KENTUCKY REAL ESTATE
PRACTICE FINAL ONE |120 QUESTIONS AND ANSWERS.
"fully amortized mortgage - Correct Answer A borrower secured a loan in which he makes a fixed
monthly payment and the balance will be zero at the end of the loan term. This BEST describes a/an"
“Severalty ownership of air rights combined with an undivided interest in the common areas of real estate
would MOST LIKELY describe a - Correct Answer condominium"
"before making the offer on the property. - Correct Answer An Agency Disclosure Statement must be
signed by the buyer"
"A licensee could be active in the real estate business if his/her license is - Correct Answer on probation"
"thirty days to place her license in escrow or find another broker - Correct Answer Agent Kenzie has
terminated her relationship with her broker. The broker has returned her license to the BREP. Agent
Kenzie has"
"placing a licensee on probation for twenty four months. - Correct Answer Disciplinary actions that can
be taken by the BREP include all of the following EXCEPTplacing a licensee on probation for twenty four
months"
"$5,000 - Correct Answer An agent has been found guilty of fraud in a real estate transaction. The court
has determined the following damages: $5,000 actual and $2,000 punitive. What amount could be paid
from the recovery fund?"
"The mirrors are legally classified as fixtures. - Correct Answer A tenant leased a commercial space for
a dance studio. The tenant purchased and installed mirrors on all the walls in the practice room. Which of
the following statements is not true in this situation?"
"Unenforceable - Correct Answer The buyer executed a written offer to a seller. The seller's agent called
the seller and presented the offer by phone. The seller accepted the offer by phone. At this point, what is
the status of this offer?"
"When there is an adverse possession claim on the property. - Correct Answer A suit to quiet title would
be filed under which of the following circumstances?"
"The seller is the vendee and the buyer is the vendor. - Correct Answer Which of the following is NOT
true regarding a land contract?"
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, "Discover latent defects in the property - Correct Answer When listing a property or showing a property,
which of the following duties is an agent NOT required to do?"
"Apartment - Correct Answer When leasing the following properties, which contract would LEAST LIKELY
be a percentage lease?"
"$0 because there is no deferment of capital gains on a principal place of residence. - Correct Answer
Mr. Singleton's primary residence cost $250,000. During his period of ownership he added a tennis court
at a cost of $10,000 and made other improvements at a cost of $20,000. Two years later he sold the
property for $350,000 and paid a 7% commission. If he buys another home for $350,000, how much capital
gains can he defer?"
"to be compensated, there must be a written agreement between the party and the brokerage. - Correct
Answer Kentucky's Statute of Frauds requires that"
"brokerage has earned a commission because it found a ready, willing and able buyer whose offer was
accepted by the seller. - Correct Answer A buyer made an offer on a property which was accepted by
the seller. Three days before the closing the title was found to be defective and the buyer negated the
contract. Under these circumstances the"
"Net - Correct Answer Which of the following listings could not be offered to a seller of real property
located in Kentucky?"
"lessor's right to regain the property when the lease expires. - Correct Answer In a lease the right of
reversion refers to the"
"steering - Correct Answer An agent will only show prospective buyers properties where the agent thinks
they should live, not the properties the buyers want to see. The agent is guilty of"
"may work jointly with a licensed broker who would list and advertise the property. - Correct Answer
An auctioneer has just been asked to auction a farm. The auctioneer"
"$125,000
$833.33 Monthly Interest x 12 = $9,999.96 Annual Interest
$9,999.96 Annual Interest ÷ 10% Interest Rate = $99,999.60 Loan
$99,999.60 Loan ÷ 80% Loan to Value Ratio = $124,999.50 or $125,000 Sale Price - Correct Answer An
80% loan was negotiated with an interest rate of 10%. The first month's interest payment was $833.33.
What was the sale price of the property?"
"Be at least twenty-one years of age - Correct Answer Which of the following is not required to secure
a sales associate Kentucky Real Estate License?"
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PRACTICE FINAL ONE |120 QUESTIONS AND ANSWERS.
"fully amortized mortgage - Correct Answer A borrower secured a loan in which he makes a fixed
monthly payment and the balance will be zero at the end of the loan term. This BEST describes a/an"
“Severalty ownership of air rights combined with an undivided interest in the common areas of real estate
would MOST LIKELY describe a - Correct Answer condominium"
"before making the offer on the property. - Correct Answer An Agency Disclosure Statement must be
signed by the buyer"
"A licensee could be active in the real estate business if his/her license is - Correct Answer on probation"
"thirty days to place her license in escrow or find another broker - Correct Answer Agent Kenzie has
terminated her relationship with her broker. The broker has returned her license to the BREP. Agent
Kenzie has"
"placing a licensee on probation for twenty four months. - Correct Answer Disciplinary actions that can
be taken by the BREP include all of the following EXCEPTplacing a licensee on probation for twenty four
months"
"$5,000 - Correct Answer An agent has been found guilty of fraud in a real estate transaction. The court
has determined the following damages: $5,000 actual and $2,000 punitive. What amount could be paid
from the recovery fund?"
"The mirrors are legally classified as fixtures. - Correct Answer A tenant leased a commercial space for
a dance studio. The tenant purchased and installed mirrors on all the walls in the practice room. Which of
the following statements is not true in this situation?"
"Unenforceable - Correct Answer The buyer executed a written offer to a seller. The seller's agent called
the seller and presented the offer by phone. The seller accepted the offer by phone. At this point, what is
the status of this offer?"
"When there is an adverse possession claim on the property. - Correct Answer A suit to quiet title would
be filed under which of the following circumstances?"
"The seller is the vendee and the buyer is the vendor. - Correct Answer Which of the following is NOT
true regarding a land contract?"
1|Page
, "Discover latent defects in the property - Correct Answer When listing a property or showing a property,
which of the following duties is an agent NOT required to do?"
"Apartment - Correct Answer When leasing the following properties, which contract would LEAST LIKELY
be a percentage lease?"
"$0 because there is no deferment of capital gains on a principal place of residence. - Correct Answer
Mr. Singleton's primary residence cost $250,000. During his period of ownership he added a tennis court
at a cost of $10,000 and made other improvements at a cost of $20,000. Two years later he sold the
property for $350,000 and paid a 7% commission. If he buys another home for $350,000, how much capital
gains can he defer?"
"to be compensated, there must be a written agreement between the party and the brokerage. - Correct
Answer Kentucky's Statute of Frauds requires that"
"brokerage has earned a commission because it found a ready, willing and able buyer whose offer was
accepted by the seller. - Correct Answer A buyer made an offer on a property which was accepted by
the seller. Three days before the closing the title was found to be defective and the buyer negated the
contract. Under these circumstances the"
"Net - Correct Answer Which of the following listings could not be offered to a seller of real property
located in Kentucky?"
"lessor's right to regain the property when the lease expires. - Correct Answer In a lease the right of
reversion refers to the"
"steering - Correct Answer An agent will only show prospective buyers properties where the agent thinks
they should live, not the properties the buyers want to see. The agent is guilty of"
"may work jointly with a licensed broker who would list and advertise the property. - Correct Answer
An auctioneer has just been asked to auction a farm. The auctioneer"
"$125,000
$833.33 Monthly Interest x 12 = $9,999.96 Annual Interest
$9,999.96 Annual Interest ÷ 10% Interest Rate = $99,999.60 Loan
$99,999.60 Loan ÷ 80% Loan to Value Ratio = $124,999.50 or $125,000 Sale Price - Correct Answer An
80% loan was negotiated with an interest rate of 10%. The first month's interest payment was $833.33.
What was the sale price of the property?"
"Be at least twenty-one years of age - Correct Answer Which of the following is not required to secure
a sales associate Kentucky Real Estate License?"
2|Page
