Kentucky Real Estate Exam Questions With Verified Answers

Accretion - Answer Increase of land by deposit of sand or soil washed up naturally from a river, lake or sea ADA Tenant - Answer Tenant with disability. Must accommodate for tenants/residents with disabilities. Priority is to get party to the door. Can make changes, must be giving parking if available, do not have to ask to make changes Broker's License - Answer License to act as intermediary on behalf of others for a commission. Bringing together of parties interested in making a real estate transaction. Bilateral Contract - Answer All parties are legally bound to to act as prescribed Unilateral Contract - Answer One party is bound to contract or act Brownfields - Answer Defunct, derelict, or abandoned commercial or industrial sites, many have toxic wastes Condemnation - Answer Proceeding to exercise the power of eminent domain Commingling - Answer Illegal act of placing client or customer funds with personal funds. Commission Earned - Answer payment to a broker service for sale or purchase of a property; usually a percentage Cooperative - Answer Residential multi-unit building whose title is held by a trust or corporation that is owned and operated for the people living within the building who are the beneficial owners of the trust or shareholders of the corporation. Commission Split - Answer Commission earned from selling a property is split between licensee and principal broker Civil Rights Act of 1866 - Answer An act that prohibits racial discrimination in the sale and rental of housing Customer - Answer The third party nonrepresented consumer for who some level of service is provided Client - Answer The principal Dual Agency - Answer Representing both parties for a transaction. Unethical unless both parties agree to it Dower and Curtsy - Answer Dower: Wife acquires property her husband held or acquired during marriage if he dies. Curtsy: A life estate given to surviving husband in real estate owned by his deceased wife Deed IN Trust - Answer Grants a trustee under a land trust full of power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustees use of these powers. Trust Deed; Deed OF Trust - Answer Used to create a mortgage lein by which the borrower conveys title to a trustee (third party) who holds it as security for the benefit of the note holder (lender) Delivery & Acceptance - Answer Title is delivered by grantor and accepted by grantee Devise - Answer Gift of property through a will Depreciation - Answer Appraisal- Loss of value in property due to any cause Real Estate Investment- Expense deduction for tax purposes taken over the period of ownership of income property Do Not Call Registry - Answer national call registry monitored by FTC; list of consumers who do not wish to be called Executed Contract - Answer Contract in which all parties have fulfilled their promises and thus performed the contract Exclusive Right to Sell Listing - Answer Listing contract where owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner's terms and agrees to pay broker a commission when the property is sold by the broker, owner, or another broker Earnest Money - Answer Money deposited by a buyer under the terms of a contract to be forfeited if the buyer defaults Fee Simple - Answer Highest interest in real estate recognized by law. holder is entitled to all rights to the property Fee Simple Absolute - Answer Maximum possible estate or right of ownership of real property continuing forever Fee Simple Defeasible - Answer Holder has fee simple title that may be divested upon the occurrence of a specified or non specified event.