Perry Real Estate College Final Exam
2026 Questions and Answers
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)
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,-sales affiliate
-property manager
-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
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,-Ethnic background of the tenant and his or her employees - Correct answer-Ethnic
background of the tenant and his or her employees
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?
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, -the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher - Correct answer-the rancher
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
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2026 Questions and Answers
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)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,-sales affiliate
-property manager
-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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,-Ethnic background of the tenant and his or her employees - Correct answer-Ethnic
background of the tenant and his or her employees
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?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, -the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher - Correct answer-the rancher
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
