KENTUCKY REAL ESTATE PRACTICE TEST (STATE PORTION) QUESTIONS AND ANSWERS 2023, Exams of Advanced Education

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KENTUCKY REAL ESTATE PRACTICE

TEST (STATE PORTION) QUESTIONS

AND ANSWERS 2023

HOW MUCH IS THE ACTIVATION FEE PAID TO THE KY REAL ESTATE COMISSION

FOR OPENING A BROKERAGE?

A. $

b. $ C $ d $75 - Correct Answer-A. THIS FORM SETS FORTH THE SPECIFIC AGENCY RELATIONSHIP PROPOSED BETWEEN THE CLIENT AND PRINCIPAL BROKER OF THE REAL ESTATE BROKERAGE COMPANY: A. AGENCY CONSENT AGREEMENT B. DISCLOSURE OF PROPERTY CONDITION C. GUIDE TO AGENCY RELATIONSHIPS D. SALES CONTRACT - Correct Answer-A. A LEGAL RELATIONSHIP IN WHICH ONE PARTY, CALLED THE PRINCIPAL, AUTHORIZES ANOTHER, CALLED THE AGENT TO ACT IN THE PRINCIPAL'S BEHALF DEALING WITH 3RD PARTIES : A. LIASION B. AGENCY C. CONTRACTOR D. BROKERAGE - Correct Answer-B. AN AGENT WHO, FOR A COMMISSION OR FEE, BRINGS PARTIES TOGETHER TO NEGOTIATE OR CONDUCTS NEGOTIATIONS TO COMPLETE A TRANSACTION USUALLY INVOLVING THE SALE OR EXCHANGE OF A PROPERTY OR THE AQUSTION OF CONTRACT RIGHTS IS THE: A. BROKER B. SUBAGENT C. PRINCIPAL D. CLIENT - Correct Answer-A. PRIOR TO ENTERING INTO A WRITTEN AGREEMENT TO PROVIDE REAL ESTATE BROKERAGE SERVICES OR COMPLETING OR DIRECTING THE COMPLETION OF A CONTRACT, OFFER OR LEASE FOR A REAL ESTATE TRANSACTION, THE LICENSEE MUST: A. DELIVER THE AGENCY CONSENT AGREEMENT B. COMPLETE THE AGENCY CONSENT AGREEMENT

C. OBTAIN WRITTEN AGENCY CONSENT AGREEMENT FROM THE CLIENT

D. COMPLETE, DELIVER AND OBTAIN WRITTEN CONSENT TO THE AGENCY

CONSENT - Correct Answer-D ALL INDIVIDUALS WHO HAVE HELD A REAL ESTATE LICENSE IN ANOTHER JURISDICTION WHO WISH TO APPLY FOR A RECIPROCAL LICENSE IN KY MUST FURNISH A BLANK ISSUED BY THE JURISDICTION: A. CERTIFICATE OF GOOD STANDING B. ACTIVE LICNESE C. LOCAL POLICE BACKGROUND CHECK D. ALL THE ABOVE - Correct Answer-A. AN OFFICE BUILDING DETERMINED TO BE A CLASS C PROPERTY WOULD HAVE: A. LOWER THAN AVERAGE RENTS B. STATE OF THE ART SYMPTOMS C. QUESTIONABLE PLUMBING D. ADEQUATE PARKING OPTIONS - Correct Answer-A BLANK OF ESCROW ACCOUNTS AND REGULAR ACCOUNTS IS STRICTLY FORBIDDEN A. DEPLETING B. MIXING C. AUDITING D. CO-MINGLING - Correct Answer-D. ANY PARCEL OF REAL ESTATE THAT IS LAWFULLY USED PRIMARILY FOR SALES, RETAIL, WHOLESALE, OFFICE, RESEARCH, INSTITUTIONAL, WAREHOUSE, MANIUFACTORING OR INDUSTRIAL PURPOSES IS CONSIDERED: A. COMMERCIAL REAL ESTATE B. INDUSTRIAL REAL ESTATE C. RETAIL REAL ESTATE D. SPECIAL USE REAL ESTATE - Correct Answer-A. IF THE COMMISSION CURRENTLY CONSISTS OF 3 DEMOCRATS AND 3 REPUBLICANS, THE NEXT APPOINTEE A. MUST BE DEMOCRAT B. CAN BE A DEMOCRAT, REPUBLICAN OR INDEPENDENT C. MUST BE A REPUBLICAN D. MUST BE AN INDEPENDENT - Correct Answer-B KENTUCKY HAS PASSED A NEW LAW THAT GOVERNS WHAT TYPE OF PROPERTY? - Correct Answer-CONDOS IN OFFICE BUILDINGS, BLANK OF TENANTS IS KEY BECAUSE RE-LEASES OF OFFICE SPACE TYPICALLY TAKES SOME TIME

BLANK ARE MOSTLY LOCATED OUTSIDE OF URBAN AREAS, ESPECIALLY

ALONG MAJOR TRANSPORTATION ROUTES

A. OFFICE BUILDINGS

B. FACTORIES

C. INDUSTRIAL BUILDINGS

D. ALL OF THE ABOVE - Correct Answer-C WHEN SHOULD A LICENSEE GIVE LEGAL ADVICE TO A CLIENT? - Correct Answer- NEVER A BROKER MUST BE PROCURING CAUSE IN BRINGING ABOUT A "BLANK" BETWEEN BUYER AND SELLER A. MEETING OF THE MINDS B. DEAL NEGOTIATION C. AGREEMENT D. FACILITATION - Correct Answer-A WHO IS THE PERSON LEGALLY AUTHORIZED TO ENTER INTO AGENCY CONTRACTS WITH CONSUMERS, AND THE PERSON LEGALLY RESPONSIBLE FOR SUPERVISING THE AGENTS WHO WORK UNDER THAT SUPERVISION? A. COMPANY OWNER B. OFFICE MANAGER C. BROKERAGE MANAGER D. PRINCIPAL BROKER - Correct Answer-D WHICH ARE REQUIRED DISCLOSURES? A. SELLERS DISCLOSURE OF PROPERTY CONDITIONS B. AGENCY CONSENT AGREEMENT C. GUIDE TO AGENCY RELATIONSHIPS D. ALL THE ABOVE - Correct Answer-D THIS SECTOR IS MOST BROADLY INFLUENCED BY THE STATE OF THE NATIONAL ECONOMY GENERALLY ESPECIALLY SUCH INDICATORS AS EMPLOYMENT GROWTH AND CONSUMER CONFIDENCE LEVELS A. INDUSTRIAL B. MIXED USE C. COMMERCIAL D. RETAIL - Correct Answer-D FAILURE OF A BROKER TO EXERCISE ADEQUETE SUPERVISION OF THEIR AGENTS IS GROUNDS FOR A. FINES B. COMPENSATION C. SANCTIONS D. IMPRISONMENT - Correct Answer-C

THE SELLERS DISCLOSURE FORM MUST BE COMPLETED:

A. UPON DRAFTING OF AN OFFER BY THE BUYER

B. AT THE TIME OF LISTING

C. UPON PRESENTATION OF AN OFFER TO THE SELLER

D. AT CLOSING - Correct Answer-B A builder has asked a licensee to list a newly built home. The Seller's Disclosure Form is required, unless A. THE BUYER DOESNT ASK FOR IT B. THE BUILDER HAS LIVED IN THE HOME C. THE BUILDER OFFERS A HOME INSPECTION D. THE BUILDER OFFERS A HOME WARRANTY - Correct Answer-C THIS IS MULTIFAMILY PROPERTY OF ANY STYLE THAT TARGETS A PARTICULAR POPULATION SEGMENT, INCLUDING STUDENT HOUSING, SENIORS HOUSING AND SUBSIDIZED HOUSING A. SPECIAL PURPOSE HOUSING B. MANUFACTURED HOUSING C CONDOS D. APARTMENT BUILDINGS - Correct Answer-A TENANT SECURITY DEPOSITS MUST BE PLACED WHERE A. IN THE BROKERS OPERATING ACCOUNT B. IN A SEPERATE ACCOUNT C. IN THE OWNERS ACCOUNT D. NONE OF THE ABOVE - Correct Answer-B HOW MUCH ARE VOTING MEMBERS OF THE COMMISION REQUIRED TO BE COMPENSATED PER DAY OF OFFICIAL BUSINESS? A. $ B. $ C. $ D. $200 - Correct Answer-A LISTING AGENTS SHOULD PRESENT THE SELLERS DISCLOSURE FORM TO THE SELLER A. WHEN AN OFFER IS PRESENTED B. WHEN A LISTING IS SIGNED C. WHEN THE CONTRACT IS FINALIZED D. NONE OF THE ABOVE - Correct Answer-A ANY REAL ESTATE THAT IS LAWFULLY USED PRIMARILIY FOR MULTIFAMILY RESIDENTIAL PURPOSES INVOLVING 5 OR MORE DWELLING UNITS IS CONSIDERED - Correct Answer-COMMERCIAL REAL ESTATE