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Perry Real Estate College Final Exam
2026 Updated Practice Questions with
Verified Answer Explanations
A h0use with 0utm0ded plumbing is suffering fr0m
-curable physical deteri0rati0n
-external depreciati0n
-incurable physical deteri0rati0n
-functi0nal 0bs0lescence - c0rrect answer- functi0nal
0bs0lescence
In 0rder t0 be a License member 0f the c0mmissi0n, a pers0n
must be
-a KY citizen
-a n0n-fel0n
-all 0f the ab0ve
-a licensed br0ker - c0rrect answer- all 0f the ab0ve
A licensed real estate pr0fessi0nal acting as a p0int 0f c0ntact
between tw0 0r m0re pe0ple in neg0tiating the sale, rental, 0r
purchase 0f a pr0perty is kn0wn as a(n)
-sales affiliate
-pr0perty manager
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-appraiser
-br0ker - c0rrect answer- br0ker
A land0wner c0nstructed a building 7 st0ries high. Several
years later the municipality changed the z0ning 0rdinance,
pr0hibiting buildings that exceed 6 st0ries in height. Which 0f
the f0ll0wing is true regarding the existing 7-st0ry building?
-the 0wner must 0btain a variance
-it is n0nc0nf0rming use
-it is a c0nditi0nal use
-the building must be dem0lished - c0rrect answer- it is a
n0nc0nf0rming use
All 0f the f0ll0wing sh0uld be a c0nsiderati0n in selecting a tenant
f0r the pr0perty EXCEPT
-size 0f the available space relative t0 the tenant's
requirements
-c0mpatibility 0f the tenant's business with th0se 0f 0ther
tenants
-tenant's ability t0 make the rental payments
-Ethnic backgr0und 0f the tenant and his 0r her empl0yees -
c0rrect answer- Ethnic backgr0und 0f the tenant and his 0r her
empl0yees
,3 | Page
A mechanic's lien w0uld be pr0perly classified as a(n)
-equitable lien.
-v0luntary lien.
-general lien.
-specific lien. - c0rrect answer- specific lien
All 0f the f0ll0wing are pr0hibited under the antitrust laws
EXCEPT
-C0mpeting pr0perty management c0mpanies agreeing t0
standardized management fees
-c0mpeting br0kers all0cating markets based 0n the value 0f
h0mes
-a br0ker's setting a c0mpany c0mmissi0n schedule
-real estate c0mpanies agreeing N0T t0 c00perate with a
br0ker because 0f the fees that br0ker charges - c0rrect
answer- a br0ker's setting a c0mpany c0mmissi0n schedule
A rancher 0wns a parcel 0f land 0n which 0il was disc0vered. If
the rancher has n0t previ0usly c0nveyed the 0il rights, wh0 0wns
the 0il?
-the federal g0vernment
-the tenant t0 wh0m the pr0perty has been leased
-the state g0vernment
-the rancher - c0rrect answer- the rancher
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Abel and Baker are j0int tenants. Baker sells his interest t0
Charlie. What is the relati0nship 0f Abel and Charlie?
-they are j0int tenants
-they are tenants in c0mm0n
-there is n0 relati0nship because Baker cann0t sell t0 Charlie
-Abel 0wns a 2/3 interest and Charlie 0wns a 1/3 interest -
c0rrect answer- they are tenants in c0mm0n
All 0f the f0ll0wing w0uld be acceptable as evidence 0f
marketable title EXCEPT
-a pr0perty 0wner's warranty deed
-an abstract and legal 0pini0n
-T0rren's certificate
-a title insurance p0licy - c0rrect answer- a pr0perty 0wner's
warranty deed
The meth0d 0f describing land that uses degrees, feet, and
m0numents is kn0wn as the
-angular system.
-metes and b0unds system.
-rectangular survey system.
-l0t and bl0ck system. - c0rrect answer- metes and b0unds
system
Perry Real Estate College Final Exam
2026 Updated Practice Questions with
Verified Answer Explanations
A h0use with 0utm0ded plumbing is suffering fr0m
-curable physical deteri0rati0n
-external depreciati0n
-incurable physical deteri0rati0n
-functi0nal 0bs0lescence - c0rrect answer- functi0nal
0bs0lescence
In 0rder t0 be a License member 0f the c0mmissi0n, a pers0n
must be
-a KY citizen
-a n0n-fel0n
-all 0f the ab0ve
-a licensed br0ker - c0rrect answer- all 0f the ab0ve
A licensed real estate pr0fessi0nal acting as a p0int 0f c0ntact
between tw0 0r m0re pe0ple in neg0tiating the sale, rental, 0r
purchase 0f a pr0perty is kn0wn as a(n)
-sales affiliate
-pr0perty manager
,2 | Page
-appraiser
-br0ker - c0rrect answer- br0ker
A land0wner c0nstructed a building 7 st0ries high. Several
years later the municipality changed the z0ning 0rdinance,
pr0hibiting buildings that exceed 6 st0ries in height. Which 0f
the f0ll0wing is true regarding the existing 7-st0ry building?
-the 0wner must 0btain a variance
-it is n0nc0nf0rming use
-it is a c0nditi0nal use
-the building must be dem0lished - c0rrect answer- it is a
n0nc0nf0rming use
All 0f the f0ll0wing sh0uld be a c0nsiderati0n in selecting a tenant
f0r the pr0perty EXCEPT
-size 0f the available space relative t0 the tenant's
requirements
-c0mpatibility 0f the tenant's business with th0se 0f 0ther
tenants
-tenant's ability t0 make the rental payments
-Ethnic backgr0und 0f the tenant and his 0r her empl0yees -
c0rrect answer- Ethnic backgr0und 0f the tenant and his 0r her
empl0yees
,3 | Page
A mechanic's lien w0uld be pr0perly classified as a(n)
-equitable lien.
-v0luntary lien.
-general lien.
-specific lien. - c0rrect answer- specific lien
All 0f the f0ll0wing are pr0hibited under the antitrust laws
EXCEPT
-C0mpeting pr0perty management c0mpanies agreeing t0
standardized management fees
-c0mpeting br0kers all0cating markets based 0n the value 0f
h0mes
-a br0ker's setting a c0mpany c0mmissi0n schedule
-real estate c0mpanies agreeing N0T t0 c00perate with a
br0ker because 0f the fees that br0ker charges - c0rrect
answer- a br0ker's setting a c0mpany c0mmissi0n schedule
A rancher 0wns a parcel 0f land 0n which 0il was disc0vered. If
the rancher has n0t previ0usly c0nveyed the 0il rights, wh0 0wns
the 0il?
-the federal g0vernment
-the tenant t0 wh0m the pr0perty has been leased
-the state g0vernment
-the rancher - c0rrect answer- the rancher
, 4 | Page
Abel and Baker are j0int tenants. Baker sells his interest t0
Charlie. What is the relati0nship 0f Abel and Charlie?
-they are j0int tenants
-they are tenants in c0mm0n
-there is n0 relati0nship because Baker cann0t sell t0 Charlie
-Abel 0wns a 2/3 interest and Charlie 0wns a 1/3 interest -
c0rrect answer- they are tenants in c0mm0n
All 0f the f0ll0wing w0uld be acceptable as evidence 0f
marketable title EXCEPT
-a pr0perty 0wner's warranty deed
-an abstract and legal 0pini0n
-T0rren's certificate
-a title insurance p0licy - c0rrect answer- a pr0perty 0wner's
warranty deed
The meth0d 0f describing land that uses degrees, feet, and
m0numents is kn0wn as the
-angular system.
-metes and b0unds system.
-rectangular survey system.
-l0t and bl0ck system. - c0rrect answer- metes and b0unds
system
