Kentucky Portion — Real Estate Exam Guaranteed Success

Kentucky Portion — Real Estate Exam Guaranteed Success A broker who establishes a branch office 125 miles from her principal office A) may appoint an unlicensed assistant to manage the office. B) must assign a licensed broker as manager of that office. C) may assign any salesperson as manager of the office. D) may assign a salesperson with two-years' experience as manager of the office. ️B) A principal broker may not maintain a branch office outside a 100-mile radius of the principal office without having a licensed broker managing that office. An unlicensed assistant may not manage a real estate office. 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. ️B) present offer and inform seller that the check is to be held until April 10, 2003. A contract to purchase real property in Kentucky must include all of the following EXCEPT A) the date, time, and initials for any changes made before acceptance. B) the name and address of the property inspector. C) the printed first and last name of the licensee completing the offer. D) the purchase price of the property. ️B) property inspector. A purchase contract may include an inspection contingency permitting the buyer to exercise due diligence by having the property inspected within a specific time. However, the contract will not include the name of the property inspector whom the buyer will likely choose once the buyer's offer is accepted by the seller. The purchase offer will include the purchase price, the first and last name of the licensee completing the offer, and initials, along with the date and time of any changes made before acceptance of the offer. A contractor in Kentucky would consider the following to be an indirect expense in the construction of an improvement: A) Labor cost B) Material cost C) Building permit D) Any subcontract ️C) Building permit A deposit receipt does not contain the clause that states that in case of buyer default, the broker is entitled to part of the buyer's forfeited deposit. If the buyer defaults, according to this contract the broker is entitled to: A) His full commission. B) No commission. C) Half of the forfeited deposit. D) Half the normal commission ️B) The broker is entitled to no commission because this clause was not contained in the deposit receipt. A listing contract is NOT required to include A) limitations or restrictions on showing the property. B) the listing price of a property to be sold at auction. C) the effective date of any advertising of the property. D) the first and last name of the principal broker. ️B) the listing price of a property to be sold at auction A listing contract must show the listing price of the property, except for properties sold at auction, as the auction's purpose is to sell the property to the highest bidder. The effective date of advertising, name of the principal broker, and directions on showing the property are all required elements of a listing agreement. 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: ️A branch office A principal broker establishing a branch office with a 50-mile radius of the main office A) must assign a licensed broker to manage the office. B) may assign a sales associate with two-years' experience in the real estate business to manage the office. C) may assign an unlicensed assistant to manage the office. D) may assign any salesperson to manage the office. ️B) Commission regulations state that a sales associate with two-years of experience in the real estate business who averages 20 hours a week for a period of 24 months may manage a branch office inside a 100-mile radius of the main office. A principal broker must maintain required records for a period of A) 10 years. B) 3 years. C) 7 years. D) 5 years. ️D) five years A principal broker must provide for his affiliates A) the commission rates agreed upon by area brokers. B) policies on receiving and depositing funds received from clients or customers. C) the banks or mortgage brokers consumers must use for transactions listed by the firm. D) the names of areas or communities that are experiencing transitions in racial and economic makeup. ️B) The principal broker is responsible for the accurate accounting of all monies received and distributed by the firm, and for establishing clear guidelines on how affiliated licensees are to handle money received as purchase deposits or earnest money, security deposits, or other monies from clients and consumers. The broker should not provide information that violates any laws, including antitrust and fair housing laws. 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. ️C) legal A broker may accept a commission in any manner that is legal in nature.