Oklahoma Real Estate Sales Associate Exam — All Questions

Which agency administers and enforces the real estate license law in Oklahoma?

• a.The Oklahoma Real Estate Commission✓
• b.The Oklahoma Association of Realtors
• c.The Oklahoma Insurance Department
• d.The Oklahoma Department of Commerce

The Oklahoma Real Estate Commission (OREC) administers and enforces the Oklahoma Real Estate License Code and issues, renews, and disciplines licenses for sales associates and brokers.

In Oklahoma, a first-time applicant who passes the exam is typically issued which license?

• a.Provisional sales associate✓
• b.Managing broker
• c.Permanent broker
• d.Broker associate

Oklahoma issues most first-time licensees a 'provisional sales associate' license. The provisional sales associate must complete required post-license education within the first license period to move to a full sales associate license.

The Oklahoma Real Estate Education and Recovery Fund exists primarily to:

• a.Provide loans to brokerages
• b.Fund licensee retirement benefits
• c.Pay the operating budget of the Commission
• d.Reimburse consumers who obtain an unpaid court judgment against a licensee for certain violations, up to statutory limits✓

The Oklahoma Real Estate Education and Recovery Fund reimburses members of the public who obtain a valid, unpaid court judgment against a licensee arising from certain violations of the license law, subject to per-transaction and per-licensee statutory caps. A licensee whose conduct causes a payout may have their license suspended until they repay the fund.

What is the range of an administrative fine the Oklahoma Real Estate Commission may impose on a licensee for one violation?

• a.Not less than $50 and not more than $1,000
• b.Not less than $100 and not more than $2,000✓
• c.Not less than $25 and not more than $500
• d.Not less than $200 and not more than $750

A fine for each violation of the Code or the Commission's rules shall not be less than One Hundred Dollars ($100.00) and shall not exceed Two Thousand Dollars ($2,000.00), with a separate ceiling of Five Thousand Dollars ($5,000.00) for all violations arising from a single incident or transaction. Cite: 59 O.S. § 858-402(A)(1) (last amended Okla. Laws 1999, c. 26, § 3, eff. Nov. 1, 1999).

An Oklahoma licensee does not pay an administrative fine within 30 days of notification of the Commission's order. What happens?

• a.The Commission refers the amount to district court for collection
• b.Interest accrues at seven percent until the fine is satisfied
• c.The fine doubles, then the license is revoked✓
• d.The license is immediately revoked with no further period to pay

If fines are not paid in full within 30 days of notification, the fines shall double and the licensee has an additional thirty-day period; if the doubled fine is not paid in that period, the license shall automatically be revoked. The seven percent figure belongs to Recovery Fund repayment, not to fines. Cite: 59 O.S. § 858-402(A)(4).

An unlicensed person in Oklahoma is convicted of knowingly acting as a real estate licensee. What is the criminal penalty?

• a.A misdemeanor: up to $5,000, six months in county jail, or both✓
• b.A felony: up to $5,000 and one year of imprisonment, plus restitution
• c.A misdemeanor punishable only by a fine, capped at $2,000
• d.A felony with permanent loss of eligibility

Unlicensed activity is a misdemeanor punishable by a fine of not more than $5,000.00, imprisonment in the county jail for not more than six months, or both. Separately, and in addition, the Commission may fine an unlicensed person up to $5,000 or the commissions earned, whichever is greater. Cite: 59 O.S. § 858-401(A)-(B).

What is the maximum a single claimant may receive from the Oklahoma Real Estate Education and Recovery Fund on one judgment?

• a.Ten Thousand Dollars ($10,000.00)
• b.Fifty Thousand Dollars ($50,000.00)
• c.One Hundred Thousand Dollars ($100,000.00)
• d.Twenty-five Thousand Dollars ($25,000.00)✓

A claimant may apply for the unsatisfied portion of the judgment representing actual or compensatory damages, or Twenty-five Thousand Dollars ($25,000.00), whichever is less. Attorney fees are reimbursable up to 25% of the approved amount; court costs and other expenses are not recoverable. Cite: 59 O.S. § 858-604(A) (last amended Okla. Laws 2005, c. 85, § 4, eff. Nov. 1, 2005).

Three consumers hold separate unpaid judgments against the same Oklahoma licensee. What will the Recovery Fund pay in total on that licensee?

• a.$25,000, the same as the single-claimant cap
• b.$30,000, three times the ten-thousand-dollar claim limit
• c.$50,000 in the aggregate against any one licensee✓
• d.No aggregate cap once each claim is approved

Payments on judgments against any one licensee shall not exceed $50,000.00 in the aggregate, and payments arising from the same transaction are likewise capped at $50,000.00 regardless of the number of claimants or parcels involved. Cite: 59 O.S. § 858-604(C)-(D).

The Recovery Fund pays a claim on a judgment against an Oklahoma licensee. What happens to that licensee's license?

• a.It is suspended for one year and then restored automatically
• b.It is automatically revoked✓
• c.It goes inactive until the licensee repays half the payout
• d.It is unaffected, because the Fund exists to absorb that loss

Payment from the Fund on a judgment against a licensee automatically revokes that license, and reinstatement will not even be considered until the licensee has repaid the amount in full plus interest at seven percent (7%) a year. Cite: 59 O.S. § 858-604(G).

Which claimant is expressly disqualified from recovering from the Oklahoma Real Estate Education and Recovery Fund?

• a.The spouse of the judgment debtor, or the personal representative of that spouse✓
• b.A buyer who has already collected part of the judgment from another source
• c.A claimant whose cause of action accrued eighteen months before filing suit
• d.A claimant represented by counsel who charged a contingent fee

Section 858-603(B) disqualifies the judgment debtor's spouse or that spouse's personal representative, a licensee who acted on their own behalf in the transaction, and a claimant jointly responsible for the loss. Partial recovery from another source must be applied to the judgment but does not disqualify the claim, and an eighteen-month-old cause of action is inside the two-year window. Cite: 59 O.S. § 858-603(A)(2), (A)(6), (B).

How soon after revocation may a person apply for reissuance of an Oklahoma real estate license?

• a.One year after the effective date of revocation
• b.Two years after the effective date of revocation
• c.Ten years after the effective date of the revocation
• d.Five years after the effective date of revocation✓

A person shall not be permitted to file an application for reissuance of a license within five years of the effective date of revocation, and on reapplying must then meet the requirements of an original applicant. Cite: 59 O.S. § 858-307.3; OAC 605:10-7-2(h).

An Oklahoma brokerage sues a seller for an unpaid commission. What must the brokerage plead and prove to maintain the action?

• a.That the commission rate was approved by the Commission
• b.That written notice of the claim was given to the Commission
• c.That it was licensed when the alleged cause of action arose✓
• d.That the seller received the statutory broker-duties disclosure

No person or entity acting as a real estate licensee may bring or maintain an action in any Oklahoma court for compensation for real estate services without alleging and proving licensure at the time the cause of action arose. The Commission does not set commission rates and has no interest in them. Cite: 59 O.S. § 858-311; OAC 605:10-17-1(a).

An Oklahoma licensee receives written notice of a complaint from the Commission. How long is there to respond in writing?

• a.Ten (10) days after receiving the written notice
• b.Fifteen (15) days after receiving the written notice✓
• c.Twenty (20) days after receiving the written notice
• d.Thirty (30) days after receiving the written notice

Failure to provide an adequate written response to the Commission within fifteen (15) days after receiving written notice of a complaint or investigation is itself an enumerated ground for discipline under the license law. Cite: 59 O.S. § 858-312(26).

An Oklahoma licensee pleads nolo contendere to a felony. What notice must the licensee give the Commission?

• a.Within 30 days of the plea, and again at sentencing✓
• b.Within 30 days of the judgment and sentencing, but not the plea
• c.Notice to the licensee's broker, who reports it at renewal
• d.No notice, because the Commission receives court dispositions

Every licensee must notify the Commission in writing of a conviction or a plea of guilty or nolo contendere to any felony within 30 days after the plea is taken, and also within 30 days of the entry of the order of judgment and sentencing. Failing to do either is separately a ground for discipline. Cite: 59 O.S. § 858-301.2; 59 O.S. § 858-312(27).