State: Ohio | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. Which of the following is not a specific lien but a general lien?
Judgment liens are generally considered general liens because they may attach to all of the debtor's real and personal property in the county.
2. Which document itemizes all receipts, charges, credits, and disbursements at closing in Ohio?
The Settlement Statement (HUD-1 or Closing Disclosure under TRID) lists every charge and how funds will be disbursed from the escrow account at closing.
3. In Ohio, real estate contracts must satisfy the Statute of Frauds. What is required to make the contract enforceable?
Under Ohio Statute of Frauds, a real estate contract must be in writing and signed by the party who will be bound (the party to be charged). Oral agreements are generally unenforceable for real estate.
4. Which entity licenses real estate brokers in Ohio?
Licensing and professional registration are handled by the Ohio Division of Real Estate and Professional Licensing.
5. Which of the following is primarily a residential mortgage lender in the U.S.?
Savings and loan associations (S&Ls) historically focus on residential mortgages, whereas commercial banks have broader lending portfolios.
6. Which of the following could render an Ohio real estate contract unenforceable due to lack of genuine assent?
Duress or undue influence undermines genuine assent and can render a contract unenforceable.
7. Which statement is true about life estate creation?
Life estates can be created by either deed or will, depending on the conveyance method used.
8. A ceiling fan permanently installed in a home is classified as:
A permanently installed ceiling fan is considered a fixture, thus part of real property.
9. Which liens may be involved in a foreclosure action on real estate in Ohio?
Foreclosure actions can involve multiple liens, including mortgage, HOA, and property tax liens, depending on priority and eligibility.
10. In a gross lease, who typically pays property taxes, insurance, and maintenance?
In a gross lease, the landlord covers operating expenses such as property taxes, insurance, and maintenance; the rent is intended to cover those costs.
11. To terminate a periodic tenancy in Ohio, the party must give notice:
Termination of a periodic tenancy generally requires notice equal to the length of the rental period (e.g., 30 days for monthly).
12. Which entities typically enforce Ohio building codes?
Compliance is enforced by local building departments using the state-adopted codes; authorities having jurisdiction verify permits and inspections.
13. It is illegal to engage in any real estate activity in Ohio without a valid license.
Licensing laws prohibit unlicensed individuals from performing activities that require a license.
14. Which term describes authority to perform tasks not explicitly stated in the contract but necessary to carry out the agency duties in Ohio?
Implied authority arises from the principal's actions or customary practices, allowing the agent to perform necessary tasks not expressly stated.
15. Which fiduciary duty is owed to a client by a licensee in Ohio?
Fiduciary duties include loyalty, confidentiality, obedience, disclosure, accounting, and care when representing a client.
16. Which of the following is considered a physical component of real property?
Soil is a tangible part of the land, whereas rights like water or minerals are interests, not physical components.
17. Which adjustment is made when a comparable property is smaller than the subject?
If a comparable is smaller than the subject, its price is increased to make it comparable to the subject property.
18. What is the role of the settlement statement during Ohio closing?
The settlement statement details all receipts, disbursements, and prorations at closing.
19. If a nonconforming structure is damaged by a fire, many Ohio ordinances allow rebuilding to the prior nonconforming status under what condition?
Many ordinances permit restoration of a nonconforming structure after damage as long as the reconstruction does not exceed the previous size and conforms to other limits.
20. In Ohio, the earnest money deposit is held in escrow by whom and used for what purpose?
Earnest money is held in escrow and applied toward closing costs or returned/forfeited per contract terms as the deal proceeds.
21. Which loan is paid first in a foreclosure sale?
In foreclosure, loans are paid in order of priority. The first trust deed (senior loan) is paid before junior liens or second trust deeds.