Oklahoma Real Estate Practice Exam
(Free Questions & Answers)

Explanation

The Oklahoma Real Estate Commission (OREC) is the state agency that licenses, regulates, and disciplines real estate brokers and sales associates in Oklahoma.

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Oklahoma requires licensees to disclose their brokerage relationship to consumers at the first substantive contact before providing real estate brokerage services, ensuring consumers understand who the agent represents.

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Oklahoma's statute of frauds requires that contracts for the sale of real property be in writing and signed by the party to be charged to be enforceable. Oral contracts for the sale of land are generally unenforceable.

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TRID (the TILA-RESPA Integrated Disclosure rule) requires lenders to provide a Loan Estimate within 3 business days of receiving a completed loan application, giving borrowers clear information about loan terms and costs.

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Joint tenancy includes the right of survivorship, meaning if one owner dies, their interest passes automatically to the surviving co-owner(s). All joint tenants must hold equal shares acquired at the same time by the same deed.

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The sales comparison approach is typically the primary method for valuing single-family homes. It compares the subject property to recently sold comparable properties, making adjustments for differences to arrive at an indicated value.

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The federal Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, and handicap (disability) — seven protected classes. States and municipalities may add additional protected classes.

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A lender's (mortgagee's) title insurance policy protects the lender's interest up to the loan amount. Most lenders require this as a condition of the loan. The owner's policy separately protects the buyer's equity interest.

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Total commission: $275,000 × 0.06 = $16,500. Listing broker's share: $16,500 ÷ 2 = $8,250. Listing agent's share: $8,250 × 0.60 = $4,950.

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CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), known as Superfund, provides a federal framework for cleaning up contaminated sites and holds current and past owners, operators, and waste generators liable for cleanup costs.

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A variance is granted by a zoning board of adjustment to allow a property owner to deviate from specific zoning requirements (such as setbacks or lot coverage) when strict application would cause undue hardship due to unique property characteristics.

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Oklahoma's Residential Landlord and Tenant Act requires landlords to return the security deposit within 30 days after the tenancy ends and the tenant provides a forwarding address. The landlord must provide an itemized statement of any deductions.

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Oklahoma requires 90 hours of pre-license education for a sales associate license. This coursework must be completed at an OREC-approved school.

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When a single broker represents both the buyer and the seller in the same transaction, this is dual agency. In Oklahoma, dual agency must be disclosed and consented to in writing by both parties.

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When a seller responds to an offer by changing any of the terms — price, closing date, contingencies, etc. — this constitutes a counteroffer. A counteroffer simultaneously rejects the original offer and creates a new offer that the buyer may accept or reject.

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FHA loans require Mortgage Insurance Premium (MIP) on all loans regardless of down payment amount. This insurance protects the lender against default. FHA loans are not limited to first-time buyers and are issued by approved private lenders, not the government.

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Separate property in Oklahoma includes property owned by either spouse before marriage and property acquired during marriage by gift, devise, or inheritance. Oklahoma is a common law property state, not a community property state.

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When a comparable is superior to the subject, the appraiser subtracts the adjustment from the comparable's sale price. The comparable sold for $300,000 partly because it has a garage; without the garage, it would have sold for approximately $290,000, which is the adjusted value.

Explanation

Steering is the illegal practice of directing buyers or renters toward or away from certain neighborhoods based on protected class characteristics. Discouraging a family with children from a particular neighborhood based on familial status is illegal steering.

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A general warranty deed provides the broadest protection to the buyer, including the covenants of seisin (grantor owns and has the right to convey), quiet enjoyment, further assurance, warranty forever (defends title against all claims), and against encumbrances.

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Monthly interest = Loan balance × (annual rate ÷ 12). $240,000 × (0.07 ÷ 12) = $240,000 × 0.005833 = $1,400. This is the interest portion of the first month's payment; the remainder of the monthly payment reduces principal.

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Federal law requires disclosure of known lead-based paint hazards for residential properties built before 1978 (when the Consumer Product Safety Commission banned lead paint in residential housing). Sellers must provide a disclosure form and an EPA pamphlet.

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A nonconforming use is a legally established use that predates a zoning change and is permitted to continue, usually with restrictions on expansion or rebuilding. If the nonconforming use is abandoned, it typically cannot be re-established.

Explanation

A property manager is an agent of the property owner (the principal). The manager's primary fiduciary duty is to act in the owner's best interest, which includes maximizing the property's value and income while properly maintaining the asset.

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The Oklahoma real estate licensing exam contains 130 questions (80 national and 50 state-specific). Candidates must achieve a passing score of 70% or higher.