commercial real estate includes all of the following except
A. office buildings for sale
B. apartments for rent
C. retail space for lease
D. fast-food restaurants for lease
B. apartments for rent
in general, when the supply of a certain commodity increases...
prices tend to drop
All of the following factors tend to affect supply except
A. the labor force
B. construction costs
C. government controls
D. demograhics
D. demograhics
factors that influence the demand for real estate include
the wage levels and employment opportunities
property management, appraisal, financing and development are all examples of
specializations within the real estate industry
A Realtor is:
a real estate licensee who is a member of the National Association of Realtors
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement likely have on the town's housing market:
houses are likely to become more expensive as a result of the announcement
A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this licensee helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is thi
real estate counselor
In general, when the demand for a certain commodity increases,
prices tend to rise
Realtor is a registered mark that real estate licensees may use only if they are a member of:
NAR
In general terms, a market refers to which of the following:
a region or area where price levels are established
The demand for real estate in a particular community is NOT affected by:
construction costs
A typical service provided by a title agency would include:
closing a real estate transaction
Property that is part of the industrial market includes
factories
Compared to typical markets, the real estate market:
is local in nature
Real estate includes all the following EXCEPT:
annual crops
A woman rents space in a commercial building where she operates a bookstore. In the bookstore, she has installed large reading tables fastened to the walls and bookshelves that create aisles from the front of the store to the back. These shelves are bolte
the shelves and tables are trade fixtures and may properly be removed by the woman before her lease expires
The term nonhomogeneity refers to:
uniqueness
Bowling alleys, store shelves, and restaurant equipment are examples of:
trade fixtures
The bundle of legal rights includes all of the following EXCEPT the right to:
use the property for any purpose, legal or otherwise
A man inherited a piece of vacant property from his uncle. First, he removed all the topsoil, which he sold to a landscaping company. He then removed a thick layer of limestone and sold it to a construction company. Finally, he dug 40 feet into the bedroc
the daughter inherits a large hole in the ground because the property goes down to the center of the earth
A buyer and seller of a home are debating whether a certain item is real or personal property. The buyer says it is real property and should convey along with the house; the seller says it is personal property and may be conveyed separately through a bill
cost of the item when it was purchased
All of the following are economic characteristics of real estate EXCEPT:
indestructibility
Which of the following describes the act by which real property can be converted into personal property:
severance
When the buyer moved into a newly purchased home, the buyer discovered that the seller had taken the electric lighting fixtures that were installed over the vanity in the bathroom. The seller had not indicated that the fixtures would be removed. Which of
lighting fixtures are normally considered to be real estate
A buyer purchased a parcel of land and sold the rights to minerals located in the ground to an exploration company. This means that the buyer now owns all of the following rights to this property EXCEPT certain:
subsurface rights
A homeowner is building a new enclosed front porch on her home. A truckload of lumber has been left on her driveway for use in building the porch. At this point, the lumber is considered what kind of property:
personal property
Intent of the parties, method of annexation, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is:
a fixture or personal property
Parking spaces in multi-unit buildings, water rights, and other improvements are classified as:
appurtenances
A man purchases a parcel of land in a natural forest. He immediately cuts down all the trees and constructs a large shed out of old sheets of rusted tin. Which of the following statements is true:
his action constitutes improvement of the property
The real cost of owning a home includes certain costs or expenses that many people tend to overlook. All of the following are costs or expenses of owning a home EXCEPT:
taxes on personal property
When a person buys a house using a mortgage loan, the difference between the amount owed on the property and its market value represents the homeowner's:
equity
A building that is remodeled into residential units and is no longer used for the purpose for which it was originally built is an example of:
a converted-use property
A highrise development that includes office space, stores, theaters, and apartment units is an example of which of the following
mixed-use development
A homeowner, age 38, sells his home of eight years and realizes a $25,000 gain from the sale. The profit from the sale of his home may be:
excluded from taxation if he meets the use and ownership requirements
A homeowner, age 62, sells the home she has owned and occupied for the last 15 years and realizes a $52,000 gain from the sale. The profit from the sale of her home may be
excluded from taxation under the tax laws of 1997
A typical homeowners' insurance policy covers all of the following EXCEPT:
flood damage
The profit a homeowner receives from the sale of his or her residence:
may be excluded from taxation if the homeowner meets certain use and ownership requirements
All of the following are deductible from a homeowner's gross income EXCEPT:
the gain realized from the sale or exchange of a principal residence
Which of the following best expresses the concept of equity
current market value -- property debt
Which of the following statements BEST explains the meaning of this sentence: "To recover a commission for brokerage services, a broker must be employed as the agent of the seller
the seller must have made an express or implied agreement to pay a commission to the broker for selling the property
A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n)
independent contractor
A licensed real estate salesperson entered a written contract with a broker, specifying that the salesperson is not an employee. In the past year, just less than half of the salesperson's income from real estate activities came from sales commissions. The
employee
While in the employ of a real estate broker, a salesperson has the authority to:
assume responsibilites assigned by the broker
A real estate broker learns that her neighbor wishes to sell his house. The broker knows the property well and is able to persuade a buyer to make an offer for the property. The broker then asks the neighbor if the broker can present an offer from the pro
the neighbor is not obligated to pay the broker a commission
A broker would have the right to dictate which of the following to an independent contractor
commission rate the person would earn
Two licensees were found guilty of conspiring with each other to allocate real estate brokerage markets. A woman suffered a $90,000 loss because of their activities. If the woman brings a civil suit against the licensees, she can expect to recover:
$270,000, plus attorney's fees and costs
Two salespeople who work for the same brokerage agree to divide their town into a northern region and a southern region. One salesperson will handle listings in the northern region, and the other will handle listings in the southern region. Which statemen
the agreement does not violate antitrust laws
A state has recently updated its Rules and Regulations for the Real Estate Profession. Assuming this state is like all other states and provinces, which of the following statements is true regarding this publication:
the rules and regulations are a set of administrative rules adopted by the state Real Estate Commission that define the statutory license law and have the same force and effect as the license law itself
After a particularly challenging transaction finally closes, the client gives a salesperson a check for $500 "for all your extra work." Which statement is accurate:
the salesperson may receive compensation only from the broker
A broker has established the following office policy: "All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 7 percent commission. No lower commission rate is acceptable." If the broker attem
the broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm
A and B are competing real estate brokers. They meet for lunch and decide that C, a property developer, is gaining too much influence in the local market. A and B decide to try to drive C out. Broker A happens to own a parcel of land that is key to the su
tie-in agreements only
After a hearing, the Ohio Real Estate Commission may suspend or revoke the license of a licensee who:
has violated any of the provisions of the Ohio license law
In Ohio, to be engaged in a real estate brokerage business partnership or an association, all members of the partnership or association who are performing the functions of a real estate broker must:
be licensed brokers
A person in the business of collecting and selling information on apartments available for rent:
must hold an Ohio real estate license
From the application and renewal fees for each real estate license:
$1 is put aside to further the cause of education and research of real estate at Ohio institutions of higher education
A licensee in Ohio can face disciplinary actions for:
placing a For Sale sign on a property without the owner's consent
An applicant who fails the Ohio broker or salesperson licensing exam:
paying a finder's fee to an unlicensed person
A broker violates the Ohio Revised Code when he or she:
operates in his or her own name alone and at the same time as an active member or officer of a licensed partnership or corporation
In Ohio the real estate license of a person who willingly disregards or violates any of the provisions of the Ohio Real Estate License Law:
will be suspended or revoked
All Ohio real estate brokers must:
post the equal housing poster in a prominent place in their office
In Ohio, a real estate broker must:
include his or her name in advertisements of a client's property
A real estate licensee who is not an attorney and engages in any activity that constitutes the practice of law:
is in violation of the Ohio Real Estate License Law
Appointments to the Ohio Real Estate Commission are made by the:
governor
The Ohio Real Estate Commission is required by law to do all of the following EXCEPT:
a. promulgate a Code of Ethics for the real estate industry
b. direct the superintendent on content, scheduling, instruction, and offerings of real estate courses for sa
promulgate a Code of Ethics for the real estate industry
The superintendent of real estate is:
a. elected at the general election
b. in the position for a five-year term
c. appointed by the director of commerce
d. appointed by the governor
appointed by the director of commerce
In Ohio, if a written complaint against a licensee is filed, the complaint should be sent to whom?
a. the director of commerce
b. the governor
c. the Ohio Division of Real Estate
d. the superintendent
the Ohio Division of Real Estate
The term fiduciary refers to the:
a. person who gives someone else the legal power to act on his or her behalf
b. principal-agent relationship
c. sale of real property
d. person who has legal power to act on behalf of another
principal-agent relationship
The relationship between broker and seller is generally what type of agency:
special
Which of the following statements is true of a real estate broker acting as the agent of the seller:
The broker is obligated to render faithful service to the seller
A real estate broker lists a home for $139,500. Later that same day, a buyer comes into the broker's office and asks for general information about homes for sale in the $130,000 to $140,000 price range. Based on these facts, which of the following stateme
the seller is a client; the buyer is a customer
In a dual agency situation, a broker may collect a commission from both the seller and the buyer if:
both parties give their informed consent to the dual compensation
Which of the following events will terminate an agency in a broker-seller relationship:
the owner declares personal bankruptcy
Under the law of agency, a real estate broker owes all of the following duties to the principal EXCEPT:
advertising
A real estate broker hired by an owner to sell a parcel of real estate must comply with:
all lawful instructions of the owner
A broker is hired by a first-time buyer to help the buyer purchase a home. The buyer confides to the broker that being approved for a mortgage loan may be complicated by the fact that the buyer filed for bankruptcy two years ago. When the buyer offers to
the broker must politely refuse to answer any questions that would violate the duty of confidentiality
A licensee lists a residence. For various reasons, the owner must sell the house quickly and confides to the licensee that a lower price would probably be acceptable, although the asking price is reasonable. To expedite the sale, the licensee tells a pros
the disclosure was improper--and possibly illegal--regardless of the licensee's motive
A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. Which of the following statements is true:
the seller and buyer must be informed of the situation and agree to the broker's representing both of them
What does the phrase "the law of agency is a common-law doctrine" mean:
it is a body of law established by tradition and court decisions
With the listing agent having first-hand knowledge, which of the following would not require disclosure to any prospective buyer:
the current owner has been diagnosed with HIV
A broker tells a prospective buyer, "This property has the most beautiful river view." In fact, the view includes the river and the back of a shopping center. Which statement is TRUE:
the broker is merely puffing
Under Ohio law, the Consumer Guide to Agency Relationships must be given to prospective purchasers/tenants:
before any offers to purchase or lease are prepared or presented
Under Ohio law, the Agency Disclosure Statement is designed to be transaction specific which means it will identify:
all of the above
A listing taken by a real estate salesperson is an agreement between the seller and the:
broker
Which of the following is a similarity between an exclusive-agency listing and an exclusive-right-to-sell listing:
both types of listings give the responsibility of representing the seller to one broker only
The listing agreement on a residential property states that it expires on May 2. Which event would NOT terminate the listing:
on April 15, the owner tells the listing broker that the broker's marketing efforts are not satisfactory
The seller has listed his property under an exclusive-agency listing with the broker. If the seller sells the property himself during the term of the listing to someone introduced to the property by the seller, he will owe the broker:
no commission
Under a listing agreement, the broker is entitled to sell the property for any price, as long as the seller receives $85,000. The broker may keep any amount over $85,000 as a commission. This type of listing is called a(n):
net listing
Which of the following is a similarity between an open listing and an exclusive-agency listing:
under both, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure
The listed price for a property should be determined by:
the seller
Which of the following statements is true of a listing contract:
it is an employment contract for the personal and professional services of the broker
A seller hired a broker under the terms of an open listing. While that listing was still in effect, the seller--without informing the broker--hired a second broker under an exclusive-right-to-sell listing for the same property. If the first broker produce
full commission to both brokers
A seller listed her residence with a broker. The broker brought an offer at full price and terms of the listing from buyers who are ready, willing, and able to pay cash for the property. However, the seller changed her mind and rejected the buyers' offer.
owes a commission to the broker
Which of the following is true of an open buyer agency agreement:
the buyer may enter into agreements with multiple brokers and is obligated to pay only the broker who locates the property that the buyer ultimately purchases
A broker and a buyer enter into an exclusive-agency buyer agency agreement. This means:
the broker is entitled to payment only if she, or any broker acting under her authority, locates the property the buyer ultimately purchases
A competitive market analysis:
can help the seller price the property
When showing an unknown customer or client homes for the first time, appropriate safety procedures to follow include all of the following EXCEPT:
meet the customer at the first home
All of the following would permit a listing agreement to be terminated EXCEPT:
seller dissatisfaction with the wording of a newspaper advertisement
A broker enters into an agreement with a client. The agreement states: "In return for the compensation agreed upon, Broker will assist Client in locating and purchasing a suitable property. Broker will receive the agreed compensation regardless of whether
exclusive buyer agency agreement
The right of a government body to take ownership of real estate for public use is called:
eminent domain
A purchaser of real estate learned that his ownership rights could continue forever and that no other person claims to be the owner or has any ownership control over the property. This person owns a:
fee simple interest
A property owner held fee simple title to a vacant lot adjacent to a hospital and was persuaded to make a gift of the lot. She wanted to have some control over its use, so her attorney prepared her deed to convey ownership of the lot to the hospital "so l
fee simple determinable
After a buyer had purchased his house and moved in, he discovered that his neighbor regularly used the buyer's driveway to reach a garage located on the neighbor's property. The buyer's attorney explained that ownership of the neighbor's real estate inclu
the servient tenement
A license is an example of a(n):
temporary use right
An Ohio homestead exemption:
can be ineffective if the husband and wife have a mortgage on the real estate the exemption is meant to protect
If the owner of real estate does not take action against a trespasser before the statutory period has passed, the trespasser may acquire:
an easement by prescription
A farmer wants to use water from a river that runs through his property to irrigate a potato field. In order to do so, the farmer is required by his state's law to submit an application to the Department of Water Resources describing in detail the benefic
doctrine of prior appropriation
All of the following are powers of the government EXCEPT:
easement in gross
Property deeded to a town "for recreational purposes only" conveys a:
fee simple determinable
Ted has the legal right to pass over the land owned by his neighbor. This is a(n):
easement
All of the following are legal life estates EXCEPT:
leasehold
A father conveys ownership of his residence to his daughter but reserves for himself a life estate in the residence. The interest the daughter owns during her father's lifetime is:
a remainder
A property owner has fenced his property. The fence extends one foot over his lot line onto the property of a neighbor. The fence is an example of a(n):
encroachment
A homeowner may be allowed certain protection from judgments of creditors as a result of her state's:
homestead rights
A property owner has permission from her neighbor to hike on the neighbor's property during the autumn months. This is an example of:
a license
Encumbrances on real estate:
include easements and encroachments
A tenant who rents an apartment from the owner of the property holds a(n):
leasehold interest
Because a homeowner failed to pay her real estate taxes on time, the taxing authority imposed a claim against her property. This claim is known as a(n):
lien
Dower rights are BEST defined as:
at least a one-third life estate interest a surviving spouse has in the real estate owned by his or her deceased spouse
When a fee simple estate in Ohio land is owned by the husband as sole owner, the deed of conveyance to the buyer:
must be signed by both husband and wife
To claim a special homestead real estate tax exemption, a homeowner must be:
totally and permanently disabled
A parcel of property was purchased by two friends. The deed they received from the seller at the closing conveyed the property to them without further explanation. They took title as which of the following:
tenants in common
A man owns one of the 20 townhouses in a new suburban development. He owns the townhouse in fee simple, and a 5% ownership share of the parking facilities, recreation center, and grounds. What does he own:
condominium
A man conveys a vineyard in trust to his friend, with the instruction that any income derived from the vineyard is to be used for his cousin's medical care. Which of the following statements most accurately describes the relationship of these parties:
the man is the trustor, the friend is the trustee, and the cousin is the beneficiary
A man and woman are married. Under the laws of their state, any real property that either owns at the time of their marriage remains separate property. Further, any real property acquired by either party during the marriage (except by gift or inheritance)
community property
Three individuals were concurrent owners of a parcel of real estate. One individual died, and his interest passed according to his will to become part of his estate. He was a:
tenant in common
A condominium is created when:
the owner files a declaration in the public record
All of the following involve a fee simple interest EXCEPT a(n):
tenancy for years
Which of the following best proves the ownership in a cooperative:
shareholder's stock certificate
A lady owns a fee simple interest in the lakefront cottage, along with 5% of the parking lot, laundry room, and boat house. She owns a:
condominium unit
If property is held by two or more owners as survivorship tenants, the interest of a deceased cotenant will be passed to the:
surviving owner or owners
Survivorship tenancy in Ohio is created only when:
a survivorship intent is clearly expressed in the deed
Partition in Ohio may be effected:
by a court order
Once a parcel of real estate is recorded under the condominium act, it:
may be removed from the operation of the act by consent of the owner(s)
Tenants presently occupying an apartment building that is to be converted to a condominium must be given:
120 days' notice prior to being required to vacate the premises and a 90-day option to purchase the condominium interest
When surveying land, a surveyor refers to the principal meridian that is:
within the rectangular survey system area in which the land being surveyed is located
In the rectangular survey system fractional sections along the northern or western border of a check that are less than a quarter-section in area are known as:
government lots
The least specific method for identifying real property is:
street address
In a sales contract, which of the following is an acceptable description of property:
a legal description
Urban real estate in Ohio may be described by:
metes and bounds and/or recorded subdivision plat of city and county
Which of the following BEST refers to the type of lien that affects all real and personal property of a debtor:
general lien
Priority of liens refers to which of the following:
the order in which liens will be paid if property is sold to satisfy a debt
A lien on real estate made to secure payment for specific municipal improvements is which of the following:
special assessment
Which of the following liens usually would be given highest priority:
real estate tax
Which of the following is a voluntary, specific lien:
mortgage lien
A seller sold a buyer a parcel of real estate. Title has passed, but to date, the buyer has not paid the purchase price in full as originally agreed on. If the seller does not receive payment, which of the following would she be entitled to enforce:
vendor's lien
Special assessment liens:
take priority over mechanics' liens
Which of the following is a lien on real estate:
an unpaid mortgage loan
A mechanic's lien would be available to all of the following EXCEPT a:
broker
Which of the following is a specific, involuntary lien:
a real estate tax lien
Taxes levied for the operation of the government are called:
ad valorem taxes
In Ohio, special assessments:
are regulated as to the amount that may be levied against a property owner
In Ohio, a mechanic's lien once filed as a lien on real estate may continue as a lien for
6 years
In Ohio, the county auditor must reappraise all realty in the state every:
six years
In Ohio, real estate taxes are usually payable:
twice a year
The penalty for failure to pay real estate taxes on the due date in Ohio is:
10% of the amount due
Special assessments in Ohio are:
collected in the same manner as real estate taxes
The common level of real estate tax assessment (assessed value) in Ohio is:
35% of the appraised value
A legally enforceable agreement under which two parties agree to do something for each other is known as a(n):
valid contract
A person approaches an owner and says, "I'd like to buy your house." The owner says, "Sure," and they agree on a price. What kind of contract is this:
unenforceable
A contract is said to be bilateral if:
all parties to the contract are bound to act
During the period of time after a real estate sales contract is signed, but before the title actually passes, the status of the contract is:
executory
A contract for the sale of real estate that does not state the consideration to be paid for the property and is not signed by the parties is considered to be:
void
A buyer and a seller sign a contract to purchase. The seller backs out, and the buyer sues for specific performance. What is the buyer seeking in this lawsuit:
conveyance of the property
In a standard sales contract, several words were crossed out; others were inserted. To eliminate future controversy as to whether the changes were made before or after the contract was signed, the usual procedure is to:
have both parties initial or sign in the margin near each change
A buyer makes an offer on a property, and the seller accepts. Both parties sign the sales contract. At this point, the buyer has what type of title to the property:
equitable
The sales contract says the buyer will purchase only if his wife approves the sale by the following Saturday. His wife's approval is a:
contingency
An option to purchase binds which of the following parties:
seller only
The purchaser of real estate under an installment contract:
is called a vendee
Under the statute of frauds, all contracts for the sale of real estate must be:
in writing to be enforceable
A buyer makes an offer to purchase a certain property listed with a broker and leaves a deposit with the broker to show good faith. The broker should:
put the deposit in an account, as provided by state law
Between June 5 and September 23, a man suffered from a mental illness that caused delusions, hallucinations, and loss of memory. On July 1, he signed a contract to purchase a property, with the closing set for October 31. On September 24, he began psychia
the contract is voidable
A buyer signs a contract under which she may purchase a property for $30,000 any time in the next three months. The buyer pays the current owner $500 at the time the contract is signed. Which of the following best describes this contract:
option
The basic requirements for a valid conveyance are governed by:
state law
A 15-year-old boy recently inherited many parcels of real estate from his late father and has decided to sell one of them. If the boy entered into a deed conveying his interest in the property to a purchaser, such a conveyance would be:
voidable
An instrument authorizing one person to act for another is called a(n):
power of attorney
The grantee receives greatest protection with what type of deed:
general warranty
A man receives a deed from a woman. The granting clause of the deed states, "I hereby remise, release, alienate, and convey to the man the property known as Yellowacre." What type of deed has the man received:
special warranty
Which of the following BEST describes the covenant of quiet enjoyment:
the grantor assures that the title will be good against the title claims of third parties
Which of the following types of deeds merely implies, but does NOT specifically warrant, that the grantor holds good title to the property:
bargain and sale deed
A man conveys property to a woman by deed. The deed contains the following: (1) the woman's name, spelled out in full; (2) a statement that the man has received $10 and the woman's love and affection; and (3) a statement that the property is conveyed to t
grantee; consideration; habendum clause
A grantor executes a deed to a grantee, has it acknowledged, and receives payment from the grantee. The grantor holds the deed, however, and arranges to meet the grantee the next morning at the courthouse to give the deed to her. In this situation at this
legal title to the property will not officially pass until the grantee receives and accepts the deed the next morning
Condemnation and escheat are two examples of:
involuntary alienation
Title to real estate can be transferred at death by which of the following documents:
will
A spouse dies, leaving a valid will. With regard to real estate, the surviving spouse:
can contest the will because he or she has dower rights, which means he or she is the sole heir despite the will
In Ohio, the statutory period for adverse possession is an uninterrupted period of:
21 years
Which of the following government entities establishes the Ohio transfer fee rate:
counties
A deed that is signed, witnessed, and acknowledged but not delivered:
passes no legal title
The Ohio transfer fee applies to:
the conveyance of real estate
To be valid, every deed executed in Ohio must be signed by:
all grantors and their notaries
The tax levied by the state of Ohio based on the purchase price is known as the:
state conveyance fee
Deeds conveying Ohio real estate require the signature of the:
grantor only
Ohio's transfer fee is:
$0.10 per $100 of total consideration
A title search in the public records may be conducted by:
anyone
Which of the following statements best explains why instruments affecting real estate are recorded:
recording gives constructive notice to the world of the rights and interests of a party in a particular parcel of real estate
The date and time a document was recorded establish which of the following:
priority
A buyer bought a house, received a deed, and moved into the residence, but neglected to record the document. One week later, the seller died, and his heirs in another city, unaware that the property had been sold, conveyed title to a relative, who recorde
the buyer
If a property has encumbrances, it:
can still be sold if a buyer agrees to take it subject to the encumbrances
All of the following are acceptable proof of ownership, EXCEPT a(n):
deed signed by the last seller
The person who prepares an abstract of title for a parcel of real estate:
searches the public records and then summarizes the events and proceedings that affect title
A property owner is frantic because she cannot find her deed and now wants to sell the property. She:
does not need the deed to sell if it was recorded
Mortgage title policies protect which parties against loss:
lenders
Which of the following are traditionally covered by a standard title insurance coverage policy:
improperly delivered deeds
A title insurance company settled a claim against an insured property owner. The title company made a substantial payment to the person who sued the insured party. Now, the title company may seek damages from the previous owner, who originally gave their
subrogation
A title insurance policy with standard coverage generally covers all of the following EXCEPT
unrecorded rights of parties in possession
The documents referred to as title evidence include:
title insurance
To give notice of a security interest in personal property items, a lienholder must file which of the following:
financing statement
In Ohio, the county recorder must determine before recording whether the:
form conforms to Ohio statute
To be recognized by third parties, a mortgage must be:
recorded
In Ohio, to be recorded, a deed must bear the signatures of the grantor and the:
notary public who acknowledged the grantor's signature
In locations where the abstract system is used, an abstract is usually examined by the
attorney for the purchaser
Under the law of the State of Ohio, a mortgage takes effect:
on delivery to the county recorder
Ohio recognizes the right of redemption
until the foreclosure sale is confirmed after the successful bidding at the sheriff's sale
A prepayment clause in a mortgage instrument:
usually penalizes the borrower or mortgagor for early payment of the mortgage
To the investor or lender, a charge of three discount points on a $120,000 loan equates to an actual loan amount of:
$116,400
The person who obtains a real estate loan by signing a note and a mortgage is called the:
mortgagor
Which of the following is true about a second mortgage:
it usually has a higher interest rate than a first mortgage
All of the following would be true for the vendee in a land contract EXCEPT that the vendee:
obtains legal title at closing
Laws that limit the amount of interest that can be charged to the borrower are called:
usury laws
The clause in a note that gives the lender the right to have all future installments become due upon default is the:
acceleration clause
What document is given to the mortgagor when the mortgage debt is completely repaid:
satisfaction of mortgage
Under a typical land contract, when does the vendor give the deed to the vendee:
when the contract is fulfilled
If a borrower must pay $2,700 for points on a $90,000 loan, how many points is the lender charging for this loan:
three
At the closing of a transaction involving a land contract, the vendor typically would not:
retain possession of the property
Pledging property for a loan without giving up possession is best described as:
hypothecation
Discount points on a mortgage are computed as a percentage of the:
amount borrowed
A ground lease is usually:
long term
A tenant enters into a commercial lease that requires a monthly rent based on a minimum set amount plus an additional amount determined by the tenant's gross receipts exceeding $5,000. This type of lease is called a:
percentage lease
If a tenant moved out of a rented store building because access to the building was blocked as a result of the landlord's negligence, the:
tenant would be entitled to recover damages from the landlord
In June, a tenant signs a one-year lease and moves into an apartment. The tenant deposits the required security deposit with the landlord. Six months later, the tenant pays the January rent and mysteriously moves out. The tenant does not arrange for a sub
the tenant is liable for the balance of the rent only
A tenant still has five months remaining on a one-year apartment lease. When the tenant moves to another city, he transfers possession of the apartment to a friend for the entire remaining term of the lease. The friend pays rent directly to the tenant. Un
sublessor
A tenant's lease has expired. The tenant has neither vacated nor negotiated a renewal lease, and the landlord has declared that she does not want the tenant to remain in the building. This form of possession is called a(n):
estate at sufferance
When a tenant holds possession of a landlord's property without a current lease agreement and without the landlord's approval, the:
landlord can file suit for possession
A tenant has a one-year leasehold interest in a residential property. The interest automatically renews itself at the end of each year. The tenant's interest is referred to as a tenancy
from period to period
Which of the following automatically terminates a lease:
total destruction of the property
Which of the following describes a net lease:
a lease in which the tenant pays rent plus maintenance and property charges
If an Ohio lease is executed properly, the lessee is in possession, and the term is for two years, then the lease
need not be recorded
An Ohio landlord may enter leased premises to make repairs if he or she:
gives 24 hours' notice of intent to enter
In Ohio, on termination of a residential rental agreement the landlord must return the tenant's security deposit and provide an itemized list of any deductions for damages
within 30 days after the tenant has vacated the premises; however, the tenant must provide the landlord with the new address to which the deposit may be sent
If after notice a landlord fails to remedy a violation of the Ohio Landlord-Tenant Act, the tenant may:
deposit the withheld rent with the clerk of courts
Which of the following types of insurance coverage insures an employer against most claims for job-related injuries:
workers' compensation
Apartment rental rates are usually expressed in what way:
in monthly amounts
From a management point of view, apartment building occupancy that reaches as high as 98 percent would tend to indicate that:
rents could be raised
A guest slips on an icy apartment building stair and is hospitalized. A claim against the building owner for medical expenses may be paid under which of the following policies held by the owner:
liability
A property manager is offered a choice of three insurance policies: one has a $500 deductible, one has a $1,000 deductible, and the third has a $5,000 deductible. If the property manager selects the policy with the highest deductible, which risk managemen
retaining risk
Contaminated groundwater, toxic fumes from paint and carpeting, and lack of proper ventilation are all examples of:
environmental concerns that a property manager may have to address
Tenant improvements are
adaptations of space to suit tenants' needs
Rents should be determined by
supply and demand factors
A highrise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent:
consequential loss, use, and occupancy
A property manager hires a full-time maintenance person for one of the buildings she manages. While repairing a faucet in one of the apartments, the maintenance person steals a television set. The property manager could protect the owner against this type
a surety bond
Which of the following might indicate rents are too low:
high building occupancy
A property manager repairs a malfunctioning boiler in the building she manages. This is classified as which type of maintenance:
corrective
A property manager who enters into a management agreement with an owner is usually a:
general agent
Commercial leases are usually expressed as a(n)
annual or monthly rate per square foot
A semiannual statement sent to an owner that does not reflect the entire debt service as an expense is called a(n):
profit and loss statement
Removing existing barriers when readily achievable in public buildings, such as adding Braille markings to elevator buttons, is a requirement of which law:
Americans with Disabilities Act
A provision in a subdivision declaration used to force the grantee to live up to the terms under which he or she holds title to the land is a:
restrictive covenant
A landowner who wants to use property in a manner that is prohibited by a local zoning ordinance but that would benefit the community can apply for which of the following:
conditional-use permit
Public land-use controls include all of the following EXCEPT:
restrictive covenants
Permitted land uses, housing projections, transportation issues, and objectives for implementing future controlled development would all be found in a community's:
comprehensive plan
The police power allows regulation of all of the following EXCEPT:
building ownership
The purpose of a building permit is to
provide evidence of compliance with municipal regulations
Zoning laws are generally enforced through:
permits
Zoning powers are conferred on municipal governments in which of the following ways:
by state enabling acts
A town enacts a new zoning code. Under the new code, commercial buildings are not permitted within 1,000 feet of the lake. A commercial building that is permitted to continue in its former use, even though it is built on the lakeshore, is an example of:
a nonconforming use
To determine whether a location can be put to future use as a retail store, one would examine the
zoning ordinance
To control and maintain the quality and character of a subdivision, a developer will establish which of the following:
restrictive covenants
An owner of a large tract of land who, after adequate study of all facts, legally divides the land into lots of suitable size and location for the construction of residences, is known as a(n):
subdivider
A map illustrating the sizes and locations of streets and lots in a subdivision is called a:
plat of subdivision
Gross density refers to which of the following
the average maximum number of houses per acre that may, by law, be built in a subdivision
In a suburban area, subdivision developers are limited by law to constructing no more than an average of three houses per acre in any subdivision. To what does this restriction refer:
gross density
A city is laid out in a pattern of intersecting streets and avenues. All streets run north and south; all avenues run east and west. This city is an example of which street pattern style:
gridiron system
All of the following items are usually designated on the plat for a new subdivision EXCEPT:
prices of residential and commercial lots
A subdivision features spacious homes grouped on large cul-de-sac blocks connected to a central, winding road and surrounded by large, landscaped common areas. This is an example of which type of subdivision plan:
cluster plan
A subdivider can increase the amount of open or recreational space in a development by:
varying street patterns
To protect the public from fraudulent interstate land sales, a developer involved in interstate land sales of 25 or more lots must:
provide each purchaser with a printed report disclosing details of the property
Soil absorption and drainage are measured by a:
percolation test
Which of the following actions is legally permitted:
refusing to make a mortgage loan to a minority individual because of a poor credit history
Which of the following statements is true of complaints relating to the Civil Rights Act of 1866:
They must be taken directly to federal courts
Why is the Civil Rights Act of 1866 unique:
it provides no exceptions that would permit racial discrimination
I hear they're moving in. There goes the neighborhood! Better put your house on the market before values drop!" This is an example of:
blockbusting
The act of channeling home seekers to particular areas either to maintain or to change the character of the neighborhood is:
steering
A lender's refusal to lend money to potential homeowners attempting to purchase properties located in predominantly African American neighborhoods is known as:
redlining
Which of the following would not be permitted under the federal Fair Housing Act:
an owner refuses to rent the other side of her duplex to a family with children
A real estate broker wants to end racial segregation. As an office policy, he requires that salespersons show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of their groups curr
because the effect of the broker's policy is discriminatory, it constitutes illegal steering, regardless of his intentions
If a mortgage lender discriminates against a loan applicant on the basis of marital status, it violates what law:
ECOA
Which of the following statements describes the Supreme Court's decision in the case of Jones v. Alfred H. Mayer Company:
racial discrimination is prohibited by any party in the sale or rental of real estate
The fine for a first violation of the federal Fair Housing Act could be as much as:
$11,000
The following ad appeared in the newspaper: "For sale: 4 BR brick home; good school district; excellent location; next door to a great Catholic church, and right on the bus line. Move-in condition; priced to sell." Which of the following statements is tru
the ad should not mention the Catholic church
All of the following are true regarding the Ohio Civil Rights Commission EXCEPT that it:
hears complaints filed before it of events that occurred within a one-year period preceding filing for the complaint
Asbestos is most dangerous when it:
crumbles and becomes airborne
Encapsulation refers to the
method of sealing disintegrating asbestos
A real estate licensee shows a house built in the 1920s to a prospective buyer. The buyer has two toddlers and is worried about potential health hazards. Which of the following is true:
because the house was built before 1978, there is a good likelihood of the presence of lead-based paint
Which of the following is true regarding asbestos:
the removal of asbestos can cause further contamination of a building
Which of the following best describes the water table:
natural level at which the ground is saturated
All of the following are true of electromagnetic fields EXCEPT that electromagnetic fields are:
present only near high-tension wires or large electrical transformers
Which of the following describes the process of creating a landfill site:
waste and topsoil are layered in a pit, mounded up, then covered with dirt and plants
Liability under the Superfund is:
strict, joint and several, and retroactive
All of the following may contribute to the growth of mold EXCEPT:
lack of moisture
Which of the following environmental hazards poses a risk due to particles or fibers in the air:
asbestos
In Ohio, radon testing may be performed only by:
a licensed radon tester or mitigation specialist
The primary party responsible for regulating and monitoring underground petroleum storage under Ohio's Petroleum Underground Storage Tank Act is the:
fire marshal
The advantages of real estate investment include the:
fact that the investment can be an inflation hedge
Vacant land can be a good investment because:
it can have intrinsic value
The increase of money in circulation, resulting in a sharp rise in prices and an equally sharp decline in the value of money, is called:
inflation
Leverage involves the use of:
borrowed money
A property's equity represents its current value less:
mortgage indebtedness
The primary source of tax shelter in real estate investments comes from the accounting concept known as:
depreciation
For tax purposes, the initial cost of an investment property plus the cost of any subsequent improvements to the property, less depreciation, represents the investment's:
adjusted basis
The money left in an investor's pocket after expenses, including debt service, have been paid is known as:
cash flow
One method a real estate investor may use to defer capital gains tax is to:
exchange one property for a like-kind property
Shareholders in a real estate trust generally:
receive most of the trust's income each year
In an installment sale of one's own home taxable gain is received and may be reported as income by the seller:
in each year that installment payments are received
A separate license or registration may be required for the sale of:
real estate securities
A tax entity created by the Tax Reform Act of 1986 that issues securities backed by a pool of mortgages is a:
REMIC
Which of the following statements is true of real estate closings in Ohio and most states:
the seller usually pays the expenses for the day of closing
All encumbrances and liens shown on the report of title other than those waived or agreed to by the purchaser and listed in the contract must be removed so that the title can be delivered free and clear. The removal of such encumbrances is the duty of the
seller
Legal title always passes from seller to buyer:
when the deed is delivered and accepted
A property is being sold in an area where closings are traditionally conducted in escrow. Which of the following items will the buyer deposit with the escrow agent before the closing date:
cash needed to complete the purchase
A mortgage reduction certificate is executed by a(n):
lending institution
The principal amount of a purchaser's new mortgage loan is a:
credit to the buyer
Security deposits should be listed on a closing statement as a credit to the:
buyer
At closing, the listing broker's commission usually is shown as a:
debit to the seller
In Ohio, water bills:
may become a lien on the property and should be collected from the seller
At the closing of a real estate transaction, the buyer was credited for certain accrued items. These items were:
bills relating to the property that will have to be paid by the buyer
The purpose of RESPA (Real Estate Settlement Procedures Act) is to:
see that buyers know all settlement costs
The document that provides borrowers with general information about settlement costs, RESPA provisions, and the Uniform Settlement Statement is the:
special information booklet
Which of the following statements is true of a computerized loan origination (CLO) system:
the borrower must pay any fee charged by the real estate broker in whose office the CLO terminal is located