KENTUCKY REAL ESTATE STUDYS CORRECT
ANSWERS AND QUESTIONS SET A+
✔✔When a licensee leaves a brokerage the broker must - ✔✔immediately return the
license to the commission
✔✔When the Commission receives a sales associate's license from a principal broker,
following the release of the sales associate by the broker, the Commission will notify the
salesperson that: - ✔✔The sales associate must re-affiliate with another broker within
30 days, or;
The sales associate must request by letter that his or her license be placed in escrow.
✔✔What will happen if a principal broker fails to return a license to the Commission
within 5 business days? - ✔✔The broker will be considered to be engaging in improper,
fraudulent, or dishonest dealing and therefore in violation of license law.
✔✔A licensee must deliver a completed Consumer Guide to Agency Relationships
before what? - ✔✔Before receiving confidential information from a prospective party; or
before entering a representation agreement; or at the conclusion of the second contact
between the licensee and a prospective party.
✔✔When must an agency disclosure agreement be given to a consumer and signed? -
✔✔At the time a buyer is making an offer and at the time a seller is reviewing that offer.
✔✔f a real estate transaction involves agents from the same real estate brokerage
company, which section of the agency disclosure statement must be completed and
what must be designated? - ✔✔Section II must be completed and it must designate
whether the transaction involves designated agency or dual agency by checking the
appropriate box.
✔✔Can a principal broker designate him or herself as a designated agent? - ✔✔No
, ✔✔If a third party acquires an interest in property being sold, how is a licensee
representing a party in the sale obligated to disclose information to the third party? -
✔✔A licensee representing a party in the sale of real property has no obligation to
disclose to a party who acquires an interest in that real property, any information not
required by Kentucky license law or applicable federal law.
✔✔On a separate sheet, list the disclosures that must be included on a seller's
disclosure of conditions form. - ✔✔The seller's disclosure of conditions form must
provide disclosure by the seller of:
Basement condition and whether it leaks.
Roof condition and whether it leaks.
Source and condition of water supply.
Source and condition of sewage service.
Working condition of component systems.
Information about construction or remodeling.
Homeowners association information.
Methamphetamine contamination.
Any other matters the Commission deems appropriate.
✔✔When should the seller complete the disclosure of conditions form? - ✔✔When they
execute the listing agreement. Must be provided by listing agent within 72 hours of an
offer to purchase
✔✔If there is no listing agreement the licensee must deliver the disclosure form no later
than - ✔✔120 hours after the creation of contract for sale.
✔✔Other Contract Requirements - ✔✔Disposition of Instruments Prepared by Broker
At the time of signing all instruments, a real estate broker must provide a copy of all
instruments to all parties executing the instruments where the instrument has been
prepared by the broker or under his or her supervision.
Closing Statements
A real estate broker must provide a debit and credit type closing statement to the buyer
and seller upon closing a real estate transaction if the financial institution or the attorney
involved in a real estate transaction fails to furnish a closing statement.
Exclusive Listing Contract Continuation
A real estate broker must not be a party to an exclusive listing contract that contains an
automatic continuation of the listing period beyond the fixed termination date.
Exclusive Authority Retained by Original Broker
A real estate broker must not induce any party to a contract to brea
✔✔On a separate sheet, list some of the points a listing contract must include. -
✔✔Listing price of the property, unless the sale is to be by auction.Date and time of the
signing of the listing contract for all parties who sign.Date and time of expiration of the
listing contract.Fee or compensation agreed upon.Street, address or location of the real
estate listed for sale.Signatures of all owners.
ANSWERS AND QUESTIONS SET A+
✔✔When a licensee leaves a brokerage the broker must - ✔✔immediately return the
license to the commission
✔✔When the Commission receives a sales associate's license from a principal broker,
following the release of the sales associate by the broker, the Commission will notify the
salesperson that: - ✔✔The sales associate must re-affiliate with another broker within
30 days, or;
The sales associate must request by letter that his or her license be placed in escrow.
✔✔What will happen if a principal broker fails to return a license to the Commission
within 5 business days? - ✔✔The broker will be considered to be engaging in improper,
fraudulent, or dishonest dealing and therefore in violation of license law.
✔✔A licensee must deliver a completed Consumer Guide to Agency Relationships
before what? - ✔✔Before receiving confidential information from a prospective party; or
before entering a representation agreement; or at the conclusion of the second contact
between the licensee and a prospective party.
✔✔When must an agency disclosure agreement be given to a consumer and signed? -
✔✔At the time a buyer is making an offer and at the time a seller is reviewing that offer.
✔✔f a real estate transaction involves agents from the same real estate brokerage
company, which section of the agency disclosure statement must be completed and
what must be designated? - ✔✔Section II must be completed and it must designate
whether the transaction involves designated agency or dual agency by checking the
appropriate box.
✔✔Can a principal broker designate him or herself as a designated agent? - ✔✔No
, ✔✔If a third party acquires an interest in property being sold, how is a licensee
representing a party in the sale obligated to disclose information to the third party? -
✔✔A licensee representing a party in the sale of real property has no obligation to
disclose to a party who acquires an interest in that real property, any information not
required by Kentucky license law or applicable federal law.
✔✔On a separate sheet, list the disclosures that must be included on a seller's
disclosure of conditions form. - ✔✔The seller's disclosure of conditions form must
provide disclosure by the seller of:
Basement condition and whether it leaks.
Roof condition and whether it leaks.
Source and condition of water supply.
Source and condition of sewage service.
Working condition of component systems.
Information about construction or remodeling.
Homeowners association information.
Methamphetamine contamination.
Any other matters the Commission deems appropriate.
✔✔When should the seller complete the disclosure of conditions form? - ✔✔When they
execute the listing agreement. Must be provided by listing agent within 72 hours of an
offer to purchase
✔✔If there is no listing agreement the licensee must deliver the disclosure form no later
than - ✔✔120 hours after the creation of contract for sale.
✔✔Other Contract Requirements - ✔✔Disposition of Instruments Prepared by Broker
At the time of signing all instruments, a real estate broker must provide a copy of all
instruments to all parties executing the instruments where the instrument has been
prepared by the broker or under his or her supervision.
Closing Statements
A real estate broker must provide a debit and credit type closing statement to the buyer
and seller upon closing a real estate transaction if the financial institution or the attorney
involved in a real estate transaction fails to furnish a closing statement.
Exclusive Listing Contract Continuation
A real estate broker must not be a party to an exclusive listing contract that contains an
automatic continuation of the listing period beyond the fixed termination date.
Exclusive Authority Retained by Original Broker
A real estate broker must not induce any party to a contract to brea
✔✔On a separate sheet, list some of the points a listing contract must include. -
✔✔Listing price of the property, unless the sale is to be by auction.Date and time of the
signing of the listing contract for all parties who sign.Date and time of expiration of the
listing contract.Fee or compensation agreed upon.Street, address or location of the real
estate listed for sale.Signatures of all owners.
