1. A salesperson is asked by a lending institution to provide an appraisal for a mortgage on a property owned by the bank. She should
A. submit a broker price opinion for a fee not to exceed one hundred dollars ($100).
B. recommend that the bank consult with a licensed or certified appraiser. Correct
C. complete a comparative market analysis and provide it to the bank.
D. refer the request to her sponsoring broker.
Explanation
A real estate salesperson is generally not qualified or legally permitted to perform a formal appraisal for a mortgage lending institution. Appraisals for federally regulated transactions (which include most mortgages) must be conducted by a state-licensed or certified appraiser. The most appropriate advice is for the bank to consult a qualified appraiser.
2. A landlord may file an action for possession of the premises against a tenant for all of the following reasons EXCEPT the tenant
A. defaults on rent payment.
B. is a holdover tenant.
C. and landlord do not get along. Correct
D. does not keep the dwelling unit safe or sanitary.
Explanation
A landlord can initiate an eviction (action for possession) for specific legal reasons, such as non-payment of rent, remaining in the property after the lease expires without permission (holdover tenant), or violating lease terms regarding property upkeep and maintenance. Personal dislike or animosity between landlord and tenant is generally not a legal basis for eviction.
3. A sum has been paid from the real estate recovery fund toward satisfaction of a judgement against a real estate licensee. What action shall be taken against the licensee?
A. The real estate license is automatically suspended.
B. The licensee has 90 days to reimburse the fund or lose the license.
C. The real estate license will automatically be revoked. Correct
D. The licensee must reimburse the fund before the license expires.
Explanation
When a payment is made from a state's real estate recovery fund to compensate a member of the public for damages caused by a licensee's actions, the licensee's license is typically automatically suspended or revoked until the licensee reimburses the fund in full, plus any interest. The most severe and immediate consequence is usually revocation or suspension until reimbursement.
4. Under what circumstances can a licensee accept compensation from more than one party in a single transaction?
A. No circumstances.
B. Only when all compensation is disclosed to the seller.
C. As long as the amount is shown on the settlement statement.
D. When all parties to the transaction have full knowledge and consent. Correct
Explanation
A licensee can accept compensation from more than one party in a single transaction (e.g., from both buyer and seller in a dual agency situation, or a referral fee from a lender in addition to a commission) ONLY if all parties to the transaction have full knowledge of the arrangement and provide their informed consent. Full disclosure and consent are paramount to avoid conflicts of interest.
5. Each licensee MUST notify
A. the broker of a change in personal address.
B. the branch manager of a change in personal address.
C. the Commission (Ohio Division of Real Estate) of a change in personal address. Correct
D. the other salespersons in the office of a change in personal address.
Explanation
Real estate license law in most jurisdictions requires licensees to notify the state's real estate licensing authority (e.g., the Ohio Real Estate Commission or Division of Real Estate) of any change in their personal address. This ensures that the regulatory body has current contact information for all licensees.