KY REAL ESTATE EXAM PREP

What is a Preliminary Report? - Issued by title insurance companies

• gives buyers an overview of title history and any liens/encumbrances
• it outlines what insurance companies will/wont cover on its policy

What is the Superfunds Amendments and Reauthorization Act (SARA)? - Amendment to CERCLA that says 'innocent landowners' arent responsible for clean up of hazardous contamination

KY REAL ESTATE EXAM PREP

ACTUAL SOLUTION Questions and Answers UPDATE

What do Datums and Benchmarks measure? - Elevation

Joint Tenancy - The joint ownership of property by two or more co-owners in which each co- owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenants.

Easement Appurtenant - Runs with the land

• grants the right to use adjoining land

Civil Rights Act of 1866 - Prohibits any exceptions for discrimination based on race/color

What is the purpose of Building Code ? - It establishes workmanship standards when someone is building an addition to their property

Developer that has a project planned that doesnt conform to the community zoning regulations and wants to make a change request would make a request to who? - the Zoning Board of Appeals for a variance

What is a right to use timeshare? - It conveys the right of POSSESSION but not ownership (therefore cant be passed on or sold)

What do lenders consider equally - Borrower and Property

• the property's value (collateral) and the borrowers ability to repay the loan

What is a Bridge Loan? - A temporary loan often used by buyers who have not yet closed on their prior property

• short term

-interest only

What is a Land Contract? - Buyer will pay the seller.

• Seller will hold legal title of the property during the term of the loan

In KY when a tenant finds themselves in a DV situation and must get a protective order what can they do? - They may terminate the rental agreement early, giving 30 days' written notice

In a PUD (planned unit development) who owns the common areas? - The common areas a jointly owned and maintained by the condo owners or HOA

What is a Cash Flow Report? - Usually created monthly and shows the current financial status of the property

• accounts for income received (rent) and expenses (utilities, personnel, repairs)

What is an Attachment Lien? - When the courts place an encumbrance on the property of a defendant in a lawsuit for monetary damages

- ex: damages related to a car accident

When does Acceptance occur? - When all parties have signed a given contract

When does Binding Acceptance occur? - When the accepted offer is delivered

What is the highest fine that KREC can impose for a single charge of improper conduct? - $1,000

Which of the following compensations may a KY broker pay to a TN licensee? - A referral fee and/or commission

How long must KY transaction records be retained for? - 5 years from the consummation date

Who is responsible for completing the Condo Seller Certificate? - The Condo Association completes it upon the request of the seller -they have 10 days to complete

When is a Lead Paint Disclosure required? - For any home built before 1978

What contract provision will buyers use to specify which items they would like included as part of the sale? - Inclusuions

• appliances, washers, dryers, fridge

All real estate contracts must be...? - In writing

Who fills out the Agency Disclosure Statement? - The agent according to the type of agency provided

Are brokers allowed to pay a fee to service providers for referrals? - No, RESPA and license laws prohibit it

What is it called when an individual performs brokerage services without a license? - Unlicensed Brokerage (punishable by fines and imprisonment)

A life estate can be described as... - Ownership, possession and control for the duration of someones lifetime

Tiers in the rectangular government survey are formed by... - Parallel Township Lines

What is an Encumbrance? - A defect on title that can be monetary or physical

What is the Housing and Community Development Act of 1974? - Included gender or sex in the list of protected classes

What is Real Property? - land and anything attached to it (real estate plus all of the interests, benefits and rights included in ownership)

What is a Net Listing? - The seller specifies a desired price for the property and agrees to pay the broker any amount received thats more than that price

What is Price? - The actual amount that a buyer pays for a property

What is a timeshare use? - Allows the right to occupy the property for some given amount of time

• doesnt convey ownership

What is a Triple Net Lease? - Includes taxes, insurance and maintenance (TIM)

What is the Clayton Act? - it supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers/acquisitions that would create a monoply

What is a Loan Estimate? - It details the estimated closing costs for a loan

What has to happen for the transfer of title to take place? - The seller must deliver a marketable title

What is a Straw Buyer? - Using someones credit to purchase a property and securing financing

• puts the responsibility on someone else

What does Recording a Deed in your name do? - It provides Constructive Notice

What does drafts near a fireplace indicate? - Can indicate problems with the flue or ventilation

A licensee whose license has expired without being renewed for more than one year or whose license has been revoked or suspended must do what? - Pass the real estate exam again What is the purpose of KY's Consumer Guide to Agency Relationships? - To educate consumers regarding the types of agency relationships available and explain the agents duties to the clients What is a Partition - Is used to describe a specific divided portion of property that is created as part of a co-ownership termination

What does Improper Conduct mean in KY? - Refers to misbehavior of licensees

General brokerage and listing specific ad in KY must contain what? - Brokerage Name

Licensees may only receive compensation for real estate services from who? - Their broker

As a sellers agent, when will you give a copy of the Seller's Completed Disclosure form? - Upon request from any prospective buyer

• must deliver within 72 hours of receiving an offer to purchase

What is the fine for a KY licensee who fails to complete CE requirements? - $500

How many hours must a KY licensee take of CE during the renewal period? - 12 hours total -6 must be spent in KREC approved law courses

What is the purpose of the Agency Disclosure Statement used in KY residential transactions? - To confirm the role of the agent and obtain consent from the client

How much time does an aggrieved party have to file a fraud claim with the KY Real Estate Education, Research and Recovery Fund? - 1 year

What are Reciprocal License applicants required to do to obtain a license in KY? - - Pass the KY law portion of the exam

When is the annual deadline to pay the E&O insurance premium obtained through KREC? -

11:50pm on March 31

True or False: Net Listing Agreements are legal in KY - False, they are illegal

When does Economic (External) Obsolescence occur? - When factors unrelated to the property itself and outside of the owners control, diminish its value

What is Actual Notice? - When an individual has first hand knowledge of something

• Complete a background check
• Submit certificate of licensure