Kentucky Real Estate Principles - Final
Practice Test Questions & Answers
1.What was the oldest and most popular form of a land description
system used in the U.S.?
ANS Public Land Survey System (PLSS)
2.Which of the following arrangements reflects the ideal tenant mix in a
shopping center?
ANS Each store enhances the drawing power of the other stores.
3.Under the Rectangular survey system, which direction do the base lines
run on a map?
ANS East-West
4.REALTORS® intending to share or sell consumer information gathered on
the Internet must
ANS disclose that possibility in a readily apparent manner on the site.
5.If an industrial property is described as "special purpose," it is .
ANS un- suitable for many uses and processes.
6.One or more licensees designated by the employing broker, with the
,consent of the principal, to act exclusively as the agent is described as
a
.
ANS Designated Agent
7.What is the first step taken by a contractor under the quantity
survey method?
ANS Contractor lists all materials, equipment, and necessary labor
8.Which of the following is an environmental exposure pathway?
ANS Soil
9.If a cooperating broker accepts the offer of subagency from a listing
broker, to whom does the cooperating broker owe fiduciary duties?
ANS Seller
10.Who can get in legal trouble for acting outside of their scope of expertise?
Principal Broker
Salesperson
Attorney
All of the above – Correct
11.What is NOT a valid reason for a breach of contract?
ANS Unilateral rescission by the buyer after the contingencies have
,expired
12.An exclusive listing agreement may contain .
ANS Listing term of less than one year
13.Who cannot be a client in a real estate transaction?
ANS Corporation Limited Partnership
Agent's family members
None of the above—
14.Which benefits are the least likely to be paid out to a Principal Broker
with a $1 million / $1 million errors and omissions (E&O) insurance policy
after a filed lawsuit by two or more unhappy clients over an unintentional
mistake?
ANS A
$2 million dollar judgment paid out to one party
15.What is the name of the national survey system that was first
established many years ago to classify giant land parcels before naming an
independent owner?
ANS Public Land Survey System
16.What was the original name of the National Association of REALTORS®
when it was first founded?
, ANS The National Association of Real Estate Exchanges
17.An Accountant, Lawyer, Insurance Agent, and Principal Broker all
share what types of relationships with their clients?
ANS Fiduciary
18.What year did the temporary FDIC increase become "permanent"?
ANS 2010
19.Which situation below is the least likeliest to be covered under a
Standard Coverage title insurance policy?
ANS Unrecorded leasehold interest held by a lessee 10 years ago
20.A party's failure to perform a specific action or obligation included in
a written contract can later be construed as what by the other party in the
agreement?
ANS Breach of Contract
21.A seller decided to back out of a sales contract for no good reason.
What recourse does the buyer have?
ANS To sue for specific performance
22.Which type of title insurance contracts usually offer consumers the
most ownership protection benefits?
ANS Extended Coverage Policy
Practice Test Questions & Answers
1.What was the oldest and most popular form of a land description
system used in the U.S.?
ANS Public Land Survey System (PLSS)
2.Which of the following arrangements reflects the ideal tenant mix in a
shopping center?
ANS Each store enhances the drawing power of the other stores.
3.Under the Rectangular survey system, which direction do the base lines
run on a map?
ANS East-West
4.REALTORS® intending to share or sell consumer information gathered on
the Internet must
ANS disclose that possibility in a readily apparent manner on the site.
5.If an industrial property is described as "special purpose," it is .
ANS un- suitable for many uses and processes.
6.One or more licensees designated by the employing broker, with the
,consent of the principal, to act exclusively as the agent is described as
a
.
ANS Designated Agent
7.What is the first step taken by a contractor under the quantity
survey method?
ANS Contractor lists all materials, equipment, and necessary labor
8.Which of the following is an environmental exposure pathway?
ANS Soil
9.If a cooperating broker accepts the offer of subagency from a listing
broker, to whom does the cooperating broker owe fiduciary duties?
ANS Seller
10.Who can get in legal trouble for acting outside of their scope of expertise?
Principal Broker
Salesperson
Attorney
All of the above – Correct
11.What is NOT a valid reason for a breach of contract?
ANS Unilateral rescission by the buyer after the contingencies have
,expired
12.An exclusive listing agreement may contain .
ANS Listing term of less than one year
13.Who cannot be a client in a real estate transaction?
ANS Corporation Limited Partnership
Agent's family members
None of the above—
14.Which benefits are the least likely to be paid out to a Principal Broker
with a $1 million / $1 million errors and omissions (E&O) insurance policy
after a filed lawsuit by two or more unhappy clients over an unintentional
mistake?
ANS A
$2 million dollar judgment paid out to one party
15.What is the name of the national survey system that was first
established many years ago to classify giant land parcels before naming an
independent owner?
ANS Public Land Survey System
16.What was the original name of the National Association of REALTORS®
when it was first founded?
, ANS The National Association of Real Estate Exchanges
17.An Accountant, Lawyer, Insurance Agent, and Principal Broker all
share what types of relationships with their clients?
ANS Fiduciary
18.What year did the temporary FDIC increase become "permanent"?
ANS 2010
19.Which situation below is the least likeliest to be covered under a
Standard Coverage title insurance policy?
ANS Unrecorded leasehold interest held by a lessee 10 years ago
20.A party's failure to perform a specific action or obligation included in
a written contract can later be construed as what by the other party in the
agreement?
ANS Breach of Contract
21.A seller decided to back out of a sales contract for no good reason.
What recourse does the buyer have?
ANS To sue for specific performance
22.Which type of title insurance contracts usually offer consumers the
most ownership protection benefits?
ANS Extended Coverage Policy
