KENTUCKY REAL ESTATE CORE REVIEWS ANSWERS
AND QUESTIONS SET A+
✔✔Under what circumstances can an out-of-state principal broker engage in
commercial real estate brokerage in Kentucky? - ✔✔If the out-of-state principal broker
has a valid cooperation agreement with a Kentucky-licensed cooperating broker.
✔✔List some of the things an out-of-state broker working under a cooperation
agreement do. - ✔✔Work in cooperation with a Kentucky cooperating broker at all
times.
Provide the Kentucky cooperating broker with a copy of the out-of-state principal
broker's current real estate license.
Only engage in acts of commercial real estate transactions as referenced in the
cooperation agreement.
Provide the Kentucky cooperating broker with all documentation relating to the specific
transaction governed by the cooperation agreement.
Keep the Kentucky cooperating broker fully informed of all activities through prompt
communications.
Perform all actions under the direct supervision and control of the Kentucky cooperating
broker.
Be bound by and comply with Kentucky real estate law and the regulations of the
Commission at all times.
Not engage in improper conduct.
End of Pag
✔✔If an out-of-state principal broker or an out-of-state licensee fails to comply with the
Kentucky statutes governing engaging in commercial real estate brokerage by out-of-
state principal brokers and out-of-state licensees or engages in improper conduct as set
out in Kentucky license law, the Commission may impose one or more of the following
sanctions or penalties against that person: - ✔✔Levy a fine of up to $1,000.
Issue a formal or informal reprimand.
Report any misconduct to the licensing authority of any state.
Revoke or suspend the authority of the out-of-state principal broker or out-of-state
licensee to perform acts of commercial real estate brokerage.
, Publish and maintain a public registry of any sanctions or penalties imposed by the
Commission.
Report suspected violations of Kentucky statutes governing perjury and other offences
to the Commonwealth's attorney of the county in which the office of the Commission is
located.
✔✔A broker mails his client a final accounting 90 days after being fired as the property
manager. Did the agent act properly or not? - ✔✔No, he was required to send the final
paperwork within 60 days
✔✔of 8If an out-of-state broker violates Kentucky license law, what is the maximum fine
the Commission may impose upon him or her? - ✔✔$1,000
✔✔3 of 100What can an injured party in a breach of contract situation do to attempt to
minimize the damage? - ✔✔File a civil lawsuit
Request an injunction in court that prevents the seller from attempting to sell the
property to another party
Politely request the full return of the buyer's earnest money deposit
✔✔What formula or calculation is used to determine if it is worthwhile for a builder to
buy a piece of raw land? - ✔✔Cost Approach
✔✔Cap Rate - ✔✔NOI / Purchase Price (Capitalization Rate)
✔✔Net Sheet - ✔✔an estimate of the net proceeds to the seller, and should be
prepared based upon the offer being considered
✔✔Gross Income Multiplier (GIM) - ✔✔A method of appraising income-producing
property based on a multiple of the annual gross income; also called a gross rent
multiplier.
✔✔Who typically pays off the seller's existing mortgage lender? - ✔✔Escrow
✔✔Broker Hannah just received a $5,000 escrow money deposit. How long does she
have to deposit it under Kentucky law? - ✔✔"Without unreasonable delay"
✔✔Under the Rectangular survey system, which direction do the base lines run on a
map? - ✔✔east-west
✔✔Where can agents and brokers find additional rules and restrictions for various forms
of advertising options? - ✔✔"Do not call" lists
MLS IDX (Internet Data eXchange)
NAR Membership Marks Manual
AND QUESTIONS SET A+
✔✔Under what circumstances can an out-of-state principal broker engage in
commercial real estate brokerage in Kentucky? - ✔✔If the out-of-state principal broker
has a valid cooperation agreement with a Kentucky-licensed cooperating broker.
✔✔List some of the things an out-of-state broker working under a cooperation
agreement do. - ✔✔Work in cooperation with a Kentucky cooperating broker at all
times.
Provide the Kentucky cooperating broker with a copy of the out-of-state principal
broker's current real estate license.
Only engage in acts of commercial real estate transactions as referenced in the
cooperation agreement.
Provide the Kentucky cooperating broker with all documentation relating to the specific
transaction governed by the cooperation agreement.
Keep the Kentucky cooperating broker fully informed of all activities through prompt
communications.
Perform all actions under the direct supervision and control of the Kentucky cooperating
broker.
Be bound by and comply with Kentucky real estate law and the regulations of the
Commission at all times.
Not engage in improper conduct.
End of Pag
✔✔If an out-of-state principal broker or an out-of-state licensee fails to comply with the
Kentucky statutes governing engaging in commercial real estate brokerage by out-of-
state principal brokers and out-of-state licensees or engages in improper conduct as set
out in Kentucky license law, the Commission may impose one or more of the following
sanctions or penalties against that person: - ✔✔Levy a fine of up to $1,000.
Issue a formal or informal reprimand.
Report any misconduct to the licensing authority of any state.
Revoke or suspend the authority of the out-of-state principal broker or out-of-state
licensee to perform acts of commercial real estate brokerage.
, Publish and maintain a public registry of any sanctions or penalties imposed by the
Commission.
Report suspected violations of Kentucky statutes governing perjury and other offences
to the Commonwealth's attorney of the county in which the office of the Commission is
located.
✔✔A broker mails his client a final accounting 90 days after being fired as the property
manager. Did the agent act properly or not? - ✔✔No, he was required to send the final
paperwork within 60 days
✔✔of 8If an out-of-state broker violates Kentucky license law, what is the maximum fine
the Commission may impose upon him or her? - ✔✔$1,000
✔✔3 of 100What can an injured party in a breach of contract situation do to attempt to
minimize the damage? - ✔✔File a civil lawsuit
Request an injunction in court that prevents the seller from attempting to sell the
property to another party
Politely request the full return of the buyer's earnest money deposit
✔✔What formula or calculation is used to determine if it is worthwhile for a builder to
buy a piece of raw land? - ✔✔Cost Approach
✔✔Cap Rate - ✔✔NOI / Purchase Price (Capitalization Rate)
✔✔Net Sheet - ✔✔an estimate of the net proceeds to the seller, and should be
prepared based upon the offer being considered
✔✔Gross Income Multiplier (GIM) - ✔✔A method of appraising income-producing
property based on a multiple of the annual gross income; also called a gross rent
multiplier.
✔✔Who typically pays off the seller's existing mortgage lender? - ✔✔Escrow
✔✔Broker Hannah just received a $5,000 escrow money deposit. How long does she
have to deposit it under Kentucky law? - ✔✔"Without unreasonable delay"
✔✔Under the Rectangular survey system, which direction do the base lines run on a
map? - ✔✔east-west
✔✔Where can agents and brokers find additional rules and restrictions for various forms
of advertising options? - ✔✔"Do not call" lists
MLS IDX (Internet Data eXchange)
NAR Membership Marks Manual
