Ohio Real Estate Test and Study guide V2 | Latest 2026/2027 Edition |Correct Questions with Correct Answers | A+ Graded and Fully Updated- Hondros College

Ohio Real Estate Test and Study guide V2 | Latest 2026/2027 Edition |Correct Questions with Correct Answers | A+ Graded and Fully Updated- Hondros College 2026 / 2027 Academic Year Q: Eminent Domain Answer Power of a government to take private property for public use. Eminent Domain is a... A) freehold interest B) governmental power C) private land use control D) type of zoning classification b Q: Ann is a first-time newly licensed real estate agent. What is the earliest time at which she can practice her profession? A) as soon as her license is issued by the Division of Real Estate B) Upon accepting a job with a licensed broker C) upon notification by the Division of successful completion of the real estate licensing exam D) upon registration with the clerk of courts in which her broker maintains a principle place of business a Q: All real estate advertising must include the name of the.. A) agent B) broker or brokerage C) seller D) street b Q: Who is most likely to be treated as an independent contractor for federal tax purposes? A) broker in charge B) personal assistant C) principal broker D) sales associate d Q: When a sales person is the listing agent and is offering a list of property that she feels is overpriced, the correct action is to... A) not quote any prices B) quote only the listed price C) tell prospective buyers to look at other properties D) tell perspective buyers what she feels a price should be b Q: Broker returns his own brokers license to the superintendent of the division of real estate so as to reactivate his sales person license, the license is said to be... A) canceled B) in escrow C) inactive D) on deposit d Q: A foreclosure sale, the... A) debtor can be the successful bidder and awarded title B) debtor cannot bid on the property C) debtor is freed of any future responsibility for liens D) lender is always the successful bidder a Q: Which is the highest and best real property freehold possessory interest? A) fee simple absolute B) fee simple determinable C) life estate pur autre vie D) none of the above a Q: Tenant's trade fixtures are considered to be personal property because... A) it encourages tenants to improve properties while they are still tenants B) it keeps down the cost of fixing up properties after tenants vacate the premise C) It makes it easier to sell rented properties D) otherwise the real property owner could charge more a Q: P wants to extend the side of the house beyond the setback boundary. P must obtain... A) a nonconforming use B) permission from all his neighbors C) a rezone D) a variance d Q: Setback Boundary Answer A requirement in zoning ordinances in which all structures are to be a minimum distance from property lines. Q: Variance Answer An exception to the local zoning law. Q: When a new structure is not completed by the closing date the buyer can... A) allow the builder to extend the contract B) get a promise from the the builder that the work will be completed C) revoke the contract D) all of the above d Q: Under Ohio law, a ______ is presumed to be representing the ___, unless there is a specific agreement stating that the ___ is representing the ___. A) broker, buyer, broker, buyer B) broker seller, broker, buyer C) sales agent, buyer, sales agent, seller D) none of the above, there is no longer any presumption d Q: Which item would NOT ordinarily be included in the sale of real estate? A) barn B) farm equipment C) farm house D) fences b Q: The licensed real estate agent is... A) always the agent of the broker B) always the agent of the buyer C) always the agent of the seller D) usually the agent of the buyer a Q: Who owns future interest on real property? A) holder of dower rights B) holder of reversionary interest C) remainderman D) all of the above d Q: A special warranty deed is special because it offers... A) the lease deed warranties B) limited warranties C) the most deed warranties D) unlimited warranties b Q: Special Warranty Deed The grantor warrants against defects that have occurred after the grantor acquired title. (No warrantee forever-only for the time the grantor owns the property) Q: A sales associate presented a contract for the listing price to a seller from a financially qualified black prospect. Later, the broker presented a lower contract to the same seller from a white prospect. The seller accepts neither of these contracts, but sells the property to a neighbor (through the same sales associate) who has decided to buy the house to prevent a black prospect from purchasing it. Who is NOT liable under the 1968 Federal Fair Housing Act? A) Neighbor B) Sales associate C) Seller D) White Prospect d One-third life estate in a deceased spouse's property transferred without consent is... A) dower B) homestead C) life estate pur autre vie D) reversion a The deed says, "I grant land to B for life, and then to C." Before death of B, which future interest does C have? A) dower B) life estate pur autre vie C) reversion D) none of the above d C received an earnest money check of $1500. It would be considered commingling of funds is C... A) deposited the check into the brokerage commercial account B) deposited the check in a trust fund C) gave the check to the seller D) held the check until morning a An owner asks a broker to list a property for sale at $70,000. Upon inspection, the broker believes the property is worth $80,000. The broker should... A) Buy the property for $70,000 B) Get a net listing for the property at $70,000 C) Inform that he believes the property is worth $80,000 D) Suggest listing the property and $75,000 so there will be bargaining room c D) there is a servant tenement b Which statement is TRUE of an easement appurtenance that is NOT true of an easement in gross? A) its for a limited purpose B) there is a dominant tenement C) there is not a dominant tenement Easement Appurtenant a right of use that continues from owner to owner that involves a relationship between two parcels of land: a dominant parcel that benefits from a servient parcel Easement in Gross the right to use land for a specific, limited purpose unrelated to any adjacent parcel A probable example of a patent defect is a ... A) bad well B) deteriorated driveway with visible past repairs C) termite infestation D) worn out septic b X's property has the following liens against it (all in the same year): 1. A first mortgage that was recorded January 15th 2. A property tax liens that attached May 15th 3. A mechanics lien recorded on May 20th; however work began on May 2nd 4. A judgement lien recorded May 1st. When X's property is sold at foreclosure, which is the correct order to pay off the liens? A) 1,3,4,2 B) 1,4,3,2 C) 2,1,4,3 D) 2,4,1,3 c Which is legal under Ohio Civil Rights Law? A) The landlord/occupant of a four-plex housing unit refuses to rent to an Asian couple B) The owner of a vacant land refuses to lease to a woman C) The owner refuses to show his only single-family owner-occupied home (which is up for sale to a person over 70 years old) D) The owner/occupant of only one single family home refuses to sell the home to a Roman Catholic couple c There are two parcels of land, where in one parcel has the use of another parcel for specific purpose. The situation is referred to as an.. A) Appurtenant easement B) easement in gross C) license D) restrictive convenant a Appurtenant Easement An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor's land. A willed gift of money is a... A) bequest B) devise C) legacy D) testament c Who are the parties to the sales contract? A) agent and broker B) agent and seller C) buyer and seller D) seller and broker c D) all of the above a In a real estate transaction, title to the real estate passes from seller to buyer by... A) execution of the deed by the seller, and delivery and acceptance of the deed by the buyer B) possession of the property C) recording of the deed Which is the best example of rescission of a contract? A) lease that is terminated by mutual agreement of the lessor and lessee B) listing contract that does not result in a commission C) offer to purchase that is revised by a counteroffer D) option to purchase that is transferred to a new buyer a Rescission of Contract The abrogation or annulling of contract; the revocation or repealing of contract by mutual consent by parties to the contract, or for cause by either party to the contract. When a sales agent returns her license to the Superintendent of the Division of Real Estate so as to have it held for a period of time, the license status is.. A) in escrow B) inactive C) on deposit D) suspended b Which action would be permitted under the Federal Fair Housing Act? A) advertising property for sale only to a special group B) changing the terms of a loan for a member of a minority group C) refusing to rent a home to someone because of a poor credit history D) telling someone that a place has been rented when it has not c P sues D for breach of a real estate contract, claiming $121,500 in damages. In which court is the case most likely to be tired? A) County Court B) Court of Common Pleas C) Municipal Court D) Ohio Real Estate Court b To start a civil lawsuit, a plaintiff files a complaint. If, in the same lawsuit, the defendant makes claims against the plaintiff, the defendant files a... A) counterclaim B) counter complaint C) deposition D) injunction a When a deed is recorded... A) the deal is completed B) it cannot be unrecorded without a court order C) it may still be changed at any time in the future D) the recording acts as a notice to the world of the buyer's interest in the property d The rate of commission is set by the... A) broker and the principal B) mls C) real estate board D) real estate commission a D) zoning laws b Which is a private restriction on the use of real property? A) health and safety regulations B) restrictive covenants C) variances Restrictive Covenants provision in a property deed preventing sale to a person of a particular race or religion; loan discrimination; ruled unconstitutional Title to real property changes hands when the deed is... A) delivered B) recorded C) signed D) witnessed or notarized a When a salesperson or a broker enters the armed services, her real estate license is said to be... A) Cancelled B) in escrow C) inactive D) on deposit d Under Ohio Real Estate Law, the Real Estate Commission shall suspend or revoke the license of any salesperson or broker who is found guilty of any of the following EXCEPT... A) offering a bottle of wine to anyone who will list a home with his broker (and not disclosing this to others) B) purchasing a list of names of transferring employees from a nearby major company for $100 C) Saying to a client, "Buy this listing and I guarantee you will double your money on this property in one year." D) A second violation of a civil rights law b A trade fixture is... A) always constructively annexed B) an item the lessee is allowed to remove C) an item the lessee traded something for to acquire D) a natural attachment b A unilaterally enforceable contract by which the owners agrees with a buyer that the buyer shall have the right to buy the property at a fixed price (if the buyer so desires) within a certain time period is called A) an escrow agreement B) an exclusive C) an opinon D) the right of first refusal c Real estate broker can be licensed real estate... A) corporations B) partnerships C) salesperson D) all of the above d In a court action for fraud, A) there must be intentional wrongdoing B) the victim must have relied on what he was told C) the wrongdoing must be material D) all of the above d With whom can a licensed real estate broker, working for the seller, legally share her commission... A) the attorney-at-law who represents the seller B) the bank that makes the loan on the property in question, if it is HUD property C) the buyer's broker D) the seller c Suspension of a real estate license is for... A) one-half the time of a revocation B) a set period of time, with reactivation by application after the suspension is lifted C) an unspecified period of time D) an unspecified period of time, with reactivation by application b Sales agent X does not sell client Y's property during a 90-day listing agreement. X immediately thereafter buys the property, makes a few (very obvious) repairs, and sells it for a nice profit. This transaction is probably... A) illegal an agent may never buy a former clients property B) legal it does not matter why X bough the property, as long as X paid the listing price C) legal the listing agreement had ended so X was not an undiscovered principal D) unethical it is a breach of loyalty, especially if repairs were very minor c If the parties to a contract are of legal age and of sound mind, they are said to have... A) consideration B) contractual captivity C) legality of objective D) reality of consent b A broker's license is suspended for one year. What happens to the sales agents under that broker? A) their licenses will be revoked B) they may continue to operate the broker's business C) they may make an application to transfer another broker D) they must remain on inactive status until the broker's license is reinstated c Which encumbrance would constitute a lien on real property? A) deed restriction B) easement C) encroachment D) mortgage d In Ohio, for property to escheat to the state, which must be true? A) the testator must have tried to cheat the state B) there must be no net estate C) there must be no willing and no living heirs D) there must be no willing or living heirs c Which is the best example of recession of a contract? A) lease that is terminated by mutual agreement of the lessor and lessee B) listing contract that does not result in a commission C) offer to purchase that is revised by a counteroffer D) option to purchase that is transferred to a new buyer a Recission of Contract cancellation of the contract and restoration of the parties to their original positions An agent violates the laws against steering by... A) referring prospects to a broker of their national origin or color B) showing clients homes only in a particular neighborhood C) both a & b D) neither a or b c Which best describes the earnest money? A) advance for closing costs and other expenses the buyer B) advance on commission to be paid to the broker C) consideration for the sale of property to make the contract legal and binding D) inducement deposited by the buyer at the time of signing the sales contract d When a deed is recored... A) the deal is completed B) it cannot be recored without a court order C) it may still be changed at anytime in the future D) the recording acts as a notice to the world of the buyer's interest in the property d Mortgages are recorded... A) because they are required to be recorded by the county recorder B) to assure that monthly payments are made in a timely fashion C) to give notice of a lien on the property D) to show ownership c Absent a cause in the sales contract, to whom should the sales associate turn over deposit money she receives? A) her brokerage for deposit in the brokerage trust account B) property owner C) sellers attorney D) superintendent of real estate a The Real Estate Recovery Account can reimburse a claimant up to a maximum amount of... A) $20,000 per licensee B) $20,000 per occurrence C) $40,000 per licensee D) $40,000 per occurrence c In terms of conveying real estate, which pair of words best matches "deed/will"? A) delivery/ acceptance B) grantor/grantee C) life/death D) written/oral c A "due on sale" clause, if present, is normally found in the... A) mechanic's lien B) mortgage C) real estate purchase agreement D) resolution b A deed is the most commonly used legal instruments for the transfer of... A) encroachments B) freehold estates C) leasehold estates D) all of the above b X leases a building. The lease states that X must pay, "3% of all monthly gross receipts as rent." This is a... A) gross lease B) land lease C) net lease D) percentage lease d Which statement in regard to an option on real property is TRUE? A) an opinion is binding only on the optionee B) an option is usually given by the owner of the real property to be optioned C) an option is voidable D) an option must be enforceable by a suit filed by the option b Under Federal and/or Ohio Civil Rights Laws, which can be held liable for unlawful discrimination? A) MLS B) rental agent C) resident manager D) all of the above d Channeling prospective buyers to a particular neighborhood based on their race is called... A) blockbusting B) panic buying C) redlining D) steering d X fails to make home repairs for which he contracted with Y. The contract was for $5,000 and was not paid. Y secures another contractor to perform the work for $6,000 In the subsequent lawsuit of Y against X for breach of contract, Y is mostly to be awarded... A) $1,000 in compensatory damages B) $1,000 in punitive damages C) $5,000 in compensatory damages D) $6,000 in compensatory damages a D) size of the fixture c Under current Ohio law, the most important consideration in the determination of whether a lessee's improvement to real property is a fixture is the... A) cost of the fixture B) intention of the court C) intention of the lessee What is a broker's favorite type of listing agreement? A) exclusive agency agreement B) exclusive right to sell agreement C) notarized listing agreement D) open listing b A broker obtained a 120-day exclusive right to sell listing agreement, but did nothing to market the property for 60 days. which statement is FALSE? A) The broker has breached the listing agreement and his fiduciary duty B) the broker has earned a commission even though no work has been done because the listing agreement is valid C) the seller can cancel the listing prior to the 120th day for lack of performance D) the seller can withdraw the property from the market without consequence b For which could a broker/sales agent lose his real estate license? A) failure to pay commissions B) income tax evasion C) a second civil rights law violation D) all of the above d Exclusive ownership of a part of the airspace and co-ownership of the rest of the components of the land characterize... A) a condo B) an easement C) eminent domain D) a timeshare a Which is NOT an exception to zoning regulation? A) area variance B) conditional use C) nonconforming use D) all of the above are exceptions d The reversion of real property to the state because of a lack of heirs or other persons legally entitled to hold the property of a deceased person who has died intestate is known as... A) eminent domain B) escheat C) police power D) right of survivorship b Which is NOT part of the real property? A) emblements B) fixture C) improvements D) subsurface rights a Who owns future interest in real property? A) holder of dower rights B) holder if revisionary rights C) remainderman D) all of the above d How much time is given to pass the Ohio salesperson exam? 3 hours How many hours of pre-licensing education do you need in Ohio? 120 hours How old do you have to be in Ohio to obtain a Real Estate License? 18 years old Lori has agreed to transact real estate business on behalf of Alex with Alex's authority. Lori is: An agent Ownership of real property for an undetermined length of time is called: A freehold estate What information would be unethical for a listing agent to share with a potential buyer? It is inappropriate for a listing agent to tell a prospective buyer personal information about the seller, even if it may encourage a sale. The only exception would be in the case of a seller instructing the agent to do so. Doing so would be a confidentiality breach on the part of the listing agent. The broker should answer all questions related to the property honestly. A subdivision has a rule that each home in the neighborhood be at least 2,500 square feet. This is an example of which concept? Restrictive Covenant Which of the following describes a transaction brokerage? The broker does not represent either party, but provides general information and services to each How much is intangible tax on a real estate purchase mortgage? .002 An agency contract is being terminated. In which scenario might there be damages owed to one of the parties? The agent resigns from the contract because he is overloaded with homes to sell Foreclosure occurs when a blank seizes and sells a borrower's blank after the borrower has failed to blank the lender. lender, collateral, repay A buyer agrees to purchase a home once the sale on her current home is completed. Legally this is known as? Contingency The Transfer Disclosure Statement form is required on The sale of a one to four unit residential property Mr. and Mrs. Cox make Mr. and Mrs. Green an offer on their home, but they have not heard back from them on whether or not the offer has been accepted. In the meantime, they have found another home they would like to purchase instead. What is their best option? Withdraw their offer with no penalty Reversion of title is a feature of what type of interest? Fee simple determinable The lumber for a deck that has not yet been built is personal property When a purchase agreement states the property is being sold "as is," it Still requires the buyer to receive a Transfer Disclosure Statement (TDS) noting any material facts which affect the property's value An unlawful detainer (UD) action is instigated by A lessor Joan sells her house to her brother Mike on a handshake. This contract is Unenforceable A transaction broker provides limited representation to a buyer and seller