KENTUCKY REAL ESTATE SALES ASSOCIATE EXAM
PRACTICE QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The Kentucky Real Estate Commission (KREC) is responsible for:
A. Tax collection
B. Licensing and regulating real estate professionals
C. Mortgage lending
D. Property appraisal
Answer: B
Rationale: KREC regulates real estate licensing and professional conduct in Kentucky.
2. A real estate sales associate in Kentucky must work under a:
A. Attorney
B. Principal broker
C. Lender
D. Appraiser
Answer: B
Rationale: Sales associates must be supervised by a principal broker.
3. Real property includes:
A. Cars
B. Land and permanent improvements
C. Furniture
D. Cash
Answer: B
Rationale: Real property includes land and fixtures.
4. Personal property is also called:
,A. Fixtures
B. Chattels
C. Estates
D. Titles
Answer: B
Rationale: Personal movable property is chattel.
5. A fixture is:
A. Movable item
B. Permanently attached item
C. Loan document
D. Lease
Answer: B
Rationale: Fixtures become part of real estate when attached.
6. The Statute of Frauds requires:
A. Oral agreements
B. Real estate contracts in writing
C. Verbal leases
D. Informal deals
Answer: B
Rationale: Real estate contracts must be written to be enforceable.
7. Fiduciary duty includes:
A. Loyalty
B. Advertising
C. Lending
D. Tax filing
Answer: A
Rationale: Loyalty is a key fiduciary duty.
8. Which is NOT a fiduciary duty?
, A. Confidentiality
B. Accounting
C. Marketing
D. Obedience
Answer: C
Rationale: Marketing is not a fiduciary duty.
9. Fair Housing Act prohibits discrimination based on:
A. Income
B. Protected classes
C. Job title
D. Education
Answer: B
Rationale: Race, color, religion, sex, etc. are protected.
10. Steering is:
A. Legal advice
B. Directing clients based on protected class
C. Appraisal
D. Loan processing
Answer: B
Rationale: Illegal discrimination practice.
11. Blockbusting is:
A. Renovation
B. Inducing panic selling based on demographic changes
C. Inspection
D. Financing
Answer: B
Rationale: Illegal fear-based inducement.
12. A deed is used to:
PRACTICE QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The Kentucky Real Estate Commission (KREC) is responsible for:
A. Tax collection
B. Licensing and regulating real estate professionals
C. Mortgage lending
D. Property appraisal
Answer: B
Rationale: KREC regulates real estate licensing and professional conduct in Kentucky.
2. A real estate sales associate in Kentucky must work under a:
A. Attorney
B. Principal broker
C. Lender
D. Appraiser
Answer: B
Rationale: Sales associates must be supervised by a principal broker.
3. Real property includes:
A. Cars
B. Land and permanent improvements
C. Furniture
D. Cash
Answer: B
Rationale: Real property includes land and fixtures.
4. Personal property is also called:
,A. Fixtures
B. Chattels
C. Estates
D. Titles
Answer: B
Rationale: Personal movable property is chattel.
5. A fixture is:
A. Movable item
B. Permanently attached item
C. Loan document
D. Lease
Answer: B
Rationale: Fixtures become part of real estate when attached.
6. The Statute of Frauds requires:
A. Oral agreements
B. Real estate contracts in writing
C. Verbal leases
D. Informal deals
Answer: B
Rationale: Real estate contracts must be written to be enforceable.
7. Fiduciary duty includes:
A. Loyalty
B. Advertising
C. Lending
D. Tax filing
Answer: A
Rationale: Loyalty is a key fiduciary duty.
8. Which is NOT a fiduciary duty?
, A. Confidentiality
B. Accounting
C. Marketing
D. Obedience
Answer: C
Rationale: Marketing is not a fiduciary duty.
9. Fair Housing Act prohibits discrimination based on:
A. Income
B. Protected classes
C. Job title
D. Education
Answer: B
Rationale: Race, color, religion, sex, etc. are protected.
10. Steering is:
A. Legal advice
B. Directing clients based on protected class
C. Appraisal
D. Loan processing
Answer: B
Rationale: Illegal discrimination practice.
11. Blockbusting is:
A. Renovation
B. Inducing panic selling based on demographic changes
C. Inspection
D. Financing
Answer: B
Rationale: Illegal fear-based inducement.
12. A deed is used to:
