OKLAHOMA REAL ESTATE FINAL EXAM 2026 QUESTIONS
AND SOLUTIONS SCORED A+
✔✔principle of competition - ✔✔an element in out economic order that preserves value.
When anyone makes excess profit, others drawn into the market will wipe away the
excess
✔✔competitive market analysis - ✔✔Compare prices of properties similar to the seller's
property that recently sold, those that are currently on the market and those that did not
sell. determine market value under normal market conditions.
✔✔Comptroller of the Currency - ✔✔The federal agency that charters national banks.
✔✔Appraiser's certified Conclusion ( Conclusion) - ✔✔The final estimate of value,
realized from facts, data, experience and judgement, set out in an appraisal.
✔✔concurrent Ownership (co-ownership) - ✔✔More than one person having legal title
to the same parcel of land at the same time
✔✔Condemnation - ✔✔A judicial or administrative proceeding to exercise the power of
eminent domain, through which a government agency takes private property for public
use and compensates the owner
✔✔Condition - ✔✔A qualification of an estate which can be imposed only in
conveyances. They are classified as conditions precedent and conditions subsequent.
✔✔conditional sales contract - ✔✔a contract in which owner retains title until buyer has
met all the terms and conditions; a familiar device in land sales; buyer acquires
equitable title until final payment
✔✔confiscation - ✔✔seizure of property by authority w/o compensation
✔✔principle of conformity - ✔✔(appraiser principle) - A maximum value is found when
there is a reasonable degree of similarity or homogeniety. properties in the same
neighborhood tend to conform in price.
✔✔consideration - ✔✔Anything of value given to induce entering into a contract; it may
be money, personal services, or even love and affection.
✔✔constructive notice - ✔✔Notice given by recording a document or taking physical
possession of the property.
By law, persons are presumed to have knowledge of whatever is recorded. It assumes
that recording gives notice to entire world of the documents.
,✔✔consumer price index - ✔✔A measure of the cost of basic necessities such as food
and housing
✔✔contiguous - ✔✔(adj.) side by side, touching; near; adjacent
✔✔contract for deed - ✔✔A sales arrangement in which the actual delivery of the deed
conveying ownership will not occur until well after the buyer takes possession of the
property. This allows the seller to finance the sale through installment payments and to
have recourse to the property in case of default by the buyer/ borrower.
✔✔Principal of contribution - ✔✔The amount of value one component adds to total
value
✔✔Conventional loans - ✔✔Real estate loans that are not insured by the FHA or
guaranteed by VA
✔✔conventional mortgages - ✔✔A mortgage securing a loan made by investors without
governmental underwriting, i.e., which is not FHA insured or VA guaranteed. The type
customarily made by a bank or savings and loan association.
✔✔conversion - ✔✔When a broker uses a customer's earnest money deposit for
personal use
✔✔conveyance - ✔✔An instrument in writing used to transfer (convey) title to property
from one person to another, such as a deed or a trust deed.
✔✔corporation - ✔✔A body formed and authorized by law to act as a single person,
distinct from its members or owners
✔✔corporeal rights - ✔✔Possessory rights in real property.
✔✔correction lines - ✔✔A system for compensating inaccuracies in the Government
Rectangular Survey System due to the curvature of the earth. Every fourth township
line, 24 mile intervals, is used as a correction line on which the intervals between the
north and south range lines are remeasured and corrected to a full 6 miles.
✔✔correlation - ✔✔weighing the relative importance of perviously determined value and
reaching a single, final,supportable estimate of market value
✔✔correspondent - ✔✔the intermediary position of mortgage banking companies
between the borrower and the final lender in the market place
, ✔✔cost approach - ✔✔Process of estimating value of a property by adding land value
to the appraiser's estimate of the reproduction or replacement cost of building, less
depreciation
✔✔cost of production - ✔✔A measure of past (or prospective) expenditures in
money,labor,material or sacrifices of some nature in acquiring the property
✔✔curable depreciation - ✔✔depreciation that may be economically corrected
✔✔data plants - ✔✔appraisers files or information on real estate
✔✔debt service - ✔✔Amount of money needed to meet the periodic payments of
principal and intereste on a loan or debt being amortized.
✔✔declining balance method - ✔✔Method that determines depreciation charge for the
period by multiplying a depreciation rate (often twice the straight-line rate) by the asset's
beginning-period balance.
✔✔deed - ✔✔An instrument in writing, duly executing and delivered by the grantor that
conveys to the grantee some right, or interest in or to real estate
✔✔deed in lieu of foreclosure - ✔✔Used by the mortgagor (borrower) who is in default
to convey the property to the mortgagee (lender) in order to eliminate the need for a
foreclosure.
✔✔quitclaim deed - ✔✔A deed in which the grantor gives up any claims to the property
without making any assertions about there being a clear title.
✔✔deed restrictions - ✔✔e
Limitations in the deed to a property that dictate certain uses that may or may not be
made of the property.
✔✔warranty deed - (General Warranty Deed) - ✔✔A deed in which the grantor fully
warrants a good clear title to the property; a deed that contains covenants of title.
✔✔default - ✔✔the failure to perform a legal duty, such as failure to carry out the terms
of a contract (mortgage)
✔✔defeasible estate - ✔✔An estate that may be lost on the happening of some event
(condition subsequent).
sometimes called base fee estate or qualified fee estate; fee simple absolute interest in
land that are capable of being defeated or terminated upon the happening of specified
events
AND SOLUTIONS SCORED A+
✔✔principle of competition - ✔✔an element in out economic order that preserves value.
When anyone makes excess profit, others drawn into the market will wipe away the
excess
✔✔competitive market analysis - ✔✔Compare prices of properties similar to the seller's
property that recently sold, those that are currently on the market and those that did not
sell. determine market value under normal market conditions.
✔✔Comptroller of the Currency - ✔✔The federal agency that charters national banks.
✔✔Appraiser's certified Conclusion ( Conclusion) - ✔✔The final estimate of value,
realized from facts, data, experience and judgement, set out in an appraisal.
✔✔concurrent Ownership (co-ownership) - ✔✔More than one person having legal title
to the same parcel of land at the same time
✔✔Condemnation - ✔✔A judicial or administrative proceeding to exercise the power of
eminent domain, through which a government agency takes private property for public
use and compensates the owner
✔✔Condition - ✔✔A qualification of an estate which can be imposed only in
conveyances. They are classified as conditions precedent and conditions subsequent.
✔✔conditional sales contract - ✔✔a contract in which owner retains title until buyer has
met all the terms and conditions; a familiar device in land sales; buyer acquires
equitable title until final payment
✔✔confiscation - ✔✔seizure of property by authority w/o compensation
✔✔principle of conformity - ✔✔(appraiser principle) - A maximum value is found when
there is a reasonable degree of similarity or homogeniety. properties in the same
neighborhood tend to conform in price.
✔✔consideration - ✔✔Anything of value given to induce entering into a contract; it may
be money, personal services, or even love and affection.
✔✔constructive notice - ✔✔Notice given by recording a document or taking physical
possession of the property.
By law, persons are presumed to have knowledge of whatever is recorded. It assumes
that recording gives notice to entire world of the documents.
,✔✔consumer price index - ✔✔A measure of the cost of basic necessities such as food
and housing
✔✔contiguous - ✔✔(adj.) side by side, touching; near; adjacent
✔✔contract for deed - ✔✔A sales arrangement in which the actual delivery of the deed
conveying ownership will not occur until well after the buyer takes possession of the
property. This allows the seller to finance the sale through installment payments and to
have recourse to the property in case of default by the buyer/ borrower.
✔✔Principal of contribution - ✔✔The amount of value one component adds to total
value
✔✔Conventional loans - ✔✔Real estate loans that are not insured by the FHA or
guaranteed by VA
✔✔conventional mortgages - ✔✔A mortgage securing a loan made by investors without
governmental underwriting, i.e., which is not FHA insured or VA guaranteed. The type
customarily made by a bank or savings and loan association.
✔✔conversion - ✔✔When a broker uses a customer's earnest money deposit for
personal use
✔✔conveyance - ✔✔An instrument in writing used to transfer (convey) title to property
from one person to another, such as a deed or a trust deed.
✔✔corporation - ✔✔A body formed and authorized by law to act as a single person,
distinct from its members or owners
✔✔corporeal rights - ✔✔Possessory rights in real property.
✔✔correction lines - ✔✔A system for compensating inaccuracies in the Government
Rectangular Survey System due to the curvature of the earth. Every fourth township
line, 24 mile intervals, is used as a correction line on which the intervals between the
north and south range lines are remeasured and corrected to a full 6 miles.
✔✔correlation - ✔✔weighing the relative importance of perviously determined value and
reaching a single, final,supportable estimate of market value
✔✔correspondent - ✔✔the intermediary position of mortgage banking companies
between the borrower and the final lender in the market place
, ✔✔cost approach - ✔✔Process of estimating value of a property by adding land value
to the appraiser's estimate of the reproduction or replacement cost of building, less
depreciation
✔✔cost of production - ✔✔A measure of past (or prospective) expenditures in
money,labor,material or sacrifices of some nature in acquiring the property
✔✔curable depreciation - ✔✔depreciation that may be economically corrected
✔✔data plants - ✔✔appraisers files or information on real estate
✔✔debt service - ✔✔Amount of money needed to meet the periodic payments of
principal and intereste on a loan or debt being amortized.
✔✔declining balance method - ✔✔Method that determines depreciation charge for the
period by multiplying a depreciation rate (often twice the straight-line rate) by the asset's
beginning-period balance.
✔✔deed - ✔✔An instrument in writing, duly executing and delivered by the grantor that
conveys to the grantee some right, or interest in or to real estate
✔✔deed in lieu of foreclosure - ✔✔Used by the mortgagor (borrower) who is in default
to convey the property to the mortgagee (lender) in order to eliminate the need for a
foreclosure.
✔✔quitclaim deed - ✔✔A deed in which the grantor gives up any claims to the property
without making any assertions about there being a clear title.
✔✔deed restrictions - ✔✔e
Limitations in the deed to a property that dictate certain uses that may or may not be
made of the property.
✔✔warranty deed - (General Warranty Deed) - ✔✔A deed in which the grantor fully
warrants a good clear title to the property; a deed that contains covenants of title.
✔✔default - ✔✔the failure to perform a legal duty, such as failure to carry out the terms
of a contract (mortgage)
✔✔defeasible estate - ✔✔An estate that may be lost on the happening of some event
(condition subsequent).
sometimes called base fee estate or qualified fee estate; fee simple absolute interest in
land that are capable of being defeated or terminated upon the happening of specified
events
