Kentucky Portion — Real Estate
UPDATED Actual Exam Questions and
CORRECT Answers
How often is continuing education required for Kentucky real estate salespersons? -
CORRECT 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: - CORRECT 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)? - CORRECT
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 - CORRECT 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? - CORRECT ANSWER- ✔✔Three years
When is KREC annual E&O coverage paid? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER- ✔✔Must give written
notification to the KREC of the change.
Kentucky have a real estate license reciprocity agreement with: - CORRECT 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: - CORRECT 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? - CORRECT 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: - CORRECT ANSWER- ✔✔$20,000
Under Kentucky law, a broker is required to keep copies of records for - CORRECT
ANSWER- ✔✔5 years.
Catherines license has been revoked by the Kentucky Real Estate Commission. When can she
apply to get her license reissued? - CORRECT 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: - CORRECT 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? - CORRECT 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?
- CORRECT 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: - CORRECT ANSWER- ✔✔Confidential information.
Two (2) residential units sharing a single roof is called a: - CORRECT 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. - CORRECT 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 - CORRECT ANSWER- ✔✔a contract deposit is earnest money
delivered to a licensee in conjunction with a real estate sales contract.
UPDATED Actual Exam Questions and
CORRECT Answers
How often is continuing education required for Kentucky real estate salespersons? -
CORRECT 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: - CORRECT 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)? - CORRECT
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 - CORRECT 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? - CORRECT ANSWER- ✔✔Three years
When is KREC annual E&O coverage paid? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER- ✔✔Must give written
notification to the KREC of the change.
Kentucky have a real estate license reciprocity agreement with: - CORRECT 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: - CORRECT 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? - CORRECT 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: - CORRECT ANSWER- ✔✔$20,000
Under Kentucky law, a broker is required to keep copies of records for - CORRECT
ANSWER- ✔✔5 years.
Catherines license has been revoked by the Kentucky Real Estate Commission. When can she
apply to get her license reissued? - CORRECT 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: - CORRECT 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? - CORRECT 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?
- CORRECT 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: - CORRECT ANSWER- ✔✔Confidential information.
Two (2) residential units sharing a single roof is called a: - CORRECT 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. - CORRECT 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 - CORRECT ANSWER- ✔✔a contract deposit is earnest money
delivered to a licensee in conjunction with a real estate sales contract.
