KENTUCKY STATE REAL ESTATE
EXAM PRACTICE QUESTIONS AND
ANSWERS
Kentucky listing agent Ana gives her seller client a blank Seller's Disclosure of
Property Conditions form. How should Ana advise her client about this form? -
ANSWER-"It's your responsibility to complete this form honestly, according to your
actual knowledge of the property."
Mardee is representing Carol in the sale of her condo in Murray, and they've signed
an exclusive agency listing agreement. If Carol finds her own buyer, does she owe
Mardee a commission? - ANSWER-No, because Carol procured the buyer. With
exclusive agency, the seller retains the right to sell herself and not pay a
commission. Exclusive right-to-sell agreements guarantee payment to the listing
agent no matter who brings the buyer.
Bert, a Kentucky licensee, moved from Boone County to Caldwell County. What must
he do? - ANSWER-Notify KREC of his address change.
You're a Kentucky licensee representing a buyer who's making an offer on a two-
bedroom condo. You ask the seller's agent for a copy of the ______. - ANSWER-
Condominium Seller's Certificate. The Condominium Seller's Certificate discloses
information about a condominium association's declaration, bylaws, budget, and
regulations. It's requested by the seller, completed by the condo association, and
provided to the prospective buyer.
The ______ is responsible for advising a seller about proper completion of the Seller's
Disclosure of Property Conditions form in Kentucky. - ANSWER-Listing agent
Top of the Hill Realty in Kentucky decides it's time to clean out the files. What's the
most likely first step? - ANSWER-Review the firm's and KREC's record retention and
disposal rules.
To meet the requirements of the statute of frauds in Kentucky, an agreement must -
ANSWER-clearly identify the subject matter of the contract, present the essential
terms and conditions of the contract, and identify the contracting parties.
Non-resident broker Jenny doesn't maintain a place of business in Kentucky, even
though she practices real estate in Lexington. Which of the following is true of this
situation? - ANSWER-A non-resident licensed broker, like Jenny, isn't required to
maintain a place of business in Kentucky if she maintains a business place in her
state of original licensure. Non-resident licensed brokers aren't required to maintain
a place of business in Kentucky if they maintain a business place in their state of
original licensure or their state doesn't require Kentucky licensees holding licenses
in that state to maintain an office in that state.
, Dean's brokerage firm in Dry Ridge adopted an electronic transaction management
system. Which of the following statements is true about brokerage policies related
to the system? - ANSWER-System permissions are on a need-to-know basis and
passwords are required.
To whom may a closing company in Frankfort disburse commission checks? -
ANSWER-Directly to the sales associates. With permission from the respective
brokers, commission checks may be distributed directly to the sales associate and
to both brokerage firms.
The Kentucky Real Estate Commission is empowered under_ to _ by _ - ANSWER-
under Chapter 324 of the Kentucky Revised Statutes to protect the public's interest
by regulating, testing, and licensing Kentucky real estate professionals.
If the licensee can't pay or refuses to pay an aggrieved party after being found
guilty of fraud in Kentucky, who pays the aggrieved party? - ANSWER-KREC
If a licensee fails to renew her license, when will the Kentucky Real Estate
Commission cancel it? - ANSWER-April 1. Licensees who fail to renew their licenses
should expect KREC to cancel their license by April 1. KREC also charges a late
renewal fine of $200 if the licensee does eventually renew.
Marla forgot to renew her Kentucky real estate license and has been charged with
engaging in unlicensed brokerage. Which of the following is true? - ANSWER-Marla
may not face penalties if she reactivates her license. KREC may exempt a previous
licensee from penalty if the licensee takes appropriate steps to reactivate the
license.
What's the purpose of the Agency Disclosure Statement used in Kentucky residential
transactions? - ANSWER-To confirm the role of the agent and obtain consent from
the client
Rickie is a real estate licensee in Horse Cave. She makes regular calls to customers
and past clients to market her services. If someone she calls asks to be put on her
internal "do not call" list, what is Rickie required to do? - ANSWER-Immediately place
the customer's number on her internal do not call list, and avoid making unsolicited
calls from that point forward
A Kentucky real estate license is required ______. - ANSWER-When performing real
estate activities for others, for compensation of any kind.
What options do licenses have when it comes to purchasing e and o insurance? -
ANSWER-In Kentucky, licensees have three potential options for E&O insurance: a
program KREC administers, independent insurers, or their principal broker. Not all
principal brokers offer E&O insurance.
Marty has worked for Wildcat Brokerage for seven years. He decides to transfer to
his father-in-law's firm. What does he need to do? - ANSWER-He needs to notify
KREC of his firm change and pay a $10 fee.
EXAM PRACTICE QUESTIONS AND
ANSWERS
Kentucky listing agent Ana gives her seller client a blank Seller's Disclosure of
Property Conditions form. How should Ana advise her client about this form? -
ANSWER-"It's your responsibility to complete this form honestly, according to your
actual knowledge of the property."
Mardee is representing Carol in the sale of her condo in Murray, and they've signed
an exclusive agency listing agreement. If Carol finds her own buyer, does she owe
Mardee a commission? - ANSWER-No, because Carol procured the buyer. With
exclusive agency, the seller retains the right to sell herself and not pay a
commission. Exclusive right-to-sell agreements guarantee payment to the listing
agent no matter who brings the buyer.
Bert, a Kentucky licensee, moved from Boone County to Caldwell County. What must
he do? - ANSWER-Notify KREC of his address change.
You're a Kentucky licensee representing a buyer who's making an offer on a two-
bedroom condo. You ask the seller's agent for a copy of the ______. - ANSWER-
Condominium Seller's Certificate. The Condominium Seller's Certificate discloses
information about a condominium association's declaration, bylaws, budget, and
regulations. It's requested by the seller, completed by the condo association, and
provided to the prospective buyer.
The ______ is responsible for advising a seller about proper completion of the Seller's
Disclosure of Property Conditions form in Kentucky. - ANSWER-Listing agent
Top of the Hill Realty in Kentucky decides it's time to clean out the files. What's the
most likely first step? - ANSWER-Review the firm's and KREC's record retention and
disposal rules.
To meet the requirements of the statute of frauds in Kentucky, an agreement must -
ANSWER-clearly identify the subject matter of the contract, present the essential
terms and conditions of the contract, and identify the contracting parties.
Non-resident broker Jenny doesn't maintain a place of business in Kentucky, even
though she practices real estate in Lexington. Which of the following is true of this
situation? - ANSWER-A non-resident licensed broker, like Jenny, isn't required to
maintain a place of business in Kentucky if she maintains a business place in her
state of original licensure. Non-resident licensed brokers aren't required to maintain
a place of business in Kentucky if they maintain a business place in their state of
original licensure or their state doesn't require Kentucky licensees holding licenses
in that state to maintain an office in that state.
, Dean's brokerage firm in Dry Ridge adopted an electronic transaction management
system. Which of the following statements is true about brokerage policies related
to the system? - ANSWER-System permissions are on a need-to-know basis and
passwords are required.
To whom may a closing company in Frankfort disburse commission checks? -
ANSWER-Directly to the sales associates. With permission from the respective
brokers, commission checks may be distributed directly to the sales associate and
to both brokerage firms.
The Kentucky Real Estate Commission is empowered under_ to _ by _ - ANSWER-
under Chapter 324 of the Kentucky Revised Statutes to protect the public's interest
by regulating, testing, and licensing Kentucky real estate professionals.
If the licensee can't pay or refuses to pay an aggrieved party after being found
guilty of fraud in Kentucky, who pays the aggrieved party? - ANSWER-KREC
If a licensee fails to renew her license, when will the Kentucky Real Estate
Commission cancel it? - ANSWER-April 1. Licensees who fail to renew their licenses
should expect KREC to cancel their license by April 1. KREC also charges a late
renewal fine of $200 if the licensee does eventually renew.
Marla forgot to renew her Kentucky real estate license and has been charged with
engaging in unlicensed brokerage. Which of the following is true? - ANSWER-Marla
may not face penalties if she reactivates her license. KREC may exempt a previous
licensee from penalty if the licensee takes appropriate steps to reactivate the
license.
What's the purpose of the Agency Disclosure Statement used in Kentucky residential
transactions? - ANSWER-To confirm the role of the agent and obtain consent from
the client
Rickie is a real estate licensee in Horse Cave. She makes regular calls to customers
and past clients to market her services. If someone she calls asks to be put on her
internal "do not call" list, what is Rickie required to do? - ANSWER-Immediately place
the customer's number on her internal do not call list, and avoid making unsolicited
calls from that point forward
A Kentucky real estate license is required ______. - ANSWER-When performing real
estate activities for others, for compensation of any kind.
What options do licenses have when it comes to purchasing e and o insurance? -
ANSWER-In Kentucky, licensees have three potential options for E&O insurance: a
program KREC administers, independent insurers, or their principal broker. Not all
principal brokers offer E&O insurance.
Marty has worked for Wildcat Brokerage for seven years. He decides to transfer to
his father-in-law's firm. What does he need to do? - ANSWER-He needs to notify
KREC of his firm change and pay a $10 fee.
