KY Real Estate Exam Prep questions and
answers
What do Datums and Benchmarks measure? - Correct Answer ✔✔ - Elevation
Joint Tenancy - Correct Answer ✔✔ - The joint ownership of property by two or more co-owners in
which each co-owner owns an undivided portion of the property. On the death of one of the joint
tenants, his or her interest automatically passes to the surviving joint tenants.
What is a Preliminary Report? - Correct Answer ✔✔ - Issued by title insurance companies
- gives buyers an overview of title history and any liens/encumbrances
- it outlines what insurance companies will/wont cover on its policy
Easement Appurtenant - Correct Answer ✔✔ - Runs with the land
- grants the right to use adjoining land
Civil Rights Act of 1866 - Correct Answer ✔✔ - Prohibits any exceptions for discrimination based on
race/color
What is the Superfunds Amendments and Reauthorization Act (SARA)? - Correct Answer ✔✔ -
Amendment to CERCLA that says 'innocent landowners' arent responsible for clean up of hazardous
contamination
What is the purpose of Building Code ? - Correct Answer ✔✔ - It establishes workmanship standards
when someone is building an addition to their property
Developer that has a project planned that doesnt conform to the community zoning regulations and
wants to make a change request would make a request to who? - Correct Answer ✔✔ - the Zoning
Board of Appeals for a variance
What is a right to use timeshare? - Correct Answer ✔✔ - It conveys the right of POSSESSION but not
ownership
, (therefore cant be passed on or sold)
What do lenders consider equally - Correct Answer ✔✔ - Borrower and Property
- the property's value (collateral) and the borrowers ability to repay the loan
What is a Bridge Loan? - Correct Answer ✔✔ - A temporary loan often used by buyers who have not yet
closed on their prior property
- short term
-interest only
What is a Land Contract? - Correct Answer ✔✔ - Buyer will pay the seller.
- Seller will hold legal title of the property during the term of the loan
In a PUD (planned unit development) who owns the common areas? - Correct Answer ✔✔ - The
common areas a jointly owned and maintained by the condo owners or HOA
What is a Cash Flow Report? - Correct Answer ✔✔ - Usually created monthly and shows the current
financial status of the property
- accounts for income received (rent) and expenses (utilities, personnel, repairs)
What is an Attachment Lien? - Correct Answer ✔✔ - When the courts place an encumbrance on the
property of a defendant in a lawsuit for monetary damages
- ex: damages related to a car accident
When does Acceptance occur? - Correct Answer ✔✔ - When all parties have signed a given contract
When does Binding Acceptance occur? - Correct Answer ✔✔ - When the accepted offer is delivered
What is the highest fine that KREC can impose for a single charge of improper conduct? - Correct
Answer ✔✔ - $1,000
Which of the following compensations may a KY broker pay to a TN licensee? - Correct Answer ✔✔ - A
referral fee and/or commission
How long must KY transaction records be retained for? - Correct Answer ✔✔ - 5 years from the
consummation date
Who is responsible for completing the Condo Seller Certificate? - Correct Answer ✔✔ - The Condo
Association completes it upon the request of the seller
-they have 10 days to complete
answers
What do Datums and Benchmarks measure? - Correct Answer ✔✔ - Elevation
Joint Tenancy - Correct Answer ✔✔ - The joint ownership of property by two or more co-owners in
which each co-owner owns an undivided portion of the property. On the death of one of the joint
tenants, his or her interest automatically passes to the surviving joint tenants.
What is a Preliminary Report? - Correct Answer ✔✔ - Issued by title insurance companies
- gives buyers an overview of title history and any liens/encumbrances
- it outlines what insurance companies will/wont cover on its policy
Easement Appurtenant - Correct Answer ✔✔ - Runs with the land
- grants the right to use adjoining land
Civil Rights Act of 1866 - Correct Answer ✔✔ - Prohibits any exceptions for discrimination based on
race/color
What is the Superfunds Amendments and Reauthorization Act (SARA)? - Correct Answer ✔✔ -
Amendment to CERCLA that says 'innocent landowners' arent responsible for clean up of hazardous
contamination
What is the purpose of Building Code ? - Correct Answer ✔✔ - It establishes workmanship standards
when someone is building an addition to their property
Developer that has a project planned that doesnt conform to the community zoning regulations and
wants to make a change request would make a request to who? - Correct Answer ✔✔ - the Zoning
Board of Appeals for a variance
What is a right to use timeshare? - Correct Answer ✔✔ - It conveys the right of POSSESSION but not
ownership
, (therefore cant be passed on or sold)
What do lenders consider equally - Correct Answer ✔✔ - Borrower and Property
- the property's value (collateral) and the borrowers ability to repay the loan
What is a Bridge Loan? - Correct Answer ✔✔ - A temporary loan often used by buyers who have not yet
closed on their prior property
- short term
-interest only
What is a Land Contract? - Correct Answer ✔✔ - Buyer will pay the seller.
- Seller will hold legal title of the property during the term of the loan
In a PUD (planned unit development) who owns the common areas? - Correct Answer ✔✔ - The
common areas a jointly owned and maintained by the condo owners or HOA
What is a Cash Flow Report? - Correct Answer ✔✔ - Usually created monthly and shows the current
financial status of the property
- accounts for income received (rent) and expenses (utilities, personnel, repairs)
What is an Attachment Lien? - Correct Answer ✔✔ - When the courts place an encumbrance on the
property of a defendant in a lawsuit for monetary damages
- ex: damages related to a car accident
When does Acceptance occur? - Correct Answer ✔✔ - When all parties have signed a given contract
When does Binding Acceptance occur? - Correct Answer ✔✔ - When the accepted offer is delivered
What is the highest fine that KREC can impose for a single charge of improper conduct? - Correct
Answer ✔✔ - $1,000
Which of the following compensations may a KY broker pay to a TN licensee? - Correct Answer ✔✔ - A
referral fee and/or commission
How long must KY transaction records be retained for? - Correct Answer ✔✔ - 5 years from the
consummation date
Who is responsible for completing the Condo Seller Certificate? - Correct Answer ✔✔ - The Condo
Association completes it upon the request of the seller
-they have 10 days to complete
