Free Ohio Real Estate Practice Exam

Q1.A managing broker operates a real estate firm with three licensed salespersons. One salesperson, without the broker's knowledge, enters into an oral 'pocket listing' arrangement with a seller — agreeing to market the property exclusively and personally for 30 days before placing it in the MLS, in exchange for a reduced commission split paid directly to the salesperson. A buyer later sues the brokerage after discovering the property was sold during the pocket period without their knowledge, alleging they were denied equal opportunity to compete for the property. Which statement BEST describes the managing broker's exposure and responsibility in this scenario?

• A.The managing broker faces vicarious liability for the salesperson's conduct because a broker is legally responsible for the real estate activities of all affiliated licensees, and the pocket arrangement likely violated both the broker's supervisory duty and fair housing principles if protected-class buyers were disproportionately excluded.
• B.The managing broker has no liability because the salesperson acted outside the scope of authorized agency and without the broker's knowledge or consent, making the salesperson solely responsible for any resulting claims.
• C.The managing broker's liability is limited to refunding the commission received on the transaction, since the broker's only statutory obligation is financial accountability for funds received.
• D.The managing broker is protected from liability because pocket listings are a lawful business practice under federal law, and no federal statute requires all listings to be placed in an MLS within a specific timeframe.

Q2.When must an Ohio real estate licensee provide a consumer with the Ohio Consumer Guide to Agency Relationships?

• A.Only at the time of closing on a purchase transaction
• B.At the first substantial contact with a consumer, before any confidential information is exchanged
• C.Only when the consumer specifically requests information about agency relationships
• D.Within three business days after a purchase contract is signed

Q3.In Ohio, before a brokerage may represent both the seller and the buyer in the same transaction as a dual agent, what must occur?

• A.The Ohio Division of Real Estate must be notified in writing
• B.Both the seller and the buyer must give their informed written consent to dual agency
• C.The listing agreement must automatically convert to a transaction brokerage
• D.The managing broker must personally handle all negotiations on behalf of both parties

Q4.Under 24 C.F.R. § 100.600(a)(1), how many incidents of quid pro quo harassment are required to establish a fair housing violation?

• A.At least two incidents
• B.Three or more incidents constituting a pattern
• C.Depends on the severity of each incident
• D.One incident is sufficient

Q5.Under Truth-in-Lending Act (TILA) requirements, what disciplinary authority does a state real estate licensing board have over a licensee who fails to provide required loan disclosure forms?

• A.No authority, as TILA is enforced exclusively by federal agencies
• B.Authority to discipline for unprofessional conduct or violation of licensing standards
• C.Authority to impose TILA-specific monetary penalties up to $10,000
• D.Authority to criminally prosecute TILA violations

Q6.A buyer's agent is asked by the listing agent what the buyer's 'highest and best' number is. The buyer's agent should:

• A.Share the number — buyer's agents should be transparent to facilitate transactions
• B.Share it only if the seller's agent discloses the seller's minimum acceptable price first
• C.Share it only if the listing agent requests it in writing
• D.Refuse — the duty of confidentiality prohibits sharing the buyer's negotiating position with the opposing party

Q7.Under the Fair Housing Act, what is the time limit for filing a complaint with HUD after an alleged discriminatory act?

• A.30 days
• B.One year
• C.60 days
• D.Two years

Q8.A real estate agent represents a buyer who is purchasing a property that was previously used as a gas station. Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), who could potentially be held liable for environmental cleanup costs?

• A.Only the current property owner
• B.The current owner, past owners, operators, and parties who arranged for disposal of hazardous substances
• C.Only the party that originally caused the contamination
• D.Only parties who knowingly caused environmental damage

Q9.A broker maintains a trust account for earnest money deposits. After a transaction falls through, the seller claims the earnest money as liquidated damages and the buyer demands a full refund. Both parties have submitted written, conflicting demands for the funds. Under Ohio law, what is the broker's REQUIRED course of action?

• A.Release the funds to the seller because the seller is the broker's principal under the listing agreement.
• B.Hold the funds in the trust account and immediately file an interpleader action in the appropriate Ohio court of common pleas to have the dispute resolved judicially.
• C.Retain the funds in the trust account and, within a reasonable time, notify the Ohio Real Estate Commission of the dispute in writing, then await further legal direction or a written agreement between the parties.
• D.Split the earnest money equally between the buyer and seller as an impartial compromise and close the trust account file.

Q10.Which of the following acts by an Ohio real estate salesperson would most likely constitute grounds for license revocation or suspension under ORC 4735.18?

• A.Failing to return a client's phone call within 24 hours
• B.Recommending that a buyer obtain a home inspection before purchase
• C.Knowingly making a misrepresentation about a material fact in a real estate transaction
• D.Negotiating a commission rate higher than the market average

Q11.A mortgage lender provides a real estate brokerage with free office space valued at $500 per month in exchange for the broker referring all buyer clients to that lender. Under RESPA Section 8, this arrangement is best described as:

• A.A permissible affiliated business arrangement (AfBA) as long as both parties sign a written disclosure
• B.An illegal kickback, because a thing of value is exchanged for referrals of federally related mortgage loan business
• C.Permissible, because no cash changes hands between the broker and the lender
• D.Permissible, provided the broker discloses the arrangement to clients at the time of closing

Q12.A broker is the qualifying broker for a mid-size residential firm. One of the firm's affiliated salespersons repeatedly uses a pre-printed purchase contract that contains a clause steering buyers toward sellers of a particular national origin by representing that 'neighborhood character' makes certain properties a better fit for buyers of the same background. The broker becomes aware of this practice but takes no corrective action for 60 days. Under the Fair Housing Act, which of the following BEST describes the broker's liability?

• A.The broker faces direct liability under the Fair Housing Act because, as the supervising broker, the broker may be held vicariously liable for the salesperson's discriminatory acts and independently liable for failing to take prompt corrective action once aware of the violations.
• B.The broker has no liability under the Fair Housing Act because only the salesperson who drafted and used the clause can be named as a respondent in a HUD complaint; supervising brokers are shielded by the independent-contractor status of affiliated salespersons.
• C.The broker's liability is limited to a civil penalty under the Fair Housing Act only if HUD can prove the broker personally instructed the salesperson to use the discriminatory clause.
• D.The broker is liable only under state license law for failure to supervise, not under the Fair Housing Act, because federal fair housing enforcement applies solely to the party who actually commits the discriminatory act.

Q13.Under the Equal Credit Opportunity Act (ECOA), a dual agent learns that the lender is requesting information about a buyer's marital status for a non-joint credit application. How should the agent handle this situation while maintaining proper fiduciary duties?

• A.Inform the buyer that ECOA prohibits this inquiry and suggest they question the lender
• B.Advise the buyer to provide the information since it was requested by the lender
• C.Contact the lender directly to withdraw the buyer's application
• D.Remain neutral and let the buyer decide without providing guidance

Q14.A salesperson representing a seller as a client is contacted directly by an unrepresented buyer who wants to tour the property. Before the showing begins, the salesperson hands the buyer a copy of the Ohio Consumer Guide to Agency Relationships and has the buyer sign an acknowledgment. The buyer later argues that the salesperson owed her fiduciary duties during the negotiation because she signed the form. Which statement BEST reflects Ohio law under ORC 4735.51–4735.75?

• A.The buyer is correct because signing any agency disclosure document creates an implied agency relationship under Ohio law.
• B.The buyer is incorrect; the Consumer Guide to Agency Relationships is a disclosure document, and providing it to an unrepresented buyer establishes her status as a customer, not a client, meaning the salesperson owes her only the statutory duties owed to customers under ORC 4735.63.
• C.The buyer is correct because ORC 4735.55 requires a salesperson to treat any party who receives the Consumer Guide as a client once they acknowledge receipt.
• D.The buyer is incorrect, but only because the Consumer Guide should have been provided before—not at the time of—the showing, making the disclosure procedurally defective and unenforceable.

Q15.An Ohio real estate salesperson license must be renewed on what cycle, and what is the continuing education requirement that must be met for each renewal?

• A.Annually, with 10 hours of continuing education
• B.Every two years, with 20 hours of continuing education including 3 hours of Civil Rights law
• C.Every three years, with 30 hours of continuing education
• D.Every four years, with 40 hours of continuing education