Kentucky State real estate practice exam #3
Under Kentucky law, which of the following would not be included in an offer to purchase?
A. The purchase price, the amount of the contract deposit and who is to hold the deposit B.
Date and time when the offer or counteroffer expires C. The agent who prepared the offer and
the commission he/she will be paid D. The closing date and when possession will be given to
the buyer - ANSThe agent who prepared the offer and the commission he/she will be paid
If a person does not renew in the proper timeframe the person will be fined up to
A. $100.00 B. $200.00 C. $500.00 D. $1,000.00 - ANS$200.00
Under Kentucky law, which of the following would not be included in a listing contract?
A. The commission and the expiration of the listing B. The listing price and the signatures of
all owners C. The expiration of the offer and the buyers names D. Special directions of the
owner - ANSThe expiration of the offer and buyers names.
A seller has offered two round-trip tickets within the continental United States to anyone who
buys his property. The agent
A. cannot advertise the tickets because it is an inducement. B. cannot advertise the tickets
until it is approved by the Board. C. can advertise the tickets with the permission of the
KREC. D. can advertise the seller's inducement of the tickets. - ANScan advertise the seller's
inducement of the tickets
Which of the following statements would trigger an agent having the buyer sign an Agency
Disclosure Statement?
A. "I would like to set an appointment to see the house at 229 Main Street." B. "How many
bedrooms does the house at 119 Main Street have?" C. "You're one of three agents that I'm
interviewing, why should I work you and your company?" D. "I'm ready to write on offer on
the property." - ANSI'm ready to write an offer on the property
A seller has told his listing agent that if sells the property within the first two weeks of listing,
the seller will give the agent a $2,000 bonus. Under which of the following circumstances
could the agent be paid the bonus?
A. If the agent owns the real estate company. B. If he receives the bonus from his broker. C.
If the KREC gives the agent consent to receive the bonus. D. If the agent has a broker's
license, not a sales associate license. - ANSIf he receives the bonus from his broker
Agent John has an appointment with a seller to list a property. The agent explained the office
policies and told the seller that the advertising would consist of internet ads, the yard sign,
and newspaper adverting twice a week. After two months on the market, the agent had not
advertised in the newspaper. Based on this situation
A. the agent appears to have made false promises. B. the license law does not regulate
advertising. C. newspaper advertising is not required and the agent has no liability to the
seller. D. the seller cannot specify how an agent advertises listed property. - ANSthe agent
appears to have made false promises
Effective January 1, 2020 which of the following statements is FALSE regarding continuing
education?
, A. Unless exempt, all actively licensed agents shall complete twelve hours of continuing
education every biennial license period. B. Six of the twelve hours shall be completed in the
first year of the biennial license period or the license shall be automatically cancelled. C. All
licensee may not attend more than six hours of continuing education classes in the first year
of the biennial term. D. Six of the twelve hours of continuing education shall be in real estate
law. - ANSAll licensee may not attend more than six hours of continuing education classes in
the first year of the biennial term
Which of the following properties would an agent be required to give the seller an agency
disclosure statement?
A. Sale of real estate at auction B. Sale of a shopping center C. Sale of a single family
residential property D. Sale of a twenty unit apartment building - ANSSale of a single family
residential property
An agent has been found guilty of violating license law. The penalties imposed by the KREC
usually become effective
A. upon the conclusion of the hearing. B. within thirty days of the Commission's decision. C.
after the conclusion of all appeals .D. within twenty days of the filing of the appeal. -
ANSafter the conclusion of all appeals
Tom, a licensed agent, is selling his home. After looking at the property. the buyer wants to
purchase Tom's home. The buyer has a local attorney write the offer which Tom accepts.
Regarding this transaction
A. Tom is required to disclose his status as an agent in the offer to purchase. B. Tom must
disclose, in writing, his interest in the property to the buyer. C. Because he is licensed, Tom is
required to sell his property through his broker's company. D. Tom is not required to sell his
property through his broker or make any disclosures to the public when selling his property. -
ANSTom must disclose, in writing, his interest in the property to the buyer
At a hearing, an agent was found to be in violation of the license law. The Kentucky Real
Estate Commission could impose a penalty of
A. a $1,500 fine. B. imprisonment for 6 months. C. revocation of a license for 7 years. D.
suspension of a license for 10 years. - ANSsuspension of a license for 10 years
Which of the following would NOT be an example of confidential information?
A. "The lowest price I will take for the property is $100,000."B. "We're pre-approved for
$100,000."C. "The sellers are transferring and that's why they are selling." D. "The property
is for sale because there is a special assessment for sewers." - ANSThe property is for sale
because there is a special assessment for sewers
An agent has just been hired as a property manager. The person that will pay the agent is
A. outlined in the management agreement. B. her broker. C. the owner. D. the tenants. -
ANSher broker
What are the maximum fines that an agent could pay for calling someone on the Do-Not-Call
list?
A. $1,000 - Kentucky Law; $1,000 Federal Law B. $1,000 - Kentucky Law; $10,000 Federal
Law C. $5,000 - Kentucky Law; $11,000 Federal Law D. $5,000 - Kentucky Law; $16,000
Federal Law - ANS$5,000 - Kentucky Law; $16,000 Federal Law
Under Kentucky law, which of the following would not be included in an offer to purchase?
A. The purchase price, the amount of the contract deposit and who is to hold the deposit B.
Date and time when the offer or counteroffer expires C. The agent who prepared the offer and
the commission he/she will be paid D. The closing date and when possession will be given to
the buyer - ANSThe agent who prepared the offer and the commission he/she will be paid
If a person does not renew in the proper timeframe the person will be fined up to
A. $100.00 B. $200.00 C. $500.00 D. $1,000.00 - ANS$200.00
Under Kentucky law, which of the following would not be included in a listing contract?
A. The commission and the expiration of the listing B. The listing price and the signatures of
all owners C. The expiration of the offer and the buyers names D. Special directions of the
owner - ANSThe expiration of the offer and buyers names.
A seller has offered two round-trip tickets within the continental United States to anyone who
buys his property. The agent
A. cannot advertise the tickets because it is an inducement. B. cannot advertise the tickets
until it is approved by the Board. C. can advertise the tickets with the permission of the
KREC. D. can advertise the seller's inducement of the tickets. - ANScan advertise the seller's
inducement of the tickets
Which of the following statements would trigger an agent having the buyer sign an Agency
Disclosure Statement?
A. "I would like to set an appointment to see the house at 229 Main Street." B. "How many
bedrooms does the house at 119 Main Street have?" C. "You're one of three agents that I'm
interviewing, why should I work you and your company?" D. "I'm ready to write on offer on
the property." - ANSI'm ready to write an offer on the property
A seller has told his listing agent that if sells the property within the first two weeks of listing,
the seller will give the agent a $2,000 bonus. Under which of the following circumstances
could the agent be paid the bonus?
A. If the agent owns the real estate company. B. If he receives the bonus from his broker. C.
If the KREC gives the agent consent to receive the bonus. D. If the agent has a broker's
license, not a sales associate license. - ANSIf he receives the bonus from his broker
Agent John has an appointment with a seller to list a property. The agent explained the office
policies and told the seller that the advertising would consist of internet ads, the yard sign,
and newspaper adverting twice a week. After two months on the market, the agent had not
advertised in the newspaper. Based on this situation
A. the agent appears to have made false promises. B. the license law does not regulate
advertising. C. newspaper advertising is not required and the agent has no liability to the
seller. D. the seller cannot specify how an agent advertises listed property. - ANSthe agent
appears to have made false promises
Effective January 1, 2020 which of the following statements is FALSE regarding continuing
education?
, A. Unless exempt, all actively licensed agents shall complete twelve hours of continuing
education every biennial license period. B. Six of the twelve hours shall be completed in the
first year of the biennial license period or the license shall be automatically cancelled. C. All
licensee may not attend more than six hours of continuing education classes in the first year
of the biennial term. D. Six of the twelve hours of continuing education shall be in real estate
law. - ANSAll licensee may not attend more than six hours of continuing education classes in
the first year of the biennial term
Which of the following properties would an agent be required to give the seller an agency
disclosure statement?
A. Sale of real estate at auction B. Sale of a shopping center C. Sale of a single family
residential property D. Sale of a twenty unit apartment building - ANSSale of a single family
residential property
An agent has been found guilty of violating license law. The penalties imposed by the KREC
usually become effective
A. upon the conclusion of the hearing. B. within thirty days of the Commission's decision. C.
after the conclusion of all appeals .D. within twenty days of the filing of the appeal. -
ANSafter the conclusion of all appeals
Tom, a licensed agent, is selling his home. After looking at the property. the buyer wants to
purchase Tom's home. The buyer has a local attorney write the offer which Tom accepts.
Regarding this transaction
A. Tom is required to disclose his status as an agent in the offer to purchase. B. Tom must
disclose, in writing, his interest in the property to the buyer. C. Because he is licensed, Tom is
required to sell his property through his broker's company. D. Tom is not required to sell his
property through his broker or make any disclosures to the public when selling his property. -
ANSTom must disclose, in writing, his interest in the property to the buyer
At a hearing, an agent was found to be in violation of the license law. The Kentucky Real
Estate Commission could impose a penalty of
A. a $1,500 fine. B. imprisonment for 6 months. C. revocation of a license for 7 years. D.
suspension of a license for 10 years. - ANSsuspension of a license for 10 years
Which of the following would NOT be an example of confidential information?
A. "The lowest price I will take for the property is $100,000."B. "We're pre-approved for
$100,000."C. "The sellers are transferring and that's why they are selling." D. "The property
is for sale because there is a special assessment for sewers." - ANSThe property is for sale
because there is a special assessment for sewers
An agent has just been hired as a property manager. The person that will pay the agent is
A. outlined in the management agreement. B. her broker. C. the owner. D. the tenants. -
ANSher broker
What are the maximum fines that an agent could pay for calling someone on the Do-Not-Call
list?
A. $1,000 - Kentucky Law; $1,000 Federal Law B. $1,000 - Kentucky Law; $10,000 Federal
Law C. $5,000 - Kentucky Law; $11,000 Federal Law D. $5,000 - Kentucky Law; $16,000
Federal Law - ANS$5,000 - Kentucky Law; $16,000 Federal Law
