Kentucky State Real Estate Practice Exam (KY Law) Complete Guide

Kentucky State Real Estate Practice Exam (KY Law) Complete Guide A broker lists a residence. An acquaintance of the broker employs the broker to purchase the listed house. Before preparing the offer to purchase, which of the following is required of the broker? Written consent for dual agency from both parties A licensee has made an oral agreement to sell a property. The licensee proceeds to advertise in the local newspaper, and receives a full-price offer to purchase. According to Kentucky Real Estate License Law, The licensee has violated Kentucky Real Estate License Law. A licensee negotiating the sale of a condominium tells a prospective buyer that the licensee absolutely guarantees that if the buyer closes on the property now, and resells it in a year, the buyer will realize no less than a $10,000 profit. The buyer purchases the condominium, and sells it a year later at a $5,000 loss. Which of the following situations is a possible consequence to the licensee? The licensee may be subject to possible penalty by the Kentucky Real Estate Commission. A licensee tells a prospective buyer, "The landfill 2 miles upwind from this house has never posed a problem for this neighborhood." If the licensee knows this statement to be UNTRUE, it is an example of fraud. A real estate licensee who causes financial loss to a seller as a result of serious, yet unintentional, mistakes in contract preparation may be liable for what offense under license law? Gross Negligence A real estate sales associate who is new in the industry receives a referral from an unlicensed friend. The referral results in a sale. To keep the referral source happy and get more referrals in the future, the sales associate may: send a thank you note. A sales associate may manage property for others for a fee under which of the following conditions? The management is handled through the sales associate's principal broker and monies are placed in the broker's management/escrow accounts. An action for recovery from the Kentucky Real Estate Education, Research, and Recovery Fund MUST be commenced within how many years from actual knowledge of the cause of action or the time when circumstances would reasonably have put the aggrieved party on notice of the cause of action? Two (2) Years How many clock-hours of continuing education are active real estate licensees required to attend annually if they were initially licensed after June 19, 1976? Six (6) hours If a sales associate's real estate license has been revoked, the Kentucky Real Estate Commission will NOT issue another license for a period of how many years from the date of revocation? Five (5) years. Real estate licensees MUST obtain errors and omissions insurance coverage in which of the following manners? From their own insurance agent or through the Kentucky Real Estate Commission group policy. Sales associates may advertise solely in their own name when selling: their own residence. The following MUST have a Kentucky real estate license if not associated with a broker? An auctioneer conducting a real property auction The Kentucky Real Estate Commission determined that a buyer was damaged by the fraudulent action of a licensee in the amount of $50,000. If the responsible licensee does not pay the claim, the Commission may pay out from the Real Estate Education, Research, and Recovery Fund a MAXIMUM amount of: $20,000 The Kentucky Real Estate Commission is NOT responsible for the following activities commission or fee dispute arbitrations. What action MUST be completed prior to the awarding of funds from the Kentucky Real Estate Education, Research, and Recovery Fund? A Commission Hearing What information should not be included on The Seller Disclosure of Property Condition Form? a suicide has occurred in the house within the last 2 years. When terminating an association with a principal broker, a sales associate must leave all listing information with that broker UNLESS a written contract with the principal broker stipulates otherwise. Which of the following MUST occur when licensees change their principal residence? The