OLERE (OKLAHOMA LEGAL AND ETHICAL
RESPONSIBILITIES EXAMINATION)2024 ACTUAL EXAM
200 QUESTIONS AND CORRECT ANSWER-S (VERIFIED
ANSWERS
OLERE – Oklahoma Legal & Ethical Responsibilities Examination
Practice Exam: Questions 1–50
Question 1
Which agency has primary authority to license and regulate real estate professionals in
Oklahoma?
A) Oklahoma Supreme Court
B) Oklahoma Real Estate Commission (OREC)
C) Oklahoma Secretary of State
D) Oklahoma Department of Commerce
E) National Association of Realtors
Correct Answer-: B) Oklahoma Real Estate Commission (OREC)
Rationale: The Oklahoma Real Estate Commission is the governing body responsible for
licensing, regulating, and disciplining real estate licensees in Oklahoma.
Question 2
A real estate licensee advertises a property but fails to disclose that the home has a known
structural defect. This is a violation of which duty?
,A) Obedience
B) Confidentiality
C) Disclosure
D) Loyalty
E) Accounting
Correct Answer-: C) Disclosure
Rationale: Licensees have a duty to disclose all known material facts that could affect a buyer’s
decision, including structural defects.
Question 3
Which of the following best defines “misrepresentation” under Oklahoma real estate law?
A) Failure to close a transaction
B) A false statement of a material fact that induces reliance
C) Advertising without broker approval
D) Charging an excessive commission
E) Disclosing confidential information
Correct Answer-: B) A false statement of a material fact that induces reliance
Rationale: Misrepresentation occurs when a licensee provides false or misleading information
about a material fact that influences a party’s decision.
Question 4
Under Oklahoma law, how long must a broker retain transaction records?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
E) 7 years
Correct Answer-: C) 3 years
Rationale: Oklahoma law requires brokers to retain transaction and trust account records for a
minimum of three years.
Question 5
,Which action would most likely result in disciplinary action by OREC?
A) Refusing to reduce commission
B) Failing to disclose agency relationships
C) Marketing aggressively
D) Referring clients to inspectors
E) Negotiating contract terms
Correct Answer-: B) Failing to disclose agency relationships
Rationale: Proper disclosure of agency relationships is a legal requirement and failure to do so
is a serious violation.
Question 6
A licensee who represents both buyer and seller in the same transaction must obtain:
A) Written permission from the broker only
B) Verbal consent from both parties
C) Written informed consent from both parties
D) Court approval
E) OREC approval
Correct Answer-: C) Written informed consent from both parties
Rationale: Dual agency is permitted only with prior written informed consent from all parties
involved.
Question 7
Which of the following is considered commingling?
A) Holding earnest money in escrow
B) Depositing trust funds into a personal account
C) Keeping accurate transaction records
D) Paying broker fees
E) Transferring commissions
Correct Answer-: B) Depositing trust funds into a personal account
Rationale: Commingling occurs when client funds are mixed with personal or business funds,
which is strictly prohibited.
, Question 8
When must earnest money be deposited into a trust account in Oklahoma?
A) Within 24 hours
B) Within 48 hours
C) Immediately upon acceptance
D) Within 5 banking days
E) At closing
Correct Answer-: D) Within 5 banking days
Rationale: Oklahoma law requires earnest money to be deposited into a trust account within
five banking days unless otherwise agreed in writing.
Question 9
Which of the following is an example of fraud?
A) Failing to return a phone call
B) Making a mistake in square footage
C) Knowingly concealing termite damage
D) Setting commission rates
E) Negotiating contract price
Correct Answer-: C) Knowingly concealing termite damage
Rationale: Fraud requires intent. Knowingly hiding a material defect meets the legal definition
of fraud.
Question 10
A licensee who gives legal advice to a client is engaging in:
A) Ethical practice
B) Fiduciary duty
C) Unauthorized practice of law
D) Disclosure
E) Client advocacy
Correct Answer-: C) Unauthorized practice of law
Rationale: Real estate licensees are prohibited from giving legal advice unless they are licensed
attorneys.
RESPONSIBILITIES EXAMINATION)2024 ACTUAL EXAM
200 QUESTIONS AND CORRECT ANSWER-S (VERIFIED
ANSWERS
OLERE – Oklahoma Legal & Ethical Responsibilities Examination
Practice Exam: Questions 1–50
Question 1
Which agency has primary authority to license and regulate real estate professionals in
Oklahoma?
A) Oklahoma Supreme Court
B) Oklahoma Real Estate Commission (OREC)
C) Oklahoma Secretary of State
D) Oklahoma Department of Commerce
E) National Association of Realtors
Correct Answer-: B) Oklahoma Real Estate Commission (OREC)
Rationale: The Oklahoma Real Estate Commission is the governing body responsible for
licensing, regulating, and disciplining real estate licensees in Oklahoma.
Question 2
A real estate licensee advertises a property but fails to disclose that the home has a known
structural defect. This is a violation of which duty?
,A) Obedience
B) Confidentiality
C) Disclosure
D) Loyalty
E) Accounting
Correct Answer-: C) Disclosure
Rationale: Licensees have a duty to disclose all known material facts that could affect a buyer’s
decision, including structural defects.
Question 3
Which of the following best defines “misrepresentation” under Oklahoma real estate law?
A) Failure to close a transaction
B) A false statement of a material fact that induces reliance
C) Advertising without broker approval
D) Charging an excessive commission
E) Disclosing confidential information
Correct Answer-: B) A false statement of a material fact that induces reliance
Rationale: Misrepresentation occurs when a licensee provides false or misleading information
about a material fact that influences a party’s decision.
Question 4
Under Oklahoma law, how long must a broker retain transaction records?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
E) 7 years
Correct Answer-: C) 3 years
Rationale: Oklahoma law requires brokers to retain transaction and trust account records for a
minimum of three years.
Question 5
,Which action would most likely result in disciplinary action by OREC?
A) Refusing to reduce commission
B) Failing to disclose agency relationships
C) Marketing aggressively
D) Referring clients to inspectors
E) Negotiating contract terms
Correct Answer-: B) Failing to disclose agency relationships
Rationale: Proper disclosure of agency relationships is a legal requirement and failure to do so
is a serious violation.
Question 6
A licensee who represents both buyer and seller in the same transaction must obtain:
A) Written permission from the broker only
B) Verbal consent from both parties
C) Written informed consent from both parties
D) Court approval
E) OREC approval
Correct Answer-: C) Written informed consent from both parties
Rationale: Dual agency is permitted only with prior written informed consent from all parties
involved.
Question 7
Which of the following is considered commingling?
A) Holding earnest money in escrow
B) Depositing trust funds into a personal account
C) Keeping accurate transaction records
D) Paying broker fees
E) Transferring commissions
Correct Answer-: B) Depositing trust funds into a personal account
Rationale: Commingling occurs when client funds are mixed with personal or business funds,
which is strictly prohibited.
, Question 8
When must earnest money be deposited into a trust account in Oklahoma?
A) Within 24 hours
B) Within 48 hours
C) Immediately upon acceptance
D) Within 5 banking days
E) At closing
Correct Answer-: D) Within 5 banking days
Rationale: Oklahoma law requires earnest money to be deposited into a trust account within
five banking days unless otherwise agreed in writing.
Question 9
Which of the following is an example of fraud?
A) Failing to return a phone call
B) Making a mistake in square footage
C) Knowingly concealing termite damage
D) Setting commission rates
E) Negotiating contract price
Correct Answer-: C) Knowingly concealing termite damage
Rationale: Fraud requires intent. Knowingly hiding a material defect meets the legal definition
of fraud.
Question 10
A licensee who gives legal advice to a client is engaging in:
A) Ethical practice
B) Fiduciary duty
C) Unauthorized practice of law
D) Disclosure
E) Client advocacy
Correct Answer-: C) Unauthorized practice of law
Rationale: Real estate licensees are prohibited from giving legal advice unless they are licensed
attorneys.
