Free Oklahoma Real Estate Practice Exam

Q1.Under RESPA, what is the maximum amount a lender may require a borrower to deposit into an escrow account for property taxes and insurance at closing?

• A.One-twelfth of the annual amount plus a two-month cushion
• B.Two months of the estimated annual charges
• C.Three months of the estimated annual charges
• D.One-sixth of the annual amount plus a two-month cushion

Q2.Under the Oklahoma Real Estate License Code, which state agency is responsible for issuing real estate licenses and enforcing the laws governing real estate licensees in Oklahoma?

• A.The Oklahoma Department of Commerce
• B.The Oklahoma Real Estate Commission (OREC)
• C.The Oklahoma Banking Department
• D.The Oklahoma Secretary of State

Q3.Under the Equal Credit Opportunity Act (ECOA) and Regulation B, a mortgage lender is required to provide an applicant with a copy of any appraisal or other written valuation developed in connection with a first-lien application. A broker-owner refers a client to an affiliated lender. The lender completes the appraisal but withholds the report from the applicant until after the loan closes, reasoning that the appraisal is the lender's proprietary work product. Three days after closing, the appraisal reveals the property appraised at $22,000 below the purchase price. As the referring broker, which statement MOST accurately describes the broker's responsibilities and potential exposure in this scenario?

• A.The broker has no ECOA obligation because ECOA compliance is exclusively the lender's duty; the broker is insulated by the affiliated business arrangement
• B.The broker must independently provide the appraisal to the buyer because Regulation B imposes the appraisal delivery obligation jointly on both the lender and the referring agent
• C.The broker faces potential RESPA Section 8 liability for the referral arrangement and, as a fiduciary to the buyer, had an independent duty to ensure the buyer received the appraisal before consummation; failure to advocate for timely disclosure may support a breach of fiduciary duty claim
• D.The broker is protected because the affiliated lender's ECOA violation is a regulatory matter between the lender and the CFPB, with no private right of action available to the buyer

Q4.A fee simple estate differs from a life estate primarily in which characteristic?

• A.The duration and inheritability of the ownership interest
• B.The right to possess and use the property during the holder's lifetime
• C.The ability to lease the property to tenants
• D.The requirement to maintain the property in good condition

Q5.Under the Oklahoma Real Estate License Code, an unlicensed assistant working in a real estate office may lawfully perform which of the following tasks WITHOUT obtaining a real estate license?

• A.Host an open house and answer buyers' questions about the property's price and terms
• B.Call prospective buyers to discuss the features and negotiate the sale price of a listed property
• C.Place a 'For Sale' sign on a listed property and schedule appointments for the licensee to show the property
• D.Present an offer to a seller and explain the contract terms on behalf of the sponsoring broker

Q6.A licensed Oklahoma salesperson is working under Broker A and, without the broker's knowledge, negotiates a lease transaction on behalf of a friend and accepts a cash 'thank you' payment. Under the Oklahoma Real Estate License Code, which statement best describes the broker's exposure?

• A.The broker has no liability because the salesperson acted without authorization and outside the scope of employment
• B.The broker may be held liable by OREC because a broker is responsible for the licensed acts of all affiliated associates
• C.The broker is automatically subject to license revocation but not a fine for the associate's unauthorized act
• D.The broker is only liable if the friend files a written complaint with OREC within 30 days of the transaction

Q7.Under the Oklahoma Residential Landlord and Tenant Act (Title 41 O.S.), what is the maximum security deposit a landlord may collect for an unfurnished residential dwelling?

• A.One month's rent
• B.Two months' rent
• C.Three months' rent
• D.There is no statutory maximum for security deposits in Oklahoma

Q8.Under general agency law principles applicable nationwide, a real estate salesperson who represents a buyer in a transaction owes fiduciary duties exclusively to that buyer. Which of the following actions by the salesperson would MOST likely constitute a breach of the fiduciary duty of loyalty to the buyer-client?

• A.Disclosing to the listing agent that the buyer is pre-approved for $50,000 more than the offered purchase price without the buyer's consent
• B.Recommending that the buyer obtain an independent home inspection before closing
• C.Presenting all offers and counteroffers to the buyer in a timely manner
• D.Advising the buyer that the listed price appears to exceed recent comparable sales in the area

Q9.Under the Fair Housing Act (42 U.S.C. § 3604), sex was added as a protected class in what year?

• A.1968
• B.1974
• C.1988
• D.2016

Q10.A broker is reviewing a purchase contract where the buyer's financing contingency states the buyer must obtain a 'satisfactory mortgage commitment' within 21 days but does not define 'satisfactory.' The seller's attorney argues the contingency is illusory and unenforceable. From a broker's contract advisory perspective, what is the most significant legal risk created by this vague contingency language?

• A.The buyer could theoretically invoke the contingency for any subjective reason, potentially giving the buyer an unlimited right to terminate, which some courts have found renders the contract illusory and lacking mutual obligation.
• B.The vague language automatically converts the contingency into a 'time is of the essence' clause, accelerating the financing deadline to 10 days.
• C.The seller is automatically in breach if a lender issues any commitment with conditions, since the term 'satisfactory' imposes an absolute obligation on the seller to provide perfect financing terms.
• D.RESPA requires all financing contingencies to specify a precise interest rate and loan amount, making this contract void ab initio.

Q11.Under the Oklahoma Real Estate Broker Relationships Act, which of the following pieces of information is a broker required to keep confidential even after the brokerage relationship has ended?

• A.The listed price of the property as it appeared on the MLS
• B.The fact that the property was previously listed with the broker
• C.The client's motivation for selling or buying and the price the client would accept
• D.The square footage and lot size of the property

Q12.In property management, what does the term 'effective gross income' represent?

• A.Total potential rental income minus operating expenses
• B.Total potential rental income minus vacancy and collection losses
• C.Net operating income minus debt service
• D.Gross rental income plus miscellaneous income

Q13.Under federal fair housing law, which accommodation must a property manager provide for a tenant with a disability?

• A.Reducing the security deposit amount
• B.Allowing a service animal even in a 'no pets' property
• C.Providing a larger apartment at the same rent
• D.Waiving application fees for disabled applicants

Q14.A broker-property manager discovers during an environmental inspection of a 1960s-era apartment building that deteriorating paint in several units contains lead-based paint. The owner instructs the broker not to disclose this to prospective tenants to avoid scaring them off. What is the broker's MOST appropriate course of action?

• A.Refuse to follow the owner's instruction and provide the federally required Lead-Based Paint Disclosure and EPA pamphlet to all prospective tenants of units in the pre-1978 building before they sign a lease, even if it means terminating the management agreement.
• B.Follow the owner's instruction because the broker's duty of loyalty to the principal supersedes the disclosure obligation to prospective tenants.
• C.Disclose the lead-based paint only to tenants who specifically ask about it, satisfying the disclosure obligation without violating the owner's confidentiality request.
• D.Report the condition to CERCLA authorities immediately, because lead-based paint in residential property is a CERCLA-regulated hazardous substance requiring federal remediation.

Q15.How long does a complainant have to file a fair housing complaint with HUD under 42 U.S.C. § 3610?

• A.90 days
• B.1 year
• C.180 days
• D.3 years