Kentucky State Real Estate Practice Exam (Ky Law) Solved 100%

The Kentucky Real Estate Commission determined that a buyer was damaged by the fraudulent action of a licensee in the amount of $50,000. If the responsible licensee does not pay the claim, the Commission may pay out from the Real Estate Education, Research, and Recovery Fund a MAXIMUM amount of: - Answer $20,000 An action for recovery from the Kentucky Real Estate Education, Research, and Recovery Fund MUST be commenced within how many years from actual knowledge of the cause of action or the time when circumstances would reasonably have put the aggrieved party on notice of the cause of action? - Answer Two (2) Years The Kentucky Real Estate Commission is NOT responsible for the following activities - Answer commission or fee dispute arbitrations. A licensee negotiating the sale of a condominium tells a prospective buyer that the licensee absolutely guarantees that if the buyer closes on the property now, and resells it in a year, the buyer will realize no less than a $10,000 profit. The buyer purchases the condominium, and sells it a year later at a $5,000 loss. Which of the following situations is a possible consequence to the licensee? - Answer The licensee may be subject to possible penalty by the Kentucky Real Estate Commission.