State Portion Real Estate Questions Missed

In Kentucky, when an agreement terminates, a property manager must provide the property owner with a final account of transactions that occurred after the most recent monthly accounting. Within how many days of the agreement's termination must this must be completed? 12 24 36 60

60

A Kentucky individual accused of engaging in unlicensed brokerage for the first time may be charged with which of the following? A Class A felony A Class A misdemeanor A Class B felony A Class B misdemeanor

A Class A misdemeanor

If Kentucky Real Estate Commission members don't conduct a violation hearing, who does? A circuit court judge A hearing officer The district attorney The Kentucky Association of REALTORS®

A hearing officer

In Kentucky, when someone pays commission to an unlicensed individual who is not exempt from licensing law, this is known as ______. A bonus A cash incentive A kickback A rebate

A kickback

Which of the following might be a reason a licensee places a real estate license in inactive status? A licensee didn't pass the licensing exam. A licensee doesn't have a sponsoring broker after passing the licensing exam and obtaining a license. A licensee doesn't have a valid driver's license. A licensee hasn't received approval from the Kentucky Association of REALTORS® for a license.

A licensee doesn't have a sponsoring broker after passing the licensing exam and obtaining a license.

Burt is a property manager in Kentucky. He's got his hands full with multiple clients and multiple properties for each. He's running out of storage space and is considering shredding some older documents. How long does Burt need to keep bank statements and records for his property management/escrow accounts? 10 years 12 years 15 years Five years

Five years

Kentucky transaction records must be retained for ______. Five years from the consummation date Five years from the transaction start date Three months from the closing or transaction termination date Three years from the closing date

Five years from the consummation date

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? He doesn't need to take any action. He needs to ask Wildcat Brokerage to notify KREC. He needs to notify KREC of his firm change and pay a $10 fee. He needs to notify the Kentucky Association of REALTORS® of his firm change.

He needs to notify KREC of his firm change and pay a $10 fee.

Leslie, a property manager, always asks that her property management agreements contain a(n) ______ clause that states that she is not responsible for the negligent acts of the people she hires. Escape Hold harmless Penalty Release

Hold harmless

Which of the following is a power of the Kentucky Real Estate Commission? Assigning a licensee to a specific principal broker for mentoring Holding disciplinary hearings Issuing an automatic fine to a licensee without holding a hearing Teaming up with law enforcement agencies to crack down on license law violations

Holding disciplinary hearings

Julie has become best friends with her clients, the Joneses. When their sale closes, they give her a voucher for an all-expenses-paid trip for two to the Bahamas. What Kentucky license law has she violated? Julie accepted compensation, in the form of the travel voucher, from someone other than her principal broker. Julie made false promises to the Joneses when they became friends. Julie misrepresented her agency relationship when she crossed the line from professional to friend. This isn't a license law violation.

Julie accepted compensation, in the form of the travel voucher, from someone other than her principal broker.

What can happen if a licensee doesn't meet the requirements of a delinquency plan with KREC for failure to complete CE requirements? KREC may suspend a licensee's license for up to 12 months. KREC may suspend a licensee's license for up to six months. KREC will automatically revoke the licensee's license. KREC will place the licensee on probation.

KREC may suspend a licensee's license for up to six months.

Kentucky broker Karl has designated his agents Marcee and George to represent the seller and buyer, respectively, in the same transaction. In this scenario, who is/are the dual agent(s)? All affiliated licensees at Karl's brokerage George and Marcee Karl Karl, George, and Marcee

Karl

Kentucky licensee Giana manages Three Star Realty's main office. She's in charge of training and mentoring the firm's staff. What kind of licensee is she? Broker associate Managing broker Principal broker Sales associate

Principal broker

Matt is a Kentucky licensee representing a seller whose home was the site of a murder/suicide. According to Kentucky's ______, Matt isn't required to affirmatively disclose this information to prospective buyers. Disclosure of Property Conditions Law Non-Disclosure Law Property Conveyance Law Stigmatized Property Law

Property Conveyance Law

Erica, a Kentucky licensee, describes the condo she's listed as being "the best unit in the building." What's this an example of? Intentional fraud Lying Positive misrepresentation Puffery

Puffery

Property managers should attempt to return tenants' security deposits to their last known or reasonably traced address. After 60 days, if there has been no response from a previous tenant, the property manager may ______. Deposit the funds with the court Keep the funds Redeposit the funds for the owner Turn the money over to the state treasurer or other agency

Redeposit the funds for the owner

The Kentucky Real Estate Commission may ______ while investigating alleged license law violations. Require licensees to get an attorney Review and submit evidence, such as books, papers, or documents Suspend licensees until their hearing Withhold evidence from a licensee

Review and submit evidence, such as books, papers, or documents

Which of the following is a reason all licensees should have errors and omissions insurance? It eliminates risk. It provides coverage for all situations. Litigation is declining. Risk is an inherent part of real estate activities.

Risk is an inherent part of real estate activities.

Which one of these Kentucky transactions will require the Condominium Seller's Certificate? A court-ordered sale of a condo unit A transfer of title to a condo unit as a gift to a newlywed couple from either set of parents Purchase of a condo unit in foreclosure Sale of a condo unit in a complex designed for active seniors

Sale of a condo unit in a complex designed for active seniors

Kentucky designated agent Mason is representing the Latimers, who receive an offer for their home. He completes the ______ and presents it to the Latimers for their signature before they review the offer. Buyer version of the Agency Disclosure Statement Consumer Guide to Agency Relationships Designated Agency Relationship Disclosure Seller version of the Agency Disclosure Statement

Seller version of the Agency Disclosure Statement

What should occur on a monthly basis when maintaining escrow accounts in Kentucky? Recording in a journal Recording in the ledger Recording the ending balance of each escrow account Sending a monthly accounting of transactions to owners

Sending a monthly accounting of transactions to owners

Licensee Sherry only likes to work with Caucasian clients and refuses to work with any people of color. What Kentucky license law has she violated? Sherry failed to provide a good reason for only wanting to work with Caucasian clients. Sherry violated RESPA. Sherry violated the Fair Housing Act. This is not a license law violation.

Sherry violated the Fair Housing Act.

The Applicant Review Committee has completed an investigation stemming from a Kentucky license applicant's criminal background check findings. Which of these action can NOT be taken by the committee? The committee can allow the application to progress without a hearing. The committee can deny the application. The committee can order the applicant to appear at a hearing before the real estate commission. The committee can recommend the commission deny the application.

The committee can deny the application.

The KREC Exclusive Right to Sell Agency Contract is a legally binding contract once it's signed by ______. The seller and authorized agent The seller and principal broker The seller, principal broker, and authorized agent The seller, principal broker, authorized agent, and seller's attorney

The seller, principal broker, and authorized agent

Monty is advertising a number of listings in the local Prospect newspaper and includes the fair housing logo in the ad. What else is required? A link to his firm's fair housing policy A link to the Housing and Urban Development Fair Housing site The correct colors The verbiage, "Equal Opportunity Housing"

The verbiage, "Equal Opportunity Housing"

In Kentucky, licensees have three potential options for purchasing E&O insurance: a program KREC administers, independent insurers, or ______. The commonwealth of Kentucky The Insurance Commission Their broker The Kentucky Association of REALTORS®

Their broker

In Kentucky, what's true about written offers to purchase or lease a property? They are unacceptable under Kentucky law. They can never be orally conveyed to the seller or owner. They must be presented promptly to the seller or owner. They require a written response.

They must be presented promptly to the seller or owner.

Dan is the designated agent of Kentucky buyer Matilda, who's purchasing a property listed by his firm. Dan will complete the ______ portion of the Agency Disclosure Statement when Matilda is ready to make an offer. Consent to dual agency Transaction involving only one real estate agent: Designated Agency Transaction involving two agents in the same brokerage: Designated Agency Verified offer by a designated agent

Transaction involving two agents in the same brokerage: Designated Agency

Marcella has been performing brokerage services in Hopkinsville without a license. What's the term for this in Kentucky? Illegal brokerage Improper brokerage Restricted brokerage Unlicensed brokerage

Unlicensed brokerage

As a Kentucky listing agent, when are you required to deliver the completed Seller's Disclosure of Property Conditions form to a prospective buyer? At closing Upon the prospective buyer's request When the buyer's loan is approved Within 10 days of property conveyance

Upon the prospective buyer's request

When may a Kentucky sales associate Ross supervise the activities of other sales associates? Always Never With his broker's approval With the KREC's approval

With the KREC's approval

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? At any time prior to closing Before delivering the offer to the seller Within 120 hours after making the offer Within 24 hours of a completed home inspection

Within 120 hours after making the offer

Are Kentucky closing companies permitted to disburse commission checks directly to licensees at closing? No, the closing company isn't permitted to directly disburse to a licensee. Yes, as long as the brokerage firm authorizes it. Yes, as long as the licensee holds a broker's license. Yes, but only if the principal broker also attends the closing.

Yes, as long as the brokerage firm authorizes it.

You're the listing agent for a property that was the site of a murder last year. How does Kentucky's Property Conveyance Law determine what you will disclose about this stigma? You may not discuss the stigma, and if buyers ask about it, you should advise them to perform their own research on the matter. You must disclose any stigmas that occurred within the past three years. You must disclose that a death occurred on the property, but don't need to include information about the criminal nature of the death. You're not required to proactively disclose the stigma.

You're not required to proactively disclose the stigma.

Your seller client is filling out the property condition disclosure form and asks you to explain what urea-formaldehyde is. How do you respond? "It's a by-product of meth production, and it's evidence that a property was used as a meth lab." "It's a product once used as foam insulation that could cause health issues for certain people." "It's a toxic material found in the paint of some homes built prior to 1978." "It's what taxidermists use to preserve their specimens."

"It's a product once used as foam insulation that could cause health issues for certain people."

Kentucky listing agent Ana gives her seller client a blank Seller's Disclosure of Property Conditions form. How should Ana advise her client about this form? "Before you complete this form, I advise you to hire a professional home inspector so you can be sure to capture all issues that need to be disclosed." "It's your responsibility to complete this form honestly, according to your actual knowledge of the property." "This form is something the buyer's lender will ask for, so it's best to have it ready." "We'll complete this form together, and I'll help you describe any issues in a way that won't put buyers off."

"It's your responsibility to complete this form honestly, according to your actual knowledge of the property."

The Kentucky Real Estate Commission may levy fines of up to ______. $1,000 $2,000 $3,000 $500

$1,000

What's the highest fine that KREC can impose for a single charge of improper conduct? $1,000 $1,500 $500 $5,000

$1,000

The maximum recovery fund compensation that may be granted on behalf of multiple aggrieved parties against one licensee in Kentucky is ______. $100,000 $40,000 $50,000 $75,000

$50,000

What's the fine for Kentucky licensees who fail to complete CE requirements? $100 $250 $500 $750

$500

Hannah's license renewal date is just six months away. How many hours of continuing education does she need to document to meet the biennial CE requirement in Kentucky? 10 12 Eight Six

12

The accused licensee must file a notarized response to a license law violation complaint on Kentucky Real Estate Commission-approved forms within ______ days of the date of service. 10 20 30 Seven

20

Jenna's firm in Lexington issues a check to First In Line Title Company because it referred a buyer to Jenna and subsequently closed the transaction. The buyer approved the payment. This is an example of ______. A legal kickback A legal referral fee An illegal kickback A rebate

An illegal kickback

Andrea's seller client has a written agreement with her Kentucky brokerage firm. What happens if Andrea fails to perform the required minimum duties for her client? Andrea is guilty of gross negligence and is subject to sanctions. Andrea must have her client sign and initial a waiver, releasing her from these duties. Nothing, unless the client files a formal complaint. The brokerage must send a written apology to the client on Andrea's behalf.

Andrea is guilty of gross negligence and is subject to sanctions.

If a licensee fails to renew her license, when will the Kentucky Real Estate Commission cancel it? April 1 December 31 June 15 May 31

April 1

When KREC finds that individuals have performed unlicensed brokerage activities, it will file a civil case in the ______ where offenders are located or where the unlawful acts took place. Circuit court County District Jurisdiction

Circuit court

Which agency disclosure, given to sellers and prospective buyers by their agents, requires the client to sign to consent to the agency relationship? Agency Agreement Form Agency Disclosure Statement Consent to (Seller/Buyer) Agency Consumer Guide to Agency Relationships

Agency Disclosure Statement

Kentucky's Property Management Agreement details the financial arrangement between the agent and the owner for managing, leasing, or even selling the property under which section? Agent Compensation Agent's Authority Authorized Charges Service Contracts

Agent Compensation

According to Kentucky license law, which statement most accurately describes a licensee's responsibility related to written offers on his or her listings? A licensee is only required to present formal written offers that are equal to or more than the listing price. A licensee is only required to present formal written offers within a certain range of the listing price of the property. All formal written offers the licensee receives must be presented to the owner, even after the seller accepts an offer. All formal written offers the licensee receives must be presented to the owner until the seller accepts an offer and the purchase agreement is signed by both parties.

All formal written offers the licensee receives must be presented to the owner, even after the seller accepts an offer.

Two years ago, Marlene was convicted of engaging in unlicensed brokerage in Kentucky. She's now being charged again. What charges may be filed? Class A misdemeanor Class B misdemeanor Class C felony Class D felony

Class D felony

Licensees who fail to complete the post-license education requirements will have their license automatically ______. Cancelled Put on probation Revoked Suspended

Cancelled

Carson had a written buyer's representation agreement with Halie. The agreement stipulated that Halie would compensate Carson's firm since the seller didn't agree to pay a cooperating commission. When the transaction closed, Halie failed to pay Carson. Which of the following statements about Carson's options is true? Carson can collect only by suing the buyer in court. Carson can force the seller to pay the commission owed by the buyer. Carson may acquire a lien against the buyer's property. Carson will be unable to collect his commission after the sale closes.

Carson may acquire a lien against the buyer's property.

Burt is a property manager in Bowling Green. He just received a $1,000 deposit from his newest tenant, Mary. What's he required to do now? Deposit the money into an earnest money account. Deposit the money into an escrow account. Deposit the money into a special funds account. Deposit the money into a transaction funds account.

Deposit the money into an escrow account.

Which of these terms describes a situation in which a Kentucky principal broker and the broker's appointed licensee represent a client, but no other licensee at the same firm represents that client? Designated agency Dual-licensed dual agency Single agency Single-license dual agency

Designated agency

In accordance with the Closing Costs section of the KREC Real Estate Purchase Offer or Contract, who pays for the transfer tax and preparation of the deed? Either the buyer or the seller pay. The buyer pays. The costs are split equally between the buyer and seller. The seller pays.

The seller pays.

To whom may a closing company in Frankfort disburse commission checks? Directly to the sales associates To the listing broker only To the selling broker only To whomever is authorized by the listing firm's principal broker

Directly to the sales associates

When selling a Kentucky condominium unit, the Condominium Seller Certificate is used to ______. Certify the seller's right to convey the unit Disclose information about condominium fees, regulations, and operations, as required by the association Disclose the actual square footage of the unit Receive association approval of the prospective purchaser

Disclose information about condominium fees, regulations, and operations, as required by the association

Which of the following is true about deposit of Kentucky earnest money funds? Brokers should deposit earnest money immediately upon receipt for best security of the funds. Earnest money can't be deposited into the same account as security deposits. Earnest money must be immediately available if a buyer's offer isn't accepted by all parties, so it shouldn't be deposited in an escrow account until the contract is signed. Earnest money presented with an offer not accepted by the seller must be available within three days of the offer's termination.

Earnest money must be immediately available if a buyer's offer isn't accepted by all parties, so it shouldn't be deposited in an escrow account until the contract is signed.

In Kentucky, property managers are responsible for depositing security deposits into a property management account or a(n) ______. Earnest money account Escrow account Special funds account Transaction funds account

Escrow account

The Kentucky Real Estate Commission can hold an emergency hearing for what type of alleged violation? Disciplinary violations Escrow violations Ethics violations RESPA violations

Escrow violations

Sascha accidentally tells a buyer that her seller client in Elizabethtown has a fair amount of flexibility related to how much he'll take for his property. Which of the following definitions of improper conduct is this? Failing to properly account for funds Failing to satisfy fiduciary duties Making false promises Performing undisclosed dual agency

Failing to satisfy fiduciary duties

Which section of the Property Management Agreement identifies the legal owner of the property? Legal Owner Disclosure Manager's Scope of Authority Owner's Scope of Authority Parties

Parties

Kentucky broker Jamie uses designated agency. Her agent Grant is the listing agent for a property. Another of Jamie's licensees, Veronica, represents a buyer who's making an offer for Grant's listing. Jamie makes Grant and Veronica designated agents for their clients. What else must Jamie do in this situation? Designate a third agent to oversee the interests of the clients in this transaction. Identify Grant and Veronica to everyone at the brokerage as designated agents for their clients. Notify the commission of her use of designated agency via the Designated Agency Notification form. Prohibit Grant and Veronica from speaking to each other until after this transaction closes.

Identify Grant and Veronica to everyone at the brokerage as designated agents for their clients.

In Kentucky, under which of these is the seller obligated to pay the listing agent a commission if the agent is working under an exclusive agency agreement? If any agent secures the buyer If anyone secures the buyer If the listing agent secures the buyer If the seller, another agent, or the listing agent secures the buyer

If any agent secures the buyer

KREC requires that electronic documents be ______. Converted to paper and stored on site Immediately available upon KREC request Protected by encryption and cloud-based backup Used for all document storage

Immediately available upon KREC request

Which of the following is the Kentucky Real Estate Commission empowered to do? Investigate complaints against licensees and irregularities of the law. Provide internships to new licensees. Revoke a licensee's license without first holding a hearing. Seal all commission documents from public record.

Investigate complaints against licensees and irregularities of the law.

The Kentucky Real Estate Commission can ______ during its investigation into alleged license law violations. Detain a licensee Issue subpoenas Pay witnesses up to $10,000 Withhold evidence from a licensee

Issue subpoenas

A licensee whose license has expired without being renewed for more than one year, or whose license has been revoked or suspended, must ______. Have a letter of explanation from her sponsoring broker Pass the real estate exam again Pay a $100 fine Request a license extension from KREC

Pass the real estate exam again

Which statement about real estate business in Kentucky is true? Bart, a resident Kentucky broker, is required under Kentucky license law to hold a place of business in Frankfurt. Gerald, a non-resident broker, lives in a state that does not require licensees holding licenses in Kentucky to maintain an office in that state, therefore is not required to have a place of business in Kentucky. Laura, a nonresident broker, maintains a place of business in her own state. Kentucky license law does not require her to maintain a place of business in Kentucky. Savannah, a nonresident broker, conducts real estate transactions in multiple states, which exempts her from having any permanent place of business.

Laura, a nonresident broker, maintains a place of business in her own state. Kentucky license law does not require her to maintain a place of business in Kentucky.

After a Kentucky seller client has completed and signed the Seller's Disclosure of Property Conditions form, who keeps the original? Buyer Buyer's agent's broker Listing agent's broker Seller

Listing agent's broker

A Kentucky licensee stating that property is "guaranteed to increase in value over the next five years" is an example of ______. A fact An aphorism Misrepresentation Puffery

Misrepresentation

Nathan assisted with the purchase of a commercial building in Paducah that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation? He received a commission of less than $1,000. Nathan is a public official whose salaried duties include real estate transactions. Nathan's church purchased the building. The commercial building was valued at less than $500,000.

Nathan is a public official whose salaried duties include real estate transactions.

Cadence's job is to compile and categorize lists of real property available for rental and lease and providing the information to prospective tenants for a fee. Is she subject to the licensing requirements found in Kentucky Revised Statutes Chapter 324? No, if this is Cadence's sole real estate-related business activity, then she's not subject to Chapter 324. No, individuals performing activities related to renting or leasing real estate aren't subject to Chapter 324. Yes, if this is Cadence's sole business activity, she's subject to Chapter 324. Yes, individuals performing real estate activities for others, for compensation must hold an active real estate license.

No, if this is Cadence's sole real estate-related business activity, then she's not subject to Chapter 324.

What does a broker have to do in Kentucky to maintain their right to place a lien on a residential property? Notify the county clerk of the lien right Notify the court of their right to lien on the property Obtain the buyer's agreement in writing to compensate the broker for broker services rendered. Pay a $25 lien fee to the client at the time of signing a brokerage agreement

Obtain the buyer's agreement in writing to compensate the broker for broker services rendered.

Ginny's firm performs property management tasks for several landlords in addition to its work with buyers and sellers. How many escrow accounts is the Kentucky firm required to have? None One One for each client Two

One

Ron is paid $200 from the property management general account to cover unit expense costs. On which required Kentucky accounting record would he record this information? Beneficiary ledger Journal Monthly expense report Owner's ledger

Owner's ledger

Your seller client asks you to explain why an item on the Seller's Disclosure of Property Conditions form asks if the house was built prior to 1978. How do you respond? Homes built prior to 1978 are more prone to high levels of radon gas, so additional testing and mitigation is required. It's an arbitrary year that helps a buyer understand that a home's structure and systems are likely to be in need of repair. That's the year that federal building codes were instituted, so homes built after that year are more likely to be structurally sound. That's when the use of lead-based paint was outlawed, so a special lead-based paint disclosure is required for homes built before that year.

That's when the use of lead-based paint was outlawed, so a special lead-based paint disclosure is required for homes built before that year.

Which of the following statements about the KREC Exclusive Buyer Agency Contract is true? Per the terms of the contract, the buyer can work with multiple licensees. The agreement is legally binding once signed by all parties to the contract. The contract has a specified start date but no specified end date. The contract requires an attorney's signature to make it legally binding.

The agreement is legally binding once signed by all parties to the contract.

Jennifer, a Kentucky real estate licensee, has an exclusive brokerage agreement with a tenant client. Which of the following statements about their agreement is true? Jennifer is guaranteed a commission. Per the terms of the agreement, Jennifer can't act as a dual agent. The agreement is void because exclusive agency relationships can only be between a broker and a seller or buyer. The agreement must be writing.

The agreement must be writing.

Which of these statements about Kentucky's Consumer Guide to Agency Relationships is true? The brokerage chooses the model policy that matches its use of designated or dual agency. The consumer must sign the form in order for the agency relationship to exist. The model policies must be used in the exact format in which they're provided by the Kentucky Real Estate Commission. There's a seller version and a buyer version of the form.

The brokerage chooses the model policy that matches its use of designated or dual agency.

In accordance with the Closing Costs section of the KREC Real Estate Purchase Offer or Contract, who pays for the opinion of title, unless the title is found to be defective? Either the buyer or the seller pay. The buyer pays. The costs are split equally between the buyer and seller. The seller pays.

The buyer pays.

In Kentucky, which of the following might be a reason a licensee places a real estate license in inactive status? The licensee can't pay the Kentucky Education, Research, and Recover fund fee. The licensee discharges or terminates an association with his principal broker. The licensee doesn't have a valid driver's license. The licensee receives approval to affiliate with a sponsoring broker.

The licensee discharges or terminates an association with his principal broker.

When property managers in Kentucky receive any sort of money for a property they manage, they should enter the account information in ______. A master escrow account log A monthly reconciliation statement An owner journal The owner and tenant ledgers

The owner and tenant ledgers

Under Kentucky license law, which of the following statements about the property description in a residential sales contract is true? A description of the property isn't required for homes built before 1978. A photo of the property can be used in lieu of a description. The property's full legal description must be provided. The property's street address is usually sufficient.

The property's street address is usually sufficient.

Which of the following is true regarding records related to the Kentucky Real Estate Commission's proceedings? Interested parties must pay a $10 fee per record to view them. The records are made available the first Saturday of every month. The records are only open to licensees, not the public. The records are open to the public.

The records are open to the public.