CE SHOP KY COURSE FINAL STUDY
GUIDE EXAM QUESTIONS WITH
COMPLETE ANSWERS
Which of the following formulas is used with the cost approach to provide an opinion of
value? - Answer-Reproduction/replacement cost - accrued depreciation + site value =
property value
Grant and Jolene are both real estate agents who work for Jamie, the broker at JC
Realty. Grant is representing the buyer and Jolene the seller in the same transaction.
Jamie identifies Grant and Jolene as designated agents for their clients. Which of the
following statements is true about this situation? - Answer-Only Jamie, the broker, is a
dual agent.
Whose consent and agreement are required to conduct a short sale? - Answer-The lien
holder's
With which approach to value does the appraiser analyze a property's ability to earn
future income? - Answer-Income approach
In real estate contracts, which are required: legal descriptions or street addresses? -
Answer-Legal descriptions are required, because they provide less ambiguous and
more complete descriptions of properties than street addresses provide.
Legal permissibility, physical possibility, financial feasibility, and ______ are all
considerations when determining highest and best use. - Answer-Maximum profitability
Ted wants to estimate the value of a commercial property leased to four retail tenants.
In order to find the GIM he can use for his subject property, what's the minimum number
of comparable properties he should try to find? - Answer-10
Licensees should encourage potential auction buyers to perform which of the following
types of research on a property to be auctioned? - Answer-Neighborhood, zoning, and
title
Keenan signed a lease agreement that contains a right of first refusal. What does this
clause do for Keenan and his landlord? - Answer-It gives Keenan the option to buy the
property he's leasing before the property is sold to someone else.
Which of the following terms refers to the increase or decrease in land value that occurs
when several parcels are combined into one large plot? - Answer-Plottage
, Which of the following is the first wooden member of the structure from the ground up
that is used as the nailing surface for the floor system? - Answer-Sill plate
What do shares in a co-op confer to shareholders? - Answer-A proprietary lease to
possess their unit, use the property, and share in the amenities
Which of the following formulas captures the basics of the quantity survey method? -
Answer-Direct costs + Indirect costs + Entrepreneurial profit = Total reproduction cost
new
Which of the following statements is accurate regarding electronic signatures and
transactions in Kentucky? - Answer-While Kentucky law allows electronic records and
signatures, it doesn't require them.
For which location in a neighborhood shopping center are tenants willing to pay the
owner a bonus? - Answer-A spot in the center
Kat is an investor and uses an FHA loan to purchase a duplex. She never occupies the
property but instead rents it out. This is ______. - Answer-Illegal
Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of
Harriet's listing. The property sold for $425,000. The total commission paid from the sale
is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement
with his broker that he earns 80% of the commission received. How much will Benji be
paid from this sale? - Answer-$10,200
Which of the following is an example of discrimination based on religion and is a
violation of fair housing law? - Answer-Including the phrase, "Two blocks from St.
Martin's Cathedral," in an MLS listing
Which of the following conditions contributed to the 2007 financial crisis? - Answer-
Rising interest rates and falling property values
What guidelines must appraisers follow when completing the sales comparison section
of the URAR? - Answer-Uniform Appraisal Dataset
Which of these is an example of illegal market allocation? - Answer-Based on licensee
expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on
suburban, rather than rural, homes.
Which of the following is considered, especially by lenders, to be the most accurate
valuation method? - Answer-Appraisal
What's the purpose of the Interstate Land Sales Full Disclosure Act? - Answer-To
prevent the fraudulent sale of property across state lines
GUIDE EXAM QUESTIONS WITH
COMPLETE ANSWERS
Which of the following formulas is used with the cost approach to provide an opinion of
value? - Answer-Reproduction/replacement cost - accrued depreciation + site value =
property value
Grant and Jolene are both real estate agents who work for Jamie, the broker at JC
Realty. Grant is representing the buyer and Jolene the seller in the same transaction.
Jamie identifies Grant and Jolene as designated agents for their clients. Which of the
following statements is true about this situation? - Answer-Only Jamie, the broker, is a
dual agent.
Whose consent and agreement are required to conduct a short sale? - Answer-The lien
holder's
With which approach to value does the appraiser analyze a property's ability to earn
future income? - Answer-Income approach
In real estate contracts, which are required: legal descriptions or street addresses? -
Answer-Legal descriptions are required, because they provide less ambiguous and
more complete descriptions of properties than street addresses provide.
Legal permissibility, physical possibility, financial feasibility, and ______ are all
considerations when determining highest and best use. - Answer-Maximum profitability
Ted wants to estimate the value of a commercial property leased to four retail tenants.
In order to find the GIM he can use for his subject property, what's the minimum number
of comparable properties he should try to find? - Answer-10
Licensees should encourage potential auction buyers to perform which of the following
types of research on a property to be auctioned? - Answer-Neighborhood, zoning, and
title
Keenan signed a lease agreement that contains a right of first refusal. What does this
clause do for Keenan and his landlord? - Answer-It gives Keenan the option to buy the
property he's leasing before the property is sold to someone else.
Which of the following terms refers to the increase or decrease in land value that occurs
when several parcels are combined into one large plot? - Answer-Plottage
, Which of the following is the first wooden member of the structure from the ground up
that is used as the nailing surface for the floor system? - Answer-Sill plate
What do shares in a co-op confer to shareholders? - Answer-A proprietary lease to
possess their unit, use the property, and share in the amenities
Which of the following formulas captures the basics of the quantity survey method? -
Answer-Direct costs + Indirect costs + Entrepreneurial profit = Total reproduction cost
new
Which of the following statements is accurate regarding electronic signatures and
transactions in Kentucky? - Answer-While Kentucky law allows electronic records and
signatures, it doesn't require them.
For which location in a neighborhood shopping center are tenants willing to pay the
owner a bonus? - Answer-A spot in the center
Kat is an investor and uses an FHA loan to purchase a duplex. She never occupies the
property but instead rents it out. This is ______. - Answer-Illegal
Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of
Harriet's listing. The property sold for $425,000. The total commission paid from the sale
is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement
with his broker that he earns 80% of the commission received. How much will Benji be
paid from this sale? - Answer-$10,200
Which of the following is an example of discrimination based on religion and is a
violation of fair housing law? - Answer-Including the phrase, "Two blocks from St.
Martin's Cathedral," in an MLS listing
Which of the following conditions contributed to the 2007 financial crisis? - Answer-
Rising interest rates and falling property values
What guidelines must appraisers follow when completing the sales comparison section
of the URAR? - Answer-Uniform Appraisal Dataset
Which of these is an example of illegal market allocation? - Answer-Based on licensee
expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on
suburban, rather than rural, homes.
Which of the following is considered, especially by lenders, to be the most accurate
valuation method? - Answer-Appraisal
What's the purpose of the Interstate Land Sales Full Disclosure Act? - Answer-To
prevent the fraudulent sale of property across state lines
