Ohio Real Estate Exam V2 | Latest 2026/2027 Edition |Correct Questions with Correct Answers | A+ Graded and Fully Updated

Ohio Real Estate Exam V2 | Latest 2026/2027 Edition |Correct Questions with Correct Answers | A+ Graded and Fully Updated 2026 / 2027 Academic Year Q: A real estate agent is found guilty of a fair housing law violation, the agent's broker is Answer liable only if the broker knew of the actions of the agent, and did nothing to correct it. Q: Real Estate Agent Vanessa Hamilton advertised a property being in the Boardman school district, while it was actually in the Brookfield school district, and she posted the information on the MLS. What is this a violation of ? Answer License Law Q: If a buyer requests a property disclosure form and the seller refuses to provide it, while the buyer already signed an agreement to purchase a home. What rights are available to the buyer? Answer The buyer can rescind the contract. Q: If an auditor visits a real estate broker's office and demands to see its records, how many years of records are required to be shown? Answer Three Q: If a seller is aware of a termite infestation from twenty years ago and informs the agent, what must an agent do? Answer Disclose the information to the Buyer Q: The copy of a real estate purchase contract must be given to all involved parties: Answer Upon Signing Q: In Ohio net leases are leases typically that consist of which factors: Answer All expenses related to the property Q: Which of the following sellers is NOT required to fill out the Ohio Residential Property Disclosure Statement? Answer Estates Q: Jessica Smalls is a real estate agent working under Hannah Biggs. Hannah has had her brokers license suspended and it will be unsuspended next week. Jessica took a listing on Hannah and put the listing up on her website. Which of the following best describes the situation? Answer Hannah will be punished and suspended Q: A person selling detachable mobile homes in Ohio is required to be licensed as what? Answer Not real estate license required Q: In Ohio, a non-licensed individual working for a property manager may NOT Answer Prepare a lease Q: In Ohio, which are the following fiduciary duties of a real estate agent: Answer accountability, confidentiality, loyalty, and disclosure. Q: Which event will NOT trigger the licensee's obligation to provide the "Guide to Agency Relationships?" Answer Discussing the property to someone during an open house Q: Susie was approached by a real estate agent who offered to put her house on the MLS for a flat fee of $595. In addition to the Listing Agreement, the Lead Disclosure, and the Consumer Guide to Agency, what other form does Susie need to sign? Answer The waiver of duties statement Q: While discussing a future listing, you are asked by the seller to not disclose a minor leak in the seller's penthouse. Knowing this, you should Answer Explain to the seller your obligation under law that the defect must be disclosed to potential buyers. Q: The entity or person in charge of determining whether or not the agent is guilty in the Answer case of violating Ohio real estate code. Q: An agent found guilty of violating Ohio real estate advertising laws, may be Answer subject to both a $200 fine per violation by the Superintendent, and a fine of $2,500 per violation by the Ohio Real Estate Commission. Q: If any Real Estate Commission judgements are appealed which court are they first sent to? Answer Court of Commons Please Q: Jason receives a Cease and Desist order from the Ohio Real Estate Commission. If ignored, how much per day can Jason be fined by the Commission? Answer 1,000 Q: The purpose of the Recovery Fund is to enable Answer people to get recourse of uncollected judgement against licensees. Q: A licensed real estate agent is selling his own property. What must the agent do to comply with Ohio law? Answer Disclose in any advertisement that the property is being sold FSBO by an owner/agent. Q: Real Estate Agent Jimmy John took out a large page ad in the local newspaper. In the ad, Jimmy's name was the same size as his broker's. What punishment will Jimmy receive if any? Answer Nothing will happen to Jimmy. He is actually following Ohio law Q: After a 3rd Fair Housing violation offense the commission may suspend or revoke a license for any broker or sales agent (found guilty) Answer Permanently Q: The Williams family entered into a purchase agreement with the seller of a single family residence. Ten days into the transaction the family is given a copy of the Ohio Residential Property disclosure statement. On the disclosure the seller notes that the loft has a leak. What rights if any does The Williams family have? Answer They have a 3 day right of rescission from the day they receive the form. Q: In Ohio, what is the most important aspect of a real estate agency advertisement? Answer Broker Q: If the listing agent represents both buyer and seller in the same transaction, this is known as dual agency. Is dual agency legal in Ohio? Answer Yes, representing both parties in a transaction is legal under Ohio law, as long as both parties agree in writing. Q: What part of an Agency Disclosure Statement would a transaction involving two brokers fill out? Answer I Q: The entity or person who holds hearings to determine the punishment for a real estate agent who has violated the Ohio real estate codes is the Answer Ohio Real Estate Commission Q: If the Ohio Real Estate Commission revokes a broker's license, what happens to the licenses of all their agents? Answer They are suspended Q: Ohio real estate law promotes Answer Transparency Q: A "Consumer Guide to Agency Relationships" form must be provided for all of the following except Answer Commercial Property Q: What part of an Agency Disclosure Statement would an in-company transaction fill out? Answer II Q: Any interest earned on a property management trust account belongs to who? Answer The property owner Q: What items must be clearly displayed in any Ohio real estate brokers office? Answer The brokers license and an equal opportunity housing poster Q: After a 2nd Fair Housing violation offense the commission may suspend or revoke a license for any broker or sales agent (found guilty) for a minimum of Answer 2 months Q: Which would cause a real estate agent to lose their Ohio state real estate license? Answer A violation of the Canon of Ethics Q: The Ohio Real Estate Commission notes in its quarterly newsletter if an agent has had his or her license suspended and has been fined. This is known as a Answer Public Reprimand Q: What will happen if a real estate applicant is charged with applicant misconduct after the examination but before they officially receive their license? Answer Their real estate application will be denied Q: The commission may ask for additional funds for the recovery fund if it is below Answer $250,000 Q: Ashley, a real estate broker, failed to meet the deadline for submitting proof of completion of her required continuing education. Her license is suspended. What happens to any salespersons or agents working under her? Q: Fiscal Policy Answer Treasury Department Monetary Policy Answer Federal Reserve Bond Truth In Lending Act Answer To provide standard disclosure procedures that all lenders must follow. Required so consumers will know exactly what they are paying for credit so they can compare Annual Percentage Rate (APR) The relationship between the cost of borrowing money and the total amount financed, represented by a percentage Usury Lending Law Charging an interest rate that exceeds the legal limit (set by state) Regulation Z regulates the disclosures concerning all finance charges and related aspects of credit transactions Disclosures in TILA (Trigger Terms) 1. amount of down payment 2. amount of the payments 3. number of payments 4. period of repayment 5. amount of finance charge Equal Credit Opportunity Act Federal law prohibiting discrimination in granting credit to people based on: sex, marital status, color, national origin, receipt of public assistance, age, race, religion, and wage garnishment Real Estate Settlement Procedures Act (RESPA) Federal law that sets forth specific procedures and guidelines for disclosure of all settlement costs in a credit transaction for 1 to 4 family residential properties TRID - TILA, RESPA, integrated disclosure Laws call for disclosure of all settlement costs, using standardized settlement statements given to borrowers Qualified Mortgage loans made will be reviewed by the lender and the buyer must have the ability to repay the loan without risky features such as interest only period or a lump sum at the end of the loan term or any loan made for longer than 30 years Affiliated business arrangement disclosure (AfBA) Required whenever a settlement service provider involved in a RESPA/TRID covered transaction refers the consumer to a provider with whom they have an ownership or other beneficial interest Promissory Note The lender gives a loan to the borrower Lien on property The borrower gives a mortgage to the lender Alienation Clause When a buyer sells the property, the mortgage must be cancelled and the remaining balance of the loan must be paid back to the lender Acceleration Clause When a buyer defaults on a loan, this gives the lender the right to declare the entire balance of the loan to be paid back immediately Assumption Clause One party agrees to take over payments of another parties debt, with the terms of the note remaining the same Release Clause The new buyer needs to be approved by the lender holding the note and lender must release the original debtor of any liability Prepayment Clause A contract clause that gives the lender the right to charge the borrower a penalty for paying off a loan early Prepayment Penalty Additional money charged by the lender for a borrower paying off a loan early Real Estate Mortgage Trusts (REMT) Groups of people who pool funds to make mortgages for specific tax benefits Real Estate Investment Trust (REIT) Groups of people who buy investment properties and receive specific tax benefits Secondary Markets Private investors and government agencies that buy and sell real estate mortgages Fannie Mae (FNMA) Federal National Mortgage Association Largest secondary market company Freddie Mac (FHLMC) Federal Home Loan Mortgage Corporation Ginnie Mae (GNMA) Government National Mortgage Association The only mortgage backed security that carries the full faith and credit of the US Government 1st Mortgages straight notes, amortized loans, ARM, reverse mortgage 2nd Mortgages home equity loans, HELOC Conventional Financing Amortized style loans with payments applied to principal and interest Private mortgage insurance Offered by private companies to insure a lender against default by the buyer. Automatically cancelled when the home has been paid down to 78% of its original value 5 Key points to VA loans 1. 0 money down 2. need 2 documents to obtain loan (DD-214 and certificate of eligibility) 3. loan is lesser sales price or CRV 4. variable funding fee is charged for all loans 5. only a spouse can be a co-borrower USDA loans rural development loans are government insured loans with no down payment and no PMI Buydowns purchased from a lender to lower the interest rate and monthly payment Income expense ratio - conventional housing expense ratio 28% debt service ratio 36% Income expense ratio - FHA loans housing expense ration 31% debt service ratio 43% Income expense ratio - VA loans debt service ratio 41% Agency a relationship of trust created when one person (broker) gives another person (agent) the right to represent them in dealings with third parties (clients) OLD CAR obedience loyalty disclosure confidentiality accountability reasonable care 5 types of agency relationships 1. between an agent and seller 2. between an agent and buyer 3. between an agent and buyer or seller and the other party is represented by your brokerage firm 4. between an agent and both buyer and seller 5. an agent represents another agent's clients Latent defects defects that are not visible or apparent, hidden - will be found later Patent defects defects that are visible and would be discovered in a reasonable thorough inspection FRESH CORN familial status race sex disability color religion national origin Blockbusting an agent influences the seller Steering an agent influences the buyer into or out of neighborhoods Redlining when lenders refuse to negotiate loans in certain geographic areas Sherman antitrust act prohibits price fixing, group boycotting, allocations of customers or markets, tie-in agreements Contract voluntary agreement based upon promises which can result in legally enforceable obligation between competent parties Competent parties the parties must be of sound mind and legal age and have the authority to enter into a binding agreement Consideration generally means money but could also mean anything of value that is offered by one party as an inducement to perform or to refrain from some act Proper legal form contracts must be in writing to be valid, written contracts must contain the proper wording Expressed contracts created by words, these contracts can be written or oral Description usually a street address for listing contract and purchase contract, the legal description is necessary for the deed Reality of consent all parties must enter into the contract of their own free will, without undue influence Signatures a contract is not legal until everyone has signed and initialed where it is necessary Unenforceable cannot be enforced in a court of law Parol evidence rule a written contract is binding between the parties and cannot be changed or contradicted by an oral agreement Specific performance a court action to force the completion of a contract Executed when the terms of the contract are fully performed Exculpatory clause holds one party harmless in the event of non-compliance of a contract term or condition Executory in a sales contract the buyer must bring funds to purchase the home and the seller must bring a marketable title Time is of the essence terms of the contract must be completed by the designated date or it may be rendered void Liquidated Damages compensation (earnest money) is to be paid if one party breaches a contract Indemnification clause agreement in the contract to compensate someone for a loss Mailbox a contract becomes effective when the signed, accepted offer is deposited in the mailbox. a withdrawal of an offer must be received before it is valid Bundle of Rights 1. right of use 2. right of enjoyment 3. right of disposal Estates in land the degree, quality, nature, and extent of interest an individual has in real property Freehold estates fee simple - i own the property forever determinable fee - i own it as long as... life estate - granted for life, thereafter to a third party Gross lease tenant pays a fixed amount and landlord pays expenses Net lease tenant pays a fixed rate plus expenses Percentage lease tenant pays a percent of gross sales earned from the property Ground lease long term lease of land where tenant operates as if they own the property Variable lease rent can change during a lease term, sometimes based off an index Deed the means by which the property ownership is transferred, it is NOT proof of ownership Equitable title an interest in real property created on the execution of a valid sales contract Quitclaim deed a deed that gives up any interest in a piece of property Covenants of warranty deeds seisin - seller has the right to convey against encumbrance - without liens except as noted in deed quiet enjoyment - no claims by third parties warrant forever - good now and forever further assurance - assurance with respect to acts of previous owners in the chain of title General warranty deed (standard warranty deed) a deed where the grantor warrants title against defects that may have arisen before or during ownership Limited warranty deed (special warranty deed) a deed where the grantor warrants title against defects that may have arisen only during ownership Ownership in severalty ownership by one person or entity Co-ownership owned by more than one person or entity with each person having an undivided interest in the property, the right to possess and occupy the whole property In trust being held by a third party for one or more people How co-ownership can be held tenancy in common statutory survivorship tenancy joint tenancy (not in Ohio) tenancy by the entireties Tenancy in common two or more people with an undivided interest without the right of survivorship, can be owned unequal, Ohio default for co-ownership Statutory survivorship tenancy two or more people with an undivided interest, has the right of survivorship, and must be owned equally Joint tenancy (not in Ohio) when one tenant conveys his interest, the survivorship right ends with the sale, equal undivided interest Tenancy by the entireties husband and wife owners ONLY, has full survivorship rights, and each owns one-half undivided