Ky Board of Auctioneer Refined Test
With Verified Questions and Answers
AbsoluteAuction-CORRECTANSWER-
Aftertheauctioneercallsforbidsonanarticleorlot,thatarticleorlotcannotbe
withdrawnunlessnobidismadewithinareasonabletime
Auctionwithreserve-CORRECTANSWER-
whenauctioneermaywithdrawthepropertyatanytimeuntilheorsheannouncesthecompletion
ofthesale.Thepotentialbiddersaretheofferors
Auctionwithreserveandthesellersreservingtherighttobid-CORRECTANSWER-
Theauctioneermaywithdrawthegoodsatanytimeuntilheannouncescompletionofthesale-
KRS355.2-
328.Thegoodsmaybeputupsubjecttotheseller'sconfirmationorsubjecttoacertainreservepri
ce-
KRS330.220(5).Theseller,orsomeoneactingontheseller'sbehalf,maybid,providedthatfulldi
sclosurehasbeenmadethatlibertyforsuchbiddingisretained.Nolicenseeshallknowinglyrece
ivesuchabidwithoutthisfulldisclosure-KRS330.220(6)(c)andKRS355.2-328(4).
RealEstate/RealProperty-CORRECTANSWER-
Meansrealestateinitsordinarymeaning,includingbutnotlimitedtotimeshares,options,leaseh
olds,andotherinterestslessthanleaseholdsofanyformortypewhichmaybelawfullykeptoroffe
redforsale,exchange,orlease.Realestateusuallyincludesallimprovementstotheland,sucha
sbuildings,fencesandfixtures.Titleforrealestatesoldatauctionpassesatclosingwithdelivery
andacceptanceofthedeed.
FeeSimple-CORRECTANSWER-
Thehighesttypeofrealestateownershiprecognizedbylaw.Itiscompleteownershipforalltimea
ndisthemostcommontypeofownership.
LifeEstate-CORRECTANSWER-
Atemporaryownershipofrealestate.Usuallythelifeestateownershipexpiresatthedeathofade
signatedperson.Thistypeofownershipismoreoftenusedinfamilysituationswhereonefamily
memberretainsownershipofthefamilypropertyuntilhis/herdeath,atwhichtimeownershiptran
sferstoanotherfamilymember.Interestinpropertyheldinalifeestatemaybesold,butrightstoth
epropertyendatthedeathoftheindividualtowhomthelifeestatewasoriginallygiven.
EminentDomain-CORRECTANSWER-
Thefederal,stateandlocalgovernment'srighttotakepropertyafteradequatecompensationfor
thepurposeofusingthelandforthepublicgood.Examplesincludelandtakenforhighways,urba
nrenewalprojects,airportexpansion,schoolsandparks,plusfortheuseofpowercompanies,te
lephonecompanies,naturalgascompaniesandrailroads.
, Lease-CORRECTANSWER-
Anagreementthatconveystheuseandpossession,butnotownership,ofpropertyforaspecifie
dperiod.Unlessaleaseisreleasedorexpires,thatleaseremainswiththepropertyevenifthatpro
pertyissold.Leasesforayearormoremustbeinwriting.
Encumbrances-CORRECTANSWER-
Anybindingadverseinterest,claim,chargeorliabilityonapropertywhichinsomemannerburde
nsordiminishesthevalueoftheproperty.Commonencumbrancesincludethefollowing:
Lien-CORRECTANSWER-
Anadverseclaimorchargeagainstapropertywhenthatpropertyisbeingusedascollateralforad
ebtoralegalinterestcreateduponnon-
paymentofadebtsuchasunpaidtaxesorcontractor'sbills.Taxliensusuallytakepriorityoveroth
erliensandarepaidofffirstwhenapropertyissold.Whenpropertyissold,anyunpaidliensareusu
allypaidoffatthetimeoftransfer(closing).Iftheliensarenotpaid,transferredorreleasedattheti
meofclosingthentheywouldremainontheproperty.
Mortgage-CORRECTANSWER-
Adocumentwhichpledgespropertyassecurityforaloan.Amortgageisatypeoflienthatbecome
svoidonpaymentorperformanceaccordingtostipulatedterms.Anadditionalmortgageonapro
pertyiscalledasecondorjuniormortgage.Usuallywhenapropertyissold,thefirstmortgageispa
idoffbeforethesecondorjuniormortgage.
Restrictions-CORRECTANSWER-
Privateagreementsplacedinthepublicrecordthataffectorlimittheuseofrealproperty.Restricti
onsincludethingssuchasbuildingspecificationsonnewhomesinasubdivisionorlimitationsast
othefutureuseofaproperty.
Easements-CORRECTANSWER-
Arightacquiredbyonepartytothelimiteduseofpropertyownedbyanother.Easementsareoften
foraccessestolandlockedpropertiesandrightsofwayforspecialpurposessuchaspowerortele
phonelines.Easementsusuallypasswiththetitletoaproperty.
CommonEncumbrances-CORRECTANSWER-
a.LienB.mortgagec.restrictionsd.easements
Grantor-CORRECTANSWER-
Thesellerofrealproperty,thegrantor,conveystitleofthepropertytothegrantee,thebuyer.Theg
rantormustbelegallycompetenttoconveytitletothepropertyandifthegrantorhasa
spouse,she/hemustalsosignthelistingcontractandthedeed.
Grantee-CORRECTANSWER-
Thebuyerofrealproperty,thegrantee,receivestitleofthepropertyfromthegrantor,the
seller.Thegranteemustbecorrectlyidentifiedinthedeed.
With Verified Questions and Answers
AbsoluteAuction-CORRECTANSWER-
Aftertheauctioneercallsforbidsonanarticleorlot,thatarticleorlotcannotbe
withdrawnunlessnobidismadewithinareasonabletime
Auctionwithreserve-CORRECTANSWER-
whenauctioneermaywithdrawthepropertyatanytimeuntilheorsheannouncesthecompletion
ofthesale.Thepotentialbiddersaretheofferors
Auctionwithreserveandthesellersreservingtherighttobid-CORRECTANSWER-
Theauctioneermaywithdrawthegoodsatanytimeuntilheannouncescompletionofthesale-
KRS355.2-
328.Thegoodsmaybeputupsubjecttotheseller'sconfirmationorsubjecttoacertainreservepri
ce-
KRS330.220(5).Theseller,orsomeoneactingontheseller'sbehalf,maybid,providedthatfulldi
sclosurehasbeenmadethatlibertyforsuchbiddingisretained.Nolicenseeshallknowinglyrece
ivesuchabidwithoutthisfulldisclosure-KRS330.220(6)(c)andKRS355.2-328(4).
RealEstate/RealProperty-CORRECTANSWER-
Meansrealestateinitsordinarymeaning,includingbutnotlimitedtotimeshares,options,leaseh
olds,andotherinterestslessthanleaseholdsofanyformortypewhichmaybelawfullykeptoroffe
redforsale,exchange,orlease.Realestateusuallyincludesallimprovementstotheland,sucha
sbuildings,fencesandfixtures.Titleforrealestatesoldatauctionpassesatclosingwithdelivery
andacceptanceofthedeed.
FeeSimple-CORRECTANSWER-
Thehighesttypeofrealestateownershiprecognizedbylaw.Itiscompleteownershipforalltimea
ndisthemostcommontypeofownership.
LifeEstate-CORRECTANSWER-
Atemporaryownershipofrealestate.Usuallythelifeestateownershipexpiresatthedeathofade
signatedperson.Thistypeofownershipismoreoftenusedinfamilysituationswhereonefamily
memberretainsownershipofthefamilypropertyuntilhis/herdeath,atwhichtimeownershiptran
sferstoanotherfamilymember.Interestinpropertyheldinalifeestatemaybesold,butrightstoth
epropertyendatthedeathoftheindividualtowhomthelifeestatewasoriginallygiven.
EminentDomain-CORRECTANSWER-
Thefederal,stateandlocalgovernment'srighttotakepropertyafteradequatecompensationfor
thepurposeofusingthelandforthepublicgood.Examplesincludelandtakenforhighways,urba
nrenewalprojects,airportexpansion,schoolsandparks,plusfortheuseofpowercompanies,te
lephonecompanies,naturalgascompaniesandrailroads.
, Lease-CORRECTANSWER-
Anagreementthatconveystheuseandpossession,butnotownership,ofpropertyforaspecifie
dperiod.Unlessaleaseisreleasedorexpires,thatleaseremainswiththepropertyevenifthatpro
pertyissold.Leasesforayearormoremustbeinwriting.
Encumbrances-CORRECTANSWER-
Anybindingadverseinterest,claim,chargeorliabilityonapropertywhichinsomemannerburde
nsordiminishesthevalueoftheproperty.Commonencumbrancesincludethefollowing:
Lien-CORRECTANSWER-
Anadverseclaimorchargeagainstapropertywhenthatpropertyisbeingusedascollateralforad
ebtoralegalinterestcreateduponnon-
paymentofadebtsuchasunpaidtaxesorcontractor'sbills.Taxliensusuallytakepriorityoveroth
erliensandarepaidofffirstwhenapropertyissold.Whenpropertyissold,anyunpaidliensareusu
allypaidoffatthetimeoftransfer(closing).Iftheliensarenotpaid,transferredorreleasedattheti
meofclosingthentheywouldremainontheproperty.
Mortgage-CORRECTANSWER-
Adocumentwhichpledgespropertyassecurityforaloan.Amortgageisatypeoflienthatbecome
svoidonpaymentorperformanceaccordingtostipulatedterms.Anadditionalmortgageonapro
pertyiscalledasecondorjuniormortgage.Usuallywhenapropertyissold,thefirstmortgageispa
idoffbeforethesecondorjuniormortgage.
Restrictions-CORRECTANSWER-
Privateagreementsplacedinthepublicrecordthataffectorlimittheuseofrealproperty.Restricti
onsincludethingssuchasbuildingspecificationsonnewhomesinasubdivisionorlimitationsast
othefutureuseofaproperty.
Easements-CORRECTANSWER-
Arightacquiredbyonepartytothelimiteduseofpropertyownedbyanother.Easementsareoften
foraccessestolandlockedpropertiesandrightsofwayforspecialpurposessuchaspowerortele
phonelines.Easementsusuallypasswiththetitletoaproperty.
CommonEncumbrances-CORRECTANSWER-
a.LienB.mortgagec.restrictionsd.easements
Grantor-CORRECTANSWER-
Thesellerofrealproperty,thegrantor,conveystitleofthepropertytothegrantee,thebuyer.Theg
rantormustbelegallycompetenttoconveytitletothepropertyandifthegrantorhasa
spouse,she/hemustalsosignthelistingcontractandthedeed.
Grantee-CORRECTANSWER-
Thebuyerofrealproperty,thegrantee,receivestitleofthepropertyfromthegrantor,the
seller.Thegranteemustbecorrectlyidentifiedinthedeed.
