OKRES - Oklahoma Real Estate Salesperson Exam

Question 21: A house is difficult to sell because a notorious crime occurred there years ago, even though nothing is physically wrong with the structure. A property regarded as undesirable for reasons unrelated to its physical condition has a specific name. What is it called?

A latent-defect property

A nonconforming property

A stigmatized property

A brownfield property

Question 22: A seller's agent learns of a serious foundation problem that would affect a reasonable buyer's decision to purchase or the price offered. Such a fact that could influence a buyer's decision must generally be disclosed. What is this kind of fact commonly called?

A puffing statement

A trade fixture

An emblement

A material fact

Question 23: Many states require a residential seller to complete a standardized form reporting known problems with the roof, major systems, and structure of the home to prospective buyers before a purchase contract is signed. What is this seller-completed form generally called?

A property condition disclosure statement

A comparative market analysis

A title commitment

A settlement statement

Question 24: Under an older common-law doctrine that has been eroded by modern disclosure laws, a buyer was expected to examine the property and assume the risk of defects, with the seller under little duty to reveal problems. What is this doctrine called?

Caveat venditor

Caveat emptor

Respondeat superior

Res ipsa loquitur

Question 25: Statutes in many states require registration of certain convicted offenders and make that information publicly available, and licensees are often told to refer buyers to the appropriate registry rather than research it themselves. These statutes are commonly known by what name?

Truth-in-Lending laws

Homestead laws

Megan's Law statutes

Blue-sky laws

Question 26: A home tests high for a naturally occurring radioactive soil gas, and a contractor installs a system that draws the gas from beneath the foundation and vents it safely above the roof. This process of reducing the gas indoors is commonly called what?

Encapsulation

Abatement by removal

Phase II sampling

Radon mitigation

Question 27: When a borrower finances a home, one document is the borrower's written promise to repay the debt, stating the amount, interest rate, and payment terms, and serving as the evidence of the debt itself. What is this document called?

A promissory note

A deed of trust

A mortgage

A satisfaction piece

Question 28: In financing a home, one document pledges the real property as collateral for the loan and creates a lien the lender can enforce through foreclosure if the borrower defaults. It secures the debt rather than evidencing it. What is this security instrument called?

A promissory note

A satisfaction of mortgage

A mortgage

A deed of reconveyance

Question 29: In some states, a security instrument involves three parties: the borrower, the lender, and a neutral third party who holds legal title as security until the debt is paid, and who can conduct a nonjudicial sale on default. What is this three-party instrument called?

A promissory note

A land contract

A satisfaction piece

A deed of trust

Question 30: A borrower pledges real estate as security for a loan but continues to possess and use the property while the lender holds only a lien or security interest. What is the term for pledging property as collateral without giving up possession of it?

Novation

Hypothecation

Subordination

Escheat

Question 31: In a mortgage loan, one party borrows money and pledges the property as security, while the other party lends the money and receives the lien. A student wants the correct labels. Which party is the borrower who gives the mortgage?

The mortgagor

The mortgagee

The trustee

The beneficiary

Question 32: States differ on who holds title during a mortgage loan. In some states the borrower keeps title and the lender merely holds a lien on the property. What is this approach, under which the borrower retains title during the loan, commonly called?

Title theory

Intermediate theory

Lien theory

Escrow theory

Question 33: A borrower misses several mortgage payments, and the lender invokes a clause allowing it to declare the entire remaining loan balance immediately due and payable rather than suing for each missed installment. Which mortgage clause gives the lender this power?

The defeasance clause

The acceleration clause

The prepayment clause

The subordination clause

Question 34: A homeowner wants to sell and let the buyer simply take over the existing low-rate loan, but the mortgage contains a clause letting the lender demand full repayment when the property is transferred, preventing an assumption without consent. Which clause does this describe?

An alienation or due-on-sale clause

A defeasance clause

An acceleration for default clause

A prepayment penalty clause

Question 35: A mortgage contains a clause requiring the lender to release the lien and return clear title to the borrower once the debt has been fully repaid, defeating the lender's interest in the property. Which clause provides for this release upon payoff?

The acceleration clause

The defeasance clause

The alienation clause

The escalation clause

Question 36: A borrower wants to pay off a mortgage early to save on interest, but the loan agreement charges a fee for retiring the debt ahead of schedule to compensate the lender for lost interest. What is this charge for early payoff commonly called?

A discount point

An origination fee

A prepayment penalty

A late charge

Question 37: A borrower compares two loans. One keeps the same interest rate for its entire term, while the other has a rate that changes periodically based on a published index plus a margin. What is the loan whose rate periodically changes with an index called?

A fixed-rate mortgage

A straight loan

A purchase-money mortgage

An adjustable-rate mortgage

Question 38: A first-time buyer with a modest down payment obtains a loan made by an approved lender but backed by a federal agency that insures the lender against loss if the borrower defaults, allowing more lenient qualifying terms. Which type of loan is this?

An FHA-insured loan

A VA-guaranteed loan

A conventional loan

A conforming jumbo loan

Question 39: An eligible veteran obtains a home loan from a private lender that a federal agency partially guarantees, often allowing the purchase with no down payment. Which type of loan, available to qualifying veterans and service members, does this describe?

An FHA-insured loan

A conventional loan

A VA-guaranteed loan

A reverse mortgage

Question 40: A well-qualified buyer with a substantial down payment obtains a home loan that carries no government insurance or guarantee and relies on the borrower's creditworthiness and the property as security. What is this type of loan commonly called?

An FHA-insured loan

A VA-guaranteed loan

A rural housing loan

A conventional loan

OKRES Oklahoma Real Estate Salesperson Exam - Set 5 - Part 2

Question 21: A house is difficult to sell because a notorious crime occurred there years ago, even though nothing is physically wrong with the structure. A property regarded as undesirable for reasons unrelated to its physical condition has a specific name. What is it called?

Question 22: A seller's agent learns of a serious foundation problem that would affect a reasonable buyer's decision to purchase or the price offered. Such a fact that could influence a buyer's decision must generally be disclosed. What is this kind of fact commonly called?

Question 23: Many states require a residential seller to complete a standardized form reporting known problems with the roof, major systems, and structure of the home to prospective buyers before a purchase contract is signed. What is this seller-completed form generally called?

Question 24: Under an older common-law doctrine that has been eroded by modern disclosure laws, a buyer was expected to examine the property and assume the risk of defects, with the seller under little duty to reveal problems. What is this doctrine called?

Question 25: Statutes in many states require registration of certain convicted offenders and make that information publicly available, and licensees are often told to refer buyers to the appropriate registry rather than research it themselves. These statutes are commonly known by what name?

Question 26: A home tests high for a naturally occurring radioactive soil gas, and a contractor installs a system that draws the gas from beneath the foundation and vents it safely above the roof. This process of reducing the gas indoors is commonly called what?

Question 27: When a borrower finances a home, one document is the borrower's written promise to repay the debt, stating the amount, interest rate, and payment terms, and serving as the evidence of the debt itself. What is this document called?

Question 28: In financing a home, one document pledges the real property as collateral for the loan and creates a lien the lender can enforce through foreclosure if the borrower defaults. It secures the debt rather than evidencing it. What is this security instrument called?

Question 29: In some states, a security instrument involves three parties: the borrower, the lender, and a neutral third party who holds legal title as security until the debt is paid, and who can conduct a nonjudicial sale on default. What is this three-party instrument called?

Question 30: A borrower pledges real estate as security for a loan but continues to possess and use the property while the lender holds only a lien or security interest. What is the term for pledging property as collateral without giving up possession of it?

Question 31: In a mortgage loan, one party borrows money and pledges the property as security, while the other party lends the money and receives the lien. A student wants the correct labels. Which party is the borrower who gives the mortgage?

Question 32: States differ on who holds title during a mortgage loan. In some states the borrower keeps title and the lender merely holds a lien on the property. What is this approach, under which the borrower retains title during the loan, commonly called?

Question 33: A borrower misses several mortgage payments, and the lender invokes a clause allowing it to declare the entire remaining loan balance immediately due and payable rather than suing for each missed installment. Which mortgage clause gives the lender this power?

Question 34: A homeowner wants to sell and let the buyer simply take over the existing low-rate loan, but the mortgage contains a clause letting the lender demand full repayment when the property is transferred, preventing an assumption without consent. Which clause does this describe?

Question 35: A mortgage contains a clause requiring the lender to release the lien and return clear title to the borrower once the debt has been fully repaid, defeating the lender's interest in the property. Which clause provides for this release upon payoff?

Question 36: A borrower wants to pay off a mortgage early to save on interest, but the loan agreement charges a fee for retiring the debt ahead of schedule to compensate the lender for lost interest. What is this charge for early payoff commonly called?

Question 37: A borrower compares two loans. One keeps the same interest rate for its entire term, while the other has a rate that changes periodically based on a published index plus a margin. What is the loan whose rate periodically changes with an index called?

Question 38: A first-time buyer with a modest down payment obtains a loan made by an approved lender but backed by a federal agency that insures the lender against loss if the borrower defaults, allowing more lenient qualifying terms. Which type of loan is this?

Question 39: An eligible veteran obtains a home loan from a private lender that a federal agency partially guarantees, often allowing the purchase with no down payment. Which type of loan, available to qualifying veterans and service members, does this describe?

Question 40: A well-qualified buyer with a substantial down payment obtains a home loan that carries no government insurance or guarantee and relies on the borrower's creditworthiness and the property as security. What is this type of loan commonly called?

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