Kentucky State Real Estate Exam Practice questions and answers

Jenna's firm in Lexington issues a check to First In Line Title Company because it referred a buyer to Jenna and subsequently closed the transaction. The buyer approved the payments. This is an example of _____________. An Illegal Kickback Monty is advertising a number of listings in the local Prospect newspaper and includes the fair housing logo in the ad. What else is required? The Verbiage, "Equal Opportunity Housing" Kentucky licensees Venus and Morgan are both affiliated with broker Jamie. Venus and Morgan are each acting as listing agents in transactions where the buyer is represented by a licensee from another brokerage. What's true about this situation? Venus and Megan are single agents. Kentucky property managers are expected to provide receipts promptly and ensure moneys are deposited without delay. ____________________ needs to be entered into either the tenant and/or owner ledger for all moneys received. The dollar amount and the unit number. In Kentucky, when someone pays a commission to an unlicensed individual who is not exempt from licensing law, this is known as ______________. Kickback If a licensee fails to renew her license, when will KREC cancel it? April 1 Kentucky licensee Kaylee is working with a buyer client who has a written agency agreement with Kaylee's brokerage firm. Based on Kentucky law, which of the following duties does Kaylee owe her client? Promptly submit her client's written offer to the seller. In the sale of a Kentucky residential condominium unit, who's responsible for requesting the Condominium Seller's Certificate? The seller. Toby is a sales associate with Louisville Slugger Realty. Toby's principal broker promised his brother, Bryant, who is unlicensed and not an attorney or trustee, that he would pay his a portion of his commission when he closed on his Lincoln Street transaction. Under what circumstances would this be legal? If Bryant was a party to the transaction and this was a cash rebate paid by Toby's principal broker. Dan is the designated agent of a Kentucky buyer, Matilda, who's purchasing a property listed by his firm. Dan will complete the __________________ portion of the Agency Disclosure Statement when Matilda is ready to make an offer. Transaction involving two agents int he same brokerage: Designated Agency. By what date do licensees need to complete their biennial CE requirement in Kentucky? December 31 KREC cancelled Holly's license because she didn't complete the 48-hour post-licensing education requirement. What does this mean for her? She'll need to start all over again by meeting the pre-licensing requirements, including completing all pre-licensing course, passing the state exam, and paying the required application fees. A Kentucky individual accused of engaging in unlicensed brokerage for the first time may be charged with which of the following? A Class A Misdemeanor The maximum recovery fund compensation that may be granted on behalf of multiple aggrieved parties against one licensee in Kentucky is _____________. $50,000 If a complaint for a license law violation in Kentucky does not constitute a prima facie case, the complainant has ________________ days to revise and supplement the case. 10 Kentucky's Property Management agreement details the financial arrangement between the agent and the owner for managing, leasing, or even selling the property under which section? Agent Compensation Damien's been notified that his escrow accounts are being audited. What entity is responsible for performing the audit to ensure his firm's in compliance with Kentucky's escrow account license laws? The KREC Two years ago, Marlene was convicted of engaging in unlicensed brokerage in Kentucky. She's now being charged again. What charges may be filed? Class D Felony How many classroom hours of pre-licensing education are required for a sales associate to become a broker in Kentucky? 336 hours How much time does an aggrieved party have to file a fraud claim with the Kentucky Real Estate Education, Research, and Recovery Fund? One year In Kentucky, under which of these is the seller obligated to pay the listing agent a commission if the agent is working under an exclusive agency agreement? If any agent secures the buyer How many hours of post-licensing education courses must sales associates in Kentucky complete? 48 hours How often does the KREC meet? Monthly Cyndi failed to complete her CE requirements by the end of the year, so now she has until _________________ to either enter into a delinquency plan with KREC or place her license in inactive status. March 31 Marcella has been performing brokerage services in Hopskinsville without a license. What's the term for this in Kentucky? Unlicensed Brokerage Nathan assisted with the purchase of a commercial building in Paducah that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any licensing laws. What must be true about Nathan's situation? Nathan is a public official whose salaried duties include real estate transactions. Jennifer plans to ask her assistant, Kate, to review the transaction files in the olive office and purge unnecessary ones. What should Jennifer tell Kate about this process? Put the purged documents in the locked bin for files that will be shredded. Maria forgot to renew her Kentucky real estate license and has been charged with engaging in unlicensed brokerage. Which of the following is true? Maria will not face penalties if she reactivates her license. In accordance with the closing costs section of the KREC real estate purchase offer or contract, who pays for the transfer tax and preparation of the deed? The seller pays. The _______________ is responsible for advising a seller about proper completion of the Seller's Disclosure of Property Conditions form here in Kentucky. Listing agent Jason, who's selling his cabin in Slade, signed an exclusive agency agreement with Blue Mountain Brokerage. What happens if Jason sells the property himself? Jason isn't obligated to compensate Blue Mountain Brokerage. How much will inactive licensees pay when renewing their real estate license? $120