Kentucky Real Estate Principles - Final Practice Test Graded A

Kentucky Real Estate Principles - Final Practice Test Graded A A 90-day listing agreement is a type of _____. ️Special Agency A broker induces an owner to sell by telling him that Muslims are moving into the neighborhood. This broker is guilty of _____. ️blockbusting. A party with all ownership rights in a property is said to hold ______. ️Legal title A party's failure to perform a specific action or obligation included in a written contract can later be construed as what by the other party in the agreement? ️Breach of Contract A person who is 16 years of age does not meet the agency relationship or contract requirements covered under which answer? ️Legal Capacity A property has sold for $185,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 65% share from his broker? ️$3,908 A property is being appraised by the cost approach. The appraiser estimates that the land is worth $10,000 and the replacement cost of the improvements is $75,000. Total depreciation from all causes is $7,000. What is the indicated value of the property? ️$78,000 A REALTOR® is preparing a valuation of a property for a fee on a sliding scale depending on what value of the property he comes up with. Is this allowed? ️No, fees for preparing appraisals or other valuations must not be contingent upon the amount of the appraisal or valuation. A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have? ️To sue for specific performance According to Article 1, what is the primary obligation of a REALTOR®? ️To protect and promote the interests of their client and to treat all parties honestly. All the licensees of Red Cardinal Realty and Blue Wildcat Realty met together and decided not to do future business with Hilltopper Realty because of their low commission rates. This is an example of _____. ️a group boycott. An Accountant, Lawyer, Insurance Agent, and Principal Broker all share what types of relationships with their clients? ️Fiduciary An agent can do what in a Dual Agency situation? ️Show properties to the buyer that are not owned by the same seller An apartment complex generates $905,000 in effective rental income and $14,000 in other income. The same complex has $415,000 in operating expenses and $39,000 as reserves. What is the net operating income of the complex? ️$465,000 An ethics complaint hearing requires screening by the _______. ️Grievance Committee. An exclusive listing agreement may contain ________. ️Listing term of less than one year Anne obtains a new loan @ 80% of her home's price of $740,000. The loan constant is 5.645. What is Anne's monthly payment? ️$3,342 Article 10 mandates that REALTORS® may not deny professional services on the basis of any of the protected classes. What areas of their practice does this Article apply to? ️This applies to both the public services they provide and in their real estate employment practices. As it pertains to Article 13 of the NAR's Code of Ethics, what must agents not do in contractual situations? ️Engage in the unauthorized practice of law Before ordering disciplinary action against a licensee, the Commission must _____. ️order a hearing. Before putting in too much effort to convince a seller to list with you, you should ask the seller _______. ️"Are you currently listed with another brokerage?" Broker Hannah just received a $5,000 escrow money deposit. How long does she have to deposit it under Kentucky law? ️"Without unreasonable delay" Broker Pearl represents buyer Emma. Pearl heard that seller Misty will accept $20,000 less than the listed price. Under which duty is Pearl obligated to share this information with Emma? ️Loyalty Business ethics applies to the conduct of whom? ️Individuals and the entire organization Buyer Immanuel's broker finds out information about the seller which will help Immanuel in the transaction. Loyalty is one of the duties of _____. ️protection Carla has been walking across a path on John's property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla? ️An easement by prescription Dan is buying Jessica's house. The closing date (day belongs to seller) of the sale transaction is March 9th. Current year real estate taxes are $1,900 (will be billed to Dan next year). Use the 365-day method for prorating. What is the Jessica's share of the real estate taxes for the current year? ️$354 For a dispute to qualify for arbitration, which of the following conditions must be met? ️It must be a contractual dispute or a non-contractual dispute as specified in Standard of Practice 17-4. It must be between REALTORS® associated with different firms. It must be a real estate related dispute. All of the above.----- For what transaction type is a "seller's disclosure of conditions form" required? ️For sales and purchases involving single-family residential real estate dwellings. Gerold is 55, single, and resides on his 3 acre property. Why will Gerold qualify for a homestead exemption? ️Because he lives on the property How long must a principal broker maintain property management records for? ️5 years How many acres combined are there in the NE ¼ and NW ¼ regions of Section 5? ️320---- ¼ (or 25%) of a section has 160 acres in it, so the answer is 320 acres (or 2 160 acre se