KY Real Estate Exam exam questions and
answers
Accretion - Correct Answer - Increase of land by deposit of sand or soil washed up naturally from a river,
lake or sea
ADA Tenant - Correct Answer - Tenant with disability. Must accommodate for tenants/residents with
disabilities. Priority is to get party to the door. Can make changes, must be giving parking if available, do
not have to ask to make changes
Broker's License - Correct Answer - License to act as intermediary on behalf of others for a commission.
Bringing together of parties interested in making a real estate transaction.
Bilateral Contract - Correct Answer - All parties are legally bound to to act as prescribed
Unilateral Contract - Correct Answer - One party is bound to contract or act
Brownfields - Correct Answer - Defunct, derelict, or abandoned commercial or industrial sites, many
have toxic wastes
Condemnation - Correct Answer - Proceeding to exercise the power of eminent domain
Commingling - Correct Answer - Illegal act of placing client or customer funds with personal funds.
Commission Earned - Correct Answer - payment to a broker service for sale or purchase of a property;
usually a percentage
Cooperative - Correct Answer - Residential multi-unit building whose title is held by a trust or
corporation that is owned and operated for the people living within the building who are the beneficial
owners of the trust or shareholders of the corporation.
Commission Split - Correct Answer - Commission earned from selling a property is split between
licensee and principal broker
Civil Rights Act of 1866 - Correct Answer - An act that prohibits racial discrimination in the sale and
rental of housing
, Customer - Correct Answer - The third party nonrepresented consumer for who some level of service is
provided
Client - Correct Answer - The principal
Dual Agency - Correct Answer - Representing both parties for a transaction. Unethical unless both
parties agree to it
Dower and Curtsy - Correct Answer - Dower: Wife acquires property her husband held or acquired
during marriage if he dies.
Curtsy: A life estate given to surviving husband in real estate owned by his deceased wife
Deed IN Trust - Correct Answer - Grants a trustee under a land trust full of power to sell, mortgage, and
subdivide a parcel of real estate. The beneficiary controls the trustees use of these powers.
Trust Deed; Deed OF Trust - Correct Answer - Used to create a mortgage lein by which the borrower
conveys title to a trustee (third party) who holds it as security for the benefit of the note holder (lender)
Delivery & Acceptance - Correct Answer - Title is delivered by grantor and accepted by grantee
Devise - Correct Answer - Gift of property through a will
Depreciation - Correct Answer - Appraisal- Loss of value in property due to any cause
Real Estate Investment- Expense deduction for tax purposes taken over the period of ownership of
income property
Do Not Call Registry - Correct Answer - national call registry monitored by FTC; list of consumers who do
not wish to be called
Executed Contract - Correct Answer - Contract in which all parties have fulfilled their promises and thus
performed the contract
Exclusive Right to Sell Listing - Correct Answer - Listing contract where owner appoints a real estate
broker as his or her exclusive agent for a designated period of time to sell the property on the owner's
terms and agrees to pay broker a commission when the property is sold by the broker, owner, or
another broker
Earnest Money - Correct Answer - Money deposited by a buyer under the terms of a contract to be
forfeited if the buyer defaults
Fee Simple - Correct Answer - Highest interest in real estate recognized by law. holder is entitled to all
rights to the property
Fee Simple Absolute - Correct Answer - Maximum possible estate or right of ownership of real property
continuing forever
answers
Accretion - Correct Answer - Increase of land by deposit of sand or soil washed up naturally from a river,
lake or sea
ADA Tenant - Correct Answer - Tenant with disability. Must accommodate for tenants/residents with
disabilities. Priority is to get party to the door. Can make changes, must be giving parking if available, do
not have to ask to make changes
Broker's License - Correct Answer - License to act as intermediary on behalf of others for a commission.
Bringing together of parties interested in making a real estate transaction.
Bilateral Contract - Correct Answer - All parties are legally bound to to act as prescribed
Unilateral Contract - Correct Answer - One party is bound to contract or act
Brownfields - Correct Answer - Defunct, derelict, or abandoned commercial or industrial sites, many
have toxic wastes
Condemnation - Correct Answer - Proceeding to exercise the power of eminent domain
Commingling - Correct Answer - Illegal act of placing client or customer funds with personal funds.
Commission Earned - Correct Answer - payment to a broker service for sale or purchase of a property;
usually a percentage
Cooperative - Correct Answer - Residential multi-unit building whose title is held by a trust or
corporation that is owned and operated for the people living within the building who are the beneficial
owners of the trust or shareholders of the corporation.
Commission Split - Correct Answer - Commission earned from selling a property is split between
licensee and principal broker
Civil Rights Act of 1866 - Correct Answer - An act that prohibits racial discrimination in the sale and
rental of housing
, Customer - Correct Answer - The third party nonrepresented consumer for who some level of service is
provided
Client - Correct Answer - The principal
Dual Agency - Correct Answer - Representing both parties for a transaction. Unethical unless both
parties agree to it
Dower and Curtsy - Correct Answer - Dower: Wife acquires property her husband held or acquired
during marriage if he dies.
Curtsy: A life estate given to surviving husband in real estate owned by his deceased wife
Deed IN Trust - Correct Answer - Grants a trustee under a land trust full of power to sell, mortgage, and
subdivide a parcel of real estate. The beneficiary controls the trustees use of these powers.
Trust Deed; Deed OF Trust - Correct Answer - Used to create a mortgage lein by which the borrower
conveys title to a trustee (third party) who holds it as security for the benefit of the note holder (lender)
Delivery & Acceptance - Correct Answer - Title is delivered by grantor and accepted by grantee
Devise - Correct Answer - Gift of property through a will
Depreciation - Correct Answer - Appraisal- Loss of value in property due to any cause
Real Estate Investment- Expense deduction for tax purposes taken over the period of ownership of
income property
Do Not Call Registry - Correct Answer - national call registry monitored by FTC; list of consumers who do
not wish to be called
Executed Contract - Correct Answer - Contract in which all parties have fulfilled their promises and thus
performed the contract
Exclusive Right to Sell Listing - Correct Answer - Listing contract where owner appoints a real estate
broker as his or her exclusive agent for a designated period of time to sell the property on the owner's
terms and agrees to pay broker a commission when the property is sold by the broker, owner, or
another broker
Earnest Money - Correct Answer - Money deposited by a buyer under the terms of a contract to be
forfeited if the buyer defaults
Fee Simple - Correct Answer - Highest interest in real estate recognized by law. holder is entitled to all
rights to the property
Fee Simple Absolute - Correct Answer - Maximum possible estate or right of ownership of real property
continuing forever
