Kentucky Real Estate Practice Exam Questions & Answers Correct 100%

There can be no more than _____ members of any political party serving on the Commission at one time. - Answer four A rebate could be: - a TV -A gift certificate - a return of paid commissions -none of the above - Answer a return of paid commissions The Commission has the ability to conduct a(n) ___________ when alleged escrow actions warrant emergency action. -trial -dispute -investigation -emergency hearing - Answer emergency hearing The seller's disclosure form must be completed - Answer at the time of the listing A net listing is defined as listing in which the seller obtains a specific price and the agent receives: -a state commission -the rest of the profit -nothing -none of the above - Answer the rest of the profit If a Kentucky licensee wants to promote an out-of-state property in the State of Kentucky, they MUST: -seek permission from that state -obtain a license in that state -seek permission from the attorney general -seek permission from the Commission - Answer seek permission from the Commission Eloise is representing a buyer for a property. The buyer looks at a property that is actually owned by Eloise and her husband, Lennie and listed by Eloise. Eloise does not mention this fact to the buyer. Eloise is in violation of license law for: - Answer undisclosed dual agency A licensee must report to the Commission if he or she -has an errors and omissions claim filed against him or she -receives a lawsuit in the mail -leaves the state -is convicted of the felony - Answer is convicted of the felony A broker is required to retain which of the following documents form each transaction? -closing statements -agency forms -written offers -all of the above - Answer All of the above Broker Tim's company practices designated agency. In the sale of 410 Eastern Boulevard, Tim appoints Larry to represent the buyer and appoints Ian to represent the sell. in this case, Tim is: -designated agent -a dual agent -a transaction broker -none of the above - Answer A dual agent A licensee has a duty to report a conviction to the Commission. -False, as there is no duty to report -False, if it is a felony -True, if it is a felony or a misdemeanor -True, if it is a felony - Answer True, if it is a felony The commission or its staff has the ability to initiate a(n) __________ into the actions of a licensee or any person who acts in that capacity. -hearing -investigation -trial -review - Answer investigation A broker is the __________ of a sale if he or she initiate a series of continuous events that result in a sale upon the seller's terms. -principal -responsible party -facilitator -procuring cause - Answer procuring cause This is the status of a license when disciplinary action has been ordered against a licensee that prohibits the brokerage of real estate for a specific period of time. -canceled -suspended -revoked -on-hold - Answer suspended A client askes his listing agent to sell raffle tickets, and the prize is his house. The listing agent: - Answer must refuse because this is a license law violation __________ are mostly located outside of urban areas, especially along major transportation routes. -office buildings -factories -industrial buildings -all of the above - Answer industrial buildings Which are required disclosures? - Answer property condition An office building determined to be a Class B property would have _________. -lower than average rents -state of the art systems -adequate parking options -questionable plumbing - Answer adequate parking options In a listing in which the seller gives one broker authority to procure a buyer for property but retains the right to procure a buyer for the property himself or herself is called a(n) __________. -open listing -exclusive agency agreement -net listing -exclusive right to sell - Answer exclusive agency agreement in order to apply for his or her broker's license, a sales associate must have done all of the following EXCEPT : - Answer maintained a definite place of business for the past two years Prior to entering into a written agreement to provide real estate brokerage services a licensee should get the ___________ signed. - Answer Agency Consent Agreement The Commission is made up of the following: - Answer 6 properly experienced licensees and 1 consumer A licensed real estate professional acting as a point of contact between two or more people in negotiating the sale, rental, or purchase of a property is known as a(n) - Answer broker Any parcel of real estate lawfully used primarily for sales, retail, wholesale, office, research, institutional, warehouse, manufacturing or industrial purposes is considered - Answer commercial real estate A listing creates a ___________ between the seller and the broker - Answer agency relationship how can the government restrict the use of private property - Answer through the power of eminent domain Real estate commissioners are appointed from a list submitted by: - Answer The KY Association of REALTORS An office building determined to be Class A property would have __________. - Answer state-or-the-art systems How much is the annual cap of a Commissioner's compensation? - Answer $6,000 Real estate brokerage includes all of the following activities, EXCEPT: -property management -referring or offering to refer -leasing or offering to lease -acting as a trustee - Answer acting as a trustee Which transaction does not require the Agency Consent Agreement to be executed? -commercial transactions -sale of residential real estate -sale of investment properties -industrial transactions - Answer commercial transactions if the commission currently consists of 3 Democrats and 3 republicans, the next appointee -must be a democrat -can be a democrat, a republican, or an independent -must be independent -must be a republican - Answer can be a Democrat, a Republican, or an Independent