KENTUCKY PSI PRACTICE EXAM

THE KY REAL ESTATE COMMISSION DETERMINED THAT A BUYER WAS DAMANGED BY THE FRAUDULENT ACTION OF A LICENSEE IN THE AMOUNT OF $50,000. IF THE RESPONSIBLE LICENSEE DOES NOT PAY THE CLAIM, THE COMMISSION MAY PAY OUT FROM THE REAL ESTATE EDUCATION, REASEARCH AND RECOVERY FUND A MAX AMOUNT OF HOW MUCH??? - Correct Answer-$20,000 AN ACTION FOR RECOVERY FROM THE KY REAL ESTATE EDUCATION, RESEARCH AND RECOVERY FUND MUST BE COMMENCED WITHIN HOW MANY YEARS FROM ACTUAL KNOWLEDGE OF THE CAUSE OF ACTION OR THE TIME WHEN CIRCUMSTANCES WOULD REASONABLY PUT THE AGGRIEVED PARTY ON NOTICE OF THE CAUSE OF ACTION? - Correct Answer-2 WHAT IS THE KY REAL ESTATE COMMISSION NOT RESPONSIBLE FOR? A. REAL ESTATE EXAMS B. COMMISSION OR FEE DISPUTE ARBITRATIONS - Correct Answer-B. A LICENSEE NEGOTIATING THE SALE OF A CONDO TELLS A PROSPECTIVE BUYER THAT THE LICENSEE ABSOLUTELY GUARANTEES THAT IF THE BUYER CLOSES ON THE PROPERTY NOW, AND RESELLS IT IN A YEAR, THE BUYER WILL REALIZE NO LESS THAN A $10K PROFIT. THE BUYER PURCHASES THE CONDO AND SELLS A YEAR LATER AT A $5K LOSS. WHICH OF THE FOLLOWING SITUATIONS IS A POSSIBLE CONSEQUENCE TO THE LICENSEE? A. THE LICENSEE HAS NO RESPONSIBILITY AS THE LICENSEE WAS MERELY PUFFING B. THE LICENSEE MAY BE SUBJECT TO POSSIBLE PENALTY BY THE KY REAL ESTATE COMMISSION - Correct Answer-B. WHAT ACTION MUST BE COMPLETED PRIOR TO THE AWARDING OF FUNDS FROM THE KY REAL ESTATE EDUCATION, RESEARCH AND RECOVERY FUND? - Correct Answer-COMMISSION HEARING IF A SALES ASSOCIATES REAL ESTATE LICENSE HAS BEEN REVOKED, THE KY REAL ESTATE COMMISSION WILL NOT ISSUE ANOTHER LICENSE FOR A PERIOD OF HOW MANY YEARS FROM THE DATE OF REVOKATION? - Correct Answer-5 YEARS WHAT MUST OCCUR WHEN LICENSEES CHANGE THEIR PRESENT RESIDNECE? - Correct Answer-THE KY REAL ESTATE COMMISSION MUST BE INFOMED OF THE NEW ADDRESS IN WRITTING BY THE LICENSEE WITHIN 10 DAYS PRIOR TO TAKING THE SALES ASSOCIATE LICENSEE REAL ESTATE EXAM, WHAT IS ONE REQUIREMENT A LICENSEE DOES NOT HAVE TO MEET? - Correct Answer-BE A US CITIZEN WHAT MUST HAVE A REAL ESTATE LICENSE IF NOT ASSOCIATED WITH A BROKER? - Correct Answer-AN AUCTIONEER CONDUCTING A REAL PROPERTY AUCTION IF A SALES ASSOCIATES LICENSE IS NOT RENEWED BY THE REQUIRED DATE, WHO WILL BE HELD ACCOUNTABLE?? - Correct Answer-THE SALES ASSOCIATE REAL ESTATE LICENSEES MUST OBTAIN E&O INSURANCE IN WHAT FOLLOWING MANNERS? - Correct Answer-FROM THEIR OWN INSURANCE AGENT OR THROUGH THE KY REAL ESTATE COMMISSION GROUP POLICY HOW MANY CLOCK HOURS OF CONTINUING EDUCATION ARE ACTIVE REAL ESTATE LICENSEES REQUIRED TO ATTEND ANNUALLY ? - Correct Answer-6 To place a real estate license in escrow, an active licensee is required to take all of the following actions EXCEPT: - Correct Answer-PAY THE BROKER AND THE PRESCRIBED ESCROW FEE WHEN TERMINATING AN ASSOCIATION WITH A PRINCIPAL BROKER, A SALES ASSOCIATE MUST LEAVE ALL LISTING INFORMATION WITH THAT BROKER UNLESS - Correct Answer-A WRITTEN CONTRACT WITH THE PRINCIPAL BROKER STIPULATES OTHERWISE AN UNLICENSED PERSONAL ASSISTANT MAY UNLOCK A LISTED PROPERTY FOR ANY PURPOSE RELATIVE TO THE REAL ESTATE TRANSACTION IN ALL OF THE FOLLOWING SITUATIONS EXCEPT: - Correct Answer-WHEN THE BUYER'S AGENT REQUESTS A SHOWING Contract deposits may be withdrawn from an escrow account under all of the following circumstances EXCEPT: - Correct Answer-AT THE DIRECTION OF THE KY REAL ESTATE COMMISSION A REAL ESTATE LICENSEE WHO CAUSES FINANCIAL LOSS TO A SELLER AS A RESULT OF A SERIOUS, YET UNINTENTIONAL MISTAKES IN CONTRACT PREPERATION MAY BE LIABLE FOR WHAT OFFENSE UNDER LICENSE LAW? - Correct Answer-GROSS NEGLIGENCE WHICH OF THE FOLLOWING TASKS IS AN UNLICENSED ASSISTANT ABLE TO PERFORM? A. INTERPRET REAL ESTATE CONTRACTUAL LANGUAGE FOR OTHERS B. APPEAR IN AN AD AS LONG AS THE AD DOES NOT IMPLY THE ASSISTANT IS LICENSED - Correct Answer-B. SALES ASSOCIATES MAY ADVERTISE SOLELY IN THEIR OWN NAME WHEN SELLING - Correct Answer-THEIR OWN RESIDENCE A licensee tells a prospective buyer, "The landfill 2 miles upwind from this house has never posed a problem for this neighborhood." If the licensee knows this statement to be UNTRUE, it is an example of: A. FRAUD B. MISREPRESENTATION - Correct Answer-A. A REAL ESTATE SALES ASSOCIATE WHO IS NEW IN THE INDUSTRY RECEIVES A REFERRAL FROM AN UNLICENSED FRIEND. THE REFERRAL RESULTS IN A SALE. TO KEEP THE REFERRAL SOURCE HAPPY AND GET MORE REFERRALS IN THE FUTURE, THE SALES ASSOCIATE MAY: - Correct Answer-SEND A NOTE OF THANKS A LISTING CONTRACT MEETS LEGAL REQUIREMENTS IF IT CONTAINS ALL OF THE FOLLOWING EXEPT: - Correct Answer-SIGNATURES OF A LEAST TWO OF THE SELLERS A LICENSEE HAS MADE AN ORAL AGREEMENT TO SELL A PROPERTY. THE LICENSEE PROCEEDS TO ADVERTISE IN THE LOCAL NEWSPAPER AND RECEIVES A FULL PRICE OFFER TO PURCHASE. ACCORDING TO KY REAL ESTATE LICENSE LAW, WHICH OF THE FOLLOWING STATEMENTS ABOUT THIS SITUATION IS CORRECT? A. THE LICENSEE HAS VIOLATED KY REAL ESTATE LICENSE LAW B. THE SELLER MUST PAY THE LISTING AGENCY A COMMISSION FOR THE SALE - Correct Answer-A. UNDER THE KY STATUE OF FRAUDS AGREEMENTS REGARDING ALL OF THE FOLLOWING ITEMS MUST BE IN WRITTING TO BE ENFORCEABLE EXEPT: A. LEASES FOR MORE THAN 1 YEAR B. LEASES OF AT LEAST 6 MONTHS - Correct Answer-B. AN OFFER TO PURCHASE PREPARED BY A LICENSED SALES ASSOCIATE MUST CONTAIN ALL OF THE FOLLOWING INFO EXEPT THE: - Correct Answer-BROKERAGE FEE OR COMMISSION AGREED UPON THE SELLER DISCOLSURE PROPERTY CONDITION FORM MUST INCLUDE INFORMATION ON ALL OF THE FOLLOWING AREAS EXCEPT WHETHER - Correct Answer-A SUICIDE HAS OCCURED IN THE HOUSE WITHIN THE LAST 2 YEARS THE AGENCY DISCLOSURE STATEMENT SHALL INCLUDE ALL OF THE FOLLOWING INFORMATION EXEPT: A. THE NAME OF THE PROSPECTIVE PARTY B. THE TYPE OF LICENSE HELD BY THE AGENT - Correct Answer-B. A broker lists a residence. An acquaintance of the broker employs the broker to purchase the listed house. Before preparing the offer to purchase, which of the following is required of the broker? - Correct Answer-WRITTEN CONSENT FOR DUAL AGENCY FROM BOTH PARTIES A SALES ASSOCIATE MAY MANAGE PROPERTY FOR OTHERS FOR A FEE UNDER WHICH OF THE FOLLOWING CONDITIONS? - Correct Answer-THE MANAGEMENT IS HANDLED THROUGH THE SALES ASSOCIATES PRINCIPAL BROKER AND MONIES ARE PLACED IN THE BROKERS MANAGEMENT/ ESCROW ACCOUNTS. A PROPERTY MANAGEMENT AGREEMENT BETWEEN A PRINCIPAL BROKER AND OWNER MUST INCLUDE ALL OF THE FOLLOWING INFO EXEPT: A. AMOUNT OF RENT TO BE CHARGED FOR EACH UNIT B. AMOUNT OR METHOD OF DETERMINING THE MINIMUM SECURITY DEPOSIT - Correct Answer-A.