Perry Real Estate College Final Exam 2026: Questions
and Correct Answers Guide
1. A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence: functional obsolescence
2. In order to be a License member of the commission, a person
must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker: all of the above
3. A licensed real estate professional acting as a point of contact
between two or more people in negotiating the sale, rental, or
purchase of a property is known as a(n)
-sales affiliate
-property manager
-appraiser
-broker: broker
mailto:https://www.stuvia.com/user/Wisdoms
, 4. A landowner constructed a building 7 stories high. Several
years later the municipality changed the zoning ordinance,
prohibiting buildings that exceed 6 stories in height. Which of the
following is true regarding the existing 7-story building?
-the owner must obtain a variance
-it is nonconforming use
-it is a conditional use
-the building must be demolished: it is a nonconforming use
5. All of the following should be a consideration in selecting a
tenant for the property EXCEPT
-size of the available space relative to the tenant's requirements
-compatibility of the tenant's business with those of other tenants
-tenant's ability to make the rental payments
-Ethnic background of the tenant and his or her employees: Ethnic
background of the tenant and his or her employees
mailto:https://www.stuvia.com/user/Wisdoms
, 6. A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien.: specific lien
7. All of the following are prohibited under the antitrust laws EXCEPT
-Competing property management companies agreeing to
standardized management fees
-competing brokers allocating markets based on the value of homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a broker
because of the fees that broker charges: a broker's setting a company
commission schedule
8. A rancher owns a parcel of land on which oil was discovered. If
the rancher has not previously conveyed the oil rights, who owns
the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher: the rancher
9. Abel and Baker are joint tenants. Baker sells his interest to
mailto:https://www.stuvia.com/user/Wisdoms
, Charlie. What is the relationship of Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest: they are tenants
in common
10. All of the following would be acceptable as evidence of
marketable title EXCEPT
-a property owner's warranty deed
-an abstract and legal opinion
-Torren's certificate
-a title insurance policy: a property owner's warranty deed
11. The method of describing land that uses degrees, feet, and
monuments is known as the
mailto:https://www.stuvia.com/user/Wisdoms
and Correct Answers Guide
1. A house with outmoded plumbing is suffering from
-curable physical deterioration
-external depreciation
-incurable physical deterioration
-functional obsolescence: functional obsolescence
2. In order to be a License member of the commission, a person
must be
-a KY citizen
-a non-felon
-all of the above
-a licensed broker: all of the above
3. A licensed real estate professional acting as a point of contact
between two or more people in negotiating the sale, rental, or
purchase of a property is known as a(n)
-sales affiliate
-property manager
-appraiser
-broker: broker
mailto:https://www.stuvia.com/user/Wisdoms
, 4. A landowner constructed a building 7 stories high. Several
years later the municipality changed the zoning ordinance,
prohibiting buildings that exceed 6 stories in height. Which of the
following is true regarding the existing 7-story building?
-the owner must obtain a variance
-it is nonconforming use
-it is a conditional use
-the building must be demolished: it is a nonconforming use
5. All of the following should be a consideration in selecting a
tenant for the property EXCEPT
-size of the available space relative to the tenant's requirements
-compatibility of the tenant's business with those of other tenants
-tenant's ability to make the rental payments
-Ethnic background of the tenant and his or her employees: Ethnic
background of the tenant and his or her employees
mailto:https://www.stuvia.com/user/Wisdoms
, 6. A mechanic's lien would be properly classified as a(n)
-equitable lien.
-voluntary lien.
-general lien.
-specific lien.: specific lien
7. All of the following are prohibited under the antitrust laws EXCEPT
-Competing property management companies agreeing to
standardized management fees
-competing brokers allocating markets based on the value of homes
-a broker's setting a company commission schedule
-real estate companies agreeing NOT to cooperate with a broker
because of the fees that broker charges: a broker's setting a company
commission schedule
8. A rancher owns a parcel of land on which oil was discovered. If
the rancher has not previously conveyed the oil rights, who owns
the oil?
-the federal government
-the tenant to whom the property has been leased
-the state government
-the rancher: the rancher
9. Abel and Baker are joint tenants. Baker sells his interest to
mailto:https://www.stuvia.com/user/Wisdoms
, Charlie. What is the relationship of Abel and Charlie?
-they are joint tenants
-they are tenants in common
-there is no relationship because Baker cannot sell to Charlie
-Abel owns a 2/3 interest and Charlie owns a 1/3 interest: they are tenants
in common
10. All of the following would be acceptable as evidence of
marketable title EXCEPT
-a property owner's warranty deed
-an abstract and legal opinion
-Torren's certificate
-a title insurance policy: a property owner's warranty deed
11. The method of describing land that uses degrees, feet, and
monuments is known as the
mailto:https://www.stuvia.com/user/Wisdoms
