Marie Burroughs School of Real Estate, 405-848-8671

CHAPTER 19
Regulations Affecting Real Estate
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Chapter 19

1. The Oklahoma Real Estate Commission is under a law which requires the State Legislature to review its performance and either terminate it or extend it for

A. 3 years.
B. 5 years.
C. 7 years.
D. 10 years.

2. All members of the Oklahoma Real Estate Commission (OREC) shall be citizens of the U.S. and shall have been residents of the State of Oklahoma for

A. 3 years.
B. 4 years.
C. 5 years.
D. 6 years.

3. OREC commissioners are appointed by the

A. OAR.
B. House of Representatives.
C. Governor with advice and consent of the Senate.
D. State Supreme Court.

4. Once confirmed by the Senate, OREC commissioners serve a term of

A. 2 years.
B. 4 years.
C. 6 years.
D. until they die.

5. Each member of the OREC is paid

A. travel expenses only.
B. fifty dollars per day and travel expenses.
C. one hundred dollars per meeting.
D. two thousand dollars per month.

6. The fine for practicing real estate without a license is

A. $10,000 or the commission whichever is greater.
B. $ 5,000 or the commission whichever is greater.
C. $ 3,000 or the commission whichever is greater.
D. $ 1,000 or the commission whichever is greater.

7. A real estate licensee may be fined by the Commission no more than

A. $5,000 for all violations resulting from a single incident.
B. $4,000 for all violations resulting from a single incident.
C. $2,000 for all violations resulting from a single incident.
D. $1,000 for all violations resulting from a single incident.

8. A violation of the Oklahoma Code and Rules is

A. a felony.
B. grand larceny.
C. a misdemeanor.
D. a federal felony.

9. The Oklahoma Real Estate Commission (OREC) maintains a standing committee to

A. review and revise rules.
B. draft and revise residential real estate purchase contracts.
C. review and revise ethical standards.
D. None of the above.

10. In the exercise of its powers and duties, the OREC shall comply with

A. Reg Z.
B. Reg X.
C. Administrative Procedures Act.
D. Uniform Commercial Code.

11. Which of the following is not required to have a real estate license to perform some very limited real estate activities?

A. Owner.
B. Attorney-in-fact.
C. Attorney-at-law.
D. All of the above.

12. Oklahoma Real Estate License Code specifies that it is acceptable for any person who is a resident of a rental unit may be paid a "resident referral fee" of not more than

A. $500.
B. $100.
C. $ 50.
D. None of the above.

13. In order to apply for a provisional sales associates license, an applicant must

A. be 18 years old or older.
B. successfully complete the required pre-license course.
C. be of good moral character.
D. All of the above.

14. The provisional sales associate license is for a period of

A. 1 year.
B. 2 years.
C. 3 years.
D. 4 years.

15. The Oklahoma Real Estate Commission office

A. is in Oklahoma City only.
B. has Oklahoma City and Tulsa branches.
C. has Oklahoma City, Tulsa, and Lawton branches.
D. None of the above.

16. A provisional sales associate must successfully complete a 45-hour postlicense course during

A. first year of licensure.
B. second year.,
C. third year.
D. fourth year.

17. Applicants for a real estate license must

A. take the examination at the OREC office in Oklahoma City.
B. take the examination in the OREC Tulsa branch office.
C. take the examination on-line.
D. take the examination at the OREC branch in Lawton.

18. A passing score on the provisional sales associate's exam is

A. 70%.
B. 75%.
C. 80%.
D. 85%.

19. In order to qualify for a broker license, OREC Code requires the applicant to

A. successfully complete a 90-hour broker course.
B. have two years active licensure as a provisional and/or sales associate.
C. pass broker examination with 75% accuracy or more.
D. All of the above.

20. A broker license is issued for

A. 1 year.
B. 2 years.
C. 3 years.
D. 4 years.

21. OREC issues license to

A. associations.
B. branch offices.
C. corporations.
D. All of the above.

22. A real estate licensee in another state

A. may apply for an Oklahoma nonresident license.
B. apply for a temporary OREC license.
C. must have an office in Oklahoma.
D. None of the above.

23. A broker who is licensed in another state

A. must never do real estate business in Oklahoma.
B. may enter a cooperative brokerage agreement with an Oklahoma broker.
C. must seek approval of the Oklahoma Secretary of State Office.
D. must seek approval of the Oklahoma Securities Department.

24. With the exception of the first, entry-level provisional sales associate license, Oklahoma real estate licenses are normally issued for

A. 1 year.
B. 2 years.
C. 3 years.
D. 4 years.

25. In order to renew an active real estate sales associate or broker's license, an active licensee must complete

A. 12 clock hours of continuing education.
B. 9 clock hours of continuing education.
C. 30 clock hours of continuing education.
D. 21 clock hours of continuing education.

26. In order to renew an active real estate license, each licensee is required to complete certain required courses. Which, if any, of the following are required "core" continuing education courses?

A. Fair Housing.
B. Professional Standards.
C. Broker Relationships Act.
D. All of the above.

27. Which of the following are not required to complete the continuing education requirements?

A. A licensee who wishes to remain on inactive status.
B. A licensee who holds a PSA license.
C. A nonresident licensee who maintains a current license in another state and has satisfied the continuing education requirements in that state.
D. All of the above.

28. A person shall not be permitted to file an application for rep issuance of a license after revocation of the license within

A. 3 years of the effective date.
B. 4 years of the effective date.
C. 5 years of the effective date.
D. 6 years of the effective date.

29. When a licensee requests the OREC to place a license on inactive status, the license must

A. continue to pay renewal fees.
B. make the request in writing.
C. complete forms furnished by OREC.
D. All of the above.

30. OREC requires proprietary brokers to maintain a specific place of business which

A. complies with all local laws.
B. is available to the public during reasonable business hours.
C. Both A and B.
D. Neither A nor B.

31. If the OREC fines a licensee for a violation, the licensee has

A. 15 days to pay or the fine doubles.
B. 30 days to pay or the fine doubles.
C. 45 days to pay or the fine doubles.
D. to pay the fine immediately.

32. Concerning the Sex Offenders Registration Act, the OREC Code

A. imposes no duty on licensees to disclose information about sex offenders.
B. imposes a duty on licensees to disclose information about sex offenders.
C. does not address the Sex Offenders Registration Act.
D. None of the above.

33. According to the OREC Rules, the primary purpose of the OREC is to

A. safeguard the public interests.
B. provide quality service by assisting and providing resources.
C. investigating and sanctioning licensed activities.
D. All of the above.

34. The OREC operates under the Open Records Act which allows

A. OREC to open records for inspection.
B. OREC open records to be copied.
C. OREC to charge for copies.
D. All of the above.

35. OREC may provide a directory of licensees

A. on a yearly basis.
B. once every three years.
C. as OREC funds permit.
D. when requested by the Governor.

36. The membership of the Contract Forms Committee is made up of

A. three members appointed by the OREC.
B. three members appointed by the Oklahoma Bar Association.
C. five members appointed by the Oklahoma Association of Realtors, Incorporated.
D. All of the above.

37. If the OREC receives an "insufficient funds check,"

A. it may be considered a violation of the "Code."
B. OREC will charge a $35.00 fee.
C. OREC may deny other services.
D. All of the above.

38. The OREC requires applicants for real estate licenses to be of "good moral character." Which of the following does the OREC consider when evaluating "good moral character?"

A. Convictions.
B. Bankruptcy.
C. License denied in another state.
D. All of the above.

39. If the OREC denies an application for a real estate license, the OREC will notify the applicant of the denial within

A. 10 days.
B. 15 days.
C. 20 days.
D. 30 days.

40. The OREC examination fee for a provisional sales associate or sales associate's license is

A. $60.
B. $70.
C. $80.
D. $90.

41. The state examination fee for a broker license is

A. $65.
B. $75.
C. $85.
D. $95.

42. Persons taking the OREC examinations may take it

A. on a computer.
B. as a written (paper and pencil) exam not on a computer.
C. Either A or B.
D. Neither A nor B.

43. If an applicant fails to pass the appropriate examination, the OREC

A. requires a one-month waiting period before taking the test again.
B. requires a one-week waiting period before taking the test again.
C. has no waiting period before taking the test again.
D. will not allow re-takes of the examination.

44. An applicant who has failed the exam may visit the OREC and view the failed exam within

A. 10 days.
B. 20 days.
C. 30 days.
D. 40 days.

45. Ultimate responsibility for notifying completion of a continuing education offering is on

A. the licensee.
B. the school.
C. the broker.,
D. None of the above.

46. To complete any in-class continuing education offering, a person must be present

A. 80% of the time.
B. all of the time.
C. 75% of the time.
D. None of the above.

47. If a provisional sales associate fails to take the required postlicense (Part II) course during the first year of licensure,

A. he/she may take it during the second year.
B. he/she may substitute an accounting course.
C. he/she cannot renew the license.
D. None of the above.

48. OREC may extend time for completion of the provisional sales associates postlicense course

A. for military service.
B. for an acceptable written reason.
C. if the associate's broker makes a written request for an extension.
D. All of the above.

49. No real estate licensee shall begin operation in the real estate business without

A. joining a multi-list system.
B. having been issued a license.
C. attending at least one Commission meeting.
D. joining the Realtors Association.

50. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, requires licensees to document

A. citizenship.
B. qualified alien status.
C. Either of the above.
D. Neither of the above.

51. A licensee whose license has lapsed shall be considered for reinstatement if the licensee

A. pays an amount equal to the current examination fee.
B. pays license fee and late penalties.
C. provides documents as required by the Commission.
D. All of the above.

52. If a broker moves to a new office, OREC requires all licenses be re-issued to the new address. OREC charges a fee of

A. $10 for each license with a maximum fee of $100 for all licenses.
B. $20 for each license with a maximum fee of $200 for all licenses.
C. $25 for each license with a maximum fee of $750 for all licenses.
D. $30 for each license with a maximum fee of $1,000 for all licenses.

53. A broker may have

A. no more than three branch offices.
B. no more than five branch offices.
C. no more than ten branch offices.
D. as many branch offices as desired.

54. Any change of name of a licensee or licensed firm must be filed in the OREC office within

A. 5 days of such change.
B. 10 days of such change.
C. 15 days of such change.
D. 20 days of such change.

55. If a licensee works out of a branch office, the licensee's license must be issued to

A. the home office.
B. the branch office.
C. Either A or B.
D. Neither A nor B.

56. A branch office manager

A. may be a sales associate.
B. does not have to have a license.
C. must have a broker license.
D. must be designated by OREC.

57. A broker may have an office in his home if

A. OREC approves.
B. the corporation approves.
C. not contrary to local zoning ordinances.
D. None of the above.

58. A broker may be the broker for more than one firm if

A. the firms are in the same place.
B. he has an identical twin.
C. the Secretary of State's office issues a certificate of good standing.
D. Both A and C.

59. If an associate hires an unlicensed assistant

A. only the associate is responsible for the associate's activities.
B. the broker is responsible for the assistant's activities.
C. unlicensed assistants are not legal.
D. only licensed assistants are legal.

60. Each real estate office shall erect a sign

A. on or about the office entrance.
B. which contains the company name.
C. in which all letters are at least one inch high.
D. All of the above.

61. When an associate advertises, the advertisement must

A. not be done only under his/her name.
B. include the name of the broker or the company name.
C. under the direct supervision of the broker.
D. All of the above.

62. If the proprietary broker dies or becomes disabled

A. the company must close.
B. OREC has a list of instructions for this event.
C. OREC has no specific requirements.
D. All of the above.

63. In the event a broker refuses or for any other reason will not release an associate,

A. the associate has no recourse.
B. the associate shall notify the broker by certified mail of the disassociation.
C. must furnish the Commission a sworn statement that the notification of disassociation has been served to the broker.
D. Both B and C above.

64. An active associate transferring from one broker to a new broker

A. must wait until the license is issued to the new broker.
B. must notify the NAR of the change.
C. may continually act if the change is done in a timely manner.
D. None of the above.

65. When an associate changes his home address

A. he/she must notify the OREC within ten (10) days.
B. he/she must notify the OREC within twenty (20) days.
C. he/she must notify the OREC within thirty (30) days.
D. does not need to notify the Commission as long as the office address does not change.

66. When a complaint is filed with the OREC against a licensee, the licensee must respond within

A. 10 days.
B. 15 days.
C. 20 days.
D. 30 days.

67. Good faith money paid under a contract for the sale of real estate is

A. called "earnest money" and is paid by the buyer.
B. may be held by a third party until closing.
C. Both A and B.
D. Neither A nor B.

68. The amount of earnest money deposit is usually

A. a standard figure.
B. determined by the broker.
C. a percentage of the sales price.
D. negotiated between the seller and the buyer.

69. The usual procedure is to deposit an earnest money payment

A. by the end of the next banking day following completion of a firm contract.
B. by the end of the third banking day following completion of a firm contract.
C. within a reasonable time.
D. any time prior to closing.

70. If a broker accepts an earnest money deposit from a buyer, which of the following is true?

A. The deposit money does not belong to the licensee.
B. In every case, all money deposited must immediately be delivered to the seller.
C. Money deposited by the buyer is always returnable to the buyer.
D. In case of dispute between the buyer and the seller, the broker always decides to whom the deposit is to be given.

71. A broker's trust account is used

A. for the deposit of earnest money only.
B. in lieu of a general account.
C. for the deposit of money belonging to others.
D. to compensate the broker for expenditures.

72. When money is deposited in a trust account, part of which will be used to pay the broker's commission,

A. the broker can withdraw his/her rightful share of the money before the real estate transaction is consummated or terminated.
B. accurate records must be kept on the account.
C. Both A and B.
D. Neither A nor B.

73. When customer funds are placed in a trust account, the broker is

A. free of personal liability for the amount of the deposit because of the state statutes governing trust account liability.
B. free of liability for any loss because of the recovery fund provisions.
C. only liable for the amount equal to the commission as stated in the listing contract.
D. liable under the law for the full amount thereof.

74. Copies of all written instruments on a real estate transaction that are prepared by a licensee must be

A. distributed to all signers of the instrument.
B. maintained by the real estate broker.
C. duplicate originals.
D. All of the above.

75. The obligation of associates to turn over all monies deposited, payments made, or things of value received by an associate to the sponsoring broker promptly, is found under

A. Acts of Sales Associates.
B. Prohibited Deals.
C. Substantial Misrepresentation.
D. Duty of Account.

76. Non-depositable escrow items may be accepted

A. only if the associate or broker agrees to care for same.
B. if evaluated.
C. if evaluated and placed with an authorized escrow agent.
D. if evaluated, placed with an authorized escrow agent and all parties are informed.

77. When placing earnest deposits in the trust account, a broker

A. must take all necessary measures to assure that the balance never falls below the amount of such deposits.
B. must keep separate records.
C. is guilty of commingling.
D. must do so by the end of the third banking day after acceptance.

78. An associate brings an offer to purchase with an earnest money check to the broker. The offer by the buyer is accepted by the seller. The next day the broker is notified by the seller that, through no fault of the associate, the buyer and seller have decided to cancel the sale, and the broker is instructed to return the deposit to the buyer. The broker

A. can keep one-half of the deposit and give the other half to the seller.
B. has grounds for suing the seller, but must return the deposit to the buyer.
C. can retain the deposit as compensation for services rendered.
D. can keep one-half of the deposit and return half to the buyer.

79. Brokers can be censured for commingling funds if they deposit earnest money to anything other than

A. their general real estate operating accounts.
B. their personal accounts because a portion of the money was due them.
C. separate checking accounts designated as trust accounts.
D. separate savings accounts.

80. A real estate broker sold a property late Friday evening and obtained a $4,000 deposit in cash. Afraid of losing the money over the weekend, a night deposit was made into a personal checking account. This action would most closely relate to

A. conversion.
B. commingling.
C. misrepresentation.
D. reasonable caution.

81. For a broker to act for more than one party in a real estate transaction without the knowledge and consent of all parties is

A. ethical.
B. grounds for disciplinary action.
C. contrary to the Statute of Frauds.
D. all right if no party suffers monetary damage.

82. Sales associates may represent other brokers in cooperative sales if their brokers

A. have knowledge of the transaction.
B. give consent.
C. Both A and B.
D. Neither A nor B.

83. Real estate sales associates may lawfully accept bonus commissions for the completion of difficult sales

A. if the seller wish to give one.
B. if they pay the taxes on them.
C. only through their employing brokers.
D. if they receive them from the buyer.

84. Brokers collect earnest money because it

A. shows good faith in the buyer.
B. shows good faith in the seller.
C. is part of their commission.
D. is the consideration.

85. If a broker's license is revoked after a hearing, the broker has the right to appeal to the

A. district court.
B. Oklahoma Association of REALTORS.
C. county clerk.
D. local board of REALTORS.

86. In Oklahoma,

A. licensees may place their licenses on inactive status indefinitely.
B. in order to renew a license, the licensee must be re-examined.
C. real estate licenses are renewed annually.
D. twenty-one clock hours of continuing education are required annually.

87. The Oklahoma Real Estate Education and Recovery Fund assessment is

A. $10 per year.
B. $15 per three-year period.
C. $30 for three years.
D. $40 every other year.

88. Payments from the recovery fund for claims are limited to .

A. $25,000 for any one claimant.
B. $50,000 for any one transaction.
C. $50,000 for all claims against one licensee.
D. All of these.

89. A license dated July 1

A. must be renewed and paid by June 10 to avoid a late penalty.
B. will be renewed inactive if continuing education requirements have not been met.
C. will expire on June 30.
D. All of the above.

90. Which of the following is not a power and duty of the Oklahoma Real Estate Commission?

A. To hold examinations of persons who shall apply for the issuance of licenses to them, and to promulgate such rules and regulations as it may deem proper.
B. To cause the prosecution of any person who violates any of the provisions of the "Code."
C. To serve as a board of arbitration to settle disputes among brokers, associates, or
D. To issue licenses to persons who have passed examinations and who otherwise meet license requirements.

Questions 91-97 are extra questions that we came up with and you are not required to answer them however they are good to know for the state exam. Take a piece of paper and jot down the answer you think it should be. Then you can check your answers on the Chapter 19 Answer Key.

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91. The Oklahoma Real Estate Commission has the right and power

A. to arbitrate disputes between licensees.
B. to set a maximum commission rate allowed to be charged to the public.
C. to request records and files of a licensee suspected of violation of the Code or Rules.
D. All of the above.

92. If a broker and an associate have a dispute over a sales commission which cannot be settled by other means, they should

A. try to get the Oklahoma Real Estate Commission to settle it first.
B. bring action in an appropriate court.
C. drop the issue.
D. slug it out.

93. The percentage charged by a broker as the fee for finding a buyer is established by the

A. Oklahoma Real Estate Commission.
B. Corporation Commission.
C. Broker and the seller through negotiation.
D. National Association of Realtors.

94. The Oklahoma Real Estate Commission is made up of

A. one representative from an approved school of real estate.
B. five licensed real estate brokers.
C. one member representing the consumer public.
D. All of these.

95. Which of the following is true about the Oklahoma Real Estate Commission?

A. No more than two members may be from the same congressional district.
B. They are appointed by the Governor with the advice and consent of the Senate.
C. They are appointed to four-year terms.
D. All of these.

96. Which of the following does the Oklahoma Real Estate Commission not have power to do?

A. Place an offending licensee on probation or issue a reprimand.
B. Suspend or revoke any license issued by it.
C. Impost a jail sentence.
D. Require a licensee to obtain further education.

97. Which is exempt from a real estate license?

A. A property owner selling a home.
B. A legal guardian selling on behalf of an incompetent person.
C. A resident manager of an apartment complex.
D. All of the above.


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