimental to the rights of the true owner. - ANS Adverse Possession Adverse Possession claimant takes physical possession of the property for the - ANS Term of 15 fifteen years An installation sales contact or as a land contact - ANS Contact For Deed When the purchase contact has been properly executed by all of the parties, there remains much to be done to effect a conveyance. During the interim, the interest of the purchaser would best be described as - ANS Equitable Title 20 Molly, Polly and Dolly Parrott own a large home on a ten-acre parcel of land, all of which is needed by the state due to the creation of a new state highway. Regarding this case, all of the following statements are correct. - ANS The Parrott sisters may voluntarily agree to sell the land to the state. If the state can demonstrate the public need for land, it may condemn the land and obtain title, even if the Parrott's will not sell voluntarily. If the state obtains the land, the Parrott's must be justly compensated for it. The reverting of property to the state when heirs capable of inheriting do not exist and there is no will is - ANS Escheat Title to land by accretion is acquired by - ANS an owner of adjoining land as a result of natural causes. The sudden removal of land from one owner to another when a stream changes its channel is - ANS Avulsion The right of an occupant of land to acquire title against the real owner, when the possession has been actual, continuous, hostile, visible, and exclusive for the legal period, is - ANS Adverse Possession A landowner can break an adverse claim by all of the following methods EXCEPT - ANS Observing the adverse occupant carefully A landowner can break an adverse claim by all of the following methods - ANS Ousting the adverse occupant. Giving the adverse occupant permission to stay. Preventing trespassers from entering. In a sale by contact for deed, the buyer - ANS Has equitable title to the property. Is entitled to a conveyance of the legal title when all payments have been made. In the typical contact for deed, the buyer has which of the following duties? - ANS Payment of taxes. Insuring the property. Maintenance. The legal relationship whereby one person, an agent, is authorized by another, a principal, to act on that person's behalf, and is empowered to do what the principal could lawfully do in person. - ANS An Agency Generally created by an employment agreement between the parties in the form of a listing contact. - ANS Principal-Agent Relationship 21 Agency Authority-For the purpose of real estate brokerage, Two major types are identified: - ANS Actual & Appartent By far the MOST COMMON type. It is the authority specifically and clearly conferred by a principal. It consists of Expressed Authority & Implied Authority. - ANS Actual Authority Commonly termed "express authority" is given to the agent In Writing or Orally, and sometimes by the conduct of the principal. The most obvious example of expressed authority is the written employment contract or listing agreement. - ANS Expressed Authority That which the agent reasonably needs to perform expressed authority. For example, an administrative assistant is employed to manage a real estate brokerage office. The assistant is not expressly to hire and fire custodial employees, but implied authority allows the assistant to do so. - ANS Implied Authority Also known as "Ostensible Authority" is conferred on an agent by force of law to protect innocent third parties who rely on the impression created by the principal that appropriate authority has been conferred on a would be agent. - ANS Apparent Authority 1. One willfully or negligently conveys the impression that another is his agent. 2. A third person, in reliance on the false impression, deals with the alleged agent and as a result of the dealing, adversely changes his legal position, some use the term "suffers damage" - ANS Apparent Authority may be created by the "principal's silence" when there is duty to speak. It results when following conditions exist: Classification of agencies is based on the amount of authority given by the principal, ranging from very little to complete. FOUR basic categories of types of agencies: - ANS Special Agent General Agent Universal Agent Ostensible or Apparent Agent