KY Real Estate Practice - Law Portion

Which of the following fees that a broker charges an agent is a violation of the Kentucky Revised Statutes?
- desk fee
- long distance charges
- affiliation fee
- coffee fee

affiliation fee

Most of the time (with certain law exceptions) licensed Kentucky brokers shall maintain a definite place of business in what state?
- Kentucky
- the state in which the broker was born in
- the state where the broker spends the most time in
- any state exc

Kentucky

A licensed sales associate that has at least 24 months of experience and has their broker's permission may take over the management duties in a branch office within 100 miles of the main office. Which of the following statements about acceptable real esta

the associate must have worked an average of at least 20 hours per week

A principal broker must register a new branch office within ___ days of the creation of the branch office.
- 1 day
- 3 days
- 10 days
- 30 days

10 days

In Kentucky, the minimum age to obtain a real estate license is:
- 16 years old
- 18 years old
- 20 years old
- 21 years old

18 years old

The examination shall be of the scope and wording sufficient in the judgment of the commission to establish the _________________ of the applicant to act as a broker or sales associate in a manner to protect the interests of the public."
- competency
- p

competency

Who is responsible for payment of any fees to the FBI for a criminal background check?
- the applicant
- the applicant's broker
- the FBI
- the KREC

the applicant

The commission may reduce the normal experience requirement to _____ year(s) for those applying for a broker's license if the applicant has an associate degree in real estate or a baccalaureate degree with a major or minor in real estate.
- 1
- 2
- 3
- 4

1

Every Kentucky sales associate real estate license is required to include all of the following except:
- name of the licensee
- name of the principal broker
- address of the principal broker
- aliases of the licensee

aliases of the licensee

Upon passing the Kentucky real estate exam, a student has _____ days to apply for a license (active or escrow) before their test results may become invalidated.
- 15
- 30
- 45
- 60

60

If the KREC requires a hearing due to an applicant's FBI report, the applicant shall appear before the Real Estate Commission and the commission shall consider all of the following EXCEPT:
- whether the crime indicates the applicant's untrustworthiness or

witness and jury statements regarding the original crime

The brokerage management skills course shall satisfy ______ hours of the applicant's twelve (12) hours of real estate courses required to become a broker.
- 3
- 6
- 12
- not required

3

The broker management skills course shall require each student that successfully completes the course to develop:
- a sample business plan
- a sample financial plan
- an office policy and procedure manual
- all of the above

all of the above

The broker management skills course shall require each student that successfully completes the course to develop all of the following EXCEPT:
- a sample business plan
- a sample financial plan
- an office policy and procedure manual
- personal goals timel

personal goals timeline

A nonresident of Kentucky applying for a Kentucky real estate license is required to file a/an ___________ consent stating that legal actions may be commenced against the applicant in the proper court of any county of this state in which a cause of action

irrevocable

Any license that has not been renewed at the end of the renewal year as prescribed by the KREC will automatically revert to this status.
- suspended
- expired
- revoked
- escrow

expired

After a midlife crisis, a current licensee decides to legally change his name from "John Smith" to "Meta Real Estate." The licensee completes the legal procedures with the federal government and the state of Kentucky. Which of the following statements is

a new real estate license will be mailed by the KREC

Unless the renewal date is changed by the Kentucky Real Estate Commission due to unforeseen circumstances, real estate licenses in Kentucky expire:
- January 1st
- March 31st
- June 1st
- December 31st

March 31st

Each year every non-exempt Kentucky real estate licensee is required to complete how many hours of continuing education?
- three (3) hours
- four (4) hours
- five (5) hours
- six (6) hours

six (6) hours

After a real estate license is revoked in Kentucky, there's a minimum time frame before that person can re-apply for a license. The minimum time frame starts from:
- when the real estate license was first issued
- when the alleged action occurred
- the da

the date of revocation

Who of the following is not required to carry errors and omissions (E&O) insurance?
- newly licensed agents
- experienced licensed agents
- licensed real estate brokers
- escrowed licensees

escrowed licensees

If any sales associate is discharged or terminates his or her association with the principal broker, it shall be the duty of the broker to ________________ deliver or mail to the commission the sales associate's license.
- immediately
- without unreasonab

immediately

Which of the following statements about a licensee in escrow is incorrect?
- the licensee pays the annual license renewal fees for each year the license is in escrow.
- licensee does not engage in any real estate activity for others during the term of esc

licensee can engage in receiving referral fees only during the term of escrow of the license

Which of the following statements about license recognition is true?
- it is always required to take the law portion of the license exam
- it is only available to brokers
- it is only available to sales associates
- it is only available to agents and brok

it is always required to take the law portion of the license exam

E& O coverage may exclude claims brought against the insured's for claims:
- arising as a result of the insolvency of the insured
- arising from bodily injury, sickness, disease, or death of any person, or physical injury to or destruction of or loss of u

all of the above

An E & O policy is basically a negligence policy. A negligent act is considered to be:
- where the licensee has acted inappropriately
- where the licensee failed to act appropriately
- both a and b
- neither a or b

both a and b

An errors and omissions insurance policy excludes:
- intentional acts
- accidental mistakes
- poor judgment
- negligence

intentional acts

The Kentucky Core Law continuing education class is required every:
- year
- two years
- four years
- five years

four years

To avoid a fine, required continuing education classes must be completed no later than:
- February 15th
- March 31st
- June 31st
- December 31st

December 31st

A real estate broker in Kentucky is required to keep a record of:
- property disclosure forms
- closing sheets
- verbal offers to lease or purchase
- a & b
- a, b, & c

a & b

A real estate broker in Kentucky is not required to keep a record of:
- the seller's deed
- offer to purchase contracts
- listing contracts
- agency disclosure forms

the seller's deed

Subject to written agreements, an agent might need to answer his or her principal's, owner-client's, or customer's questions relating to all of the following issues except:
- potential of multiple offers
- potential handling of counteroffers
- potential c

potential ethnicity of buyers based on name analysis

Without undue delay is:
- as soon as possible
- 24 hours
- 3 business days
- 10 days

as soon as possible

If a licensee has appropriate permissions, it may be possible to advertise another company's listings; however, what must always be included in the advertisement?
- complete name of the other real estate brokerage company
- complete name of the listing pr

complete name of the other real estate brokerage company

An agent had a listing that expired two (2) days ago. The owner has not decided yet whether to re-list the property for sale. Which of the following statements about the for sale sign in the front yard is correct?
- the agent must remove the sign until th

the agent must remove the sign until the listing is renewed

A buyer's agent may advertise or promote his or her participation in the sale of real estate:
- after a binding contract has been created
- after an offer has been made in writing
- after an original offer has been countered
- after the seller has verball

after a binding contract has been created

All of the following can be included in a listing contract except:
- length of the listing agreement
- automatic extension
- compensation the broker will charge
- all of the above can be in listing agreements

automatic extension

When a real estate broker contacts (a close friend) whose property is currently listed with another broker (they obviously are not close enough) it's:
- improper to speak about real estate trends
- improper to promote their own listings
- improper to indu

improper to induce them to break an existing listing contract

In the event an agent is terminated by their broker, unless there's a previous agreement that states otherwise, who owns the information gathered during the listing period?
- real estate agent
- managing real estate broker
- principal broker
- multiple li

principal broker

A Kentucky licensee selling out-of-state timeshares does not have to:
- get KREC approval of contracts used
- get KREC approval of promotional materials
- include a three-day right of rescission in their contracts
- use large 14-point type in purchase con

use large 14-point type in purchase contracts

Purchasers of time-share plans have the a right to cancel the contract without any penalty or obligation within ____ from the date of execution of a contract.
- 24 hours
- 2 days
- 3 days
- 1 week

3 days

Which of the following dates would not normally appear as part of an offer to purchase agreement?
- date of the signing of the offer
- date when offer expires
- date by which the closing shall occur
- date of the final walk through inspection

date of the final walk through inspection

If a Kentucky real estate agent helped write an offer up for a potential buyer, which of the following would not be required as part of an offer to purchase agreement?
- purchase price
- date and time when offer expires
- formal legal description
- who is

formal legal description

A copy of a document transmitted by FAX device shall:
- be immediately mailed by regular mail, postage prepaid and properly addressed, to the person to whom the FAX transmission is transmitted
- be shredded immediately
- be filed in the company file
- be

be immediately mailed by regular mail, postage prepaid and properly addressed, to the person to whom the FAX transmission is transmitted

A real estate company's Internet home page shall include the following information EXCEPT:
- the company's full name
- a statement indicating the principal broker is a Kentucky licensed real estate broker if the principal office location is outside of Ken

sales history and amount of commission earned in the last fiscal year

No real estate advertising shall be intentionally:
- false
- deceptive
- misleading
- all of the above

all of the above

A deceased broker's name may remain part of the firm name if:
- the deceased broker was licensed before June 19th,1976
- the deceased broker was licensed for at least 5 years
- at the time of death, the broker owned (2) or more branch offices
- there are

there are no additional limitations concerning naming

Advertising must be:
- in the name of the principal broker
- in the name of the real estate company
- in the name of the sales associate
- in either the name of the real estate company or the name of the principal broker

in either the name of the real estate company or the name of the principal broker

Any Kentucky licensee who wishes to engage in promotional activities in this Commonwealth for property located outside of this Commonwealth:
- needs to apply for commission approval before doing so
- needs to comply with administrative regulations
- needs

all of the above

Which of the following types of property for sale is not exempt from the owner having to provide a seller's disclosure form to the buyer?
- broker owned single family rental home
- agent owned shopping center
- 100 acre farm owned by broker
- agent owned

broker owned single family rental home

Which of the following is not required on a (SDF) sellers disclosure form?
- disclosure of a leaky basement
- disclosure of ghosts
- disclosure of previous water damage
- disclosure of condition and/or age of the roof

disclosure of ghosts

Which of the following topics is not specifically covered on the current SDF?
- source of water supply
- whether water pressure is below normal
- whether water has been tested
- cost of filters for purification system

cost of filters for purification system

The ________________ shall complete and sign the Seller's Disclosure form at the time he or she executes any listing agreement or similar agreement by which a licensee intends to market the property .
- seller
- broker
- buyer
- licensee's assistant

seller

In Kentucky, if a seller refuses to fill out an SDF form, the real estate agent can do all of the following except:
- refuse to take the listing
- fill out and sign the form for the seller
- ask the seller to acknowledge their refusal to fill out the form

fill out and sign the form for the seller

An offer is made and accepted on a listed single family home. The agent has a maximum of _________hours to provide the buyer with a copy of the seller's disclosure form.
- 48
- 60
- 72
- 120

72

If an agent becomes involved in selling a home that is currently For Sale By Owner and their buyer makes an offer that is accepted, which of the following is the maximum number of hours an agent has to provide the buyer with a copy of the seller's disclos

120

The maximum number of hours after an offer is accepted on an unlisted property for the agent to provide the buyer a copy of the seller's disclosure form is:
- 48
- 60
- 72
- 120

120

The maximum number of hours after an offer is accepted on an unlisted property for the agent to provide the buyer a copy of the seller's disclosure form is:
- 48
- 60
- 72
- 120

120

If an agent becomes involved in selling a home that is currently For Sale By Owner and their buyer makes an offer that is accepted, which of the following is the maximum number of hours an agent has to provide the buyer with a copy of the seller's disclos

120

Which fiduciary duty requires an agent to provide a receipt for earnest money deposits?
- accounting
- disclosure
- loyalty
- obedience

accounting

Which duties does an agent owe a customer?
- honesty
- good faith
- disclosure of known defects
- all of the above
- none of the above

all of the above

Which fiduciary duty requires an agent to always operate in the best interests of their client?
- loyalty
- disclosure
- accounting
- obedience

loyalty

A principal broker may designate one (1) or more affiliated licensees to act as agent for a seller or lessor, to the exclusion of all other licensees affiliated with the principal broker. The designation procedure shall be made in writing and communicated

all licensees affiliated with the principal broker

Which of the following actions is not grounds for suspension or revocation of a real estate license in Kentucky?
- gross negligence
- felony conviction
- commingling earnest money
- acting as a dual agent

acting as a dual agent

A property manager must send out accounting statements to the tenant of the property:
- every month
- once every quarter
- every 6 months
- not required

not required

A property manager must send out accounting statements to the owner of the property no less frequently than:
- every month
- once every quarter
- every 6 months
- not required

every month

Within sixty (60) days of the termination of a management agreement, a licensee shall send a final accounting to:
- the owner
- all tenants
- the licensee's broker
- the new manager

the owner

Concerning designated agency, if an agent has already received confidential information concerning the other party to the transaction, the principal broker should:
- require the licensee to disqualify himself/herself from being appointed as a designated a

require the licensee to disqualify himself/herself from being appointed as a designated agent for a party

If designated agency is being utilized, and the principal broker becomes aware of an unauthorized or inadvertent disclosure of confidential information relating to that transaction, they should:
- require notification to the ethics board of the Kentucky A

require notification to each client involved in a transaction

Which organization is tasked with writing specific real estate regulations in Kentucky?
- the state governor
- the Association of Real Estate License Officials
- the National Association of REALTORS
- the Kentucky Real Estate Commission

the Kentucky Real Estate Commission

The Kentucky real estate commissioners are appointed by:
- local realtors
- public vote
- past commissioners
- state governor

state governor

The (KREC) receives their regulatory authority from:
- the Governor
- the State Revised Statutes
- the National Association of REALTORS
- the National Consumer Protection Act

the State Revised Statutes

The Kentucky Real Estate Commission (KREC) consists of ______member(s) who shall be a citizen at large who is not associated with or financially interested in the practice or business regulated.
- 1
- 2
- 3
- 4
- 5

1

Which scenario would cause a "licensee" member of the KREC to be automatically removed from the commission?
- they let their real estate license lapse
- they are convicted of a misdemeanor
- they purchase a residential home in Tennessee
- they miss 3 (thr

they let their real estate license lapse

Which scenario would not cause a member of the KREC to be automatically removed from the commission?
- member was convicted of a crime involving moral turpitude
- member was convicted of felony theft/fraud
- licensee member obtained an appraisers license

licensee member obtained an appraisers license in Tennessee

Which of the following criteria is used for selecting the chairperson of the Kentucky Real Estate Commission?
- the selected member must be over 50 years of age
- the selection must take place on April 1st
- the selected member must have been in the busin

none of the above

The chairperson of the Kentucky Real Estate Commission (KREC) is chosen by:
- electoral college
- the governor
- Kentucky Association of Realtors
- fellow commissioners

fellow commissioners

Each member of the KREC receives an annual salary as part of their compensation. In addition they can be paid for:
- actual & necessary expenses
- actual & projected expenses
- projected & approved expenses
- projected & budgeted expenses

actual & necessary expenses

The Kentucky Real Estate Commission shall obtain such office space, furniture, stationery, fuel, light, and other proper conveniences as shall be ______________ necessary for carrying out the provisions of the statutes.
- reasonably
- excessively
- someti

reasonably

Who is responsible for adopting a seal by which the Kentucky Real Estate Commission authenticates its proceedings?
- the Kentucky Real Estate Commission
- the governor
- the state senate
- the executive director of the KREC

the Kentucky Real Estate Commission

Except for the fees and charges paid by the licensees to the commission and deposited in the real estate education, research, and recovery fund, all fees and charges collected by the commission shall be paid into the:
- general fund in the State Treasury

general fund in the State Treasury

Whose responsibility is it to notify the KREC if a real estate agent's personal mailing address has changed?
- KAR
- principal broker
- individual real estate agent
- local board of REALTORS

individual real estate agent

Within 120 days after the end of the fiscal year, the real estate commission shall ____________________ a statement of income and expenses as they relate to the education, research, and recovery fund.
- make public
- notify all brokers
- notify the govern

make public

The research and recovery fund must maintain a minimum amount of money for recovery and guaranty purposes at all times. The amount must be at least:
- $50,000
- $100,000
- $300,000
- $400,000

$400,000

A respondent shall file a Sworn Answer to Complaint if a complaint is filed against him or her and the answer shall:
- be notarized by a notary public
- identify the respondent
- both a and b
- neither a nor b

both a and b

The statute of limitations to file a complaint against a licensee with the Kentucky Real Estate Commission (KREC) is:
- 1 year
- 2 years
- 3 years
- 5 years

2 years

A complaint filed by an aggrieved must:
- be notarized by a notary public
- state the basis of the complaint fully and concisely, including the name of the broker or principal broker
- include a completed damages claimed form, with a copy of each receipt,

all of the above

Which of the following activities is considered unlawful to be performed by the KREC?
- issue subpoenas
- administer oaths
- pay witness fees
- enter a broker's office to inspect for fire safety violations

enter a broker's office to inspect for fire safety violations

Who of the following has the authority to issue subpoenas if they deem it necessary when investigating a complaint?
- KREC commission staff members
- Kentucky Real Estate Commission
- both a & b
- none of the above have authority

Kentucky Real Estate Commission

All complaints against licensees shall be submitted to the commission on forms furnished by whom?
- the Kentucky real estate commission
- the complaintant
- the licensee's broker
- the FBI

the Kentucky real estate commission

Hearing officers shall not:
- order any disciplinary action against a licensee
- preside over a KREC hearing
- prepare a recommended order for the KREC
- issue subpoenas

order any disciplinary action against a licensee

Disciplinary action imposed by the commission shall be automatically stayed during the pendency of an appeal to a circuit or appellate court, unless:
- otherwise indicated in the final order of the commission
- the disciplinary action involves sexual misc

otherwise indicated in the final order of the commission

Any party aggrieved by the action of the commission in refusing to grant a license or in ordering disciplinary action may appeal to the Circuit Court located where?
- where the licensee has their principal place of business
- where the applicant resides i

both a and b

The jurisdiction of the Kentucky Real Estate Commission includes:
- not-for-profit community associations
- neighborhood associations
- condominium associations
- none of the above

none of the above

A license shall be automatically _________ if the licensee fails to promptly notify the commission in writing of a change in broker affiliation.
- cancelled
- renewed
- revoked
- suspended

cancelled

If a real estate agent advertised listing information via their blog which they believed to be 100% correct, but in reality turned out to be false, the agent:
- can be held liable for the unintentional deception
- can't be held liable for the unintentiona

can be held liable for the unintentional deception

Without unreasonable delay is:
- as soon as possible
- 24 hours
- 2 business days
- 3 business days

3 business days

According to the Kentucky Real Estate Commission (KREC), false, misleading, or deceptive advertising is contrary to:
- opinion
- local customs
- fact
- National Association of REALTOR guidelines

fact

Who is responsible for furnishing a debit and credit type closing statement to a buyer and seller upon closing a real estate transaction if the financial institution or the attorney involved in a real estate transaction fails to furnish a closing statemen

the broker

At the time of signing any and all instruments, a real estate broker shall deliver a copy of all instruments to _______ executing the instruments where the instrument has been prepared by the broker or under his supervision.
- all parties
- bank represent

all parties

Any real estate broker who advertises real property at absolute auction is obligated to the public to sell said property to:
- the highest bona fide bidder on the day of the auction
- the highest bidder in the first 24 hours
- the first person that makes

the highest bona fide bidder on the day of the auction

Broadly speaking, an "affiant" is:
- someone who submits a sworn statement or signs an affidavit
- someone who offers a verbal accounting of what happened
- someone who is overly affectionate
- someone who is compliant to their broker

someone who submits a sworn statement or signs an affidavit

Which of the following statements about agent disclosure rules is not correct?
- agents must follow Kentucky real estate license law
- agents must follow applicable federal laws
- agents are required to disclose all additional information requested by cli

agents are required to disclose all additional information requested by clients

Which of the following actions by a relocation company is prohibited by the Kentucky Revised Statutes?
- requiring a 50 percent referral fee
- threatening to withhold relocation benefits because of an already established agency relationship
- requiring ag

threatening to withhold relocation benefits because of an already established agency relationship

If a licensee is terminated, a principal broker is required to return the license to the commission immediately. If the license is not received within ______ business days, the commission shall consider the license as released, and the principal broker sh

5 days

According to Kentucky statutes, the maximum fee that can be charged for a real estate examination fee is:
- $75
- $100
- $150
- $200

$100

Per Kentucky statutes, a broker or sales associate applicant's criminal record check fee shall not exceed:
- $10
- $30
- $75
- $100

$30

Per Kentucky statutes, the recovery fund fee shall not exceed:
- $10
- $30
- $75
- $100

$30

Per Kentucky statutes, broker's and sales associate's license renewal fee should be no more than:
- $10
- $30
- $75
- $100

$30

A mobile home that has been permanently attached to land requires which of the following licenses to sell?
- auction license
- real estate license
- securities license
- mobile home dealers license

real estate license

Under the broker lien law, in order for a broker to file a lien against a property, the broker must file the claim within ___ from the last day that services were performed.
- 2 months
- 3 months
- 4 months
- 6 months

6 months

In Kentucky, who is responsible for investigating claims of housing discrimination?
- H U D (Housing and Urban Development)
- KREC (Kentucky Real Estate Commission)
- KCHR (Kentucky Commission on Human Rights)
- REFHA (Real Estate Fair Housing Agency)

KCHR (Kentucky Commission on Human Rights)

In Kentucky, licenses are issued to mortgage brokers by the _____________.
- Department of Financial Institutions
- Kentucky Real Estate Commission
- State Board of Proprietary Lending
- Federal home loan mortgage association

Department of Financial Institutions

Which license is NOT required to sell personal property at an auction in KY for a fee?
- auction license
- broker license
- both a and b are not required

broker license

A buyer in Kentucky that alleges discrimination by a real estate agent and elects to file a complaint with the Kentucky Commission on Human Rights must do so within ______ of the alleged discrimination.
- 60 days
- 90 days
- 180 days
- 365 days

365 days

Which license is required to sell personal property at an auction in KY for a fee?
- auction license
- broker's license
- broker's & auction license
- bid caller's certificate

auction license

The requirement that most real estate contracts must be in writing to be enforceable is known as:
- statute of frauds
- statute of limitations
- statute of common law
- statute of prima facia

statute of frauds

A buyer in Kentucky that alleges discrimination by a real estate agent and elects to file a complaint with the Kentucky Commission on Human Rights must do so within 365 days beginning:
- from the date of the alleged discrimination
- from when the complain

from the date of the alleged discrimination

Which of the following is not required to be disclosed on a specific disclosure form?
- agency disclosure form
- radon disclosure form
- seller's disclosure form
- lead paint disclosure form

radon disclosure form