OKLAHOMA REAL ESTATE UPDATED 2026 EXAM SCRIPT
QUESTIONS AND SOLUTIONS SCORED A+
✔✔air rights - ✔✔The rights in real property to the reasonable use of the air space
above the surface of the land.
✔✔air space - ✔✔the area from the surface of land upward
✔✔alienation - ✔✔(law) the voluntary and absolute transfer of title and possession of
real property from one person to another
✔✔alienation clause (due-on-sale) - ✔✔A clause in a contract giving the lender certain
rights in the event of a sale or other transfer of mortgaged property.
✔✔alienee - ✔✔the person to whom ownership, title or interest in real estate is
transferred. they have the same legal rights, objectives and remedies as the grantor.
✔✔allodial system - ✔✔A legal system that gives full property ownership rights to
individuas. It is the basis of land ownership in the United States.
✔✔alluvion - ✔✔The increase of soil on a shore or bank of a river as a result of
accretion.
✔✔amended plat - ✔✔an original plat re-subdivided or changed
✔✔amortizing mortgage - ✔✔a mortgage featuring periodic repayment of a debt,
including partial payment of principle plus accrued interest, in a manner calculated to
pay off the obligation by maturity.
✔✔annual percentage rate (APR) - ✔✔The cost of borrowing money on an annual
basis. Takes into account the interest rate and other related fees on a loan. includes
interim discount points
✔✔principal of anticipation - ✔✔Affirms that value is created by anticipated benefits to
be derived in the future.
✔✔apparent authority - ✔✔The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔approaches to value - ✔✔three methods used by appraiser to form an estimate of
value such as cost, market and income approaches
,✔✔appurtenance - ✔✔That which has been added to a property, which becomes an
inherent part of the property, and will pass with it when conveyed; includes
improvements
✔✔arm's length transaction - ✔✔Negotiated between 2 independent and unrelated
parties, each working to protect his own best interest, without one being under the
infuence or control of the other; affects market value.
✔✔artifice - ✔✔(n.) a skillful or ingenious device; a clever trick; a clever skill; trickery
✔✔accessed value - ✔✔The property value as determined by county assessor as the
basis for determining ad valorem taxes
✔✔Association of Real Estate License Law Officials (ARELLO) - ✔✔ARELLO. Uniform
policies and standards for administering and enforcing state license laws are promoted
by this organization.
✔✔assumption or assumption mortgage - ✔✔A method of selling real estate wherein
the property purchaser agrees from personal liability under the mortgage because a
second party (the property purchaser) has agreed to meet the mortgagor's obligations.
✔✔assumption fee - ✔✔A lender's charge for changing over and processing new
records for a new owner who is assuming an existing loan.
✔✔attorney-in-fact - ✔✔A person given the authority to act on behalf of another under a
power of attorney.
✔✔avulsion - ✔✔A sudden and perceptible loss of land by the action of water as by a
sudden change in the course of a river.
✔✔Principle of Balance - ✔✔Value is created and maintained when there is a proper
mix of land use so as to obtain the highest and best use for a site.
✔✔balloon mortgage - ✔✔A loan that allows the debtor to make small monthly
payments for an initial period, such as eight years, but then requires a large balloon
payment for the entire remaining balance of the mortgage loan at the end of that period.
✔✔base lines - ✔✔An east-west lines which intersect meridians ,designated under the
Land Ordinance of 1785 to facilitate the surveying and numbering of townships in the
United States
✔✔bench marks - ✔✔A location indicated on a durable marker by surveyors.
,✔✔betterment - ✔✔An improvement upon property which increases the property value
and is considered as a capital asset as distinguished from repairs or replacements
where the original character or cost is unchanged.
✔✔binder - ✔✔An agreement to consider a down payment for the purchase of real
estate as evidence of good faith on the part of the purchaser. Also, a notation of
coverage on an insurance policy, issued by an agent, and given to the insured prior to
issuing of the policy.
✔✔blanket mortgage - ✔✔A mortgage which covers more than one piece of real estate.
Often used by a developer in the financing of undeveloped lots. Contains a partial
release clause.
✔✔blind ad - ✔✔An ad for real property placed by a real estate broker that does not
indicate that the advertiser is a broker and does not include the name of the broker and
telephone number
✔✔blockbusting - ✔✔Illegal practice of inducing homeowners to sell their properties by
telling them that a certain people of a certain race, national origin or religion are moving
into the area
✔✔bona fide offer - ✔✔An offer made in good faith, authentic, & without intent to
defraud
✔✔bona fide buyer - ✔✔A buyer who is acting in good faith for valuable consideration
and wins the race to the court house.
✔✔book value - ✔✔The amount at which an asset is carried on the financial boos of a
person,partnership,association or corp. Book value is the capitalized cost of an asset
less depreciation taken for accounting purposes, based on the method used for the
computation of depreciation over the useful life of the asset. it is the adjusted basis of
an asset, and usually differs from appraised or market value.
✔✔breach of contract - ✔✔The failure, without legal excuse, of a promisor to perform
the obligations of a contract.
✔✔budget mortgage - ✔✔In addition to collecting monthly principal and interest
payment, the lender collects one-twelfth of the estimated cost of the annual property
taxes and hazard insurance on the mortgaged property.This mortgage is placed in an
escrow account
✔✔building line - ✔✔A line, usually parallel to a property line, beyond which a structure
may not extend.
, ✔✔bundle of rights - ✔✔Rights associated with ownership of real property. Includes:
Right of Possession, Right to Use, Right to encumber, Right to dispose, Right to
Exclude others.
✔✔buyer's agent - ✔✔under the new brokerage relationship act that went into effect
Nov,1 2013, this term no longer applies in Oklahoma
✔✔canvassing - ✔✔going through neighborhoods or to homeowners soliciting listings.
✔✔capacity of parties - ✔✔The legal ability of persons to enter into a valid contract.
Most persons have full capacity to contract, and are said to be competent parties,
✔✔capitalization - ✔✔In appraising, determining value of property by considering net
income and percentage of reasonable return on the investment. The value of an income
property is determined by dividing annual net income by the Capitalization Rate.
✔✔capitalization rate - ✔✔The rate of return a property will produce on the owner's
investment.
✔✔carry-over clause / Safety clause - ✔✔A listing which provides that a broker is still
entitled to a commission for a set period of time after the listing has expired if the
property is sold to a former prospect of the broker.
✔✔caveat emptor - ✔✔A Latin phrase meaning "let the buyer beware." The rule that
says a buyer is expected to examine property carefully, instead of relying on the seller
to point out problems.
✔✔CC&R - ✔✔Covenants, Conditions, and Restrictions are private rules set up by
developer that set standards for all the parcels within the defined subdivision.
✔✔certificate of eligibility - ✔✔Endorsement from the veterans administration indicating
the right of a veteran to obtain a VA loan and the amount of his eligibility.
✔✔certificate of reasonable value - ✔✔(CRV) A document issued by the VA which
states the value of the subject property based on an approved appraisal. The VA loan
amount cannot exceed the CRV.
✔✔chain of title - ✔✔A history of conveyances and encumbrances affecting the title
from the time the original patent was granted, or as far back as records are available,
used to determine how title came to be vested in current owner.
✔✔principle of change - ✔✔the notion that economic, social, political, and
environmental forces are constantly causing changes that affect the value of real
property.
QUESTIONS AND SOLUTIONS SCORED A+
✔✔air rights - ✔✔The rights in real property to the reasonable use of the air space
above the surface of the land.
✔✔air space - ✔✔the area from the surface of land upward
✔✔alienation - ✔✔(law) the voluntary and absolute transfer of title and possession of
real property from one person to another
✔✔alienation clause (due-on-sale) - ✔✔A clause in a contract giving the lender certain
rights in the event of a sale or other transfer of mortgaged property.
✔✔alienee - ✔✔the person to whom ownership, title or interest in real estate is
transferred. they have the same legal rights, objectives and remedies as the grantor.
✔✔allodial system - ✔✔A legal system that gives full property ownership rights to
individuas. It is the basis of land ownership in the United States.
✔✔alluvion - ✔✔The increase of soil on a shore or bank of a river as a result of
accretion.
✔✔amended plat - ✔✔an original plat re-subdivided or changed
✔✔amortizing mortgage - ✔✔a mortgage featuring periodic repayment of a debt,
including partial payment of principle plus accrued interest, in a manner calculated to
pay off the obligation by maturity.
✔✔annual percentage rate (APR) - ✔✔The cost of borrowing money on an annual
basis. Takes into account the interest rate and other related fees on a loan. includes
interim discount points
✔✔principal of anticipation - ✔✔Affirms that value is created by anticipated benefits to
be derived in the future.
✔✔apparent authority - ✔✔The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔approaches to value - ✔✔three methods used by appraiser to form an estimate of
value such as cost, market and income approaches
,✔✔appurtenance - ✔✔That which has been added to a property, which becomes an
inherent part of the property, and will pass with it when conveyed; includes
improvements
✔✔arm's length transaction - ✔✔Negotiated between 2 independent and unrelated
parties, each working to protect his own best interest, without one being under the
infuence or control of the other; affects market value.
✔✔artifice - ✔✔(n.) a skillful or ingenious device; a clever trick; a clever skill; trickery
✔✔accessed value - ✔✔The property value as determined by county assessor as the
basis for determining ad valorem taxes
✔✔Association of Real Estate License Law Officials (ARELLO) - ✔✔ARELLO. Uniform
policies and standards for administering and enforcing state license laws are promoted
by this organization.
✔✔assumption or assumption mortgage - ✔✔A method of selling real estate wherein
the property purchaser agrees from personal liability under the mortgage because a
second party (the property purchaser) has agreed to meet the mortgagor's obligations.
✔✔assumption fee - ✔✔A lender's charge for changing over and processing new
records for a new owner who is assuming an existing loan.
✔✔attorney-in-fact - ✔✔A person given the authority to act on behalf of another under a
power of attorney.
✔✔avulsion - ✔✔A sudden and perceptible loss of land by the action of water as by a
sudden change in the course of a river.
✔✔Principle of Balance - ✔✔Value is created and maintained when there is a proper
mix of land use so as to obtain the highest and best use for a site.
✔✔balloon mortgage - ✔✔A loan that allows the debtor to make small monthly
payments for an initial period, such as eight years, but then requires a large balloon
payment for the entire remaining balance of the mortgage loan at the end of that period.
✔✔base lines - ✔✔An east-west lines which intersect meridians ,designated under the
Land Ordinance of 1785 to facilitate the surveying and numbering of townships in the
United States
✔✔bench marks - ✔✔A location indicated on a durable marker by surveyors.
,✔✔betterment - ✔✔An improvement upon property which increases the property value
and is considered as a capital asset as distinguished from repairs or replacements
where the original character or cost is unchanged.
✔✔binder - ✔✔An agreement to consider a down payment for the purchase of real
estate as evidence of good faith on the part of the purchaser. Also, a notation of
coverage on an insurance policy, issued by an agent, and given to the insured prior to
issuing of the policy.
✔✔blanket mortgage - ✔✔A mortgage which covers more than one piece of real estate.
Often used by a developer in the financing of undeveloped lots. Contains a partial
release clause.
✔✔blind ad - ✔✔An ad for real property placed by a real estate broker that does not
indicate that the advertiser is a broker and does not include the name of the broker and
telephone number
✔✔blockbusting - ✔✔Illegal practice of inducing homeowners to sell their properties by
telling them that a certain people of a certain race, national origin or religion are moving
into the area
✔✔bona fide offer - ✔✔An offer made in good faith, authentic, & without intent to
defraud
✔✔bona fide buyer - ✔✔A buyer who is acting in good faith for valuable consideration
and wins the race to the court house.
✔✔book value - ✔✔The amount at which an asset is carried on the financial boos of a
person,partnership,association or corp. Book value is the capitalized cost of an asset
less depreciation taken for accounting purposes, based on the method used for the
computation of depreciation over the useful life of the asset. it is the adjusted basis of
an asset, and usually differs from appraised or market value.
✔✔breach of contract - ✔✔The failure, without legal excuse, of a promisor to perform
the obligations of a contract.
✔✔budget mortgage - ✔✔In addition to collecting monthly principal and interest
payment, the lender collects one-twelfth of the estimated cost of the annual property
taxes and hazard insurance on the mortgaged property.This mortgage is placed in an
escrow account
✔✔building line - ✔✔A line, usually parallel to a property line, beyond which a structure
may not extend.
, ✔✔bundle of rights - ✔✔Rights associated with ownership of real property. Includes:
Right of Possession, Right to Use, Right to encumber, Right to dispose, Right to
Exclude others.
✔✔buyer's agent - ✔✔under the new brokerage relationship act that went into effect
Nov,1 2013, this term no longer applies in Oklahoma
✔✔canvassing - ✔✔going through neighborhoods or to homeowners soliciting listings.
✔✔capacity of parties - ✔✔The legal ability of persons to enter into a valid contract.
Most persons have full capacity to contract, and are said to be competent parties,
✔✔capitalization - ✔✔In appraising, determining value of property by considering net
income and percentage of reasonable return on the investment. The value of an income
property is determined by dividing annual net income by the Capitalization Rate.
✔✔capitalization rate - ✔✔The rate of return a property will produce on the owner's
investment.
✔✔carry-over clause / Safety clause - ✔✔A listing which provides that a broker is still
entitled to a commission for a set period of time after the listing has expired if the
property is sold to a former prospect of the broker.
✔✔caveat emptor - ✔✔A Latin phrase meaning "let the buyer beware." The rule that
says a buyer is expected to examine property carefully, instead of relying on the seller
to point out problems.
✔✔CC&R - ✔✔Covenants, Conditions, and Restrictions are private rules set up by
developer that set standards for all the parcels within the defined subdivision.
✔✔certificate of eligibility - ✔✔Endorsement from the veterans administration indicating
the right of a veteran to obtain a VA loan and the amount of his eligibility.
✔✔certificate of reasonable value - ✔✔(CRV) A document issued by the VA which
states the value of the subject property based on an approved appraisal. The VA loan
amount cannot exceed the CRV.
✔✔chain of title - ✔✔A history of conveyances and encumbrances affecting the title
from the time the original patent was granted, or as far back as records are available,
used to determine how title came to be vested in current owner.
✔✔principle of change - ✔✔the notion that economic, social, political, and
environmental forces are constantly causing changes that affect the value of real
property.
