Kentucky Real Estate Exam Questions

32 Kentucky Real Estate Exam Questions & Answers 1.A buyer client in Kentucky is suing Janet for an inadvertent mistake she made in a real estate transaction. What insurance policy covers this type of situation?ANS Errors and omissions insurance (E&O insurance covers licensees who are sued by consumers for inadvertent mistakes in a real estate transaction) 2.Kentucky licensee Kylie is working with a buyer client who has a written agency agreement with Kylie's brokerage firm. Based on Kentucky law, which of the following duties does Kylie owe her client?A)Assist her client in completing a loan application.B)Find a property that fits her client's needs and expectations.C)Perform the home inspection and provide a report of the results.D)Promptly submit her client's written offer to the seller.

ANS D The minimum duty Kentucky licensees owe buyer clients who are paying for their services is to promptly submit all written offers from the buyer to the seller 1 / 4

32 3.Kentucky real estate licensee Camden has an exclusive right-to-sell agency agreement with his seller client Melody. Is Melody obligated to pay Camden a commission if she or a broker from another firm finds a buyer to purchase Melody's property?ANS Yes, the exclusive right-to-sell agency agreement guarantees Cameron a commission no matter who finds a buyer.(An exclusive right-to-sell/lease agreement allows the broker to list the property and receive a commission no matter who brings the buyer/lessee to the seller/landlord) 4.What is KREC's fee to place a license in inactive status?ANS Licensees will pay $10 to KREC to place their license in inactive status 5.When selling a Kentucky condominium unit, the Condominium Seller Certifi- cate is used to ANS The Condominium Seller's Certificate discloses information about a condominium association's fees, operations, budget, and regulations 6.By what date do licensees need to complete their biennial CE requirement in Kentucky?ANS Licensees in Kentucky must complete their six hours of the annual CE requirement by December 31 2 / 4

32 7.If a complaint for a license law violation in Kentucky does not constitute a prima facie case, the complainant has days to revise and supplement the case.ANS If KREC deems a complaint as lacking evidence of a license law violation, complainants have 10 days to revise and supplement the case or it will be dismissed.

8.Amanda helps her neighbor sell his home in Louisville by assisting him with the negotiations. She receives no compensation for her assistance.Based on this one transaction, Amanda .ANS Doesn't need a real estate license Amanda can't claim she's a licensed agent or accept payment. However, if her friend asks her for advice, she could offer it as a friend. Watch out with this. It's easy to step over the line into performing illegal activities.

9.Top of the Hill Realty in Kentucky decides it's time to clean out the files.What's the most likely first step?ANS Review the firm's and KREC's record retention and disposal rules.The first step is to review your firm's rules and KREC's records retention require- ments so no files are accidentally destroyed 3 / 4

32 10.Marcia is an unlicensed assistant in Kentucky. Which of the following tasks is she permitted to perform?A)Greet people at an open house.B)Host an open house.C)Interpret listing information for a client.D)Show properties.

ANS A An unlicensed assistant may assist with an open house by greeting guests, serving refreshments, and distributing pre-approved marketing materials as long as the seller agrees.

11.How many classroom hours of pre-licensing education are required for someone to become a real estate sales associate in Kentucky?ANS Sales asso- ciate candidates must take 96 classroom hours of real estate coursework from an approved proprietary school to become a licensed sales associate 12.The KREC Exclusive Right to Sell Agency Contract is a legally binding contract once it's signed by .ANS The seller, principal broker, and authorized agent 13.Kentucky licensees should understand that the main difference between puffery and misrepresentation is that .