Free Oklahoma Real Estate Exam Flashcards

The most complete form of ownership - unlimited duration and fully inheritable. The owner holds the entire bundle of rights, subject only to government powers (police power, eminent domain, taxation, escheat) and private restrictions.

An ownership interest that lasts only for the life of a named person. The life tenant may use the property but cannot commit waste, and the estate ends at death - passing to a remainderman or reverting to the grantor.

A freehold estate is ownership of indefinite duration (fee simple, life estate). A leasehold estate is a tenant's temporary right to possess for a set term - the tenant has possession, not title. The 'bundle of rights' (possession, control, enjoyment, exclusion, disposition) belongs to the freehold owner.

A legal description method that traces a property's boundaries using distances (metes) and directions/monuments (bounds), starting and returning to a defined point of beginning. Used for irregular parcels; the description must close back to the starting point.

Describes land using principal meridians and base lines divided into townships (6 miles square) and sections (1 square mile = 640 acres). A section is subdivided by quarters (e.g., NW 1/4 = 160 acres). Oklahoma land is largely described this way.

An easement appurtenant benefits an adjacent parcel (the dominant tenement) and runs with the land when sold. An easement in gross benefits a person or entity, not a parcel - like a utility company's line - and does not attach to neighboring land.

A general lien attaches to all of a debtor's property (judgment liens, IRS liens). A specific lien attaches to one identified property (mortgage, mechanic's lien, property-tax lien). Ad valorem property-tax liens generally take priority over other liens.

Estimates value by comparing the subject to recently sold similar properties, adjusting each comparable for differences. The primary approach for residential appraisal. Adjustments are made TO the comparables (add for inferior features, subtract for superior), never to the subject.

Value = land value + cost to rebuild improvements new - accrued depreciation. Most useful for new, special-purpose, or unique properties (schools, churches) where comparable sales are scarce. Depreciation includes physical, functional, and external obsolescence.

The income approach values income-producing property by capitalizing net operating income (Value = NOI / cap rate). The GRM is a shortcut for residential rentals: Value = gross monthly rent x GRM. GRM uses gross rent; capitalization uses net income.

Requires contracts for the sale of real estate (and leases over one year) to be in writing and signed to be enforceable. An oral listing or purchase agreement for land generally cannot be enforced in court.

Exclusive right-to-sell: broker earns commission no matter who sells. Exclusive agency: owner may sell alone with no commission. Open listing: owner may use multiple brokers, only the procuring broker is paid. A net listing fixes the seller's return while giving the broker the entire upside, creating a conflict; state rules vary.

Traditional agency law summarizes an agent's duties as OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care. Tested on the national portion - but note Oklahoma replaced common-law agency with the statutory Broker Relationships Act (see the OBRA cards).

Conventional loans are not government-backed; PMI is required under 20% down. FHA loans are insured by the FHA, allow low down payments, and require MIP. VA loans are guaranteed by the VA for eligible veterans, often with no down payment and no monthly mortgage insurance.

Federal rule requiring the Loan Estimate (within 3 business days of application) and the Closing Disclosure (at least 3 business days before closing) for most residential mortgages. Replaced the old HUD-1 and Good Faith Estimate for these loans.

A seller-financing arrangement where the buyer takes possession and makes installment payments, but the seller retains legal title until the contract is paid in full. The buyer holds equitable title during the term.

The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability. Race was the original 1866 class and has no exemptions. Real estate advertising and services must comply.

Steering: directing buyers toward or away from areas based on a protected class. Blockbusting: inducing sales by suggesting a protected group is moving in ('panic selling'). Redlining: a lender refusing loans in certain neighborhoods. All three are prohibited under fair housing law.

Dividing recurring costs (property taxes, HOA dues, prepaid rent) between buyer and seller as of the closing date. A prepaid item the seller already paid is credited to the seller; an item owed but unpaid (accrued) is credited to the buyer.

Sale price x commission rate = total commission. Net to seller = sale price - commission - other seller costs - loan payoff. To find the price needed for a target net: required price = (net + costs) / (1 - commission rate).

The state agency that administers the Real Estate License Code, issues and renews licenses, approves education, investigates complaints, and disciplines licensees. OREC has authority to audit broker trust accounts and impose administrative fines and suspensions.

The entry-level Oklahoma license issued after passing the exam and affiliating with a broker. A PSA must complete a 45-hour post-license course within the first year to convert to a full sales associate; failing to do so causes the license to expire and become non-renewable.

90 clock hours of OREC-approved education are required before licensure. The course completion certificate is valid for three years from the date the school certifies completion. Applicants must be at least 18 and pass a background check with fingerprinting.

A new provisional sales associate must complete a 45-hour post-license course within the first year of licensure, before the PSA license expiration date. This is separate from and in addition to continuing education, and completion is required to keep practicing.

Oklahoma real estate licenses run on a 36-month (three-year) cycle. Licensees renew before expiration; letting a license lapse can require reinstatement. Fees include the Education and Recovery Fund fee added to each new and renewal license.

Resident licensees must complete 30 hours of continuing education per three-year renewal cycle - increased from 21 hours effective June 1, 2025. Required topics include Broker Relationships Act, Code and Rules, Fair Housing, and Professional Conduct. Inactive licensees have no CE requirement.

A licensee or broker must file changes - home or business address, telephone number, associate's change of firm, or team name changes - with the Commission within 10 days. 'Filed' means the date of mailing.

Oklahoma's Broker Relationships Act abolished traditional real estate agency. Since a 2013 reform, the terms 'single-party broker' and 'transaction broker' were eliminated - every licensee is simply a 'broker.' This is the key Oklahoma distinction from the national agency model.

A broker must treat all parties honestly; exercise reasonable skill and care; receive and timely present all written offers and counteroffers; timely account for all money and property received; and keep confidential information confidential. These duties apply whether or not a party is the broker's client.

Under OBRA, a broker may provide brokerage services to one or both parties in a transaction. A firm serving both parties must give written notice to both parties before they sign a contract, and must disclose in writing which party (or both) the broker is serving.

OBRA lists the only information treated as confidential: that a party will pay more or accept less than the offer/asking price, a party's motivation, and information a party specifically designates as confidential (unless public). This duty survives the end of the brokerage relationship.

An Oklahoma broker must receive all written offers and counteroffers, reduce offers to writing on request, and present them timely to the party - unless the party specifically waives this in writing. A broker cannot withhold a valid written offer.

A party to a real estate transaction is not vicariously liable for the acts or omissions of a broker providing brokerage services. Oklahoma's statutory model shields the client from automatic liability for the broker's conduct - a departure from common-law agency.

Oklahoma requires a broker to deposit all trust (escrow) funds - earnest money, settlement funds, rents, security deposits - before the end of the third banking day following receipt. This is stricter to remember than the loose 'promptly': the outer limit is the third banking day.

Commingling is mixing a broker's personal or business funds with clients' trust funds (prohibited except a small allowance for bank service charges). Conversion is actually using clients' trust funds for the broker's own purposes - a more serious violation and grounds for discipline.

Brokers must register their trust accounts with OREC, including any principal's account on which the broker is a signer. OREC has authority to audit trust accounts. A trust account is not required unless the broker is actually holding others' funds or property.

If a transaction does not close, the broker must promptly disburse earnest money to the proper party according to the contract. When parties dispute who is owed the funds, the broker holds the money in trust and does not release it until the dispute is resolved or a court/authorized process directs disbursement.

Under Oklahoma's Residential Property Condition Disclosure Act, a seller of residential property typically must deliver a Disclosure Statement listing known defects and conditions of the property to the buyer before an accepted offer.

A Disclosure Statement affirmatively lists known defects. A Disclaimer Statement says the seller makes no representations about condition ('as is' as to known defects). A Disclaimer does NOT shield the seller from liability for fraud or intentional concealment, and health/safety hazards must still be disclosed.

In Oklahoma, a death by any means, an alleged paranormal event, or a crime that caused no physical damage is not a material fact requiring disclosure. Sellers and licensees have no duty to volunteer it - but if a buyer directly asks, they must answer truthfully and cannot misrepresent.

Even under a Disclaimer Statement, a licensee must disclose known conditions that pose a serious health or safety risk and any known adverse material facts. A licensee cannot help a seller conceal a known defect that threatens health or safety.

Federal law (applying in Oklahoma) requires sellers and landlords of housing built before 1978 to disclose known lead-based paint, provide the EPA pamphlet, and give buyers a 10-day period to inspect for lead. Newer construction is exempt.

Managing others' real estate for compensation in Oklahoma - leasing, collecting rent, or negotiating on an owner's behalf - requires a broker license. A sales associate performs property-management activities only under a supervising broker and the firm's trust account.

Oklahoma sets no statutory maximum on a residential security deposit amount. The deposit must be held in escrow in Oklahoma at a federally insured institution, and the balance returned within 45 days after termination of tenancy, delivery of possession, and the tenant's written demand.

Under Oklahoma's Residential Landlord and Tenant Act, a landlord must give the tenant at least one day's notice before entering for non-emergency reasons and may enter only at reasonable times. In a genuine emergency, the landlord may enter without notice or consent.

When a residential tenant fails to pay rent when due, Oklahoma requires a 5-day notice to pay or vacate before the landlord can file a forcible entry and detainer (eviction) action. Self-help eviction (changing locks, removing belongings) is unlawful.

A state fund that reimburses consumers holding an unpaid court judgment against a licensee for a License Code violation. Three caps (59 O.S. §858-604): $25,000 per single judgment, $50,000 aggregate per transaction, and $50,000 aggregate per licensee. Payment from the fund automatically revokes the license until repaid in full with interest.

OREC may impose an administrative fine of not less than $100 and not more than $2,000 per violation, but not exceeding $5,000 for all violations arising from a single incident or transaction. Unpaid fines double after 30 days and can lead to automatic revocation.

Oklahoma's sales associate exam is administered by Pearson VUE (the state's current vendor) as two separate tests: national (80 scored items, 150 minutes) and state (40 scored items, 90 minutes). Each portion is graded separately and requires a 70% scaled score to pass.

Candidates must be at least 18, complete 90 hours of pre-license education, and pass a background check with fingerprinting. The exam application and a passing grade are each valid for one year, and candidates get unlimited attempts to pass each portion within that one-year eligibility window.