State: Ohio | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. To sit for the Ohio real estate license exam, a candidate must have completed which of the following?
Ohio requires completion of state-approved pre-licensing education before eligibility to take the licensing examination.
2. Effective gross income is calculated by:
Effective gross income = potential gross income – vacancy and collection losses, representing the actual expected income from the property.
3. Which statement about the Ohio covenant of quiet enjoyment is true?
Quiet enjoyment guarantees that the tenant has the right to possess and use the property without substantial interference by the landlord, a principle recognized in Ohio law.
4. A property’s highest and best use is defined as:
Highest and best use refers to the use that is legally permissible, physically possible, financially feasible, and most productive, producing the maximum value for the property.
5. Which office is primarily responsible for issuing and collecting Ohio property tax bills?
The county treasurer bills and collects property taxes; the county auditor determines assessed values.
6. The Ohio Homestead Exemption is designed to protect a portion of the value of a homeowner's primary residence from taxation for eligible individuals.
The Homestead Exemption lowers the taxable value for eligible homeowners on their primary residence.
7. Can a suspended or revoked Ohio license be reinstated?
Reinstatement is possible after the licensee satisfies the disciplinary terms and conditions set by the authority.
8. Private mortgage insurance (PMI) protects the lender against:
PMI provides financial protection to lenders if a borrower defaults on a mortgage with a low down payment.
9. The main purpose of a real estate appraisal is to determine:
The primary goal of a real estate appraisal is to determine the property's market value, which reflects the price it would likely sell for under typical market conditions.
10. Which adjustment is made when a comparable has fewer bathrooms than the subject?
Since the comparable is inferior (fewer bathrooms), value is added to it to equate it to the subject property's features.
11. Which term refers to property rights that are transferred separately from the land itself?
Appurtenances are rights or interests that are attached to the land but can be transferred with it.
12. Which words typically create a fee simple determinable?
Determinable estates are created with language of duration such as 'so long as' or 'during' and may automatically terminate upon the occurrence of a specified event.
13. Under Ohio law, a residential lease that lasts longer than 12 months must be in writing to be enforceable.
Ohio’s Statute of Frauds requires leases longer than one year to be in writing. Shorter-term leases may be oral and enforceable, but longer-term agreements must be written to be enforceable.
14. In Ohio, what effect does a counteroffer have on the original offer?
A counteroffer is treated as a rejection of the original offer and terminates it. A contract only forms if the counteroffer is accepted.
15. A mechanic's lien in Ohio is used to secure payment for:
Mechanic's liens protect contractors and suppliers by attaching to the property being improved to secure payment for labor or materials.
16. In Ohio, which body typically has the authority to grant variances from zoning requirements?
A variance is relief from a specific zoning rule granted by the Board of Zoning Appeals after evaluating hardship and public interest.
17. A subordination clause most benefits which party?
The trustor benefits because a new loan can take priority over an existing loan, allowing for additional financing options.
18. Which statement about veterans exemptions in Ohio is accurate?
Ohio provides veteran-related property tax exemptions, and the eligibility and exemption amounts vary based on disability status, service, and occupancy requirements.
19. The cost approach is most appropriate for valuing:
The cost approach works best for new or unique properties where comparable sales are limited. Older homes may have significant depreciation, making other approaches more reliable.
20. A junior mortgage is usually:
A junior mortgage is secondary to the primary mortgage and is repaid after the first lien in case of default.
21. A mortgage loan where only interest is paid during the term and the principal is due at the end is called:
A straight note, also called an interest-only loan, requires the borrower to pay only interest during the term. The entire principal is due as a lump sum at maturity.