KENTUCKY STATE REAL ESTATE PRACTICE
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ Dean's brokerage firm in Dry Ridge adopted an electronic
transaction management system. Which of the following statements
is true about brokerage policies related to the system? Answer:
System permissions are on a need-to-know basis and passwords are
required.
◉ To whom may a closing company in Frankfort disburse
commission checks? Answer: Directly to the sales associates. With
permission from the respective brokers, commission checks may be
distributed directly to the sales associate and to both brokerage
firms.
◉ The Kentucky Real Estate Commission is empowered under_ to _
by _ Answer: under Chapter 324 of the Kentucky Revised Statutes to
protect the public's interest by regulating, testing, and licensing
Kentucky real estate professionals.
◉ If the licensee can't pay or refuses to pay an aggrieved party after
being found guilty of fraud in Kentucky, who pays the aggrieved
party? Answer: KREC
,◉ If a licensee fails to renew her license, when will the Kentucky
Real Estate Commission cancel it? Answer: April 1. Licensees who
fail to renew their licenses should expect KREC to cancel their
license by April 1. KREC also charges a late renewal fine of $200 if
the licensee does eventually renew.
◉ Marla forgot to renew her Kentucky real estate license and has
been charged with engaging in unlicensed brokerage. Which of the
following is true? Answer: Marla may not face penalties if she
reactivates her license. KREC may exempt a previous licensee from
penalty if the licensee takes appropriate steps to reactivate the
license.
◉ What's the purpose of the Agency Disclosure Statement used in
Kentucky residential transactions? Answer: To confirm the role of
the agent and obtain consent from the client
◉ Rickie is a real estate licensee in Horse Cave. She makes regular
calls to customers and past clients to market her services. If
someone she calls asks to be put on her internal "do not call" list,
what is Rickie required to do? Answer: Immediately place the
customer's number on her internal do not call list, and avoid making
unsolicited calls from that point forward
◉ A Kentucky real estate license is required ______. Answer: When
performing real estate activities for others, for compensation of any
kind.
, ◉ What options do licenses have when it comes to purchasing e and
o insurance? Answer: In Kentucky, licensees have three potential
options for E&O insurance: a program KREC administers,
independent insurers, or their principal broker. Not all principal
brokers offer E&O insurance.
◉ Marty has worked for Wildcat Brokerage for seven years. He
decides to transfer to his father-in-law's firm. What does he need to
do? Answer: He needs to notify KREC of his firm change and pay a
$10 fee.
◉ KREC cancelled Holly's license because she didn't complete the
48-hour post-licensing education requirement. What does this mean
for her? Answer: She'll need to start all over again by meeting the
pre-licensing requirements, including completing all pre-licensing
course, passing the state exam, and paying the required application
fees.
◉ As the seller's broker, Jenson paid a cooperating commission to an
unlicensed individual and it was legal. Which of the following
statements about the person who received the cooperating
commission in Kentucky is true? Answer: The individual is an
attorney who performed brokerage services for the buyer.
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ Dean's brokerage firm in Dry Ridge adopted an electronic
transaction management system. Which of the following statements
is true about brokerage policies related to the system? Answer:
System permissions are on a need-to-know basis and passwords are
required.
◉ To whom may a closing company in Frankfort disburse
commission checks? Answer: Directly to the sales associates. With
permission from the respective brokers, commission checks may be
distributed directly to the sales associate and to both brokerage
firms.
◉ The Kentucky Real Estate Commission is empowered under_ to _
by _ Answer: under Chapter 324 of the Kentucky Revised Statutes to
protect the public's interest by regulating, testing, and licensing
Kentucky real estate professionals.
◉ If the licensee can't pay or refuses to pay an aggrieved party after
being found guilty of fraud in Kentucky, who pays the aggrieved
party? Answer: KREC
,◉ If a licensee fails to renew her license, when will the Kentucky
Real Estate Commission cancel it? Answer: April 1. Licensees who
fail to renew their licenses should expect KREC to cancel their
license by April 1. KREC also charges a late renewal fine of $200 if
the licensee does eventually renew.
◉ Marla forgot to renew her Kentucky real estate license and has
been charged with engaging in unlicensed brokerage. Which of the
following is true? Answer: Marla may not face penalties if she
reactivates her license. KREC may exempt a previous licensee from
penalty if the licensee takes appropriate steps to reactivate the
license.
◉ What's the purpose of the Agency Disclosure Statement used in
Kentucky residential transactions? Answer: To confirm the role of
the agent and obtain consent from the client
◉ Rickie is a real estate licensee in Horse Cave. She makes regular
calls to customers and past clients to market her services. If
someone she calls asks to be put on her internal "do not call" list,
what is Rickie required to do? Answer: Immediately place the
customer's number on her internal do not call list, and avoid making
unsolicited calls from that point forward
◉ A Kentucky real estate license is required ______. Answer: When
performing real estate activities for others, for compensation of any
kind.
, ◉ What options do licenses have when it comes to purchasing e and
o insurance? Answer: In Kentucky, licensees have three potential
options for E&O insurance: a program KREC administers,
independent insurers, or their principal broker. Not all principal
brokers offer E&O insurance.
◉ Marty has worked for Wildcat Brokerage for seven years. He
decides to transfer to his father-in-law's firm. What does he need to
do? Answer: He needs to notify KREC of his firm change and pay a
$10 fee.
◉ KREC cancelled Holly's license because she didn't complete the
48-hour post-licensing education requirement. What does this mean
for her? Answer: She'll need to start all over again by meeting the
pre-licensing requirements, including completing all pre-licensing
course, passing the state exam, and paying the required application
fees.
◉ As the seller's broker, Jenson paid a cooperating commission to an
unlicensed individual and it was legal. Which of the following
statements about the person who received the cooperating
commission in Kentucky is true? Answer: The individual is an
attorney who performed brokerage services for the buyer.
