LICENSE LAW PRACTICE EXAM QUESTIONS
WITH 100% ACCURATE ANSWERS
Which of the following can result in a license being canceled?
A. Misrepresenting a property to a buyer
B. Ignoring the Commission's notice to renew a license
C. Failing to answer a complaint from the Commission
D. Showing a property without the seller's consent - Accurate answers B
When a license is revoked, the licensee
A. will be able to come back to work as soon as the probation period is over
B. must take the state exam within 2 years of the revocation to get the license back
C. can never get the license back
D. must wait a minimum of 5 years to try to get the license back - Accurate answers D
Which of the following would be TRUE regarding the suspension of a license?
A. The state exam must be passed to reinstate a suspended license
B. Suspension is for five years
C. A suspended license is only reinstated at the discretion of the Commission
D. The licensee cannot earn compensation while a license is suspended - Accurate answers
D
The Kentucky Real Estate Commission obtained an injunctive order against Tom Smith. The
most likely circumstance for obtaining the injunctive order against Mr. Smith would be to:
A. stop an unlicensed person from conducting real estate activities
B. require Mr. Smith to get a real estate license because he works as an employee for an
apartment complex
C. prevent a hearing before the Commission
D. stop Mr. Smith from selling his rental property to out-of-state buyers - Accurate answers
A
A temporary license may be issued to a broker for the purpose of:
A. affiliating with another principal broker because the broker is closing his existing business
B. conducting real estate transactions which are further than 100 miles from his main office
C. conducting agricultural transactions
D. operating more than one real estate company - Accurate answers A
,A complaint has been filed with the Commission and does not contain prima facie evidence. At
this point the Commission:
A. must investigate the complaint
B. will notify the complainant that they have 10 days to revise the complaint
C. will require the licensee to answer the complaint
D. can do nothing with the complaint - Accurate answers B
Which of the following is CORRECT regarding complaints?
A. All complaints must be answered within 30 days
B. The licensee's answer to a complaint must be delivered to the complainant
C. A complainant has 180 days from the date of probable cause to file a complaint
D. Complaints are sent by certified mail to the business address of the licensee - Accurate
answers D
The Commission may order any of the following sanctions for violation of Chapter 324 EXCEPT:
A. suspension of a license for 7 years
B. reprimand
C. probation for nine months
D. revocation of a license for 10 years - Accurate answers D
Before denying a license or before ordering disciplinary action against a sales associate, the
Commission will order a hearing. Who will be required to attend the hearing?
A. The sales associate only
B. The sales associate and his or her principal broker or designated representative
C. The principal broker only
D. The associate's attorney - Accurate answers B
The Kentucky Real Estate Commission has jurisdiction over which of the following?
A. Homeowner's associations
B. Auctioneers
C. Real estate licensees
D. Auctioneers and real estate licensees - Accurate answers C
The Recovery Fund was established as part of the Real Estate Education, Research and Recovery
Fund in 1972 to cover:
A. Errors and omissions committed by a licensee in a real estate transaction
B. Fraudulent acts of a licensee in a real estate transaction
C. Misrepresentation by a licensee of a material fact in a real estate transaction
, D. Any infraction committed by a license agent in any real estate transaction - Accurate
answers B
The Recovery Fund will pay an amount not to exceed $20,000 per claim for an agent who
refuses to pay the amount within 20 days of an order to do so. If the Fund pays for the agent:
A. the license of the agent will be canceled
B. the agent will have to repay the fund plus 10% interest
C. the agent may still operate
D. the agent's errors and omissions insurance will cover the cost of legal fees for the agent -
Accurate answers B
A licensed agent was found guilty of stealing personnel items from a listed property. In addition
to revocation of license, the agent;
A. may be required to purchase the property he stole the items from
B. may be sentenced to five years in prison
C. may be fined $1,000 and sentenced to 6 months in prison by the court
D. is not subject to criminal penalties - Accurate answers C
All of the following would be exempt from licensing when conducting a real estate transaction
EXCEPT:
A. an employee of a real estate broker who is managing property on behalf of the broker
B. an investor who is selling his own property
C. an employee of a bank who is selling property owned by the bank
D. an attorney who is conducting real estate brokerage activities for a client - Accurate
answers D
An individual who applies for a real estate broker's license in Kentucky must be at least:
A. 21 years old
B. 20 years old
C. 19 years old
D. 18 years old - Accurate answers D
In order to get a broker's license in the state of Kentucky, the applicant must:
A. have 2 years experience as a sales associate in Kentucky
B. complete 21 academic credit hours in real estate education
C. complete a 3 credit or 48 hour brokerage management course
D. have 1 year experience as a sales associate averaging 20 hours per week for that 1 year -
Accurate answers C
WITH 100% ACCURATE ANSWERS
Which of the following can result in a license being canceled?
A. Misrepresenting a property to a buyer
B. Ignoring the Commission's notice to renew a license
C. Failing to answer a complaint from the Commission
D. Showing a property without the seller's consent - Accurate answers B
When a license is revoked, the licensee
A. will be able to come back to work as soon as the probation period is over
B. must take the state exam within 2 years of the revocation to get the license back
C. can never get the license back
D. must wait a minimum of 5 years to try to get the license back - Accurate answers D
Which of the following would be TRUE regarding the suspension of a license?
A. The state exam must be passed to reinstate a suspended license
B. Suspension is for five years
C. A suspended license is only reinstated at the discretion of the Commission
D. The licensee cannot earn compensation while a license is suspended - Accurate answers
D
The Kentucky Real Estate Commission obtained an injunctive order against Tom Smith. The
most likely circumstance for obtaining the injunctive order against Mr. Smith would be to:
A. stop an unlicensed person from conducting real estate activities
B. require Mr. Smith to get a real estate license because he works as an employee for an
apartment complex
C. prevent a hearing before the Commission
D. stop Mr. Smith from selling his rental property to out-of-state buyers - Accurate answers
A
A temporary license may be issued to a broker for the purpose of:
A. affiliating with another principal broker because the broker is closing his existing business
B. conducting real estate transactions which are further than 100 miles from his main office
C. conducting agricultural transactions
D. operating more than one real estate company - Accurate answers A
,A complaint has been filed with the Commission and does not contain prima facie evidence. At
this point the Commission:
A. must investigate the complaint
B. will notify the complainant that they have 10 days to revise the complaint
C. will require the licensee to answer the complaint
D. can do nothing with the complaint - Accurate answers B
Which of the following is CORRECT regarding complaints?
A. All complaints must be answered within 30 days
B. The licensee's answer to a complaint must be delivered to the complainant
C. A complainant has 180 days from the date of probable cause to file a complaint
D. Complaints are sent by certified mail to the business address of the licensee - Accurate
answers D
The Commission may order any of the following sanctions for violation of Chapter 324 EXCEPT:
A. suspension of a license for 7 years
B. reprimand
C. probation for nine months
D. revocation of a license for 10 years - Accurate answers D
Before denying a license or before ordering disciplinary action against a sales associate, the
Commission will order a hearing. Who will be required to attend the hearing?
A. The sales associate only
B. The sales associate and his or her principal broker or designated representative
C. The principal broker only
D. The associate's attorney - Accurate answers B
The Kentucky Real Estate Commission has jurisdiction over which of the following?
A. Homeowner's associations
B. Auctioneers
C. Real estate licensees
D. Auctioneers and real estate licensees - Accurate answers C
The Recovery Fund was established as part of the Real Estate Education, Research and Recovery
Fund in 1972 to cover:
A. Errors and omissions committed by a licensee in a real estate transaction
B. Fraudulent acts of a licensee in a real estate transaction
C. Misrepresentation by a licensee of a material fact in a real estate transaction
, D. Any infraction committed by a license agent in any real estate transaction - Accurate
answers B
The Recovery Fund will pay an amount not to exceed $20,000 per claim for an agent who
refuses to pay the amount within 20 days of an order to do so. If the Fund pays for the agent:
A. the license of the agent will be canceled
B. the agent will have to repay the fund plus 10% interest
C. the agent may still operate
D. the agent's errors and omissions insurance will cover the cost of legal fees for the agent -
Accurate answers B
A licensed agent was found guilty of stealing personnel items from a listed property. In addition
to revocation of license, the agent;
A. may be required to purchase the property he stole the items from
B. may be sentenced to five years in prison
C. may be fined $1,000 and sentenced to 6 months in prison by the court
D. is not subject to criminal penalties - Accurate answers C
All of the following would be exempt from licensing when conducting a real estate transaction
EXCEPT:
A. an employee of a real estate broker who is managing property on behalf of the broker
B. an investor who is selling his own property
C. an employee of a bank who is selling property owned by the bank
D. an attorney who is conducting real estate brokerage activities for a client - Accurate
answers D
An individual who applies for a real estate broker's license in Kentucky must be at least:
A. 21 years old
B. 20 years old
C. 19 years old
D. 18 years old - Accurate answers D
In order to get a broker's license in the state of Kentucky, the applicant must:
A. have 2 years experience as a sales associate in Kentucky
B. complete 21 academic credit hours in real estate education
C. complete a 3 credit or 48 hour brokerage management course
D. have 1 year experience as a sales associate averaging 20 hours per week for that 1 year -
Accurate answers C
