Law Quizzes
How long mus property management agreements, leases, owner and tenant ledgers, monthly accounting reports and bank statements for property being managed be maintained by the broker? A. 5 years B. 1 year C. 8 years D. 3 years
A. 5 years
Upon the death or incapacity of a principal broker, the KREC may appoint a sales associate to close the broker's existing business for a period not to exceed A. 6 months B. 5 years C. 3 months D. 1 year
A. 6 months
In order to retain a security deposit, a landlord is required to have taken all of the following actions EXCEPT: A. Calling the tenant to inform him/her of the refund that is due. B. Sending a notification to the tenant at the last known address. C. Keeping the deposit in a separate escrow account D. Waiting 60 days before removing the deposit.
A. Calling the tenant to inform him/her of the refund that is due.
Which of the following is NOT a requirement for a broker license applicant? A. Have a college degree B. complete a course in brokerage management C. having worked as a sales associate at least 20 hours per week for two years D. completing at least 12 semesters credit hours in real estate courses
A. Have a college degree
Licensees must deliver the Agency Disclosure Form: A. In the period immediately following the presentation of a written offer to purchase B. Prior to any confidential information being disclosed to the licensee by the buyer or seller C. Immediately upon meeting the buyer or seller D. Within 3 business days of the written offer to purchase being presented
A. In the period immediately following the presentation of a written offer to purchase
When may a broker obtain an automatic extension of a listing contract? A. if an exclusive right to sell listing has been used B. never C. if an open listing is used D. when the seller is out of town and the listing is ready to expire
B. never
The principal broker in a designated agency situation: A. Remains a dual agent and liable to both the buyer and seller B. Is not liable if his designated agents breach their fiduciary duties C. Does not represent the buyer or seller in any capacity D. Remains liable to only the buyer or seller depending on whom he/she represents
A. Remains a dual agent and liable to both the buyer and seller
Who is responsible for the broker's escrow account when the brokerage firm is incorporated? A. The principal broker that has been listed with the KREC B. The board of directors of the corporation unless they appoint the president C. The president of the corporation that owns the brokerage D. Any officer of corporation, so long as the KREC agrees.
A. The principal broker that has been listed with the KREC
Written property management agreements may include a provision: A. that automatically renews the agreement B. that the broker does not need to keep security deposits in an escrow account C. that permits the broker to raise rents and security deposits as he/she thinks appropriate D. that permits the broker the option of depositing the security deposits into the broker's general operating account if he/she chooses to do so
A. that automatically renews the agreement
Active licensees shall attend Kentucky Core Course: A. every 4 years B. every year C. every 3 years D. every 8 years
A. every 4 years
Which of the following situations would be an action that would likely be covered under the Comissions' basic group errors and omissions insurance. A. the listing licensee misrepresenting the square footage on a listing contract. B. a client falling down the stairs and breaking his/her leg during a showing. C. Discrimination by the licensee against a member of a protected class who wanted to look at the property D. an auto accident involving the licensee showing the property to clients
A. the listing licensee misrepresenting the square footage on a listing contract.
Which of the following is TRUE regarding revocation of a sales associate's license? A. the sales associate may, at the discretion of the Commission, reapply for a license after 5 years. B. the sales associate may have his/her license reinstated after 4 years C. the sales associate must wait 2 years before reapplying for the license D. the sales associate must pay a fine in order to get reinstated
A. the sales associate may, at the discretion of the Commission, reapply for a license after 5 years.
In which of the following situations is a real estate licensee permitted to offer an inducement to a client? A. when the inducement has been disclosed in writing B. only when the inducement has been advertised in advance C. only with the agreement of the seller D. a licensee is never permitted to offer an inducement
A. when the inducement has been disclosed in writing
After placing her license in escrow, associate Markson sold her neighbor's property and collected a commission. Regarding this situation, which of the following is TRUE? A. It's OK as long as associate Markson receives her commission through a principal broker. B. Associate Markson is in violation of the Kentucky license law. C. Associate Markson's license is revoked while in escrow. D. Its OK. Associate Markson is still licensed, she is just inactive.
B. Associate Markson is in violation of the Kentucky license law.
Brenda and Carl, a married couple bought a principal residence in 1998 for $300,000. They sold the property in 2006 with a capital gain of $600,000. Capital gains tax on their profit will be: A. 0 B. $100,000 C. $600,000 D. $900,000
B. $100,000
According to Kentucky License Law, which of the following is TRUE regarding an affiliation fee? A. it is a fee charged by the National Association of REALTORS B. A broker cannot charge an affiliation fee C. It is a fee charged by local Boards of REALTORS D. A broker cannot charge a fee which exceeds$50 as an affiliation fee.
B. A broker cannot charge an affiliation fee
The governor appoints which of the following? A. Members and the Chairman of the Commission B. All members of the Commission C. Members, Chairman, and secretary of the Commission D. Members, Chairman, and Hearing Officer of the Commission
B. All members of the Commission\
Annual continuing education requirements must be completed by: A. March 31st B. December 31st C. April 1st D. February 5th
B. December 31st
A principal broker can do all of the following EXCEPT: A. pay earned commision directly to sales associates who had sales close after the sales associate affiliated with another principal broker B. pay referral fees directly to sales associates in another office with the permission of the associate's principal broker C. pay referral fees to principal brokers outside Kentucky D. Split fees with a builder who is the principal broker for the building company
B. pay referral fees directly to sales associates in another office with the permission of the associate's principal broker
A broker who conducts a real estate closing must provide which of the following with a credit and debit statement? A. The KREC B. The buyer and seller C. the lending institution D. the sales associate and buyer
B. the buyer and seller
When a sales contract is signed, the broker should give a copy to: A. the IRS B. the buyer and seller C. the buyer D. the seller
B. the buyer and seller
Which of the following is grounds for removal of a licensed member of the KREC? A. A Commissioner who switches political parties B. A Commissioner who renews his.her license timely C. A Commissioner who is found guilty of moral turpitude D. A Commissioner who belongs to the National Association of REALTORS.
C. A Commissioner who is found guilty of moral turpitude
Which of the following is most likely to have the right to withdraw funds from an escrow account? A. The attorney for the buyer B. A sales associate C. A principal broker D. The closing official
C. A principal broker
How long must a broker retain records relating to a real estate transaction? A. 2 years B. 7 years C. 3 years D. 5 years
D. 5 years
In certain circumstances, all of the following may sell real estate without a license EXCEPT A. Attorneys B. Trustors in bankruptcy C. Executors D. A notary public
D. A notary public
An unlicensed assistant may NOT: A. Unlock a property so that the home can be appraised or inspected B. Attend a real estate closing to assist the supervising licensee C. Copy a key to a property at the direction of the supervising licensee D. Disclose to a consumer information that is only known to the licensee.
D. Disclose to a consumer information that is only known to the licensee.
Contracts for the sale of real estate must be in writing because of: A. the fiduciary duties owed by the licensee to their clients B. the licensing statutes C. the Statute of Limitations D. The Statute of Frauds
D. The Statute of Frauds
When a sales associate receives an earnest money deposit, he/she should A. hold on to it until the closing B. deliver it to the seller C. place it in his/ her escrow account D. Turn it over to his/her principal broker
D. Turn it over to his/her principal broker
The administrative regulations require the principal broker to do all of the following when hiring unlicensed assistants EXCEPT: A. establish written policies for the unlicensed assistant B. Inform the unlicensed assistant of the requirements under the regulations. C. Assign a supervising licensee for the unlicensed assistant D. require the unlicensed assistant to attend a Kentucky Core Course
D. require the unlicensed assistant to attend a Kentucky Core Course
A licensed agent who wishes to contest a decision made by the Kentucky Real Estate Commission should first apply to: A. the Kentucky Supreme Court in Louisville B. the Court of Appeals in Frankfort C. the Federal District Court in the county where the licensee resides D. the Circuit Court in the county where the licensee has his/her place of business
D. the Circuit Court in the county where the licensee has his/her place of business
Offer to purchase contracts must include all of the following EXCEPT: A. the purchase price B. the manner in which the property will be financed C. the name of the agent who prepared the offer D. the amount of commission to be paid to the broker
D. the amount of commission to be paid to the broker
An unlicensed assistant may perform all of the following EXCEPT: A. interpret the terms of a real estate contract for a buyer B. copy a key at the direction of the supervising licensee C. Distribute literature and obtain guest signatures at an Open House D. Write ads for review by the supervising licensee
A. interpret the terms of a real estate contract for a buyer
The seller's Disclosure of Property Condition must be completed for: A. single-family residential properties B. sales of new homes where a warranty is offered C. court supervised foreclosure sales D. commercial properties
A. single-family residential properties
A homeowner calls an agent and tells her that he would like her to list his property. After discussing the price and conditions with the seller over the phone, the agent may immediately do which of the following? A. obtain a written listing with the seller B. place an advertisement for the property in a newspaper C. send information to the local MLS board D. place a "for sale" sign on the property
A. obtain a written listing with the seller
Which of the following is TRUE? A. a sales associate may have his/her name as part of the firm name if he/she has been with the firm for two years. B. only brokers may have their name in a firm name C. no name other than the principal broker's name may be used as the firm name D. a deceased broker's name may not remain a part of the firm name for longer than two years after the date of death.
A. a sales associate may have his/her name as part of the firm name if he/she has been with the firm for two years.
All of the following are TRUE EXCEPT: A. a sales associate or broker who fails to renew timely must retake the licensing exam after six months. B. all licensees must renew by March 31st to avoid paying a fine up to $200 C. all licenses expire on March 31st of each year. D. a sales associate or broker has one year to renew a license without retaking the state licensing exam.
A. a sales associate or broker who fails to renew timely must retake the licensing exam after six months.
If a licensee serves as a real estate agent and the loan originator in a real estate transaction, which of the following actions is NOT required under the license law. A. advising the KREC that the licensee will be operating as a loan originator. B. disclosing to all parties that the licensee will be paid additional fees for this service. C. prior to serving in both capacities, registering with the Department of Financial Institutions D. disclosing, in writing, the dual capacity to all parties
A. advising the KREC that the licensee will be operating as a loan originator.
Which of the following about advertising is INCORRECT? A. an owner may run an ad on property listed with a licensee without the brokerage company or the principal broker's name and license status. B. all advertising must contain the company name or the name of the principal broker along with his/her license status C. a principal broker, or his designee, must approve all advertising placed by a licensee D. a licensee may advertise public information on properties that have sold and closed even if the licensee did not have a written listing on the properties
A. an owner may run an ad on property listed with a licensee without the brokerage company or the principal broker's name and license status.
Which of the following actions or penalties CANNOT be taken against an individual who fails complete the continuing education requirements in a timely manner? A. automatic suspension of the associate's license B. cancellation of the sales associate's license C. notice to the principal broker that an associate is not eligible for renewal D. assessment of a fine and completion of the delinquent hours within a prescribed period of time
A. automatic suspension of the associate's license
If a licensed affiant misrepresents facts in a sworn statement, all of the following are TRUE EXCEPT: A. he cannot be fined by KREC unless the Circuit Court agrees to the fine B. he may be fined and/or imprisoned by the Circuit Court C. he may be subject to disciplinary proceeding by the KREC D. he may be subject to criminal indictment for perjury
A. he cannot be fined by the KREC unless the Circuit Court agrees to the fine
Broker Wilson called his seller client on August 4th and made an appointment to discuss the progress of his listing on August 6th. On August 5th, Broker Wilson received an offer from Susan Buyer. Although the seller could meet with him on the 5th, because he already had an appointment with the seller scheduled on the 6th, Broker Wilson decides to wait until the 6th to present the offer. Broker Wilson's action is: A. in violation of Kentucky License Law B. not in violation as long as he gets the offer to seller within 48 hours C. not a violation of the License Law, but is considered unethical D. in violation of the Statute of Frauds.
A. in violation of Kentucky License Law
Alice Gogetter has opened a business to help renters locate available property. Alice supplies her clients with a list of properties which are available for rent and she charges $40 for the list. Alice does not have a real estate license and she does not show the properties to prospective tenants. Regarding this situation, all of the following are TRUE EXCEPT: A. Alice can conduct her business without a license and collect a fee. B. Alice is in violation of Kentuck License Law C. Alice can have a license and still conduct her business separate and apart from her real estate practice. D. Alice is not in violation of Kentucky License Law.
B. Alice is in violation of Kentuck License Law
Which of the following actions would NOT be considered improper conduct? A. failing to satisfy one or more of the fiduciary duties owed to the licensee's client. B. Paying a referral fee to a licensed out of state broker who has referred a prospect to you. C. Assisting an unlicensed individual in the listing or sale of real estate in Kentucky. D. Prohibiting a prospective purchaser from viewing a property without written direction from the owner.
B. Paying a referral fee to a licensed out of state broker who has referred a prospect to you.
Listing contracts must contain all of the following: A. Signature of all owners B. Sale's Price C. Date and time the listing expires D. Street address or location of the real estate listed
B. Sale's Price
Who is responsible for drafting rules and regulations regarding real estate practices in Kentucky? A. The Kentucky Association of REALTORS B. The Kentucky Real Estate Commission C. The National Association of REALTORS D. The State Legislature
B. The Kentucky Real Estate Commission
A real estate licensee's internet home page must include all of the following EXCEPT: A. The licensee's name B. The licensee's home address and phone number C. the street address and phone number of the principal broker office location D. the principal brokers's name or the name of the real estate company
B. The licensee's home address and phone number
Agent Smith works for ABC Realty and has a written offer on a property listed with XYZ Realty. Agent Smith: A. Must see to it that the buyer and seller receive a copy of the offer. B. Will deliver the offer to the listing broker for XYZ Realty C. Must present the offer to the seller without delay D. Should have asked the broker of XYZ Realty to write the offer
B. Will deliver the offer to the listing broker for XYZ Realty
A person found guilty of engaging in unlicensed brokerage activity may be subject to all of the following penalties EXCEPT: A. repayment of any fees or commissions earned B. court costs and attorney fees for the prosecuting party C. a fine of up to $1000 D. a prison term not to exceed six months
B. court costs and attorney fees for the prosecuting party
The deed that provides the buyer the greatest protection is the: A. bargain and sale deed B. general warranty deed C. quitclaim deed D. special warranty deed
B. general warranty deed
Which of the following is TRUE of a licensee who terminates his/her employment with a real estate principal broker? A. the licensee should take the listing he/she obtained with him/her upon termination B. the licensee must return all listing information obtained during his/her employment to the principal broker. C. the licensee does not have to return any information in regard to his/her listings. D. the licensee may continue to represent the seller because he/she listed the property.
B. the licensee must return all listing information obtained during his/her employment to the principal broker.
Private errors and omissions insurance must meet all of the following requirements EXCEPT: A. the deductible for investigation and defense can be no more than $1000 B. the limit of liability must be less than $1,000,000 for any one claim. C. the annual aggregate limit can be no less that $1,000,000 D. the deductible for judgments of settlements may not exceed $2500
B. the limit of liability must be less than $1,000,000 for any one claim.
A sales associate has listed a house for sale. The owners have to move and ask the sales associate to locate a tenant until a buyer can be found. The owners agree to pay the sales associate a modest fee for the management activities. Which of the following statements is NOT CORRECT regarding this situation? A. a sales associate can manage property independently of a principal broker. B. there must be a written management agreement between the principal broker and the owners C. the owner can directly pay the associate the management fee D. the sales associate can manage the property with the permission of his/her broker.
B. there must be a written management agreement between the principal broker and the owners
In or for an aggrieved party to apply for reimbursement from the recovery fund, the action must be commenced: A. within 1 year of the actual knowledge of the cause of action or from the time he/she should have reasonably known the cause of action. B. within 2 years of the actual knowledge of the cause of action of from the time he/she should have reasonably know the cause of the action C. within 5 years of the actual knowledge of the cause of action of from the time he/she should have reasonably know the cause of the action D. There is no time limit if the aggrieved party has actually been damaged so long as he/she acts reasonably
B. within 2 years of the actual knowledge of the cause of action of from the time he/she should have reasonably know the cause of the action
Where does the money come from for the operation of the KREC? A. State appropriation B. Kentucky Association of REALTORS C. Licences fees D. Income tax returns
C. Licences fees
ABC Realty will pay for a moving van for any client or customer who buys or sells a home through their firm. ABC Realty: A. is prohibited from advertising this inducement. B. may use this ad to induce sellers but not buyers C. May do so with written disclosure to the client or customer. D. Is in violation of the license law
C. May do so with written disclosure to the client or customer.
Which of the following individuals may a real estate licensee call if the person's phone number appears on a no-call list? A. A buyer who is offering a bonus or price to the licensee who locates a property to purchase within a specific period of time B. A person who has his/her home for sale as the owner C. A person who has an existing relationship with the licensee D. a person who has his/her home offered with another licensee
C. A person who has an existing relationship with the licensee
A complaint filed with the commission must contain all of the following information EXCEPT: A. The notarized signature of the complainant B. Allegation of a prima facie case of a license law violation C. Allegation of a violation within one year of actual knowledge. D. The name of the principal broker
C. Allegation of a violation within one year of actual knowledge.
All of the following are required of an individual wishing to obtain a Kentucky license after engaging in unlicensed brokerage activity EXCEPT: A. Disgorging any fees earned as a result of the unlicensed activity B. Obtain the FBI criminal background report C. Appearing at a hearing before the commission D. Completing the required pre-license education
C. Appearing at a hearing before the Commission
Broker Goodman moved her office and forgot to inform the Commission of the change. Broker Goodman may find that her license has been: A. Expired B. Suspended C. Canceled D. Revoked .
C. Canceled
Which of the following situations will NOT result in cancellation of a license? A. Failure to transfer a license from one broker to another within 30 days B. Failure to renew the license before the deadline C. Failure to notify the Commission of a change in email address. D. Failure of the principal broker to notify the Commission of a change of business address.
C. Failure to notify the Commission of a change in email address.
Agent Fillmore wants to show a property that is listed by agent Pierce. Agent Pierce is not a member of the MLS and does not cooperate with other brokers. Agent Pierce refused to allow agent Fillmore's buyers in to see the property. According to the Administrative Regulation of the KREC, agent Pierce: A. Is guilty of improper conduct for not cooperating with other agents B. Does not have to show the property to agent Fillmore's buyers to look at the property. C. May, with written authority from the sellers, refuse to allow agent Fillmore's buyers to look at the property. D. Must allow agent Fillmore to show the property and split the commission if agent Fillmore's buyers purchase the property
C. May, with written authority from the sellers, refuse to allow agent Fillmore's buyers to look at the property.
Broker Goodman gave Broker Willing a referral. Broker Willing agreed to pay Broker Goodman a 10% referral fee. Regarding this situation, which of the following is TRUE? A. Broker Goodman must be paid directly by the seller B. Broker Goodman is in violation of State Statutes C. Neither broker has violated license law D. Both brokers are guilty of improper conduct
C. Neither broker has violated license law
Which of the following is TRUE regarding a manager of real property? A. He/She must have a sales associate's license to manage property. B. He/She must have a broker's license to manage property. C. No license is required to manage if the manager is a regular salaried employee of the principal broker hired for the purpose of managing the property. D. A resident manager must have a real estate license.
C. No license is required to manage if the manager is a regular salaried employee of the principal broker hired for the purpose of managing the property.
When listing a single-family residential property, the listing agent must ask the seller to complete which of the following documents at the time of listing the property? A. Consumer Bulletin B. Sales Contract C. Seller Disclosure of Property Condition D. Agency Disclosure
C. Seller Disclosure of Property Condition
Pursuant to the Landlord Tenant Act that must be followed by licensees, all of the following are TRUE EXCEPT: A. Landlords or their agents must perform a walk through inspection with tenants prior to occupancy of the tenants and must perform a walk through inspection at the time the tenant vacates the property in order to make a claim for damages from the security deposit. B. Leases must contain the name of the bank and the account number where security deposits are held by the landlord. C. Unpaid rent may be deducted from the security deposit immediately upon the tenant vacating the premises D. Security deposits must be deposited into an account for only security deposits and the funds cannot be commingled with general fund accounts.
C. Unpaid rent may be deducted from the security deposit immediately upon the tenant vacating the premises
At what point in time is a licensee allowed to advertise his/her participation in a sale? A. After the transaction is closed B. At no point during the transaction C. When a binding contract has been created D. At any time with the permission of the seller
C. When a binding contract has been created
John Sellsalot, a Kentucky Real Estate Broker, wants to sell interests in a limited partnership. John needs ______________ A. an associate's license B. a brokers license C. a securities license D. a dealer's license
C. a securities license
A Kentucky real estate company's internet home page shall include all of the following EXCEPT: A. the company name or the name of the principal broker. B. the phone number for the principal office location C. a statement indicating that the broker is licensed in Kentucky D. a street address for the company's principal office
C. a statement indicating that the broker is licensed in Kentucky
A criminal background check is NOT required for which of the following applicants? A. an applicant for a brokers license B. an applicant for a license under license recognition C. an applicant reinstating a license within 3 months of suspension D. an applicant for a sales associate's license
C. an applicant reinstating a license within 3 months of suspension
An unlicensed individual has offered to sell your property for a commission. After calling the Kentucky Real Estate Commission, you discover that all of the following are TRUE EXCEPT: A. an unlicensed person may receive compensation for selling your property if they have been ordered by a court to sell the property. B. the Commission can obtain injunctive relief with a cease and desist order against an unlicensed individual. C. an unlicensed individual may sell your property if they have your permission. D. an unlicensed individual may sell your property if they have your power of attorney.
C. an unlicensed individual may sell your property if they have your permission.
Under Kentucky Law, which of the the following duties is not required of a licensee after signing a written listing agreement with a client? A. assisting the client of customer in developing and negotiating an offer B. accepting any earnest money deposits that are presented as part of an offer C. attending the real estate closing with the client D. accepting delivery of and submitting any written offers to the seller
C. attending the real estate closing with the client
A broker must maintain a copy of all of the following except: A. closing statements B. listing contracts C. buyers new deed D. all written offers
C. buyers new deed
Under the license law, a principal broker's unlicensed secretary may A. solicit for listings for the principal broker B. inform telephone callers about the amenities of the property C. contact members of the public to set appointments for the broker. D. discuss listings with office visitors, including the name of the seller
C. contact members of the public to set appointments for the broker.
Section 1031 of the Internal Revenue Code allows real estate investors to do which of the following when making a property exchange? A. avoid the capital gains tax only if they the exchange is of like kind B. phase out the capital gains tax C. defer the capital gains tax D. avoid the capital gains tax even if the exchange is not of like kind
C. defer the capital gains tax
All of the following actions taken by a licensee could result in disciplinary action EXCEPT: A. failing to report a conviction for a felony or for a misdemeanor involving sexual misconduct. B. failing to disclose a material defect in the property C. failing to pay dues to the state REALTOR association D. acting in the capacity of licensee and undisclosed principal in any real estate transaction.
C. failing to pay dues to the state REALTOR association
While attending a real estate closing, the broker discovered that the closing attorney did not prepare a closing statement. The broker must: A. insist the attorney prepare a closing statement B. tell the buyer and seller they need not to pay the attorney C. furnish a debit and credit type closing statement to the buyer and seller D. reschedule the closing for a later date
C. furnish a debit and credit type closing statement to the buyer and seller
Broker Sellsalot showed Mr. Smith an industrial property. Broker Goodwin has told Broker Sellsalot that the highway department may be taking part of the property. Broker Sellsalot relayed this information to the buyer without verification. Mr. Smith bought the property based on what Broker Sellsalot said. Broker Sellsalot is most likely liable for: A. conflict of interest B. breach of contract C. gross negligence D. fraud
C. gross negligence
In order to obtain a license in Kentucky, license applicants must: A. complete required hours from a National Association of REALTORS approved course. B. be a resident of the state. C. have a high school diploma or GED D. be 20 years old if they are applying for a brokers license
C. have a high school diploma or GED
Once a copy of the contract is received by fax, the licensee must: A. disclose to the lender that a faxed copy has been received. B. obtain his/her brokers approval to accept the fax C. immediately mail the original by regular mail to be signed by the parties D. keep it in a file until closing and then ask the parties to sign the original
C. immediately mail the original by regular mail to be signed by the parties
In order to file a lien against a property, the principal broker must have fulfilled all the following requirements EXCEPT: A. had an agreement for repayment of a fee or commission for providing the brokerage services B. had a written listing for the property C. marketed the property on the MLS D. procured a ready, willing, and able purchaser
C. marketed the property on the MLS
The Kentucky Real Estate Commission does NOT have the right to: A. call a broker in for a hearing B. subpoena any ordinary citizen C. order discipline against an unlicensed person D. appoint a hearing officer to conduct hearings
C. order discipline against an unlicensed person
Which deed would typically be used to cure a defect in title? A. bargain and sale deed B. general warranty deed C. quitclaim deed D. special warranty deed
C. quitclaim deed
The regulations requiring agency disclosure must be followed in which of the following situations? A. property management contracts B. commercial transactions C. residential transactions D. Auctions
C. residential transactions
The Seller Disclosure of Property Condition must be completed for: A. commercial property if there is an apartment on the premises B. sales of property at auction C. sales of all single-family residential property that is listed with a broker unless a builder's warranty is provided D. sales of a single-family residential property if a written warranty is provided by the builder
C. sales of all single-family residential property that is listed with a broker unless a builder's warranty is provided
The Kentucky Real Estate Commission has the power to do all of the following EXCEPT: A. issue and sign subpoenas B. administer oaths C. set sales commission rates D. take sworn statements
C. set sales commission rates
Broker Bob's listing has expired and the seller gives him oral consent to leave his sign up in the yard. Which of the following is MOST TRUE? A. the broker may leave the sign in the yard for 30 days B. the broker must remove the sign within 24 hours after the listing expires C. the broker must remove the sign because he no longer has written permission to place a sign on the property D. the broker must have written permission to leave the sign in the yard unless his listing was for at least 90 days
C. the broker must remove the sign because he no longer has written permission to place a sign on the property
Which of the following is not an element of fraud? A. the misrepresentation is known to be false B. the misrepresentation must cause injury C. the misrepresentation was a mistake made by the licensee D. the misrepresentation was made to induce an act
C. the misrepresentation was a mistake made by the licensee
A sales associate has been asked by his/her broker to manage the office while the broker is in the hospital having major surgery. The associate agrees to the brokers request. Which of the following is TRUE? A. The sales associate can supervise the other associates, but only while the broker is in the hospital. B. The sales associate can manage the office. C. the sales associate may manage with the permission of the KREC only for the purpose of completing and closing the business within 6 months. D. The sales associate cannot manage the office under any circumstances
C. the sales associate may manage with the permission of the KREC only for the purpose of completing and closing the business within 6 months.
It is a violation of the licensing regulations for the licensee to prepare any part of the Seller Disclosure of Property Condition report UNLESS: A. the seller has previously listed the property and the licensee is simply extending the listing B. the broker authorizes his/her agents to complete the form so long as the seller agrees not to sue the licensee or the broker. C. the seller requests in writing that the licensee complete the form and agrees to hold the licensee harmless for any representation on the form. D. the seller is over 55 years of age.
C. the seller requests in writing that the licensee complete the form and agrees to hold the licensee harmless for any representation on the form.
Excess monies in the Education, Research and Recovery Fund may be used for all of the following EXCEPT: A. to underwrite the costs for education seminars B. to provide funds for making real estate courses available at the college level C. to pay rent and utility costs of the Commission's office D. to fund a real estate research project at a Kentucky university
C. to pay rent and utility costs of the Commission's office
If a licensee has errors and omissions insurance with the insurance company receiving the state contract, and the licensee has more than 2 errors and omissions insurance claims in 3 years, his/her insurance A. will be canceled B. rates will be increased C. will not be canceled D. will have a deductible of $2500
C. will not be canceled
All of the following are required for fraud to be proved against an agent EXCEPT: A. Damage to a party B. Inducing a party to act C. A material misrepresentation D. Acting with malice toward a consumer
D. Acting with malice toward a consumer
Which of the following CANNOT be included in a written property management agreement under Kentucky law? A. Provision outlining the conditions under which the licensee is permitted to pay expenses related to the property B. A copy of the lease that tenants will sign C. Name and address of the bank where the security deposit will be held by the broker. D. Agreement that the licensee provide a quarterly written accounting to the owner.
D. Agreement that the licensee provide a quarterly written accounting to the owner.
A broker has a written offer which was rejected by the seller. The broker should: A. dispose of the rejected offer because it was not accepted B. place a copy of the rejected offer in his/her files within 2 working days C. give the seller, buyer and KREC a copy of the rejected offer D. Keep a copy of the rejected offer in his/her files for 5 years
D. Keep a copy of the rejected offer in his/her files for 5 years
When a formal complaint is filed against a licensee that sets our a prima facie case, what action must the KREC take? A. Notify the licensee at his/her last known address B. Notify his/her principal broker C. Mail a notice to the Kentucky Association of REALTORS D. Notify the licensee at his/her last known address within 20 days of receiving the complaint
D. Notify the licensee at his/her last known address within 20 days of receiving the complaint
If a seller refuses to complete and or sign the Seller Disclosure of Property Condition form, the listing licensee must: A. Refuse to take the listing B. Compete the form for the seller with a notation that the agent, not the seller, completed the form C. Do nothing, because it is completely up to the seller to make the decision on completing the form and on informing the buyer D. Sign the form stating that the seller has refused to complete and/or sign the form, and inform the buyer of the seller's refusal.
D. Sign the form stating that the seller has refused to complete and/or sign the form, and inform the buyer of the seller's refusal.
The Consumer Guide to Agency Relationships must be provided to the prospective party in all of the following situations EXCEPT: A. The conclusion of the second contact between the licensee and the party B. Prior to receiving confidential information from the prospective party C. Entering into a representation agreement with a prospective party. D. The conclusion of the initial contact between the licensee and the party
D. The conclusion of the initial contact between the licensee and the party
According to Kentucky License Law, which of the following is TRUE regarding errors and omissions insurance? A. errors and omissions insurance can be obtained through the KREC at a cost not to exceed $50 B. Agents in escrow must carry errors and omissions insurance C. all licensees will be notified 40 days prior to license renewal of the requirements for errors and omissions insurance. D. a broker can obtain errors and omissions insurance through a private carrier
D. a broker can obtain errors and omissions insurance through a private carrier
Which of the following individuals must hold a real estate license to manage property for a fee, compensation or other valuable consideration? A. A regular employee of the owner B. An individual who receives the use of a rental unit as primary compensation. C. A regular salaried employee of the principal broker. D. A relative of an owner who has moved out of town.
D. a relative of an owner who has moved out of town.
A real estate broker wants to give his neighbor a DVD player for a lead which resulted in a sale. If the broker gives this gift, it is: A. what the neighbor expects B. a violation of the Law of Agency C. not a violation D. a violation of Kentucky License Law
D. a violation of Kentucky License Law
Which of the following is not a license law requirement for a regular employee. A. The individual's total compensation is subject to state and federal taxes and FICA withholding. B. the individual receives a fixed salary C. the salary is not affected by real estate transactions D. a written signed contract of employment exists.
D. a written signed contract of employment exists.
An escrow licensee is subject to all of the following requirements EXCEPT: A. payment of the annual license renewal fee B. providing notice to the Commission of any residence address change. C. disclosing status as a licensee when buying or selling his/her own property. D. completing the yearly continuing education requirements
D. completing the yearly continuing education requirements
If a seller calls you (a licensed sales associate) and asks you to list his house, but under no circumstances to sell it to a minority, you should: A. report the matter to the FHA and ask them to investigate B. call the KREC and get a form for the seller to complete C. comply with the request, because of your fiduciary duty to follow client instructions D. explain to the seller that he is violating the law and refuse the listing if he persists with his request
D. explain to the seller that he is violating the law and refuse the listing if he persists with his request
The KREC has received a complaint against a licensee and has forwarded the complaint to the licensee. The licensee: A. will receive 10 days notice before a hearing B. has 30 days to send an answer to the complaint C. has 20 days to notify the commission of witnesses' names to be subpoenaed D. has 20 days to answer the complaint
D. has 20 days to answer the complaint
Examination fees may be charged by the KREC are A. in the amount currently charged by the testing service B. in an amount not to exceed $30 C. in the amount of $100 D. in an amount not to exceed $100
D. in an amount not to exceed $100
All of the following statements regarding errors and omissions insurance coverage are TRUE EXCEPT: A. licensees participating in the state group plan cannot be canceled for having multiple claims B. licensees may obtain coverage from a private carrier C. the maximum premium shall not exceed $200 D. licensees who have their licenses in escrow must carry errors and omissions insurance
D. licensees who have their licenses in escrow must carry errors and omissions insurance
Records kept by the KREC A. Are not subject to the Kentucky open Records Act, because to do so would be a violation of the Anti-trust laws. B. are destroyed after five (5) years C. are confidential and cannot be disclosed to public. D. may be viewed by anyone making the proper request.
D. may be viewed by anyone making the proper request.
If the contract between the principal broker and a sales associate does not address what happens to the associate's listing information upon release from the brokerage firm, the associate: A. should advise the seller that the listing is no longer in effect B. may take the listing to the new brokerage firm C. may transfer the listing to another associate in the office D. must leave the listing information with the principal broker
D. must leave the listing information with the principal broker
The interest accrued on an escrow account deposit is given to A. the parties after it is prorated B. the broker to be used for closing costs C. the broker to use for expenses D. the person agreed to writing by all parties
D. the person agreed to writing by all parties
All of the following are TRUE reading the termination of a sales associate EXCEPT A. the principal broker can hand deliver a sales associate's or broker's license directly to the Commision upon termination of affiliation B. a sales associate may not perform any acts contemplated by KRS Chapter 324 when his/herlicense is in the possesion of KREC. C. the principal broker must notifya sales associate of termination of affiliation by written communication D. the principal broker has 10 days by statute, to hand over a sales associate's license upon termination.
D. the principal broker has 10 days by statute, to hand over a sales associate's license upon termination. *** it is actually 5 days
A principal broker may release escrow funds in all of following situations EXCEPT: A. through performance when the transaction closes B. When ordered to do so by the court C. when all the parties agree to the release D. when a buyer withdraws the offer after it has been accepted.
D. when a buyer withdraws the offer after it has been accepted.