Compiled- Oklahoma Real Estate
Licensing Examination- Final Exams
*Q&A* (100% Correct) 2025/2026
|VERIFIED|
According to the Truth in Lending Act (Regulation Z), advertisements for real estate financing must
provide specific disclosures. These include the annual percentage rate (APR), terms of repayment, and
the total cost of borrowing to ensure consumers can make informed decisions.
Specific financing terms and cost breakdowns.
A prospective buyer has offered $127,800 for a condo appraised at $122,500 and made a $5,000 deposit.
The buyer plans to arrange a mortgage for 85% of the appraised value and asks the seller for financing to
cover the remaining balance. How much will the seller need to finance to close the deal?
$18,675
In the context of real estate transactions, several events can terminate an agency relationship. These
include the death or insanity of one of the parties, mutual agreement to dissolve the relationship,
fulfillment of the agency's purpose, or a lapse of the agreed-upon time period. Which of these applies?
Death, insanity, bankruptcy, time lapse, mutual agreement, or completion of the agency's
purpose.
When two parties enter into a real estate contract, certain elements must be present to make it
enforceable under the law. These include mutual consent, a legal purpose, competent parties, and a
written agreement if required by statute. What makes such a contract legally binding?
It must be entered into by competent parties, serve a legal purpose, and be in writing.
If a real estate contract does not specifically state otherwise, the rights and obligations within it are
generally assignable to another party. This includes scenarios such as leasing or an option to purchase,
provided there is no explicit restriction. Can a contract be assigned without additional permission?
Yes, unless explicitly prohibited in the contract.
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,When a buyer and a Realtor enter into an exclusive right-to-sell agreement, the Realtor is entitled to a
commission even if the property is sold by another broker or by the owner directly during the
agreement's term. Why would the buyer still owe a commission in such cases?
The original contract was an exclusive right-to-sell agreement.
Under the Statute of Frauds, certain contracts, such as leases exceeding one year, must be documented
in writing to be enforceable. This requirement ensures clarity and avoids disputes about verbal
agreements. How does the Statute of Frauds affect long-term lease agreements?
It must be in writing.
Contracts entered into by minors are typically considered voidable rather than void. This means the
minor has the right to cancel the agreement, although the adult party is still bound by its terms. What is
the legal status of such contracts?
Voidable
For an offer to purchase property to become legally binding, it must be formally accepted by the seller
and the signed contract delivered to the buyer. At what point does an offer transition into a binding
agreement?
When the seller accepts and delivers the signed contract to the buyer.
When a buyer pays consideration to secure the right to purchase a property within a specified period,
this is known as an option agreement. This right does not obligate the buyer to purchase but ensures the
seller cannot sell to another party during the term. What type of agreement does this describe?
Option to purchase
If a buyer fails to fulfill a contingency in their purchase contract within the agreed time, such as selling
their existing home, the seller has the right to terminate the agreement and keep any earnest money
deposited. What did the buyer fail to meet in this scenario?
The contingency terms, resulting in default.
An open listing allows a property owner to work with multiple brokers, compensating only the one who
successfully procures a buyer. If the owner sells the property independently, no commission is owed to
any broker. What type of listing agreement is this?
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, Open listing
A handshake agreement between a broker and a seller to market and sell a property is not legally
enforceable under the Statute of Frauds. What is the legal status of such an agreement if a dispute
arises?
Unenforceable
When a buyer pays consideration to secure the exclusive right to purchase property at a set price within
a designated period, this is called an option to purchase. What is the legal term for this type of
contractual agreement?
Option to purchase
Certain types of fees, such as unearned fees and kickbacks, are not permitted under the Real Estate
Settlement Procedures Act (RESPA). Which type of fee is prohibited by this federal law?
Unearned fees and kickbacks
Private mortgage insurance (PMI) is often required when the loan-to-value ratio (LTV) is high. Once the
LTV reaches a certain threshold, PMI payments are no longer necessary. What is the general LTV ratio at
which PMI is no longer required?
Less than 80%
Mortgage fraud investigations are conducted by a specific federal agency tasked with protecting the
integrity of lending practices. Which agency is responsible for such investigations?
The FBI
The Veteran’s Administration (VA) provides significant support to eligible borrowers by guaranteeing
loans made by approved lenders, reducing the risk for lenders and helping veterans secure favorable
loan terms. What specific service does the VA provide in mortgage financing?
It guarantees loans made by approved lenders.
A promissory note requiring the borrower to make a lump sum payment of the remaining principal
balance at the end of the loan term is called a balloon note. What type of promissory note involves such
a payment structure?
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