OKRES - Oklahoma Real Estate Salesperson Exam

Question 21: To create a site large enough for a shopping center, an investor quietly buys several small neighboring parcels and merges them under single ownership. What is the term for this process of combining separately owned adjacent lots into one larger holding?

Plottage

Reconciliation

Conformity

Assemblage

Question 22: An owner keeps pouring money into luxury upgrades on a home, but each added dollar of improvement eventually stops producing a matching gain in value or income. Which principle of value describes the point where further improvements no longer raise value proportionally?

The law of diminishing returns

The law of increasing returns

The principle of anticipation

The principle of substitution

Question 23: An appraiser inspects an older home and notes worn roofing, cracked walls, and general wear from age and use. This loss in value from ordinary aging and lack of upkeep falls under one category of depreciation. Which category does this describe?

Functional obsolescence

External obsolescence

Physical deterioration

Economic appreciation

Question 24: A well-built house loses value because its only bathroom is reached through a bedroom and its kitchen layout is badly outdated, features modern buyers dislike. The structure is sound, but its design is the problem. Which type of depreciation does this represent?

Physical deterioration

Functional obsolescence

External obsolescence

Curable physical wear

Question 25: A home in good condition loses value after a busy highway and a noisy industrial plant are built next to the neighborhood. Nothing is wrong with the house itself; the cause lies beyond its boundaries. Which type of depreciation does this describe?

External obsolescence

Physical deterioration

Functional obsolescence

Accrued appreciation

Question 26: In the cost approach, an appraiser adds up the total loss in value from all causes, whether physical wear, outdated design, or outside influences, and subtracts it from the cost of a new structure. What is this total loss from all causes called?

Replacement cost

Reproduction cost

Net operating income

Accrued depreciation

Question 27: An appraiser refers to the period during which improvements on a property are expected to remain useful and contribute to its value, which is usually shorter than the building's actual physical lifespan. What is this period of usefulness called?

Actual age

Effective age

Economic life

Statutory life

Question 28: To value small rental homes quickly, an appraiser uses a figure that relates a property's sale price to its monthly rent, then applies it to the subject's rent. Which valuation tool relates sale price to monthly rental income in this way?

The gross rent multiplier

The capitalization rate

The loan-to-value ratio

The debt coverage ratio

Question 29: In the income approach, an appraiser relates a property's net operating income to its value through a single rate. An investor asks what happens to indicated value, holding income steady, when the appraiser uses a higher rate. What is the correct relationship?

A higher rate raises the value

The rate does not affect value

Value equals income times the rate

A higher rate lowers the value

Question 30: A seller asks a real estate professional to estimate a reasonable listing price by comparing recent sales, current competing listings, and expired listings nearby. This estimate is not a licensed appraiser's formal opinion of value. What is this professional's estimate called?

A comparative market analysis

A certified appraisal

A title search

A capitalization study

Question 31: A lender managing a home equity portfolio wants a quick, inexpensive property evaluation, sometimes just a drive-by with a list of comparable sales, performed by a real estate professional for a fee rather than a full appraisal. What is this evaluation called?

A certified appraisal

A comparative market analysis

A broker's price opinion

A cost segregation study

Question 32: Every appraiser performing a valuation assignment must follow a nationally recognized set of ethical and performance standards that were developed by the Appraisal Standards Board of the Appraisal Foundation. What is the common name for these uniform appraisal standards?

USPAP

The Dodd-Frank rules

FIRREA

The URAR

Question 33: A federal law requires that any appraisal used in a transaction involving a federally regulated financial institution be performed by an appraiser licensed or certified by the state. Which law established this requirement and the state appraiser licensing system?

The Truth in Lending Act

The Fair Housing Act

USPAP

FIRREA

Question 34: After widespread appraisal pressure contributed to a housing crisis, reforms prohibited lenders and other interested parties from coercing appraisers to hit target values, protecting the objectivity of the value opinion. What is the general goal these reforms are designed to protect?

Maximum appraised values

Faster loan approvals

Appraiser independence

Lower appraisal fees

Question 35: Real estate candidates must memorize certain land measurement constants that are not provided on the exam, because area problems depend on them. One such constant is the number of square feet contained in a single acre. What is that figure?

43,560 square feet

5,280 square feet

640 square feet

1,000 square feet

Question 36: Distance problems on the exam often require a linear constant that is not supplied, relating miles to feet. Candidates are expected to recall how many feet make up one statute mile. What is that number of feet in a mile?

43,560 feet

640 feet

5,280 feet

1,760 feet

Question 37: A broker earns compensation on a sale computed by applying an agreed percentage rate to the property's selling price. A student wants the correct conceptual relationship among these figures. Which statement correctly describes how the commission amount is determined?

Commission equals price divided by rate

Commission equals price plus rate

Rate equals price times commission

Commission equals price times the rate

Question 38: A lender describes a common financing ratio that compares the amount being borrowed against a property to the property's appraised value or sale price, used to gauge risk and to set down-payment requirements. Which ratio does this description define?

The capitalization rate

The loan-to-value ratio

The gross rent multiplier

The debt coverage ratio

Question 39: At closing, a lender charges the borrower a fee to increase the lender's yield, and each unit of that fee equals one percent of the loan amount. A student wants the correct meaning of one such unit. What does a single discount point equal?

One percent of the loan amount

One percent of the sale price

One dollar per thousand borrowed

One percent of the down payment

Question 40: At settlement, expenses like taxes are divided between buyer and seller for their periods of ownership. A closing statement notes that its proration is based on a thirty-day month and a three-hundred-sixty-day year. What is this common proration convention called?

The actual-days method

The banker's or statutory-year method

The calendar-year method

The leap-year method

OKRES Oklahoma Real Estate Salesperson Exam - Set 3 - Part 2

Question 21: To create a site large enough for a shopping center, an investor quietly buys several small neighboring parcels and merges them under single ownership. What is the term for this process of combining separately owned adjacent lots into one larger holding?

Question 22: An owner keeps pouring money into luxury upgrades on a home, but each added dollar of improvement eventually stops producing a matching gain in value or income. Which principle of value describes the point where further improvements no longer raise value proportionally?

Question 23: An appraiser inspects an older home and notes worn roofing, cracked walls, and general wear from age and use. This loss in value from ordinary aging and lack of upkeep falls under one category of depreciation. Which category does this describe?

Question 24: A well-built house loses value because its only bathroom is reached through a bedroom and its kitchen layout is badly outdated, features modern buyers dislike. The structure is sound, but its design is the problem. Which type of depreciation does this represent?

Question 25: A home in good condition loses value after a busy highway and a noisy industrial plant are built next to the neighborhood. Nothing is wrong with the house itself; the cause lies beyond its boundaries. Which type of depreciation does this describe?

Question 26: In the cost approach, an appraiser adds up the total loss in value from all causes, whether physical wear, outdated design, or outside influences, and subtracts it from the cost of a new structure. What is this total loss from all causes called?

Question 27: An appraiser refers to the period during which improvements on a property are expected to remain useful and contribute to its value, which is usually shorter than the building's actual physical lifespan. What is this period of usefulness called?

Question 28: To value small rental homes quickly, an appraiser uses a figure that relates a property's sale price to its monthly rent, then applies it to the subject's rent. Which valuation tool relates sale price to monthly rental income in this way?

Question 29: In the income approach, an appraiser relates a property's net operating income to its value through a single rate. An investor asks what happens to indicated value, holding income steady, when the appraiser uses a higher rate. What is the correct relationship?

Question 30: A seller asks a real estate professional to estimate a reasonable listing price by comparing recent sales, current competing listings, and expired listings nearby. This estimate is not a licensed appraiser's formal opinion of value. What is this professional's estimate called?

Question 31: A lender managing a home equity portfolio wants a quick, inexpensive property evaluation, sometimes just a drive-by with a list of comparable sales, performed by a real estate professional for a fee rather than a full appraisal. What is this evaluation called?

Question 32: Every appraiser performing a valuation assignment must follow a nationally recognized set of ethical and performance standards that were developed by the Appraisal Standards Board of the Appraisal Foundation. What is the common name for these uniform appraisal standards?

Question 33: A federal law requires that any appraisal used in a transaction involving a federally regulated financial institution be performed by an appraiser licensed or certified by the state. Which law established this requirement and the state appraiser licensing system?

Question 34: After widespread appraisal pressure contributed to a housing crisis, reforms prohibited lenders and other interested parties from coercing appraisers to hit target values, protecting the objectivity of the value opinion. What is the general goal these reforms are designed to protect?

Question 35: Real estate candidates must memorize certain land measurement constants that are not provided on the exam, because area problems depend on them. One such constant is the number of square feet contained in a single acre. What is that figure?

Question 36: Distance problems on the exam often require a linear constant that is not supplied, relating miles to feet. Candidates are expected to recall how many feet make up one statute mile. What is that number of feet in a mile?

Question 37: A broker earns compensation on a sale computed by applying an agreed percentage rate to the property's selling price. A student wants the correct conceptual relationship among these figures. Which statement correctly describes how the commission amount is determined?

Question 38: A lender describes a common financing ratio that compares the amount being borrowed against a property to the property's appraised value or sale price, used to gauge risk and to set down-payment requirements. Which ratio does this description define?

Question 39: At closing, a lender charges the borrower a fee to increase the lender's yield, and each unit of that fee equals one percent of the loan amount. A student wants the correct meaning of one such unit. What does a single discount point equal?

Question 40: At settlement, expenses like taxes are divided between buyer and seller for their periods of ownership. A closing statement notes that its proration is based on a thirty-day month and a three-hundred-sixty-day year. What is this common proration convention called?

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