Kentucky Portion - Real Estate Exam Flashcards

Kentucky Portion - Real Estate Exam Flashcards A buyer makes a written offer on April 9, 2003 and gives the broker a $1500 check. The buyer instructs the broker to hold the check until April 10, 2003, regardless of when the

offer is accepted. In this situation, the broker should:A)

Refuse to accept the offer and check under these termsB) Present the offer and inform the seller that the check is to be held until April 10, 2003.C) Deposit the check into escrow the next business day following acceptance of the offer.D) Give the check to the seller if the offer is accepted regardless of the date.

• present offer and inform seller that the check is to be

held until April 10, 2003.A real estate broker negotiates a business opportunity transaction. His commission is paid partly in cash and partly as an ownership stake in the business. This is

considered:A) unethical.B) a package deal.C) legal.D)

illegal.

• legalA broker may accept a commission in any manner

that is legal in nature.Kentucky have a real estate license reciprocity agreement

with:

All States.Currently, the Real Estate Education, Research and

Recovery Fund aggregate amount may not exceed:

$20,000

A physical place of business for a real estate brokerage company in addition to the main office location that the commission may enter to inspect required documents or

allegations of violations of KRS Chapter 324:

A branch office what is the maximum that the real estate education, research and recovery fund will pay for combined payments to all claimants against any one licensee?A)

$75,000B) $20,000C) $100,000D) $50,000

• $50,000If a license, acting in the capacity of a licensee,

has been dulyfound guilty of fraud in the violation of one (1) or more of the provisions of KRS 324.160, and upon the conclusion of a final order entered by the commission, or by the courts, if appealed, the commission, may pay to the aggrieved person or persons an aggregate amount not to exceed twenty thousand dollars ($20,000) per claimant with combined payments to all claimants against any one licensee, not to exceed fifty thousand dollars ($50,000), if the licensee has refused to pay the claim within a period of twenty (20) days of entry of a final order and if the amount or amounts of money in question are certain and liquidated.Next Question A principal broker establishing a branch office with a 50-mile radius of the main officeA) must assign a licensed broker to manage the office.B) may assign a sales associate with two-years' experience in the real estate business to manage the office.C) may assign an

unlicensed assistant to manage the office.D) may assign any salesperson to manage the office.

• Commission regulations state that a sales associate with

two-years of experience in the real estate business who averages 20 hours a week for a period of 24 months may manage a branch office inside a 100-mile radius of the main office.

The cleanest method of financing with the least exposure and liability to the seller isA) Purchase subject to the mortgage.B) Purchase money mortgage.C) Assumption of the existing loan.D) New financing.

• new financingWith new financing, the seller has no

liability after the sale.Can a licensee engage in promotional activities in Kentucky, for property located outside of Kentucky?A) Yes, but only with approval from the Kentucky commission.B) Never.C) No, unless it is rental.D) Yes, it is the same as doing business in Kentucky as long as you follow the local laws.A ) yes with approval from Kentucky commission Who appoints the members of the Kentucky real estate commission (KREC)?The Governor How many hours of continuing education are required for Kentucky real estate salesperson's?All individuals who hold an active Kentucky salespersons license are required to complete 6 hours of Commission approved continuing education during each renewal period.An agent changed her surname. The agentMust give written notification to the KREC of the change.Under Kentucky law, a broker is required to keep copies of records for

• years.

What is the maximum that the real estate education, research and recovery fund will pay per claim?A)

$200,000B) $50,000C) $20,000D) $100,000

C). 20,000If a license, acting in the capacity of a licensee, has been duly found guilty of fraud in the violation of one or more of the Kentucky provisions, and upon the conclusion of a final order entered by the commission, or by the courts, if appealed, the commission, may pay to the aggrieved person or persons an aggregate amount not to exceed twenty thousand dollars ($20,000) per claimant with combined payments to all claimants against any one licensee, not to exceed fifty thousand dollars ($50,000), if the licensee has refused to pay the claim within a period of twenty (20) days of entry of a final order and if the amount or amounts of money in question are certain and liquidated.The seller has not yet paid this year's property taxes, which are $2,400 for the period from January 1 to December 31.On July 16, the house is sold. How are the taxes adjusted at closing?A) Debit buyer $1,300; credit seller $1,100B) Credit buyer $1,500; debit seller $1,500C) Credit buyer $1,300; debit seller $1,300D) Credit buyer $1,250; debit seller $1,150

• credit buyer 1,300 ; debit seller 1,300Because the taxes

haven't yet been paid, the buyer receives credit for the

period the seller lived in the house: 6 12 months at $200

per month = $1,300. The buyer receives credit at closing for that amount and the seller is debited for the same amount.When a licensee advertises a guaranteed sales plan, Commission regulations require that the licensee disclose in writing all of the following EXCEPTA)what fee is charged for participation in the plan.B)whether the owner must sign an exclusive buyer agency agreement with the licensee.C)how the purchase price of the property is determined.D)under what circumstances the property owner must pay for any repairs necessary after the

property inspection.D)Commission regulations do not require any statement regarding property inspection or necessary repairs. The licensee must disclose any fees, how the purchase price is determined, and whether an exclusive buyer agency agreement is required.A broker who establishes a branch office 125 miles from her principal officeA)may appoint an unlicensed assistant to manage the office.B)must assign a licensed broker as