Real Estate Exam

Salesperson F sells a house for $84,500. The listing broker receives 50% of the 6% commission. If Salesperson F is due 40% of the selling broker's commission, how much will F receive?

$1,014 $84,500 price x 6% = $5,070 total commission x 50% = $2,535 for each broker. $2,535 x 40% = $1,014 for the salesperson

A property closed on April 16th with recording on April 20th. The annual taxes, paid in arrears, were $3,600. What would be the amount for the tax proration?

$1,060 $3,600 divided by 360 = $10 per day for the taxes. $10 x 106 days (seller owes taxes from Jan 1st thru April 16th) = $1,060 for the tax proration.

Principal and interest payments for a certain mortgage rate are estimated at $12 per $1,000 of loan amount. If the property is listed at $54,000 and the buyer makes a full-price offer, what would the down payment be if the buyer only wanted to spend $450 per month for principal and interest payments?

$16,500 $450 divided by $12 = $37,50 thousands of value for the loan amount. $54,000 price minus the loan of $37,500 = $16,500 for the down payment

A broker had been found guilty of two violations of the Kansas License Law that were not considered to be aggravated offenses. What is the max fine that can be imposed by the KREC?

$2,000

A property was purchased for $178,000. Over the past three years, the homes in this are had appreciated at 8% per year. If the current trend continues, what will this new property be worth at the end of the next three years?

$224,229 $178,000 x 8% = $14,240 + $178,000 = $192,240 for value after one year. $192,240 x 8% = $15,479 + $192,240 = $207,619 for value after two years. $207,619 x 8% = $16,610 + $207,619 = $224,229 for the value after three years.

A person bough a lot for $28,000 and then added improvements in the amount of $150,000. The owner wanted to make a profit of 5% on the lot and 40% on the improvements. What would the sale price have to be?

$239,400

A buyer bought a $72,000 property obtaining a 90% loan. The lender required annual private mortgage insurance (PMI) of .5% paid up front and 1/12 each month. What was the monthly PMI?

$27 $72,000 price x 90% = $64,800 for the loan amount. $64,800 loan x .5% = $324 annual PMI. $324 divided by 12 months = $27 per month for the PMI.

A property sold for $129,000 with the buyer putting down 20%. The lender charged 2 points and $750 closing costs. What was the total due from the buyer at closing?

$28,614 $129,000 price x 20% = $25,800 for the down payment. $129,000 minus $25,800 = $103,200 for the loan amount. $103,200 x 2% (2 points) = $2,064 for the points. $2,064 in points + $750 in closing costs + $25,800 for the down payment = $28,614 total amount due from the buyer at closing

A property with a total value of $40k was appraised for tax purposes at 25% of market value. If the tax rate was $3 per $100 of the appraised tax value, how much tax was owed?

$300 $40,000 x 25% = $10,000 appraised value. $3 per $100 is the same thing as 3%. $10,000 x 3% = $300 for tadxes owed

A buyer purchased a $60,000 house and was able to obtain a $36,000 loan. The house was amortized over 20 years with an interest rate of 9% and a principal and interest payment of $323.90 per month. What was the total interest paid over the term of the loan?

$323.90 principal and interest per month x 12 months = $3,886.80 principal and interest per year x 20 years = $77,736 total principal and interest paid over the term. $77,736 minus the loan of $36,000 = $41,736 for total interest paid over the term.

A commercial property had annual gross income of $63,250 and annual vacancies and operating expenses of $24,360. If the prevailing capitalization rate was 10%, what would be the value?

$388,900

A seller sold a property for $50,000. The buyer put 5% down in purchasing the property. The commission rate was 6% and the lender charged 3 discount points and 1% for the loan origination fee. The seller agreed to pay all of the closing costs on the sale. What were the seller's closing costs?

$4,900 $50,000 price x 5% = $2,500 down payment. $50,000 minus $2,500 = $47,500 for the loan amount. $50,000 price x 6% = $3,000 for the commission. $47,500 x 3% (3 points) = $1,425 for the discount points. $47,500 x 1% = $475 for the loan origination fee. $3,000 + $1,425 + $475 = $4,900 total closing costs.

A house valued at $550,000 will depreciate an average of 4.5% per year. What will be the value after 4 years?

$451,000 $550.000 x 4.5% = $24,750 annual depreciation x 4 years = $99,000. $550,000 original value minus $99,000 of depreciation for 4 years = $451,000 for the depreciation value after 4 years.

A seller and a buyer agreed on the price and terms on the sale of a house. Both seller and buyer signed the sales contract. Before closing, the seller and buyer agreed to change the closing date. Which of the following would be needed?

Addendum

A licensee is selling a listed property. The licensee is aware that the property has an encroachment. What best describes what the licensee should do?

Advise the buyer to see an attorney to check on the title

Four parties take title to a property under tenancy-in-common. It is omitted on the deed what percentage of ownership each party has. Which of the following would be correct in this situation?

All 4 parties would be considered to have a one-fourth ownership

What would be a violation of the Sherman Anti-Trust Laws?

All the brokers in an area agreeing to set a common commission rate of 6%

An auctioneer, who had a broker's license, received a listing to auction some vacant land. What would not be allowed?

Allowing unlicensed employees to help point out bidders to the auctioneer

Which of the following types of encumbrances would involve the physical use of property?

An easement

Which of the following properties would an owner be able to depreciate for tax purposes?

An owner's past residence that is now rented out

Which of the following items would be prorated at closing?

Annual real estate taxes

What info must a salesperson submit if the salesperson is under investigation for a possible law violation?

Any info or documents requested by the KREC

What is true of a salesperson transfers their license to a different brokerage company?

Any listings the salesperson was involved with stay with the original brokerage company

Which of the following items in an advertisement would be a trigger term that would require disclosure of all financing terms?

Assume an 8% loan

Why is the annual percentage rate (APR) higher than the interest rate?

Because the APR includes the finance charges the buyer pays in addition to the interest

How often are licenses renewed?

Biennially based on a renewal schedule

A seller sold a property to a buyer with the seller also transferring the refrigerator to the buyer as a personal property item. The document needed for the transfer of the refrigerator would be a:

Bill of Sale

A broker put a sales transaction together with a seller and buyer with earnest money being part of the agreement. The buyer defaulted on the agreement. The broker sent out a certified letter to both parties stating that the broker was going to give the earnest money to the seller. Ten days elapsed with no response from the buyer. In order for the broker to do this, there must have been written agreement of:

Both buyer and seller in the sales contract

A salesperson works for broker G. The salesperson informs broker G that he is going to switch companies and work for broker H. What statement is true regarding this procedure?

Broker G must notify the KREC upon termination of employment and request deactivation of the salesperson's license

A husband and wife owned a property as joint tenants. In order to have a valid and enforceable listing agreement, who has to sign?

Broker and both spouses

What would be best a salesperson to look at in estimating a list price for a seller?

Comparable sold properties in the neighborhood

A tenant rents a property "as is." What would the tenant be responsible for?

Cosmetic upgrades

Which of the following would nullify a listing agreements?

Death of a seller

What could a buyer's agent legally do?

Deposit earnest money into an escrow account without a fully executed contract

A person died intestate. His property would pass according to

Descent

A competitive market analysis (CMA) would best be used for what?

Determining a list price for a relocation property

An appraiser, in appraising a residential property, notices that there have been an increase in sales of houses in the area. What valuation approach would be best for the appraiser to use in estimating the value of the residential property?

Direct Sales Comparison (Market Data Approach)

A licensee is working for a corporation, partnership or association and is selling real estate for them. What should the licensee do?

Disclose licensure in the contract between the buyer and seller

A seller and buyer agree on a sales contract. Prior to closing, the seller tells the listing agent that the inspector missed disclosing an adverse material fact about the property. What should the listing agent do?

Disclose to the buyer as this is a material fact

An agent takes a listing on the commercial property. The agent finds a buyer for the property and the buyer and seller both sign a contract for the purchase. Prior to closing, the agent learns that the city plans on putting in a ramp on the back of the property. What should the agent do?

Disclose to the seller so the buyer can be informed

A buyer assumed a seller's loan without written authorization of the lender. Which of the following mortgage clauses would allow the lender to institute a foreclosure action?

Due-on-sale

What type of interest does the buyer receive in the property after the seller accepts the offer?

Equitable interest

What type of general risk insurance should a real estate licensee obtain if litigation is filed against the licensee for failure to perform or mistakes?

Errors and omissions insurance

The state government can take property that has been abandoned by the owner through what right?

Escheat

An owner listed a property with only one broker. After the sale, the broker was not due a commission. Which type of listing was most likely in effect?

Exclusive agency

A broker who wants to receive a commission even if the owner sells the property personally should ask for which of the following listings?

Exclusive right to sell

What buys mortgages in the secondary market?

Federal National Mortgage Association

A purchaser entered into a contract to purchase a home. The purchaser wanted a clause in the contract to protect against the loss of earnest money in the event a loan could not be obtained. What would best protect the purchaser?

Financing contingency

How soon does a broker have to deposit earnest money into an escrow account?

Five business days after offer and acceptance of the contract

If a person gets injured while on the property of a real estate brokerage, what type of insurance would be needed by the real estate brokerage company to be protected?

General liability insurance

The KREC had reasonable evidence that a broker was misappropriating escrowed funds. What would the KREC most likely do?

Get an emergency suspension of his license

What actions could a licensee legally do?

Give a copy of a listing agreement to the principal within a reasonable time

A buyer makes an offer on a listed property with earnest money accompanying the offer. Price to the listing agent presenting the offer to the seller, the buyer contacts the listing agent to withdraw the offer. What should the listing agent do?

Give the earnest money back to the buyer immediately

What describes what a transaction broker can do?

Give to the seller and buyer what their closing costs will be

Which of the following must sign a deed in order for it to be valid?

Grantor

Who is responsible for making sure fair housing posters are available for delivery to real estate offices?

HUD

What would require a real estate license?

Helping an auctioneer acquire bids at a real estate auction

When a property is taken through condemnation, it was a result of:

The government exercising the right of eminent domain

Which of the following statements is true of an adjustable rate mortgage (ARM)?

The interest rate can change based upon market indexes agreed to up front

Who can de-activate a license?

The licensee himself

What best describes "economic life"?

The life that property can be used profitably

A developer bought a large tract of land and mortgaged the entire property. The developer then subdivided the land with the intent of selling lots one at a time. Which of the following statements BEST describes how this is accomplished?

The mortgagee may release the mortgage lien on the one lot sold if an agreed amount of money is paid to the lender by the developer

An apartment was sold to a new owner with several of the leases still in effect. What happens to the leases?

The new owner must honor the leases in effect

A commercial tenant installed several items in their leased space in order to more efficiently run their business. Which of the following best describes what happens to the installed items once the lease expires?

The tenant would be able to remove the installed items as they would be considered trade fixtures

According to the Brokerage Relationships in Real Estate Transactions Act (BRRETA), a written agreement is required for all of the following except:

Y: Selling property owned by a federal government agency N: representing a buyer N: representing a seller in selling an agricultural property N: leasing a commercial property

An agent has a signed written buyer agency agreement with a buyer client. What is not true?

Y: the agent does not have to disclose this agency status to a seller N: this contract is binding N: the buyer may owe a commission if a transaction is consummated N: This is allowed under agency law

A buyer contracted to buy a house but was turned down on the loan. He demanded to have his earnest money returned to him. In which case can the broker do this?

If both seller and buyer agree to this in writing

A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the seller's personal property to remain with the house. The personal property would transfer to the buyer under which of the following circumstances?

If it was stated in the contract

What is a schedule of exceptions in a title policy?

List of thing not insured in the policy

What would have the greatest influence on appraisal value?

Local economic conditions

A developer bought a property for a development. What would the best way for the developer to divide the lots in a brand-new subdivision?

Lot and Block

Under fair housing laws, which of the following would a landlord who owns an apartment complex be required to do?

Make reasonable accommodations for a person in a wheelchair

Which is a voluntary lien against a person's property?

Mortgage lien

Which of the following would title insurance cover in case of a loss?

Recorded documents only

Broker X has a home listed. Q called the broker saying he has a contract to present with earnest money. Broker X made an appointment to present the offer at 7pm. At 630pm, Q called and said he did not want it presented. What should Broker X do?

Return the earnest money immediately to Q

A handicapped person made some reasonable modifications to a rented unit after moving in. What describes what the handicapped person must do?

Return the space to the landlord in the original condition found

A sale of interstate real estate securities would be governed by what organization?

SEC

Which of the following normally triggers a due-on-sale or alienation clause?

Sale or assignment of the mortgaged property

A licensed Florida broker is doing seminars on Florida property at dinner s in various places in Kansas. Some people have asked her if they can purchase the properties. What is true regarding her need for a Kansas license?

She needs a Kansas license to market Florida properties in Kansas

When a contract is signed between a buyer and a seller, the buyer is known to have received equitable title upon the happening of which of the following events?

Signing of the agreement by the buyer and seller

What best describes an immediate family member under Kansas license law?

Spouse, parent, child, sibling

A licensee lists a property with an exclusive right to sell agreement for $180,000. The licensee knows that the seller has a mortgage on the property of $130,000 and will also have to pay commission and closing costs. A prospective buyer wants to make an offer of $120,000. What shoud the licensee do?

Tell the seller that if he accepts the offer he will be losing money

What does not have to be included in a sales contract?

Zoning

Which of the following transactions would be gverned by security laws?

a broker selling shares in a Real Estate Investment Trust (REIT)

Contracts must be in writing under the Statute of Frauds in order to make a contract:

a legal enforceable contract

A person bought a condominium unit. The person acquired homeowner's insurance on the unit. Which of the following would be covered under the homeowner's insurance policy?

a person slips and falls in the kitchen

What must be included in a Metes and Bounds legal description?

a point of beginning

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment, is called:

acceleration

Regarding real estate contracts, what would best describe an agent's responsibilities?

agent cannot alter or delete any pre-printed legal information

The money for an FHA loan is secured from:

an FHA approved lending institution

A broker can share commission money with:

another licensed broker

Property value for property taxes is determined by:

assessment

A buyer and a seller entered into an agreement to purchase and sell a property. Prior to the closing the buyer wished to transfer the purchase rights to a 3rd party. In order for the transfer to take place, the buyer must initiate an:

assignment

Under the BBRETA, when does an agent have to give the agency brochure to members of the public?

at the first practical opportunity

An itemization of closing costs must be given to a buyer:

at the time of the offer being written

Encouraging a homeowner to sell a property because minority group families are moving into the neighborhood is:

blockbusting

In a federally regulated wetlands area, the area between the wetlands and any buildings or development is referred to as:

buffer zone

With a due diligence clause in a contract, which of the following would be true?

buyer can cancel the contract if inspections turn up any adverse material conditions

The rules and regulations for condominium owners are listed in the:

bylaws and charter

A sales contract was signed between a seller and a buyer. If the contract does not contain any other restrictions, this contract:

can be assigned at any time

In which document does a buyer's agency have to be disclosed to the seller?

contract of sale

A seller listed their property for sale and planned on spending $9,000 in putting in new carpet to update the home. The licensee told the seller she might want to just put in a carpet allowance of $9,000 thus allowing the buyer to pick out the type of carpet the buyer wanted. This scenario would be referred to as discussing:

contributory value

A licensee had the licensee's real estate license revoked by the KREC. The licensee could appeal their decision to the:

court for judicial review

Earnest money on a closing statement is shown as a:

credit to the buyer

Construction plans are submitted to a municipality before a building permit is issued in order to:

determine if the building complies with local regulations

A licensee has a property listed for sale. The listing agent then discovered a latent defect existed on the property. In showing this property to a buyer customer, the listing agent should:

disclose the latent defect to the buyer

A property was in an are with a lot of smoke and soot from nearby factories. It suffers from:

economic (external) obsolescence

The right of a defaulting borrower to retain title to a property by satisfying the debt prior to the foreclosure sale is called:

equitable redemption

A seller and buyer entered into a land contract for $50,000 whereby the buyer would make monthly payments to the seller over a 5-year period With this type of arrangement, the buyer would obtain an:

equitable title

The clause in a lease that allows the rent to increase is an:

escalator clause

An estate created when a tenant holds over at the end of a lease term without the landlord's permission is called an:

estate at sufferance

Between the time parties sign a sales contract and the conveyance of the title, the contract is considered to be:

executory

A sale of property being financed that is in a flood-prone area would be required to have:

flood insurance

A residential property was equipped to handle electrical service of 60 amps. The standard in the rest of the homes in the are was 100 amps. Having only 60 amps causes the homes to suffer from:

functional obsolescence

Which of the following statements best describes the concept of seizin?

grantor claims ownership of the

Under the 1997 tax relief act, a single person can exclude up to $250,000 of capital gains on the sale of an owner-occupied residence as long as the person:

had owned and lived in the property for 2 of the past 5 years

A real estate brokerage office suffered from a break-in. The thieves stole all of the brokerage office computers. In order to protect clients of the brokerage, the best practice by the broker would have been to:

have all of the office computer files backed-up offsite

A buyer client of a real estate firm is shown one of the firm's listings. The real estate firm would need to:

have both the buyer and seller sign a transaction broker addendum

A real estate broker's license can only be issued to an:

indivudual

According to the license law, a listing agent must present additional offers to the seller even after the seller accepts an offer unless:

it was in the listing contract not to present subsequent offers after one had been accepted

P owned a property adjacent to their residence. P wanted to deed the property to P's parents with the provision that P would get the property back when the parents died. This would be referred to as a:

life estate in reversion

A seller and buyer agreed on the sale and purchase of a house. As part of the agreement, the buyer was to take over liability for the seller's existing loan as well as the payments. This type of arrangement would be called a:

loan assumption

What best describes the duties of a transaction broker?

make sure that no personal confidential info is transferred from one party to another

A licensee listed a house for sale. The house had real estate taxes of $5,000. However, due to the homeowner's disability, the taxes had been reduced to $4,000. When the property was sold, the licensee failed to mention to the buyer that the real estate taxes might go up. This would be considered to be:

misrepresentation

A blanket mortgage is usually designed to cover:

more than one piece of property

A written agency agreement:

must be in writing prior to an offer being written

A commercial tenant pays a fixed base rent plus additional money for expenses. This lease would be a:

net lease

A developer built residential condos in an area zoned for both residential and commercial uses. One of the condo owners wanted to run a business out of their unit but the deed restrictions for the condo complex would not allow any commercial activity. The condo owner could:

not do the commercial activity as the deed restrictions prohibited this type of use

The last day a salesperson has to renew the license is:

on the expiration date

Which of the following persons makes the final decision on the list price?

owner

Which of the following types of mortgage would ALWAYS use both real estate and chattel as security?

package

A salesperson forgets to renew their license. In order to renew within the next six months, the salesperson would need to:

pay a late fee of $100

A seller lists their home with a real estate broker. Under the fair housing laws, per the seller's instructions, the broker can refuse to show the property to:

people over age 70

What authorizes one person to act for another person?

power of attorney

In order for a real estate sales contract to be valid, it must include a:

property description

An agreement whereby a person is hired to investigate potential tenants, collect rent and furnish monthly financial statements for an owner is called a:

property management agreement

A fine not exceeding $5,000 per violation may be imposed with aggravating circumstances such as when a licensee:

purposely withholds information regarding material facts about a client's or customer's ability to perform according to an agreement

A broker is guilty of commingling if he takes earnest money and:

puts it in his commercial account

What is commingling?

putting escrow money into the general office account

A deed which states that a person transfers his rights to the property is a:

quitclaim deed

A lender would not loan on properties in certain areas due to the ethnic makeup of the areas. This is called:

redlining

Owner J gave J's housekeeper a life estate in property. J also stipulated that the property go to J's child when the housekeeper died. J died prior to the housekeeper. J's child is referred to as the:

remainderman

If a licensee represents a seller only, the licensee would be a:

single agent

The legal relationship between broker and seller is generally a:

special agency

A tax assessment for the addition of a sidewalk in a neighborhood would be referred to as a:

special assessment tax

A licensee was showing a buyer residential property for sale. While showing, the licensee told the buyer she might be interested in property in a neighborhood with more people similar to her background. Under fair housing laws, this would most likely be a violation of:

steering

A licensee is showing an older couple properties that are senior housing units only. The licensee thinks that the couple does not want to be around children. Under the steering concept, this would be an example of:

stereotyping

An adverse event that has taken place on a property is referred to as a:

stigmatized property

A cooperating (selling) broker who has written an offer on another broker's exclusive listing should:

submit the offer to the listing broker

What would not be considered a ministerial act?

suggesting a fair offering price to a buyer customer

With regard to sales contract, people ultimately responsible for assigning transaction numbers are:

supervising brokers

Unless stated otherwise, an unmarried couple buying property would take title as:

tenants-in-common

Which of the following statements would be true regarding a Veteran's Administration (DVA) loan?

the buyer must live in the property

On an FHA loan, the mortgage insurance (MIP) ends when:

the loan is paid in full

The property management agreement is between the property manager and:

the property owner

From whom does a salesperson received a commission?

the salesperson's own broker

Under a listing agreement, who would be the client?

the seller

A rental property sold with a closing date of Nov. 18th. The monthly rent of $500 had been paid Nov. 1st. If the seller is credited with the day of closing, what would be correct?

the seller owes the buyer $200 $500 prepaid rent for Nov divided by 30 days = $16.67 per day for rent. the buyer of the rental earns rent from Nov 19th through Nov 30th, which is 12 days. $16.67 x 12 days = $200 the seller owes the buyer

A designated buyer's agent is showing a buyer client a home that is on the market as a "for-sale-by-owner." What is not true about the disclosure of brokerage relationships?

the selling agent would also be a seller's agent

What is not true regarding advertising?

the team name can be in letters more conspicuous than the brokerage name

Some buyers, in purchasing a property, ask the agent how they should take title to the property. the agent should explain:

the various types of ownership and have the buyers consult an attorney

In order to have a joint tenancy, there must be the unities of title, interest, possession and:

time of acquisition

What is the purpose of recording a deed?

to give constructive notice

What is the purpose of a borrower paying for private mortgage insurance (PMI)?

to insure the lender in case of default

All advertising on listed property must contain the:

trade or business name of the broker

A supervising broker allowed designated agency as a brokerage option. One salesperson in the company was appointed as a designated seller's agent and a different salesperson was appointed as a designated buyer's agent. If those two salespersons put a transaction together with their seller and buyer clients, the supervising broker would function as a:

transaction broker

What interest does a condominium owner have in common with other condominium owners?

undivided interest in the common areas

In a contract for land, the seller would be called the:

vendor

A licensee is meeting a client at the brokerage office in order to sign a contract. Upon arriving at the office, the licensee notices a sway in the client's step as well as a strong odor of alcohol. If the client signs the contract, this contract would be considered:

voidable

A contract based on misrepresentation of a material fact is:

voidable by the misrepresented party

A registered sex offender is applying for a real estate license. In applying for the license, this person must:

wait 15 years after discharge from post-release supervision

A non-profit religious institution owned a building. They wanted to lease out space in the building. Under fair housing laws, in leasing the space, they could limit the space to people:

who are members of their religious institution

A salesperson wants to be paid commission money from another salesperson or associate broker in the brokerage office. This could only be done:

with permission of the supervising broker

A buyer gave an expensive necklace as an earnest deposit to a broker. The broker should:

write on the contract that the earnest deposit is in the form of a necklace

For which of the following real estate properties would the Americans With Disabilities Act (ADA) apply?

A hotel

A landlord owns and leases out a dozen rentals. When can the landlord legally deny a space to a tenant?

When the family size is too large for the unit

A property owner can deduct depreciation for tax purposes on a property in what circumstances?

When the property is a rental property

A licensee signs a buyer to a designated buyer agency agreement. The buyer enters into an agreement to purchase a seller's property. When would the designated buyer agency agreement terminate?

When the real estate transaction is closed

The rent on a property was $360 per month. the landlord allowed the tenant to leave early but charged rent through April 22nd. As the tenant had paid the full monthly rent on April 1st, the max refund to the tenant would be:

$96 $360 divided by 30 days = $12 per day for rent/ $12 per day x * days (the tenant gets a refund for the last 8 days from April 22nd through April 30th) = $96 for the tenant refund.

Which of the following must be contained in a deed in order for the deed to be valid?

Words of conveyance

A property was purchased in the past for $200,000. If the property now sold for 12% more than the original price and the seller paid a 7% commission along with a mortgage amount of $150,000 and closing costs of $2,500, what did the seller net on this transaction?

$55,820 $200,000 x 12% = $24,000 appreciation. $200,000 + $24,000 = $224,000 sale price x 7% commission = $15,680 in commission. $224,000 minus $150,000 mortgage amount minus $15,680 in commission minus $2,500 in closing costs equals a net of $55,820

A residential property was worth $75,000 based on comparable properties and $85,000 based on reproduction cost. The property was sold at a bankruptcy sale for %70,000. What would be the fair market value of this property?

$75,000

A tenant was leasing a property which rented for $300 per month. On March 20th, the tenant notified the landlord that the tenant was leaving April 20th. The tenant had pre-paid the $300 per month rent on March 1st. The landlord charged the tenant a pro-rated amount of rent for April and a $600 penalty for terminating the lease. What was the total amount owed by the tenant?

$800 Tenant owes April rent from the 1st through the 20th or 20 days. $300 divided by 30 days = $10 per day x 20 days = $200 rent owed for April + the $600 penalty = $800 total amount owed by tenant.

A licensee functioning as a transaction broker for a seller presents an offer to the seller. The seller counteroffers back to the buyer. In the meantime, a different offer for cash comes in on the seller's property. What should the licensee do?

Present the cash offer to the seller

A licensee must submit to the supervising or branch broker any document that must be maintained by the broker within how many business days?

10

If a Kansas licensee is rejected for licensure in another state, how many days does this person have in which to notify the KREC?

10

A licensee is a stockholder of a corporation looking to purchase property. The corporation does not enter into any buyer agency agreement. The corporation advises it is looking for properties to purchase. What must be in the advertisements?

A licensed real estate agent is an owner of the corporation and is involved in the transaction

A $5,000 fine for an aggravated offense can be assessed in what situation?

A licensee causes a risk of loss for the client

Which of the following would be a violation of fair housing laws?

A listed property where the seller refuses to sell due to a buyer's national origin

Upon the first willful violation of any provision of the license act, what could apply?

A max sentence of 1 year in prison

A licensed agent was a property manager for an apartment complex. In screening tenants, which of the following persons could the property manager refuse to rent to based on fair housing laws?

A person currently addicted to cocaine

Which of the following would be a protected class under federal fair housing laws?

A person with AIDS

Which of the following would be considered innocent misrepresentation?

A salesperson mistakenly forgot to disclose something that was on the MLS property fact sheet

A buyer makes an offer on a listed property that would result in the seller losing money. The listing agent is a transaction broker for the seller. What should the listing agent do?

Present the offer and let the seller determine whether or not to accept the offer

A real estate licensee purchased a home that was in foreclosure. How many days does the licensee have in which to give written notice to the mortgage holder of the licensee's purchase?

20 days

4.5 acres were subdivided with 71,020 sq. ft. taken out for streets. How many 50' x 100' lots could be made?

25 4.5 acres times 43,560 (square feet per acre) equals 196,020 square feet minus 71,020 for the street leaves 125,000 sq. ft. for the lots. 50 x 100 = 5,000 sq. ft. for each lot. 125,000 total sq. ftg. divided by 5,000 sq. ft. for each lot equals 25 lots that could be made.

The number of continuing education hours required for a salesperson for the mandatory core is:

3

How long must a broker keep real estate records?

3 years

A person was attempting to obtain a salesperson's license. The person has taken the 30-hour pre-exam class and passed the test. In order to complete the licensing process, a broker should suggest to the applicant to complete a:

30-hour practice class

The KREC is made up of:

5 members appointed by the governor

Which of the following statements best describes a plat?

A document that records a subdivision on the public record

What scenario would not require having a real estate license to auction vacant land?

A governmental employee conducting official duties

What activity would be allowed under the Kansas License Law?

A broker calling a seller who was listed with another broker under an open listing

Under the Federal Fair Housing Law, which of the following qualifies as a protected class under the definition of familial status?

A child under the age of 18

From whom can a broker receive commission money from on a real estate transaction?

A commercial tenant

What is required for a borrower to pay on a 90% conventional loan covered under FNMA guidelines?

Private mortgage insurance (PMI)

Which of the following agencies is involved in enforcing CERCLA (Comprehensive Environmental Response, Compensation and Liability Act), which prohibits the dumping of hazardous materials on property?

EPA

What license status would require no continuing education hours in order for the licensee to renew?

Inactive

A licensee continued to sell real estate after the license expired. The KREC can do all of the following except:

Issue a retroactive license revoke or suspend the license or fine the licensee require the licensee to work for a particular broker require additional continuing education classes

Which of the following statements is true about a lease?

It is both a contract and an instrument that conveys an interest in real property

What is true regarding earnest money?

It must be cash unless all parties agreed in writing otherwise

What describes the cost approach to value?

It takes the cost of new improvements minus depreciation plus the current land value

As a real estate agent, you can do all of the following except:

N: represent a seller N: represent a buyer N: reduce your commission Y: give the buyer money for the down payment

A broker who moves his personal residence should do what?

NOtify the KREC in writing within 10 days

A person was employed by a utility company to acquire easements on behalf of the utility. What statement is true?

No license would be required if the person acquired gross easements, not appurtenant easements

Under Kansas law, what must be disclosed with specific words in a residential sales contract?

Radon gas

A salesperson who wanted to be an independent contractor for a broker would insist on what?

Not having defined hours to work

Y offers X $60,000 for X's property. What describes the role of X?

Offeree

In a real estate transaction, when is the title insurance typically paid?

One time at closing

Vendee?

One who buys or offers to buy

A prospective buyer wanted to have the right to purchase a home at a set price within the next 90 days but did not want to be obligated to purchase it. Which of the following documents would allow the buyer to do this?

Option

What would not be required documentation upon renewing a license?

Pending civil litigation

Which of the following terms would best be associated with the governing of flood maps?

Police power

Who is responsible for providing suggested contract forms for real estate agents under the Brokerage Relationships in Real Estate Transactions Act (BRRETA)?

The Kansas Real Estate Commission

What is true regarding earnest money?

The amount is negotiable between seller and buyer

What is true regarding interest earned on a broker's escrow account?

The broker can keep the interest with written consent of all parties

A broker listed a residential property for 180 days. After the listing expired, the seller asked the broker to rent it out. What best describes the broker's obligation?

The broker could hire an unlicensed person to rent the property

What is true regarding a broker wanting to use a name for the brokerage company other than the broker's own name?

The broker must obtain approval to use the name from the KREC

AAA Realty has a listing with a seller. BBT Realty sold the property as a sub-agent for the seller. Salesperson K was the salesperson for AAA Realty and salesperson R was the salesperson for BBT Realty. To whom is the commission paid?

The broker of BBT Realty

An owner decided not to lis their properties for sale with a broker but rather decided to be a for-sale-by-owner. The owner, in advertising, discriminated against buyers based on national origin. What best describes this situation?

The owner would not be exempt as fair housing laws apply to all residential sales regarding advertising

What creates value?

The price and terms for which a seller and buyer agree on

A salesperson and a relative buy property together that is listed by the salesperson's broker. The salesperson does not disclose in the contract that the salesperson is a licensee. What would be true?

The salesperson may be subject to discipline by the KREC

J is the owner and supervising broker of his own company. J's license is suspended by the Kansas Real Estate Commission for six months. What statement would be true?

The salespersons could continue to work at the brokerage if another supervising broker was brought in to run and supervise the company

Who would pay a salesperson for referrals or broker price opinions in a cooperative real estate transactions?

The supervising broker

A salesperson hires three other licensed agents to help her work with buyer clients. What would be true regarding this situation?

The supervising broker supervises all of the licensees

A Kansas broker was going to pay a referral fee to an out of state broker. The Kansas broker knows that the out of state broker is going togive part of that referral money to an unlicensed person. What statement is correct concerning this situation?

This would be a law violation as the Kansas broker knows the money is going to an unlicensed person

What is the purpose of a private deed restriction?

To control or limit permitted uses of the property

When can earnest money be disbursed out of an escrow account in the event of a dispute between buyer and seller?

Uon order of the court

An appraiser should lend most validity to the market data approach on what property?

Vacant land

Utility, scarcity and transferability would most relate to what?

Value

When is an item considered to be real estate?

When it is permanently attached to the land

When can a broker sign papers on behalf of a seller (principal)?

When the broker has a properly certified power of attorney