OHIO REAL ESTATE EVALUATION EXAM 2026 QUESTIONS
AND ANSWERS GRADED A+
✔✔Equity - ✔✔The difference between the value of a home and the total amount of any
liens against it
When first buying a home, the down payment is usually the only equity the property
owner has
✔✔Mortgage/Discount point - ✔✔a fee you pay to lower your interest rate on your home
purchase or refinance. One discount point costs 1% of your home loan amount. For
example, if you take out a mortgage for $100,000, one point will cost you $1,000.
✔✔Potential Gross Income - ✔✔The income a property would generate if every unit
was 100% occupied
✔✔Effective Gross Income - ✔✔Potential gross income minus vacancy and collection
losses.
✔✔Net Income - ✔✔Effective gross income minus building expenses
Revenues - Expenses
✔✔Capitalization Rate - ✔✔The Rate of return on an investment
✔✔Patent Defect - ✔✔A visible, apparent defect that can be seen in a reasonably
thorough inspection of property.
Caveat Emptor
✔✔Latent Defect - ✔✔a hidden structural defect that would not be discovered by
ordinary inspection
Must be disclosed
✔✔Regulation Z of the truth in lending Act - ✔✔This always deals with lending practices
✔✔RESPA (Real Estate Settlement Procedures Act) - ✔✔a law requiring full disclosure
of closing costs to buyer and seller.
✔✔Sherman Antitrust Act - ✔✔Illegal price fixing, market fixing, boycotting
law that banned the formation of trusts and monopolies in the United States
, ✔✔Principal - ✔✔When a salesperson takes a property listing on behalf of their broker,
the term for for the seller is:
✔✔The listing is terminated
The heirs are responsible - ✔✔What happens to the listing agreement when the seller
dies?
What happens when the owner dies in an exclusive right to sell?
Listing is void if the seller or broker dies, but a sales contract survives the death of the
parties
✔✔Exclusive Right to Sell Listing
Exclusive Agency - ✔✔Best agreement for realtor, receive commission no matter where
the buyer is found
What is the name of the listing where the broker only gets commish if the he finds the
buyer
✔✔Client
Customer - ✔✔Your duty is to disclose to your [ ]
When someone is a [ ] whatever they tell you is not confidential
✔✔Race
Religion
Color
Sex
Nat'l Origin
Handicap
Familial status
NOT Age
exceptions
Private club
Religious org
FSBO
Less than 4 units - ✔✔Protected Classes under Fair Housing Act
✔✔Tenants by entireties
AND ANSWERS GRADED A+
✔✔Equity - ✔✔The difference between the value of a home and the total amount of any
liens against it
When first buying a home, the down payment is usually the only equity the property
owner has
✔✔Mortgage/Discount point - ✔✔a fee you pay to lower your interest rate on your home
purchase or refinance. One discount point costs 1% of your home loan amount. For
example, if you take out a mortgage for $100,000, one point will cost you $1,000.
✔✔Potential Gross Income - ✔✔The income a property would generate if every unit
was 100% occupied
✔✔Effective Gross Income - ✔✔Potential gross income minus vacancy and collection
losses.
✔✔Net Income - ✔✔Effective gross income minus building expenses
Revenues - Expenses
✔✔Capitalization Rate - ✔✔The Rate of return on an investment
✔✔Patent Defect - ✔✔A visible, apparent defect that can be seen in a reasonably
thorough inspection of property.
Caveat Emptor
✔✔Latent Defect - ✔✔a hidden structural defect that would not be discovered by
ordinary inspection
Must be disclosed
✔✔Regulation Z of the truth in lending Act - ✔✔This always deals with lending practices
✔✔RESPA (Real Estate Settlement Procedures Act) - ✔✔a law requiring full disclosure
of closing costs to buyer and seller.
✔✔Sherman Antitrust Act - ✔✔Illegal price fixing, market fixing, boycotting
law that banned the formation of trusts and monopolies in the United States
, ✔✔Principal - ✔✔When a salesperson takes a property listing on behalf of their broker,
the term for for the seller is:
✔✔The listing is terminated
The heirs are responsible - ✔✔What happens to the listing agreement when the seller
dies?
What happens when the owner dies in an exclusive right to sell?
Listing is void if the seller or broker dies, but a sales contract survives the death of the
parties
✔✔Exclusive Right to Sell Listing
Exclusive Agency - ✔✔Best agreement for realtor, receive commission no matter where
the buyer is found
What is the name of the listing where the broker only gets commish if the he finds the
buyer
✔✔Client
Customer - ✔✔Your duty is to disclose to your [ ]
When someone is a [ ] whatever they tell you is not confidential
✔✔Race
Religion
Color
Sex
Nat'l Origin
Handicap
Familial status
NOT Age
exceptions
Private club
Religious org
FSBO
Less than 4 units - ✔✔Protected Classes under Fair Housing Act
✔✔Tenants by entireties
