KY Real Estate Exam Prep Questions With Verified Answers

What do Datums and Benchmarks measure? - Answer Elevation Joint Tenancy - Answer The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenants. What is a Preliminary Report? - Answer Issued by title insurance companies - gives buyers an overview of title history and any liens/encumbrances - it outlines what insurance companies will/wont cover on its policy Easement Appurtenant - Answer Runs with the land - grants the right to use adjoining land Civil Rights Act of 1866 - Answer Prohibits any exceptions for discrimination based on race/color What is the Superfunds Amendments and Reauthorization Act (SARA)? - Answer Amendment to CERCLA that says 'innocent landowners' arent responsible for clean up of hazardous contamination What is the purpose of Building Code ? - Answer It establishes workmanship standards when someone is building an addition to their property Developer that has a project planned that doesnt conform to the community zoning regulations and wants to make a change request would make a request to who? - Answer the Zoning Board of Appeals for a variance What is a right to use timeshare? - Answer It conveys the right of POSSESSION but not ownership (therefore cant be passed on or sold) What do lenders consider equally - Answer Borrower and Property - the property's value (collateral) and the borrowers ability to repay the loan What is a Bridge Loan? - Answer A temporary loan often used by buyers who have not yet closed on their prior property - short term -interest only What is a Land Contract? - Answer Buyer will pay the seller. - Seller will hold legal title of the property during the term of the loan In a PUD (planned unit development) who owns the common areas? - Answer The common areas a jointly owned and maintained by the condo owners or HOA What is a Cash Flow Report? - Answer Usually created monthly and shows the current financial status of the property - accounts for income received (rent) and expenses (utilities, personnel, repairs) What is an Attachment Lien? - Answer When the courts place an encumbrance on the property of a defendant in a lawsuit for monetary damages - ex: damages related to a car accident When does Acceptance occur? - Answer When all parties have signed a given contract When does Binding Acceptance occur? - Answer When the accepted offer is delivered What is the highest fine that KREC can impose for a single charge of improper conduct? - Answer $1,000 Which of the following compensations may a KY broker pay to a TN licensee? - Answer A referral fee and/or commission How long must KY transaction records be retained for? - Answer 5 years from the consummation date Who is responsible for completing the Condo Seller Certificate? - Answer The Condo Association completes it upon the request of the seller -they have 10 days to complete In KY when a tenant finds themselves in a DV situation and must get a protective order what can they do? - Answer They may terminate the rental agreement early, giving 30 days' written notice When is a Lead Paint Disclosure required? - Answer For any home built before 1978 What contract provision will buyers use to specify which items they would like included as part of the sale? - Answer Inclusuions - appliances, washers, dryers, fridge All real estate contracts must be...? - Answer In writing Who fills out the Agency Disclosure Statement? - Answer The agent according to the type of agency provided Are brokers allowed to pay a fee to service providers for referrals? - Answer No, RESPA and license laws prohibit it What is it called when an individual performs brokerage services without a license? - Answer Unlicensed Brokerage (punishable by fines and imprisonment) A life estate can be described as... - Answer Ownership, possession and control for the duration of someones lifetime Tiers in the rectangular government survey are formed by... - Answer Parallel Township Lines What is an Encumbrance? - Answer A defect on title that can be monetary or physical What is the Housing and Community Development Act of 1974? - Answer Included gender or sex in the list of protected classes What is Real Property? - Answer land and anything attached to it (real estate plus all of the interests, benefits and rights included in ownership) What is a Net Listing? - Answer The seller specifies a desired price for the property and agrees to pay the broker any amount received thats more than that price What is Price? - Answer The actual amount that a buyer pays for a property What is a timeshare use? - Answer Allows the right to occupy the property for some given amount of time - doesnt convey ownership What is a Triple Net Lease? - Answer Includes taxes, insurance and maintenance (TIM) What is the Clayton Act? - Answer it supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers/acquisitions that would create a monoply