Free Kentucky Real Estate Practice Exam Questions (December 2024) 50+

The commission shall be notified in writing of a change of residence address within ten (10) days.

Per 201 KAR 11:011 (14), "Consumer" is defined as a person or entity with whom a licensee exchanges information that is public in nature, but otherwise does not perform acts of real estate brokerage and with whom no written or oral agency agreement or fiduciary relationship exists.

All individuals who hold an active Kentucky real estate salesperson's license are required to complete continuing education every year. An individual obtaining their first, original Kentucky license is exempt for the first two calendar years.

All of the following actions are prohibited aside from copying a key for a property under the supervision and direction of the licensee. They can in fact do that. Per 201 KAR 11:440.

Under Kentucky Law, Ben must deposit the money “without unreasonable delay.”

The Kentucky Real Estate Commission administers and enforces the laws of the state relating to real estate activities. The real estate commission conducts its business in order to protect the public interest. Think of the commission like the executive branch of the federal government. The commission is in charge of enforcing Kentucky real estate law, while different parts of the government do other aspects like writing and creating laws.

All of the following actions are allowed aside from expressing material opinions about a real estate transaction to anyone. Per 201 KAR 11:440 this is labeled as a prohibited activity.

Before the KREC can discipline a licensee, it must hold an administrative hearing to ensure due process. If the licensee is found guilty, they may appeal the ruling in a circuit court.

Per 201 KAR 11:011 (13), information received or sent, verbally or in writing including transaction paperwork and files, by a licensee, that may materially compromise the negotiating position of a client or prospective client is called confidential information.

Upon the request of a seller, an agent may complete the form if the seller is incapable of filling out the form is TRUE. While the other statements are false. Here is the exact text per 324.360 (9): “It shall be a violation of this chapter for a licensee to complete any portion of the form unless the licensee is the owner of the property or has been requested by the owner to complete the form. The request shall be acknowledged in writing on the form and the licensee shall be held harmless for any representation that appears on the form.”

Kentucky law requires a real estate licensee to retain copies of listings and documents pertaining to the provision of real estate brokerage services for five years after the closing of a real estate transaction, or five years after the listing expires if the transaction is not closed.

Kentucky License Law 324.330 requires written notification to the commission of a change of surname. There is no time frame, but it should take place in a timely manner.

A principal broker, or an affiliated licensee, shall not engage in property management without a current written property management agreement. That is true. All the other statements are false.

The fund must be reimbursed for all money paid, plus 10% interest.

Coverage for E&O is paid with license renewal and has its cost published to the licensee 30 days before license renewal.

Dual agency is legal in Kentucky as long as there is written consent from all parties prior to entering into negotiations.

Per 201 KAR 11:121 (3), a listing contract must include all of the following and more.

Once you have passed the exam, you have 60 days to apply for your license. You must send everything to the Commission in one package within 60 days of passing the exam. All required deadlines must be met. Per Kentucky Real Estate Commission.

Regarding real estate licenses reciprocity, Kentucky has reciprocity with all states after passing the Kentucky state portion of the real estate exam.

There are a total of seven members in the Kentucky Real Estate Commission. Seven total, at least six of whom, immediately prior to the date of their appointment have been residents of the state for ten years and whose vocation for a period of at least ten years shall have been that of an active real estate licensee. Per Kentucky Real Estate Commission: 324.281.

Compensating unlicensed individuals for activities requiring a license (e.g., referring real estate clients) is a violation of Kentucky licensing law.

Loyalty means to place the client's interest first. An agent who purchases the property themselves (more than likely for a flip), since they know the house is worth more, is violating their fiduciary duty of loyalty.

Any person engaging in real estate activity at a brokerage without a license shall be guilty of a Class A misdemeanor for a first offense and a Class D felony for any subsequent offenses. In addition to the penalties, a Circuit Court may impose an additional penalty on any person who violates any provision of this chapter by fining them. A person who engages in real estate brokerage without a license due to failure to renew a previously valid Kentucky license shall not be subject to this penalty though. That is a separate offense.

If a problem arises which constitutes a violation of licensing laws, the supervising licensee and/or the principal broker will be held responsible for that violation by the Commission - not the personal assistant. Meaning, Lindsay would be held responsible by the commission for the violation.

A licensee shall not advertise real estate for sale or lease without the written consent of the owner. Per KAR 11:105. Advertising (1).

Currently, the Kentucky Real Estate Education, Research and Recovery Fund aggregate amount may not exceed $20,000. Per Kentucky Real Estate Education, Research, and Recovery Fund 324.410.

Each licensee's annual renewal statement includes a portion that goes to the fund. The fund consists entirely of the fee’s received yearly.

All of the following actions are prohibited aside from opening the door for any purpose relative to the transaction so long as the supervising licensee receives the consent of the owner. They can in fact do that. This regulation does not give the personal assistant the ability to show the property or answer questions relative to the property - it is designed simply to allow the personal assistant to aid the licensee by opening the door for inspectors, appraisers, repairmen and the like. Per 201 KAR 11:440.

All of the following would be violations of Kentucky Fair Housing Law. These are examples of discrimination based on race, national origin, and mental illness.

Per 201 KAR 11:011 (37), a single agency is a type of agency if the principal broker and all affiliated licensees of the real estate brokerage company act as an agent for a buyer or seller, or a lessor or lessee, as the client on the same side of a transaction.

Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions.

No it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. Commingling is illegal in Kentucky.

It all is up to the discretion of the commission and the offense, but at the end of five years, a licensee may be reissued if certain conditions are met.

The terms of members of the Kentucky Real Estate Commission are three years long. Per Kentucky Real Estate Commission: 324.281.

Per 201 KAR 11:011 (16), a contract deposit is earnest money delivered to a licensee in conjunction with a real estate sales contract.

All individuals who hold an active Kentucky salespersons license are required to complete 6 hours of Commission approved continuing education during each renewal period.

The address of the real estate brokers or associates brokers office in which the listing contract is applied to. Per 201 KAR 11:121 (3).

The minimum amount that Kentucky law requires that may be maintained in the Real Estate Education, Research and Recovery Fund is $400,000. Per Kentucky Real Estate Education, Research, and Recovery Fund 324.410.

A licensee or salesperson for our matter is NOT in violation of Fair Housing if the agent does not accept work outside areas with which the agent is familiar. It is however against the law to deny anyone housing in Kentucky because of their: disability, race, sex, color, national origin, religion, or familial status.

Yes, licensees must notify the commission in writing of a change of a residence address. Per Kentucky Statutes 324.330. The commission shall be notified in writing of a change of a residence address within ten (10) days.

The Real Estate Education, Research and Recovery Fund is a special fund established by Kentucky Real Estate Code to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. It also funds additional things like education for licensees as well as research; its primary focus is to protect consumers though.

In Kentucky, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks they must hold an active real estate license.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

Per 201 KAR 11:011 (42), a Townhouse is a type of residential dwelling with two (2) floors that is connected to one (1) or more dwellings by a common wall or walls. Title to the unit and lot vest in the owner who shares a fractional interest with other owners in any common areas.

The statute of frauds refers to the requirement that certain kinds of contracts be in writing, and signed. Every state has a statute that requires certain types of contracts to be in writing and signed by the party to be charged. The most common requirements are for contracts that involve the sale or transfer of land, and contracts that cannot be completed within one year.

Per 201 KAR 11:011 (25), two (2) residential units sharing a single roof is called a duplex.

Errors and Omissions Insurance for agents of Kentucky cover up to $100,000 for single claims and $1,000,000 for annual aggregate(multiple) claims. It does not cover fraud, criminal acts, libel, slander, sickness, or violations of the "Securities and Exchange Act". So the following is NOT true: “Covers fraud, criminal acts, libel, slander, and sickness.”

A Branch Office. A Branch Office is clearly defined by 201 KAR 11:011 (6) as a physical place of business for a real estate brokerage company in addition to the main office location that the commission may enter to inspect required documents or allegations of violations of KRS Chapter 324.

All of the following are Kentucky fiduciary duties aside from trust. No such thing exists. While trust should be established it is not a defined fiduciary duty. Per 201 KAR 11:121 (1).

Unlike some states, in Kentucky there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.