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PERRY REAL ESTATE COLLEGE FINAL EXAM
2025 UPDATED ACTUAL EXAM WITH
CORRECT SOLUTIONS.
A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence - correct answer- functional
obsolescence
In order to be a License member of the commission, a person
must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker - correct answer- all of the above
A licensed real estate professional acting as a point of contact
between two or more people in negotiating the sale, rental, or
purchase of a property is known as a(n)
-sales affiliate
-property manager
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-appraiser
-broker - correct answer- broker
A landowner constructed a building 7 stories high. Several
years later the municipality changed the zoning ordinance,
prohibiting buildings that exceed 6 stories in height. Which of
the following is true regarding the existing 7-story building?
-the owner must obtain a variance
-it is nonconforming use
-it is a conditional use
-the building must be demolished - correct answer- it is a
nonconforming use
All of the following should be a consideration in selecting a
tenant for the property EXCEPT
-size of the available space relative to the tenant's
requirements
-compatibility of the tenant's business with those of other
tenants
-tenant's ability to make the rental payments
-Ethnic background of the tenant and his or her employees -
correct answer- Ethnic background of the tenant and his or her
employees
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A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien. - correct answer- specific lien
All of the following are prohibited under the antitrust laws
EXCEPT
-Competing property management companies agreeing to
standardized management fees
-competing brokers allocating markets based on the value of
homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a
broker because of the fees that broker charges - correct
answer- a broker's setting a company commission schedule
A rancher owns a parcel of land on which oil was discovered. If
the rancher has not previously conveyed the oil rights, who
owns the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher - correct answer- the rancher
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Abel and Baker are joint tenants. Baker sells his interest to
Charlie. What is the relationship of Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest -
correct answer- they are tenants in common
All of the following would be acceptable as evidence of
marketable title EXCEPT
-a property owner's warranty deed
-an abstract and legal opinion
-Torren's certificate
-a title insurance policy - correct answer- a property owner's
warranty deed
The method of describing land that uses degrees, feet, and
monuments is known as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - correct answer- metes and bounds
system
PERRY REAL ESTATE COLLEGE FINAL EXAM
2025 UPDATED ACTUAL EXAM WITH
CORRECT SOLUTIONS.
A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence - correct answer- functional
obsolescence
In order to be a License member of the commission, a person
must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker - correct answer- all of the above
A licensed real estate professional acting as a point of contact
between two or more people in negotiating the sale, rental, or
purchase of a property is known as a(n)
-sales affiliate
-property manager
,2 | Page
-appraiser
-broker - correct answer- broker
A landowner constructed a building 7 stories high. Several
years later the municipality changed the zoning ordinance,
prohibiting buildings that exceed 6 stories in height. Which of
the following is true regarding the existing 7-story building?
-the owner must obtain a variance
-it is nonconforming use
-it is a conditional use
-the building must be demolished - correct answer- it is a
nonconforming use
All of the following should be a consideration in selecting a
tenant for the property EXCEPT
-size of the available space relative to the tenant's
requirements
-compatibility of the tenant's business with those of other
tenants
-tenant's ability to make the rental payments
-Ethnic background of the tenant and his or her employees -
correct answer- Ethnic background of the tenant and his or her
employees
,3 | Page
A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien. - correct answer- specific lien
All of the following are prohibited under the antitrust laws
EXCEPT
-Competing property management companies agreeing to
standardized management fees
-competing brokers allocating markets based on the value of
homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a
broker because of the fees that broker charges - correct
answer- a broker's setting a company commission schedule
A rancher owns a parcel of land on which oil was discovered. If
the rancher has not previously conveyed the oil rights, who
owns the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher - correct answer- the rancher
, 4 | Page
Abel and Baker are joint tenants. Baker sells his interest to
Charlie. What is the relationship of Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest -
correct answer- they are tenants in common
All of the following would be acceptable as evidence of
marketable title EXCEPT
-a property owner's warranty deed
-an abstract and legal opinion
-Torren's certificate
-a title insurance policy - correct answer- a property owner's
warranty deed
The method of describing land that uses degrees, feet, and
monuments is known as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - correct answer- metes and bounds
system
