KENTUCKY PSI PRACTICE EXAM
STATE PORTION STUDY QUESTIONS
AND ANSWERS
1 - ANSWER-How many Commissioners are appointed as a citizen- at- large?
4 - ANSWER-How many years is the term of a Commissioner?
2 - ANSWER-How many consecutive terms can a Commissioner have?
Kentucky Association of Realtors - ANSWER-Where does the Governor get the list of people to select an
appointment of a Commissioner?
3 - ANSWER-How many Commissioners can belong to the same political party?
The Commissioners select the chairperson - ANSWER-Who selects the chairperson?
No - ANSWER-Can the Commission fix prices; establish fees or set rates at which real estate licensees are
compensated?
$15,000 per annum and actually and necessary expenses - ANSWER-How much do Commissioners get
paid annually?
No - ANSWER-Can someone who does not have a real estate licenses hold himself or herself out to the
public as a real estate broker or sales associate?
Yes - ANSWER-Does a licensee who is an owner or builder-developer have to disclose his status as a real
estate licensee?
Filing a civil action in the circuit court where the Commission is located or the unlawful activity took
place - ANSWER-What steps would the Commission take to file and injuctive relief?
$20,000 - ANSWER-The Kentucky Real Estate Commission determined that a buyer was damaged 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, Research, and Recovery Fund a
MAXIMUM amount of:
commission or fee dispute arbitrations - ANSWER-The Kentucky Real Estate Commission is responsible
for all of the following activities EXCEPT
2 - ANSWER-An action for recovery from the Kentucky 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 have put the aggrieved party on notice of the cause of
action?
Commission hearing - ANSWER-What action MUST be completed prior to the awarding of funds from the
Kentucky Real Estate Education, Research, and Recovery Fund?
, 5 - ANSWER-If a sales associate's real estate license has been revoked, the Kentucky Real Estate
Commission will NOT issue another license for a period of how many years from the date of revocation?
The licensee may be subject to possible penalty by the Kentucky Real Estate Commission - ANSWER-A
licensee negotiating the sale of a condominium 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 $10,000 profit. The buyer purchases the condominium, and sells it a year later at a $5,000
loss. Which of the following situations is a possible consequence to the licensee?
be a citizen of the United States - ANSWER-Prior to taking the sales associate real estate license
examination, an applicant MUST meet all of the following requirements EXCEPT:
From their own insurance agent or through the Kentucky Real Estate Commission group policy. -
ANSWER-Real estate licensees MUST obtain errors and omissions insurance coverage in which of the
following manners?
The Kentucky Real Estate Commission must be notified of the new address in writing by the licensee
within ten days. - ANSWER-Which of the following MUST occur when licensees change their principal
residence?
6 - ANSWER-How many clock-hours of continuing education are active real estate licensees required to
attend annually if they were initially licensed after June 19, 1976?
pay the broker the prescribed escrow fee - ANSWER-To place a real estate license in escrow, an active
licensee is required to take all of the following actions EXCEPT:
An auctioneer conducting a real property auction - ANSWER-Which of the following MUST have a
Kentucky real estate license if not associated with a broker?
Sales associate - ANSWER-If a sales associate's license is NOT renewed by the required date, which of the
following will be held accountable?
leases of at least 6 months - ANSWER-Under the Kentucky Statute of Frauds, agreements regarding all of
the following items must be in writing in order to be enforceable EXCEPT:
The licensee has violated Kentucky Real Estate License Law - ANSWER-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 Kentucky Real Estate License Law, which of the following
statements about this situation is CORRECT?
signatures of at least two of the sellers - ANSWER-A listing contract meets legal requirements if it
contains all of the following EXCEPT the
Brokerage fee or commission agreed upon - ANSWER-An offer to purchase prepared by a licensed sales
associate must contain all of the following information EXCEPT the:
a suicide has occurred in the house within the last 2 years - ANSWER-The Seller Disclosure of Property
Condition Form must include information on all of the following areas EXCEPT whether
STATE PORTION STUDY QUESTIONS
AND ANSWERS
1 - ANSWER-How many Commissioners are appointed as a citizen- at- large?
4 - ANSWER-How many years is the term of a Commissioner?
2 - ANSWER-How many consecutive terms can a Commissioner have?
Kentucky Association of Realtors - ANSWER-Where does the Governor get the list of people to select an
appointment of a Commissioner?
3 - ANSWER-How many Commissioners can belong to the same political party?
The Commissioners select the chairperson - ANSWER-Who selects the chairperson?
No - ANSWER-Can the Commission fix prices; establish fees or set rates at which real estate licensees are
compensated?
$15,000 per annum and actually and necessary expenses - ANSWER-How much do Commissioners get
paid annually?
No - ANSWER-Can someone who does not have a real estate licenses hold himself or herself out to the
public as a real estate broker or sales associate?
Yes - ANSWER-Does a licensee who is an owner or builder-developer have to disclose his status as a real
estate licensee?
Filing a civil action in the circuit court where the Commission is located or the unlawful activity took
place - ANSWER-What steps would the Commission take to file and injuctive relief?
$20,000 - ANSWER-The Kentucky Real Estate Commission determined that a buyer was damaged 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, Research, and Recovery Fund a
MAXIMUM amount of:
commission or fee dispute arbitrations - ANSWER-The Kentucky Real Estate Commission is responsible
for all of the following activities EXCEPT
2 - ANSWER-An action for recovery from the Kentucky 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 have put the aggrieved party on notice of the cause of
action?
Commission hearing - ANSWER-What action MUST be completed prior to the awarding of funds from the
Kentucky Real Estate Education, Research, and Recovery Fund?
, 5 - ANSWER-If a sales associate's real estate license has been revoked, the Kentucky Real Estate
Commission will NOT issue another license for a period of how many years from the date of revocation?
The licensee may be subject to possible penalty by the Kentucky Real Estate Commission - ANSWER-A
licensee negotiating the sale of a condominium 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 $10,000 profit. The buyer purchases the condominium, and sells it a year later at a $5,000
loss. Which of the following situations is a possible consequence to the licensee?
be a citizen of the United States - ANSWER-Prior to taking the sales associate real estate license
examination, an applicant MUST meet all of the following requirements EXCEPT:
From their own insurance agent or through the Kentucky Real Estate Commission group policy. -
ANSWER-Real estate licensees MUST obtain errors and omissions insurance coverage in which of the
following manners?
The Kentucky Real Estate Commission must be notified of the new address in writing by the licensee
within ten days. - ANSWER-Which of the following MUST occur when licensees change their principal
residence?
6 - ANSWER-How many clock-hours of continuing education are active real estate licensees required to
attend annually if they were initially licensed after June 19, 1976?
pay the broker the prescribed escrow fee - ANSWER-To place a real estate license in escrow, an active
licensee is required to take all of the following actions EXCEPT:
An auctioneer conducting a real property auction - ANSWER-Which of the following MUST have a
Kentucky real estate license if not associated with a broker?
Sales associate - ANSWER-If a sales associate's license is NOT renewed by the required date, which of the
following will be held accountable?
leases of at least 6 months - ANSWER-Under the Kentucky Statute of Frauds, agreements regarding all of
the following items must be in writing in order to be enforceable EXCEPT:
The licensee has violated Kentucky Real Estate License Law - ANSWER-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 Kentucky Real Estate License Law, which of the following
statements about this situation is CORRECT?
signatures of at least two of the sellers - ANSWER-A listing contract meets legal requirements if it
contains all of the following EXCEPT the
Brokerage fee or commission agreed upon - ANSWER-An offer to purchase prepared by a licensed sales
associate must contain all of the following information EXCEPT the:
a suicide has occurred in the house within the last 2 years - ANSWER-The Seller Disclosure of Property
Condition Form must include information on all of the following areas EXCEPT whether
