KENTUCKY STATE REAL ESTATE PRACTICE
ASSESSMENT TEST 2026 TESTED QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ 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.
ASSESSMENT TEST 2026 TESTED QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ 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.
