Kentucky Real Estate Exam Questions
and Correct Responses
How long does property managers need to keep bank statements and records for his property
management/escrow accounts - CORRECT ANSWERS-Five years
How often does the Kentucky Real Estate Commission meet? - CORRECT ANSWERS-Monthly
In exclusive right-to-sell agency agreement does the customer owe their agent a commission if
the customer or another agent brings in the buyer - CORRECT ANSWERS-Yes, the exclusive
right-to-sell agency agreement guarantees the realtor commission no matter who finds the
buyer
A buyer client in kentucky is suing Janet for an inadvertent mistake she made in a real estate
transaction. What insurance policy covers this type of situation - CORRECT ANSWERS-Errors and
omissions insurance
Which of these actions may a Kentucky listing agent take when acting for the seller of a
residential property - CORRECT ANSWERS-Complete the Seller's Disclosure of Property
Conditions form on behalf of the seller, if the seller requests it
If a complaint for a license law violation in Kentucky does not constitute a prima facie case, the
complainant has ______ days to revisde and supplement the case - CORRECT ANSWERS-10
What's the highest fine that KREC can impose for a single charge of improper conduct -
CORRECT ANSWERS-$1,000
When may a Kentucky sales associate Ross supervise the activities of other sales associates -
CORRECT ANSWERS-With the KREC's approval
You're the listing agent for Melinda, who's selling her old Kentucky home. She tells you that her
son had been using the shed out back as a meth lab, but that it's been decontaminated and
cleared by the proper authorities. Is she required to disclose this? - CORRECT ANSWERS-
Melinda is NOT required to disclose the presence of meth on her property in the Seller's
Disclosure of Property Conditions form
Burt has recently become a property manager in Kentucky. He thinks he'll like his new role since
it's varied and complex. What will Burt's responsibilities include. - CORRECT ANSWERS-
Marketing and leasing the property
What's the role of the mortgage contingency in a Kentucky sales contract - CORRECT ANSWERS-
Documents the type of and timeline for financing, and outlines what to do if financing falls
through
, Joshua is a buyer's agent in Kentucky. Which offers must Joshua present to the Sal, the owner
of the property - CORRECT ANSWERS-All offers
Chester is interested in becoming a real estate licensee in Kentucky. After completing the
requirements for obtaining the license for a real estate sales associate, which agency will
administer his license - CORRECT ANSWERS-Kentucky Real Estate Commission
What's the purpose of the Agency Disclosure Statement used in Kentucky residential
transactions - CORRECT ANSWERS-To confirm the role of the agent and obtain consent from the
client
Are kentucky closing companies permitted to disburse commission checks directly to licensees
at closing - CORRECT ANSWERS-Yes, as long as the brokerage firm authorizes it
You're acting as a buyer's agent in Kentucky. Your client has made an offer for a home, but the
seller isn't represented by a real estate agent. If the seller completes the Seller's Disclosure of
Property Conditions form, by what time do you need to deliver it to your buyer client -
CORRECT ANSWERS-Within 120 hours after making the offer
In Kentucky, which residential sales contract provision specifies the date by which the buyer will
have unfettered access to the property - CORRECT ANSWERS-Possession
What extension does KREC grant for failure to meet the post-licensing requirement? - CORRECT
ANSWERS-No extension
Marcia is an unlicensed assistant in Kentucky. Which of the following tasks is she permitted to
perform - CORRECT ANSWERS-Greet people at an open house
According to Kentucky license law, which statement most accurately describes a licensee's
responsibility related to written offers on his or her listings - CORRECT ANSWERS-All formal
written offers the licensees receives must be presented to the owner, even after the seller
accepts the an offer
Nick's brokerage is being audited by the KREC. Which of these would NOT be part of the
transaction files he provides to KREC - CORRECT ANSWERS-Copies of transaction records that
were damaged when the storage room flooded last year, so they are only partially legible
Which of the following benefits does errors and omissions insurance provide Kentucky licensees
- CORRECT ANSWERS-Provides coverage for licensees who make inadvertent mistakes
Kentucky licensee Kerry is working with seller client Carmen. Carmen has a written agency
agreement with Kerry's brokerage. Which of the following duties does Kentucky law say that
Kerry owes her client - CORRECT ANSWERS-Accept and promptly submit all offers
In Kentucky, which of the following residential sales contract provisions is used to specify which
items are to remain with the property - CORRECT ANSWERS-Inclusions
and Correct Responses
How long does property managers need to keep bank statements and records for his property
management/escrow accounts - CORRECT ANSWERS-Five years
How often does the Kentucky Real Estate Commission meet? - CORRECT ANSWERS-Monthly
In exclusive right-to-sell agency agreement does the customer owe their agent a commission if
the customer or another agent brings in the buyer - CORRECT ANSWERS-Yes, the exclusive
right-to-sell agency agreement guarantees the realtor commission no matter who finds the
buyer
A buyer client in kentucky is suing Janet for an inadvertent mistake she made in a real estate
transaction. What insurance policy covers this type of situation - CORRECT ANSWERS-Errors and
omissions insurance
Which of these actions may a Kentucky listing agent take when acting for the seller of a
residential property - CORRECT ANSWERS-Complete the Seller's Disclosure of Property
Conditions form on behalf of the seller, if the seller requests it
If a complaint for a license law violation in Kentucky does not constitute a prima facie case, the
complainant has ______ days to revisde and supplement the case - CORRECT ANSWERS-10
What's the highest fine that KREC can impose for a single charge of improper conduct -
CORRECT ANSWERS-$1,000
When may a Kentucky sales associate Ross supervise the activities of other sales associates -
CORRECT ANSWERS-With the KREC's approval
You're the listing agent for Melinda, who's selling her old Kentucky home. She tells you that her
son had been using the shed out back as a meth lab, but that it's been decontaminated and
cleared by the proper authorities. Is she required to disclose this? - CORRECT ANSWERS-
Melinda is NOT required to disclose the presence of meth on her property in the Seller's
Disclosure of Property Conditions form
Burt has recently become a property manager in Kentucky. He thinks he'll like his new role since
it's varied and complex. What will Burt's responsibilities include. - CORRECT ANSWERS-
Marketing and leasing the property
What's the role of the mortgage contingency in a Kentucky sales contract - CORRECT ANSWERS-
Documents the type of and timeline for financing, and outlines what to do if financing falls
through
, Joshua is a buyer's agent in Kentucky. Which offers must Joshua present to the Sal, the owner
of the property - CORRECT ANSWERS-All offers
Chester is interested in becoming a real estate licensee in Kentucky. After completing the
requirements for obtaining the license for a real estate sales associate, which agency will
administer his license - CORRECT ANSWERS-Kentucky Real Estate Commission
What's the purpose of the Agency Disclosure Statement used in Kentucky residential
transactions - CORRECT ANSWERS-To confirm the role of the agent and obtain consent from the
client
Are kentucky closing companies permitted to disburse commission checks directly to licensees
at closing - CORRECT ANSWERS-Yes, as long as the brokerage firm authorizes it
You're acting as a buyer's agent in Kentucky. Your client has made an offer for a home, but the
seller isn't represented by a real estate agent. If the seller completes the Seller's Disclosure of
Property Conditions form, by what time do you need to deliver it to your buyer client -
CORRECT ANSWERS-Within 120 hours after making the offer
In Kentucky, which residential sales contract provision specifies the date by which the buyer will
have unfettered access to the property - CORRECT ANSWERS-Possession
What extension does KREC grant for failure to meet the post-licensing requirement? - CORRECT
ANSWERS-No extension
Marcia is an unlicensed assistant in Kentucky. Which of the following tasks is she permitted to
perform - CORRECT ANSWERS-Greet people at an open house
According to Kentucky license law, which statement most accurately describes a licensee's
responsibility related to written offers on his or her listings - CORRECT ANSWERS-All formal
written offers the licensees receives must be presented to the owner, even after the seller
accepts the an offer
Nick's brokerage is being audited by the KREC. Which of these would NOT be part of the
transaction files he provides to KREC - CORRECT ANSWERS-Copies of transaction records that
were damaged when the storage room flooded last year, so they are only partially legible
Which of the following benefits does errors and omissions insurance provide Kentucky licensees
- CORRECT ANSWERS-Provides coverage for licensees who make inadvertent mistakes
Kentucky licensee Kerry is working with seller client Carmen. Carmen has a written agency
agreement with Kerry's brokerage. Which of the following duties does Kentucky law say that
Kerry owes her client - CORRECT ANSWERS-Accept and promptly submit all offers
In Kentucky, which of the following residential sales contract provisions is used to specify which
items are to remain with the property - CORRECT ANSWERS-Inclusions
