Free Kentucky Real Estate Practice Exam Questions (October 2026) 50+

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.

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

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).

$5,000 would be paid. Remember the Recovery Fund does not cover punitive damages.

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.

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.”

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.

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.

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.

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.

Steering refers to the practice in which real estate agents or brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. This practice is highly illegal in all states including Kentucky.

If an association fails to provide a completed certificate or if it is provided later than ten (10) days after the condo unit owner/seller requests it, then the condo purchaser’s contract to buy will be voidable “until the certificate has been provided and for five (5) days thereafter or until conveyance, whichever first occurs.” Per KRS 381.9203.

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.

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

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 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).

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.

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.

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.

College frat properties are exempt from this protection as well as a few other situations. All the situations would be a violation of Kentucky Fair Housing Law.

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

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

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

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

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.

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.

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.

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.

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.

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

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.

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

Per 201 KAR 11:011 (5), the specific consensual relationship between the principal broker and the client for a contemplated transaction, by oral or written agreement is an Agency.

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.

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.

The Governor is in charge of handling the appointment of members. Per Kentucky Real Estate Commission: 324.281.

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.

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.

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.

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.

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

Kentucky real estate law states, all compensation must come through the licensee’s broker. So in our case Bruce must be paid directly from his broker Kira. Even if the check is written out to the broker they cannot endorse the check. It needs to be deposited by the broker than distributed accordingly.

The maximum is $20,000 per claimant. Combined payments to all claimants against any one licensee may not exceed $50,000. These payment limits differ from the $400,000 minimum balance maintained for recovery and guaranty purposes. See KRS 324.410.

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

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.

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

As long as the license remains in inactive status, no additional education is required. When a licensee wishes to return to active status, he or she must complete the Kentucky Core Course BEFORE the license can be reactivated.

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

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