OK Real Estate cheat sheet

The Oklahoma Real Estate Commission (OREC) administers the Oklahoma Real Estate License Code, Title 59 O.S. §858-101 et seq., and adopts implementing rules.

License categories include provisional sales associate, sales associate, broker associate, provisional broker, and broker.

Only a licensed broker may be paid for brokerage services; a sales associate is compensated through the supervising broker.

A provisional sales associate must work under active broker supervision and complete post-license education within the required period.

Broker applicants must document experience as a licensed sales associate and complete the broker prelicense course and examination.

OREC may investigate complaints, conduct hearings, and impose reprimands, suspensions, revocations, and administrative fines.

Unlicensed assistants may perform clerical or ministerial tasks but may not negotiate, show property for compensation, or quote commission terms.

Licensees must keep transaction records available for OREC audit and produce them on request.

The Oklahoma Broker Relationships Act (Title 59 O.S. §858-351 et seq.) recognizes single agency, transaction broker, and no-agency (customer) relationships.

Written agency disclosure must be given before the buyer or seller signs an offer, counteroffer, or listing agreement.

Single agent fiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care (OLD CAR).

Transaction broker duties are honesty, accounting, reasonable care, and disclosure of material facts; the broker does not advocate for either party.

Confidential information learned in a single-agency relationship survives termination of the agency.

A broker may serve as a transaction broker only with the parties' written acknowledgment.

A licensee must disclose any personal interest in a property being bought or sold, including a referral or ownership interest.

Oklahoma does not require disclosure of psychological stigma such as a prior death, but known material physical defects must be disclosed.

OREC promulgates required forms, including the residential sale contract and listing agreements; licensees must use current versions.

Statute of Frauds: contracts for the sale of real property, and leases longer than one year, must be written and signed by the party to be charged.

Required elements: competent parties, mutual assent, lawful objective, consideration, and a sufficient legal description.

Oklahoma Residential Property Condition Disclosure Act: a seller of one-to-four residential units must deliver a disclosure or disclaimer statement before acceptance of the offer.

Financing, inspection, and appraisal contingencies must be satisfied within stated deadlines or the buyer may terminate and recover earnest money.

Earnest money is consideration; if the buyer defaults, the seller may retain it when the contract contains a liquidated damages clause.

Time is of the essence only when the contract states so; otherwise a reasonable time applies.

A complete contract identifies price, financing terms, closing and possession dates, prorations, and allocation of closing costs.

Freehold estates are fee simple absolute and life estate; leasehold estates include estate for years, periodic tenancy, and tenancy at will.

Tenancy in common allows unequal, separately conveyable undivided interests with no right of survivorship.

Joint tenancy requires the four unities of time, title, interest, and possession and carries a right of survivorship.

An easement appurtenant benefits a dominant parcel and burdens a servient parcel and runs with the land; an easement in gross benefits a person or entity.

A license is revocable personal permission to enter land; an easement is a nonpossessory interest in land.

Oklahoma is a race-notice recording state: a later purchaser prevails only if it takes without notice and records before the prior conveyance.

Zoning is an exercise of police power; a nonconforming use may continue although it no longer meets current zoning.

A variance relieves a dimensional hardship, while a special exception or conditional use permit authorizes a use the ordinance allows by approval.

PITI equals principal, interest, property taxes, and hazard insurance; escrow may also collect mortgage insurance and HOA dues.

LTV = loan amount ÷ the lesser of purchase price or appraised value.

One discount point equals 1% of the loan amount and is paid at closing to buy down the interest rate.

TRID: the Loan Estimate is due within 3 business days of application; the Closing Disclosure at least 3 business days before closing.

FHA requires 3.5% down; VA offers 100% financing to eligible veterans; conventional programs commonly require 3% to 20% down.

Common qualifying ratios are about 28% front-end and 36% back-end for conventional loans, with higher ratios allowed under automated or government programs.

ARM caps include an initial adjustment cap, a periodic cap, and a lifetime cap.

TILA gives a 3-business-day right of rescission on refinances of a primary residence, but not on purchases.

Sales comparison approach: adjust comparable sales toward the subject; subtract when the comparable is superior and add when it is inferior.

Cost approach: value = land value + replacement cost − accrued depreciation.

Income approach: value = net operating income ÷ capitalization rate.

Gross rent multiplier = sale price ÷ gross monthly rent; value = GRM × the subject's monthly rent.

Depreciation categories are physical deterioration, functional obsolescence, and external (economic) obsolescence.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

A comparative market analysis is a licensee's pricing opinion and is not an appraisal; appraisals require a state-licensed or certified appraiser.

Price per square foot is a screening tool and does not replace itemized adjustments for condition, location, and features.

Broker trust accounts hold earnest money and security deposits; commingling client funds with operating funds is prohibited.

Trust records must be retained and available for OREC inspection, with ledger entries traceable to each transaction and each client.

Federal fair housing protected classes: race, color, religion, sex, national origin, familial status, and disability.

Prohibited practices include blockbusting, steering, redlining, discriminatory advertising, and providing unequal services.

RESPA Section 8 bars giving or receiving fees or things of value for referrals of settlement service business.

Advertising must identify the supervising broker; a sales associate may not advertise in a way that implies a broker's license.

Housing built before 1978 requires lead-based paint disclosure and delivery of the EPA pamphlet.

Disputed earnest money may not be released without a written agreement signed by the parties or a court order.