Kentucky State Real Estate Practice Exam 3 Questions With Correct Answers

Under Kentucky law, which of the following would not be included in an offer to purchase? A. The purchase price, the amount of the contract deposit and who is to hold the deposit B. Date and time when the offer or counteroffer expires C. The agent who prepared the offer and the commission he/she will be paid D. The closing date and when possession will be given to the buyer - Answer The agent who prepared the offer and the commission he/she will be paid If a person does not renew in the proper timeframe the person will be fined up to A. $100.00 B. $200.00 C. $500.00 D. $1,000.00 - Answer $200.00 Under Kentucky law, which of the following would not be included in a listing contract? A. The commission and the expiration of the listing B. The listing price and the signatures of all owners C. The expiration of the offer and the buyers names D. Special directions of the owner - Answer The expiration of the offer and buyers names. A seller has offered two round-trip tickets within the continental United States to anyone who buys his property. The agent A. cannot advertise the tickets because it is an inducement. B. cannot advertise the tickets until it is approved by the Board. C. can advertise the tickets with the permission of the KREC. D. can advertise the seller's inducement of the tickets. - Answer can advertise the seller's inducement of the tickets Which of the following statements would trigger an agent having the buyer sign an Agency Disclosure Statement? A. "I would like to set an appointment to see the house at 229 Main Street." B. "How many bedrooms does the house at 119 Main Street have?" C. "You're one of three agents that I'm interviewing, why should I work you and your company?" D. "I'm ready to write on offer on the property." - Answer I'm ready to write an offer on the property A seller has told his listing agent that if sells the property within the first two weeks of listing, the seller will give the agent a $2,000 bonus. Under which of the following circumstances could the agent be paid the bonus? A. If the agent owns the real estate company. B. If he receives the bonus from his broker. C. If the KREC gives the agent consent to receive the bonus. D. If the agent has a broker's license, not a sales associate license. - Answer If he receives the bonus from his broker Agent John has an appointment with a seller to list a property. The agent explained the office policies and told the seller that the advertising would consist of internet ads, the yard sign, and newspaper adverting twice a week. After two months on the market, the agent had not advertised in the newspaper. Based on this situation A. the agent appears to have made false promises. B. the license law does not regulate advertising. C. newspaper advertising is not required and the agent has no liability to the seller. D. the seller cannot specify how an agent advertises listed property. - Answer the agent appears to have made false promises Effective January 1, 2020 which of the following statements is FALSE regarding continuing education? A. Unless exempt, all actively licensed agents shall complete twelve hours of continuing education every biennial license period. B. Six of the twelve hours shall be completed in the first year of the biennial license period or the license shall be automatically cancelled. C. All licensee may not attend more than six hours of continuing education classes in the first year of the biennial term. D. Six of the twelve hours of continuing education shall be in real estate law. - Answer All licensee may not attend more than six hours of continuing education classes in the first year of the biennial term Which of the following properties would an agent be required to give the seller an agency disclosure statement? A. Sale of real estate at auction B. Sale of a shopping center C. Sale of a single family residential property D. Sale of a twenty unit apartment building - Answer Sale of a single family residential property An agent has been found guilty of violating license law. The penalties imposed by the KREC usually become effective A. upon the conclusion of the hearing. B. within thirty days of the Commission's decision. C. after the conclusion of all appeals .D. within twenty days of the filing of the appeal. - Answer after the conclusion of all appeals Tom, a licensed agent, is selling his home. After looking at the property. the buyer wants to purchase Tom's home. The buyer has a local attorney write the offer which Tom accepts. Regarding this transaction A. Tom is required to disclose his status as an agent in the offer to purchase. B. Tom must disclose, in writing, his interest in the property to the buyer. C. Because he is licensed, Tom is required to sell his property through his broker's company. D. Tom is not required to sell his property through his broker or make any disclosures to the public when selling his property. - Answer Tom must disclose, in writing, his interest in the property to the buyer