Kentucky Portion - Real Estate Exam Questions With Correct Answers

How often is continuing education required for Kentucky real estate salespersons? - Answer Every year. An individual obtaining their first, original Kentucky license is exempt for the first two calendar years. When a licensee pays back the Recovery Fund: - Answer He/she must pay back all the reimbursed funds plus 10% interest on the amount. Who appoints the members of the Kentucky real estate commission (KREC)? - Answer The Governor Which of the following is a violation of Kentucky license law? A) a net listing B) a general warranty deed C) an open listing agreement D) selling over the sales threshold for your brokerage - Answer A) net listing. In Kentucky, all of the following are legal except for Net listings. A net listing is where the seller specifies a minimum acceptable sales price, and the listing agent receives as commission any completed offer over that price. How long are the terms for members of the KREC? - Answer Three years When is KREC annual E&O coverage paid? - Answer Coverage is paid with license renewal and has its cost published to the licensee 30 days before license renewal. How many members are there in the KREC? - Answer Seven Seven total, at least six of whom, immediately prior to the date of their appointment have been residents of the state for ten years and whose vocation for a period of at least ten years shall have been that of an active real estate licensee. An agent changed her surname. The agent - Answer Must give written notification to the KREC of the change. Kentucky have a real estate license reciprocity agreement with: - Answer All States. Per Kentucky Law, the specific consensual relationship between the principal broker and the client for a contemplated transaction, by oral or written agreement: - Answer Agency. Per 201 KAR 11:011 (5), the specific consensual relationship between the principal broker and the client for a contemplated transaction, by oral or written agreement is an Agency. What is one of the main purposes of the Real Estate Education, Research and Recovery Fund? - Answer For people to get recourse of uncollected judgement against licensees. The Real Estate Education, Research and Recovery Fund is a special fund established by Kentucky Real Estate Code to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. It also funds additional things like education for licensees as well as research; its primary focus is to protect consumers though. Currently, the Real Estate Education, Research and Recovery Fund aggregate amount may not exceed: - Answer $20,000 Under Kentucky law, a broker is required to keep copies of records for - Answer 5 years. Catherines license has been revoked by the Kentucky Real Estate Commission. When can she apply to get her license reissued? - Answer At the end of five years since her license was revoked. Broker Misty moved into her new home on April 5th. The KREC should receive notice of her move: - Answer By April 15th The commission shall be notified in writing of a change of residence address within ten (10) days. Kentucky Real Estate Law mandates agents have errors and omissions insurance. What is the purpose of the insurance? - Answer The purpose is to protect agents against claims of inadequate work or negligent actions. Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions. How many hours of continuing education are required for Kentucky real estate salesperson's? - Answer All individuals who hold an active Kentucky salespersons license are required to complete 6 hours of Commission approved continuing education during each renewal period. Information received or sent, verbally or in writing including transaction paperwork and files, by a licensee, that may materially compromise the negotiating position of a client or prospective client: - Answer Confidential information. Two (2) residential units sharing a single roof is called a: - Answer Duplex A type of residential dwelling with two (2) floors that is connected to one (1) or more dwellings by a common wall or walls. Title to the unit and lot vest in the owner who shares a fractional interest with other owners in any common areas. - Answer Townhouse Earnest money delivered to a licensee in conjunction with a real estate sales contract: A) Offer B) Counter offer C) Down deposit D) Contract deposit - Answer a contract deposit is earnest money delivered to a licensee in conjunction with a real estate sales contract. Any person engaging in real estate activity at a brokerage without a license shall be guilty of a - Answer Class A misdemeanor for a first offense and a Class D felony for any subsequent offenses. Under agency law in Kentucky dual agency is: A) illegal. B) legal with the written consent of one party. C) legal with the written consent of the broker. D) legal with the written consent of all parties. - Answer Legal with the written consent from all parties prior to entering into negotiations. A physical place of business for a real estate brokerage company in addition to the main office location that the commission may enter to inspect required documents or allegations of violations of KRS Chapter 324: - Answer A branch office The minimum amount that Kentucky law requires that may be maintained in the Real Estate Education, Research and Recovery Fund: A) $20,000 B) $100,000 C) $200,000 D) $400,000 - Answer $400,000 what is the maximum that the real estate education, research and recovery fund will pay for combined payments to all claimants against any one licensee? A) $75,000 B) $20,000 C) $100,000 D) $50,000 - Answer D) $50,000 If a license, acting in the capacity of a licensee, has been duly found guilty of fraud in the violation of one (1) or more of the provisions of KRS 324.160, and upon the conclusion of a final order entered by the commission, or by the courts, if appealed, the commission, may pay to the aggrieved person or persons an aggregate amount not to exceed twenty thousand dollars ($20,000) per claimant with combined payments to all claimants against any one licensee, not to exceed fifty thousand dollars ($50,000), if the licensee has refused to pay the claim within a period of twenty (20) days of entry of a final order and if the amount or amounts of money in question are certain and liquidated. Next Question The seller has not yet paid this year's property taxes, which are $2,400 for the period from January 1 to December 31. On July 16, the house is sold. How are the taxes adjusted at closing? A) Debit buyer $1,300; credit seller $1,100 B) Credit buyer $1,500; debit seller $1,500 C) Credit buyer $1,300; debit seller $1,300 D) Credit buyer $1,250; debit seller $1,150 - Answer C) credit buyer 1,300 ; debit seller 1,300 Because the taxes haven't yet been paid, the buyer receives credit for the period the seller lived in the house: 6 1⁄2 months at $200 per month = $1,300. The buyer receives credit at closing for that amount and the seller is debited for the same amount. A buyer makes a written offer on April 9, 2003 and gives the broker a $1500 check. The buyer instructs the broker to hold the check until April 10, 2003, regardless of when the offer is accepted. In this situation, the broker should: A) Refuse to accept the offer and check under these terms B) Present the offer and inform the seller that the check is to be held until April 10, 2003. C) Deposit the check into escrow the next business day following acceptance of the offer. D) Give the check to the seller if the offer is accepted regardless of the date. - Answer B) present offer and inform seller that the check is to be held until April 10, 2003. A real estate broker negotiates a business opportunity transaction. His commission is paid partly in cash and partly as an ownership stake in the business. This is considered: A) unethical. B) a package deal. C) legal. D) illegal. - Answer C) legal A broker may accept a commission in any manner that is legal in nature. In Kentucky, the licenses of all licensees shall be kept on file? A) in the office of the kentucky board of real estate. B) in the office of attorney for the real estate brokerage C) Licensees licenses are not kept on file, it is all online. D) in the office in which they are actively engaged and affiliated. - Answer D) The licenses of all licensees shall be kept on file in the office in which they are actively engaged and affiliated.