Free Ohio Real Estate Practice Exam

Q1.Ohio's Canons of Ethics for the real estate profession, as adopted by the Ohio Real Estate Commission, primarily serve to:

• A.Set minimum commission rates that Ohio licensees must charge consumers
• B.Establish standards of professional conduct and ethical behavior that Ohio real estate licensees must follow
• C.Provide a mandatory script that licensees must read to all clients at the first meeting
• D.Replace the need for licensees to comply with the Ohio Revised Code Chapter 4735

Q2.Under ORC 4735.54, an Ohio real estate brokerage that intends to offer buyer representation must address its policy on agency relationships in writing. Which of the following BEST describes what Ohio law requires the brokerage's written agency policy to include?

• A.A detailed fee schedule for all brokerage services offered to buyers and sellers.
• B.A statement of the types of agency relationships the brokerage is willing to establish, including whether it will act as a dual agent.
• C.A mandatory arbitration clause for all disputes arising from brokerage representation.
• D.The specific names of all licensed salespersons authorized to represent buyers on behalf of the brokerage.

Q3.The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide borrowers with which disclosure document within three business days of loan application?

• A.Truth-in-Lending disclosure
• B.Loan Estimate
• C.Closing Disclosure
• D.HUD-1 Settlement Statement

Q4.Under the Fair Housing Act, which contract provision would be considered discriminatory and illegal?

• A.Requiring proof of income from all buyers
• B.Setting a minimum credit score requirement
• C.Stating 'no children allowed' in the property
• D.Requiring a home inspection

Q5.A salesperson represents a seller under a listing agreement. At the first substantive contact with an unrepresented buyer who calls about the property, what does Ohio law require the salesperson to provide to that buyer?

• A.A completed Agency Disclosure Statement signed by the seller, prior to showing the property.
• B.An Ohio Consumer Guide to Agency Relationships, before or at the time of the first substantive contact.
• C.A written brokerage representation agreement offering the buyer dual agency before any discussions about the property.
• D.A copy of the listing agreement so the buyer understands the salesperson's obligations to the seller.

Q6.In Ohio, a licensed real estate salesperson MUST be affiliated with which of the following in order to perform real estate activities?

• A.The Ohio Department of Commerce
• B.A local board of REALTORS®
• C.A licensed Ohio real estate broker
• D.The Ohio Real Estate Commission directly

Q7.A property manager discovers environmental contamination on a rental property that may require CERCLA (Superfund) involvement. What is the manager's primary federal obligation regarding current tenants?

• A.Immediately terminate all leases without notice to protect tenants
• B.Continue normal operations until EPA formally designates the site
• C.Report the contamination to EPA and potentially face liability as a current operator of the facility
• D.Transfer ownership to avoid CERCLA liability before EPA investigation

Q8.A licensed Ohio broker supervises three affiliated salespersons and maintains a property management division. During an Ohio Division of Real Estate audit, the auditor discovers that the broker's trust account ledger cards for individual clients do not reconcile with the pooled trust account bank statement for the month of March. The broker argues that a $1,200 discrepancy is simply a timing difference from a late-clearing check. Under Ohio Revised Code § 4735.18 and Ohio Administrative Code § 1301:5-6-10, what is the broker's PRIMARY obligation when a discrepancy is identified during a three-way reconciliation?

• A.The broker must identify and resolve the discrepancy immediately and document the corrective action, since trust account records must reconcile at all times and unexplained shortages constitute a basis for license revocation.
• B.The broker may note the discrepancy in the reconciliation worksheet and carry it forward to the following month's reconciliation, provided the amount is under $2,500.
• C.The broker must notify all clients whose funds are held in the trust account within 10 days of discovering the discrepancy, regardless of the amount.
• D.The broker is only required to resolve the discrepancy before the next scheduled Division of Real Estate audit cycle, as timing differences are expressly permitted under Ohio Administrative Code.

Q9.Under ORC 4735.621 and applicable OREC rules, an Ohio broker who operates as the principal broker for a team must ensure which of the following with respect to team advertising and marketing materials?

• A.The team's name may appear in larger font than the brokerage name, provided the brokerage name appears somewhere on the material.
• B.Team members who are salespersons may advertise independently under the team name without reference to the brokerage, as long as the team is registered with OREC.
• C.All team advertising must prominently display the name of the brokerage with which the team is affiliated, and the brokerage name must be reasonably prominent—not less conspicuous than the team name.
• D.A team name registration with OREC automatically satisfies all advertising disclosure requirements, and no further brokerage identification is needed.

Q10.Which of the following advertising practices would most likely violate the Fair Housing Act?

• A.Advertising 'wheelchair accessible apartment'
• B.Stating 'no pets allowed'
• C.Advertising 'perfect for Christian families'
• D.Specifying 'non-smoking building'

Q11.A real estate agent refuses to show homes in certain neighborhoods to minority clients, claiming those areas 'wouldn't be a good fit.' This practice is known as:

• A.Steering
• B.Redlining
• C.Blockbusting
• D.Price fixing

Q12.Under ORC 4735.18, which of the following acts would most clearly subject an Ohio salesperson to suspension or revocation of their license?

• A.Failing to personally present every written offer to the seller when the listing broker has authorized the salesperson to present offers
• B.Recommending that a buyer hire a home inspector without disclosing that the inspector is the salesperson's spouse
• C.Advertising a listed property on a personal social media page with the broker's name included
• D.Disclosing to a prospective buyer that the listed property is in a flood zone as required by the seller's disclosure form

Q13.Under Ohio law, if a brokerage's written company policy is to represent sellers only as clients and treat buyers as customers, which statement best describes the brokerage's obligation to buyers?

• A.The brokerage owes buyers full fiduciary duties identical to those owed to seller clients
• B.The brokerage must still provide buyers with honest information and disclose material facts about the property
• C.The brokerage has no legal duties whatsoever to buyers, since they are not clients
• D.The brokerage must automatically upgrade buyers to client status if they request representation

Q14.A salesperson in Ohio places an advertisement on social media promoting a listing. The ad includes the salesperson's name, cell phone number, and a description of the property, but does NOT mention the brokerage's name. Under Ohio law, this advertisement is:

• A.Permissible, because social media posts are exempt from brokerage disclosure requirements.
• B.Permissible, provided the salesperson includes the brokerage name within 24 hours of posting.
• C.A violation, because Ohio law requires that all advertising by a salesperson clearly identify the affiliated brokerage.
• D.A violation only if the advertisement is paid placement rather than an organic post.

Q15.A licensee refuses to show a property to a buyer because the seller said "I don't want my home shown to families with young children." Which of the FHA's "six things you cannot do" has the licensee violated?

• A.Steering only
• B.Blockbusting
• C.Nothing — the licensee was following the seller's lawful instruction
• D.42 U.S.C. § 3604(a) — refusal to sell or rent based on familial status, AND § 3604(d) — making housing unavailable