Real Estate Exam QUESTIONS AND
ANSWERS
You've just received a trio from a title company. It contains an assessor's map,
property profile, and one other item. What is it? - ANSWER>>Deed
In what section of the Kentucky Property Management Agreement is the day that
the property manager will provide reports to the owner each month identified? -
ANSWER>>Monthly statements
Who pays for the home inspection? - ANSWER>>Buyer
What are the effects on a property if it includes an encumbrance? - ANSWER>>It
restricts the owner's use or decreases the value.
In Kentucky, which of these is the correct term for the person who's entered into
a written cooperation agreement with an out-of-state principal broker? -
ANSWER>>Cooperating broker
What entity sets the standards for the appraisal report? - ANSWER>>USPAP
Which type of industrial building offers the best warehousing options for
residential individuals and commercial firms? - ANSWER>>Self storage facilities
Randa is trying to lower the vacancy rates for the commercial property she
manages because her revenue targets will increase by 8% over the next year.
What type of budget contains this revenue detail? - ANSWER>>Operating budget
What's the term for someone who has agency representation with the licensee? -
ANSWER>>client
,Which of the following is most susceptible to a predatory lender? - ANSWER>>A
borrower with poor credit
In a trust, the trustee is the person who ______. - ANSWER>>Makes sure the
terms of the trust are carried out
In Kentucky, licensees have three potential options for purchasing E&O insurance:
a program KREC administers, independent insurers, or ______. - ANSWER>>Their
broker
What types of Kentucky property are governed by fair housing laws?
All owner-occupied properties
Any residential property built before 1978
Any type of real property marketed for sale or rent
Residential real property marketed for sale or rent - ANSWER>>Residential real
property marketed for sale or rent
Which clause in a contract states that one or more parties won't be held liable if
there are losses or expenses related to the contract? - ANSWER>>Indemnification
clause
When property managers receive money, they need to ______. -
ANSWER>>Provide a receipt immediately, enter the dollar amount and unit into
the ledgers, and promptly deposit the funds into the escrow or property
management account.
James, a seller, signed a listing agreement that allowed him to contract with
multiple agents but only pay a commission to the agent who located a buyer. This
type of listing agreement is called ______. - ANSWER>>Open
Think of an open listing agreement as a free-for-all. Only the licensee who locates
the buyer will be paid. If the seller locates the buyer, no commission is owed.
,If there's no state or local building code to cover a specific situation, what code
must the builder abide by? - ANSWER>>The federal building code
The national codes apply unless stricter local or state building codes exist.
Which business is driving up demand for warehouses, especially those located
near airports? - ANSWER>>E commerce
Which of the following is a reason all licensees should have errors and omissions
insurance? - ANSWER>>Risk is an inherent part of real estate activities.
What's a typical reason that a seller might opt for a short sale? - ANSWER>>Job
loss or other financial problems
When a tenant pays rent to a landlord, the tenant is satisfying which element of a
valid lease contract? - ANSWER>>consideration
All of the offers have at least one contingency. Nora recommends that they reject
the second offer, because it has a contingency that's generally the most risky.
Which contingency is that? - ANSWER>>Home sale contingency is the riskiest
For how long may a personal residence be depreciated? - ANSWER>>Zero years
(personal residences cannot be depreciated
Who typically prepares a comparative market analysis? - ANSWER>>Real estate
licensee
How does appraiser Maribel measure depreciation when using the capitalized
value method? - ANSWER>>By applying a capitalization rate to an income
comparison of similar properties
, A neighborhood that has been disintegrating for some time is undergoing a
rejuvenation, with several properties on one block being heavily renovated or
entirely rebuilt. As a result, even the properties that are still old and shabby
increase somewhat in value. This is the principle of ________. -
ANSWER>>progression
Iris is using the breakdown method to measure depreciation. By what other name
is this method known? - ANSWER>>Observed condition
In Kentucky, when an agreement terminates, a property manager must provide
the property owner with a final account of transactions that occurred after the
most recent monthly accounting. Within how many days of the agreement's
termination must this must be completed? - ANSWER>>60
Who selects the Kentucky Real Estate Commission chairperson? - ANSWER>>The
members of the commission
In the sales comparison approach, using comparables that are five and 15 years
old when appraising a subject that is 10 years old is an example of what? -
ANSWER>>Bracketing
After closing, the seller refused to deliver the title. The buyer met all of the
obligations outlined in the written contract the two parties signed, so the buyer
took the seller to court to force the seller to deliver the title. What is this an
example of? - ANSWER>>Suing for specific performance
In Kentucky, whose written permission is required for listing contracts to be
assigned from one brokerage firm to another? - ANSWER>>Original principal
broker's and seller's
What are out-of-state brokers transacting commercial real estate in Kentucky
required to have under Kentucky law? - ANSWER>>Notice of affiliation
ANSWERS
You've just received a trio from a title company. It contains an assessor's map,
property profile, and one other item. What is it? - ANSWER>>Deed
In what section of the Kentucky Property Management Agreement is the day that
the property manager will provide reports to the owner each month identified? -
ANSWER>>Monthly statements
Who pays for the home inspection? - ANSWER>>Buyer
What are the effects on a property if it includes an encumbrance? - ANSWER>>It
restricts the owner's use or decreases the value.
In Kentucky, which of these is the correct term for the person who's entered into
a written cooperation agreement with an out-of-state principal broker? -
ANSWER>>Cooperating broker
What entity sets the standards for the appraisal report? - ANSWER>>USPAP
Which type of industrial building offers the best warehousing options for
residential individuals and commercial firms? - ANSWER>>Self storage facilities
Randa is trying to lower the vacancy rates for the commercial property she
manages because her revenue targets will increase by 8% over the next year.
What type of budget contains this revenue detail? - ANSWER>>Operating budget
What's the term for someone who has agency representation with the licensee? -
ANSWER>>client
,Which of the following is most susceptible to a predatory lender? - ANSWER>>A
borrower with poor credit
In a trust, the trustee is the person who ______. - ANSWER>>Makes sure the
terms of the trust are carried out
In Kentucky, licensees have three potential options for purchasing E&O insurance:
a program KREC administers, independent insurers, or ______. - ANSWER>>Their
broker
What types of Kentucky property are governed by fair housing laws?
All owner-occupied properties
Any residential property built before 1978
Any type of real property marketed for sale or rent
Residential real property marketed for sale or rent - ANSWER>>Residential real
property marketed for sale or rent
Which clause in a contract states that one or more parties won't be held liable if
there are losses or expenses related to the contract? - ANSWER>>Indemnification
clause
When property managers receive money, they need to ______. -
ANSWER>>Provide a receipt immediately, enter the dollar amount and unit into
the ledgers, and promptly deposit the funds into the escrow or property
management account.
James, a seller, signed a listing agreement that allowed him to contract with
multiple agents but only pay a commission to the agent who located a buyer. This
type of listing agreement is called ______. - ANSWER>>Open
Think of an open listing agreement as a free-for-all. Only the licensee who locates
the buyer will be paid. If the seller locates the buyer, no commission is owed.
,If there's no state or local building code to cover a specific situation, what code
must the builder abide by? - ANSWER>>The federal building code
The national codes apply unless stricter local or state building codes exist.
Which business is driving up demand for warehouses, especially those located
near airports? - ANSWER>>E commerce
Which of the following is a reason all licensees should have errors and omissions
insurance? - ANSWER>>Risk is an inherent part of real estate activities.
What's a typical reason that a seller might opt for a short sale? - ANSWER>>Job
loss or other financial problems
When a tenant pays rent to a landlord, the tenant is satisfying which element of a
valid lease contract? - ANSWER>>consideration
All of the offers have at least one contingency. Nora recommends that they reject
the second offer, because it has a contingency that's generally the most risky.
Which contingency is that? - ANSWER>>Home sale contingency is the riskiest
For how long may a personal residence be depreciated? - ANSWER>>Zero years
(personal residences cannot be depreciated
Who typically prepares a comparative market analysis? - ANSWER>>Real estate
licensee
How does appraiser Maribel measure depreciation when using the capitalized
value method? - ANSWER>>By applying a capitalization rate to an income
comparison of similar properties
, A neighborhood that has been disintegrating for some time is undergoing a
rejuvenation, with several properties on one block being heavily renovated or
entirely rebuilt. As a result, even the properties that are still old and shabby
increase somewhat in value. This is the principle of ________. -
ANSWER>>progression
Iris is using the breakdown method to measure depreciation. By what other name
is this method known? - ANSWER>>Observed condition
In Kentucky, when an agreement terminates, a property manager must provide
the property owner with a final account of transactions that occurred after the
most recent monthly accounting. Within how many days of the agreement's
termination must this must be completed? - ANSWER>>60
Who selects the Kentucky Real Estate Commission chairperson? - ANSWER>>The
members of the commission
In the sales comparison approach, using comparables that are five and 15 years
old when appraising a subject that is 10 years old is an example of what? -
ANSWER>>Bracketing
After closing, the seller refused to deliver the title. The buyer met all of the
obligations outlined in the written contract the two parties signed, so the buyer
took the seller to court to force the seller to deliver the title. What is this an
example of? - ANSWER>>Suing for specific performance
In Kentucky, whose written permission is required for listing contracts to be
assigned from one brokerage firm to another? - ANSWER>>Original principal
broker's and seller's
What are out-of-state brokers transacting commercial real estate in Kentucky
required to have under Kentucky law? - ANSWER>>Notice of affiliation
