CE Shop KY Course Final (2026)
QUESTIONS WITH VERIFIED CORRECT
ANSWERS || 100% GUARANTEED PASS
<UPDATED VERSION>
1. What is the primary purpose of a real estate license law?
A. To generate revenue for the state.
B. To protect the public from fraud and incompetence.
C. To ensure all agents earn a high income.
D. To limit the number of people in the profession.
Answer: B. To protect the public from fraud and incompetence.
2. In Kentucky, how many hours of pre-licensing education are
required for a sales associate?
A. 96 hours
B. 120 hours
C. 48 hours
D. 72 hours
Answer: A. 96 hours
3. A broker receives an earnest money check and must deposit it by
the end of the next business day. This is an example of adhering to:
A. The Law of Agency
B. Kentucky's Trust Account Guidelines
C. The Statute of Frauds
D. The REALTOR® Code of Ethics
Answer: B. Kentucky's Trust Account Guidelines
,4. The Kentucky Real Estate Authority (KREA) is responsible for all of
the following EXCEPT:
A. Issuing real estate licenses
B. Conducting disciplinary hearings
C. Setting commission rates
D. Promulgating administrative regulations
Answer: C. Setting commission rates
5. What type of listing agreement gives the broker the right to collect
a commission regardless of who sells the property, even the owner?
A. Exclusive Right-to-Sell Listing
B. Exclusive Agency Listing
C. Open Listing
D. Net Listing
Answer: A. Exclusive Right-to-Sell Listing
6. A property's value is most directly influenced by which principle?
A. Substitution
B. Contribution
C. Supply and Demand
D. Conformity
Answer: C. Supply and Demand
7. A licensee who represents the seller in a transaction is known as
the:
A. Buyer's Agent
B. Seller's Agent
C. Transaction Broker
D. Dual Agent
Answer: B. Seller's Agent
,8. The Kentucky Homebuilder Tax Credit is available for the
construction of:
A. Any new single-family home
B. Only luxury homes over $500,000
C. New single-family homes that meet specific energy-efficient
standards
D. Multi-family apartment buildings
Answer: C. New single-family homes that meet specific energy-
efficient standards
9. What is the process of determining the value of a property called?
A. Appraisal
B. Inspection
C. Survey
D. Assessment
Answer: A. Appraisal
10. A legal life estate created by a property owner for their own
lifetime is a:
A. Dower and Curtesy
B. Leasehold Estate
C. Homestead Estate
D. Estate in Severality
Answer: C. Homestead Estate
11. The three physical characteristics of land are:
A. Scarcity, Improvements, Permanence
B. Immobility, Indestructibility, Uniqueness (Non-homogeneity)
C. Location, Area, Topography
D. Demand, Utility, Transferability
, Answer: B. Immobility, Indestructibility, Uniqueness (Non-
homogeneity)
12. A buyer's ability to obtain a loan is called:
A. Appraisal
B. Underwriting
C. Creditworthiness
D. Pre-approval
Answer: C. Creditworthiness
13. The Kentucky Real Estate Commission requires that all sales
associates must be supervised by:
A. Another experienced sales associate
B. A licensed broker
C. A home inspector
D. An attorney
Answer: B. A licensed broker
14. What document conveys title to real property?
A. Mortgage
B. Deed
C. Sales Contract
D. Lis Pendens
Answer: B. Deed
15. A lien on real estate made to secure payment for a specific
municipal improvement, like a sewer line, is a:
A. Property Tax Lien
B. Special Assessment Lien
C. Mechanics' Lien
QUESTIONS WITH VERIFIED CORRECT
ANSWERS || 100% GUARANTEED PASS
<UPDATED VERSION>
1. What is the primary purpose of a real estate license law?
A. To generate revenue for the state.
B. To protect the public from fraud and incompetence.
C. To ensure all agents earn a high income.
D. To limit the number of people in the profession.
Answer: B. To protect the public from fraud and incompetence.
2. In Kentucky, how many hours of pre-licensing education are
required for a sales associate?
A. 96 hours
B. 120 hours
C. 48 hours
D. 72 hours
Answer: A. 96 hours
3. A broker receives an earnest money check and must deposit it by
the end of the next business day. This is an example of adhering to:
A. The Law of Agency
B. Kentucky's Trust Account Guidelines
C. The Statute of Frauds
D. The REALTOR® Code of Ethics
Answer: B. Kentucky's Trust Account Guidelines
,4. The Kentucky Real Estate Authority (KREA) is responsible for all of
the following EXCEPT:
A. Issuing real estate licenses
B. Conducting disciplinary hearings
C. Setting commission rates
D. Promulgating administrative regulations
Answer: C. Setting commission rates
5. What type of listing agreement gives the broker the right to collect
a commission regardless of who sells the property, even the owner?
A. Exclusive Right-to-Sell Listing
B. Exclusive Agency Listing
C. Open Listing
D. Net Listing
Answer: A. Exclusive Right-to-Sell Listing
6. A property's value is most directly influenced by which principle?
A. Substitution
B. Contribution
C. Supply and Demand
D. Conformity
Answer: C. Supply and Demand
7. A licensee who represents the seller in a transaction is known as
the:
A. Buyer's Agent
B. Seller's Agent
C. Transaction Broker
D. Dual Agent
Answer: B. Seller's Agent
,8. The Kentucky Homebuilder Tax Credit is available for the
construction of:
A. Any new single-family home
B. Only luxury homes over $500,000
C. New single-family homes that meet specific energy-efficient
standards
D. Multi-family apartment buildings
Answer: C. New single-family homes that meet specific energy-
efficient standards
9. What is the process of determining the value of a property called?
A. Appraisal
B. Inspection
C. Survey
D. Assessment
Answer: A. Appraisal
10. A legal life estate created by a property owner for their own
lifetime is a:
A. Dower and Curtesy
B. Leasehold Estate
C. Homestead Estate
D. Estate in Severality
Answer: C. Homestead Estate
11. The three physical characteristics of land are:
A. Scarcity, Improvements, Permanence
B. Immobility, Indestructibility, Uniqueness (Non-homogeneity)
C. Location, Area, Topography
D. Demand, Utility, Transferability
, Answer: B. Immobility, Indestructibility, Uniqueness (Non-
homogeneity)
12. A buyer's ability to obtain a loan is called:
A. Appraisal
B. Underwriting
C. Creditworthiness
D. Pre-approval
Answer: C. Creditworthiness
13. The Kentucky Real Estate Commission requires that all sales
associates must be supervised by:
A. Another experienced sales associate
B. A licensed broker
C. A home inspector
D. An attorney
Answer: B. A licensed broker
14. What document conveys title to real property?
A. Mortgage
B. Deed
C. Sales Contract
D. Lis Pendens
Answer: B. Deed
15. A lien on real estate made to secure payment for a specific
municipal improvement, like a sewer line, is a:
A. Property Tax Lien
B. Special Assessment Lien
C. Mechanics' Lien
