Name: Score:
120 Multiple choice questions
Term 1 of 120
Ann conveys a life estate to Paul based on the life of Troy. Paul has 2 children who live with him
and help him care for Troy. What is the status of the life estate if Paul predeceases Troy?
The property would revert to Paul's children, so long as Troy was alive.
A life estate pur autre vie means tha the life estate is based on a 3rd party- in this instance,
Paul or his heirs would have a life estate to the property o long as Troy was alive.
The party with the legal authority to perform.
The party/parties with the legal authority to perform would have the legal right to transfer
the title to the property.
can be defeated upon the occurrence or nonoccurrence of a specified event.
A defeasible fee estate means that title can be defeated upon the occurrence or
nonoccurrence of a specified event. Fee Simple with a special limitation and fee simple
conditional subsequent are the two types of defeasible fee estates.
Loyalty
Loyalty means to place the client's interest first, above every other person. An agent who
does not inform the seller of the comparable market analysis, and then purchases the
property would be violating the fiduciary duty of loyalty.
,Term 2 of 120
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:
fully amortized mortgage.
A fully amortized mortgage means that if the borrower makes timely payments on the loan,
the balance will be zero at the end of the loan term.
The mirror are legally classified as fixtures;
the mirror are legally classified as TRADE FIXTURES, or the personal property of a tenant
that is installed for the use of business.
$10,050
Step 1 $650 x 12 = $7,800
Step 2 $150,000 - $75,000 = $75,000
Step 3 $75,000 x 3% = $2,250
Step 3 $7,800 + 2,250 = $10,050
The Guide must be given before the agent can ask questions where confidential
information would be disclosed.
Term 3 of 120
A property manager's responsibilities include care and skill, obedience of legal instructions, and
accountability of monies coming into his/her possession. This type of relationship can be BEST
described as a
dual agent.
fiduciary duty
attorney-in-fact
renunciation
subornation
subrogation
fiduciary relationship.
,Term 4 of 120
Which of the following is NOT a duty of the KREC?
To inspect the property and complete a property disclosure statement.
It is not the responsibility of the broker to complete the property disclosure form for the
seller. State laws vary, and if a property disclosure form is required, the broker would be
responsible for providing the form to the seller for completion, but not completing it for the
seller.
Fine a licensee $1,200
KRS 324.281(1) (c). The KREC can fine a licensee not to exceed $1,000.
ownership shares must be equal.
The ownership shares do NOT have to be equal when property is owned as tenancy in
common.
placing a licensee on probation for twenty four months.
324.160 (1) (d). Placing of any licensee on probation for a period of up to twelve (12) months.
Definition 5 of 120
must give written notification to the KREC of the change.
324.330 requires written notification to the KREC of a change of surname. There is no time frame,
but it should take place in a timely manner. Please note.Licensees shall annually file their
telephone numbers and email addresses with the Commission.
Which of the following statements is true regarding the seller's disclosure form?
An agent's license has just been suspended. The agent
An agent changed her surname. The agent
A defeasible fee estate means That title
, Term 6 of 120
Anne's Art Gallery leased space on the following terms: $1,200 per month fixed rent, plus 4.25%
commission on all sales over $800,000. This year sales were $1,259,355. What was the total rent
paid this year?
$33,922.59
Step 1 $1,200 x 12 = $14,400
Step 2 $1,259,355 - 800,000 = $459,355
Step 3 $459,355 x 4.25% = $19,522.59
Step 4 $19,522.59 + $14,400 = $33,922.59
$58,620
Step 1 $65,000 - $3,000 = $62,000
Step 2 $62,000 x 4% = $2,480
Step 3 $65,000 x 6% = $3,900
Step 4 $65,000 - 2,480 - 3,900 = $58,620
$10,050
Step 1 $650 x 12 = $7,800
Step 2 $150,000 - $75,000 = $75,000
Step 3 $75,000 x 3% = $2,250
Step 3 $7,800 + 2,250 = $10,050
$732.25
Step 1 $199,250 x 28% = $55,790
Step 2 $5.25 ÷ $100 = .0525
Step 3 $55,790 x .0525 = $2,928.98 ÷ 4 = $732.25
120 Multiple choice questions
Term 1 of 120
Ann conveys a life estate to Paul based on the life of Troy. Paul has 2 children who live with him
and help him care for Troy. What is the status of the life estate if Paul predeceases Troy?
The property would revert to Paul's children, so long as Troy was alive.
A life estate pur autre vie means tha the life estate is based on a 3rd party- in this instance,
Paul or his heirs would have a life estate to the property o long as Troy was alive.
The party with the legal authority to perform.
The party/parties with the legal authority to perform would have the legal right to transfer
the title to the property.
can be defeated upon the occurrence or nonoccurrence of a specified event.
A defeasible fee estate means that title can be defeated upon the occurrence or
nonoccurrence of a specified event. Fee Simple with a special limitation and fee simple
conditional subsequent are the two types of defeasible fee estates.
Loyalty
Loyalty means to place the client's interest first, above every other person. An agent who
does not inform the seller of the comparable market analysis, and then purchases the
property would be violating the fiduciary duty of loyalty.
,Term 2 of 120
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:
fully amortized mortgage.
A fully amortized mortgage means that if the borrower makes timely payments on the loan,
the balance will be zero at the end of the loan term.
The mirror are legally classified as fixtures;
the mirror are legally classified as TRADE FIXTURES, or the personal property of a tenant
that is installed for the use of business.
$10,050
Step 1 $650 x 12 = $7,800
Step 2 $150,000 - $75,000 = $75,000
Step 3 $75,000 x 3% = $2,250
Step 3 $7,800 + 2,250 = $10,050
The Guide must be given before the agent can ask questions where confidential
information would be disclosed.
Term 3 of 120
A property manager's responsibilities include care and skill, obedience of legal instructions, and
accountability of monies coming into his/her possession. This type of relationship can be BEST
described as a
dual agent.
fiduciary duty
attorney-in-fact
renunciation
subornation
subrogation
fiduciary relationship.
,Term 4 of 120
Which of the following is NOT a duty of the KREC?
To inspect the property and complete a property disclosure statement.
It is not the responsibility of the broker to complete the property disclosure form for the
seller. State laws vary, and if a property disclosure form is required, the broker would be
responsible for providing the form to the seller for completion, but not completing it for the
seller.
Fine a licensee $1,200
KRS 324.281(1) (c). The KREC can fine a licensee not to exceed $1,000.
ownership shares must be equal.
The ownership shares do NOT have to be equal when property is owned as tenancy in
common.
placing a licensee on probation for twenty four months.
324.160 (1) (d). Placing of any licensee on probation for a period of up to twelve (12) months.
Definition 5 of 120
must give written notification to the KREC of the change.
324.330 requires written notification to the KREC of a change of surname. There is no time frame,
but it should take place in a timely manner. Please note.Licensees shall annually file their
telephone numbers and email addresses with the Commission.
Which of the following statements is true regarding the seller's disclosure form?
An agent's license has just been suspended. The agent
An agent changed her surname. The agent
A defeasible fee estate means That title
, Term 6 of 120
Anne's Art Gallery leased space on the following terms: $1,200 per month fixed rent, plus 4.25%
commission on all sales over $800,000. This year sales were $1,259,355. What was the total rent
paid this year?
$33,922.59
Step 1 $1,200 x 12 = $14,400
Step 2 $1,259,355 - 800,000 = $459,355
Step 3 $459,355 x 4.25% = $19,522.59
Step 4 $19,522.59 + $14,400 = $33,922.59
$58,620
Step 1 $65,000 - $3,000 = $62,000
Step 2 $62,000 x 4% = $2,480
Step 3 $65,000 x 6% = $3,900
Step 4 $65,000 - 2,480 - 3,900 = $58,620
$10,050
Step 1 $650 x 12 = $7,800
Step 2 $150,000 - $75,000 = $75,000
Step 3 $75,000 x 3% = $2,250
Step 3 $7,800 + 2,250 = $10,050
$732.25
Step 1 $199,250 x 28% = $55,790
Step 2 $5.25 ÷ $100 = .0525
Step 3 $55,790 x .0525 = $2,928.98 ÷ 4 = $732.25
