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Perry Real Estate College Final Exam 202 6 /202 7 |
100 Questions & Complete Solutions | Real Estate
Licensing | Grade A
This resource includes well-organized explanations, practice-style questions, and complete solution breakdowns to strengthen your understanding of real estate principles, laws, finance, contracts, property ownership, and exam-tested topics. Perfect for students preparing for Real Estate Licensing exams, this guide is designed to support effective studying, reinforce core ideas, and boost your exam readiness for the 2026/ curriculum. ✓ Clear and structured content ✓ 100 study questions with full explanations ✓ Great for revision and last-minute review ✓ Ideal for real estate licensing preparation A house with outmoded plumbing is suffering from
- curable physical deterioration
- external depreciation
- incurable physical deterioration
- functional obsolescence functional obsolescence In order to be a License member of the commission, a person must be
- a KY citizen
- a non-felon
- all of the above
- a licensed broker
all of the above A licensed real estate professional acting as a point of contact between two or more people in negotiating the sale, rental, or purchase of a property is known as a(n)
- sales affiliate
- property manager
- appraiser
- broker broker A landowner constructed a building 7 stories high. Several years later the municipality changed the zoning ordinance, prohibiting buildings that exceed 6 stories in height. Which of the following is true regarding the existing 7-story building?
- the owner must obtain a variance
- it is nonconforming use
- it is a conditional use
- the building must be demolished it is a nonconforming use All of the following should be a consideration in selecting a tenant for the property EXCEPT
- size of the available space relative to the tenant's requirements
- compatibility of the tenant's business with those of other tenants
- tenant's ability to make the rental payments
- Ethnic background of the tenant and his or her employees Ethnic background of the tenant and his or her employees
Abel and Baker are joint tenants. Baker sells his interest to Charlie. What is the relationship of Abel and Charlie?
- they are joint tenants
- they are tenants in common
- there is no relationship because Baker cannot sell to Charlie
- Abel owns a 2/3 interest and Charlie owns a 1/3 interest they are tenants in common All of the following would be acceptable as evidence of marketable title EXCEPT
- a property owner's warranty deed
- an abstract and legal opinion
- Torren's certificate
- a title insurance policy a property owner's warranty deed The method of describing land that uses degrees, feet, and monuments is known as the
- angular system.
- metes and bounds system.
- rectangular survey system.
- lot and block system. metes and bounds system which of the following is true regarding a special warranty deed?
- The grantors warranties are limited to the time the grantor owned the property
- the grantor retains an interest in the ownership
- the grantor is making additional warranties beyond those given in a warranty deed
- the grantor is warranting that non encumbrances exist against the property The grantor's warranties are limited to the time the grantor owned the property If an owner takes his property off the market for a definite period in exchange for some consideration but grants an individual the right to purchase the property within that period for a stated price, this is called a(n)
- contract of sale
- installment agreement
- right of first refusal
- option option A licensee has a duty to report a conviction to the Commission
- True, if it is a felony
- False, as there is no duty to report
- False, if it is a felony
- True, if it is a felony or a misdemeanor True, if it is a felony If a license is revoked, which of the following is TRUE?
- The license revocation is permanent
- The license revocation is for 10 years
- the license revocation is for 5 years
- Allegations of gross negligence
- alleged escrow account violations
- alleged advertising violations alleged escrow account violations A trust is a legal arrangement in which property is held for the benefit of a third party by a(n)
- attorney in fact
- trustee
- trustor
- beneficiary trustee a bilateral contract is one in which
- the promise of one party is given in exchange for the promise of the other party
- something is to be done by one party only
- only one of the parties is obligated to act
- a restriction is placed in the contract by one party to limit the performance by the other the promise of one party is given in exchange for the promise of the other party When the supply of a commodity decreases while demand remains the same,
- demand tends to rise
- demand tends to drop
- price tends to drop
- price tends to rise
price tends to rise As provided in a valid purchase contract, the real estate transaction must be closed. Closing requires all of the following EXCEPT
- that the seller deliver the deed to the purchaser
- that the broker be present to receive any commission
- the purchaser pay the balance of the purchase price to the seller
- that the seller clear the title so that the condition of the title complies with the terms of the contract that the broker be present to receive any commission A portion of Walter's building was inadvertently built on George's land. this caused an
- accretion
- avulsion
- encroachment
- easement encroachment if the Commission seeks injunctive relief, the case must be filed where?
- In the county where the Commission is located
- In the county where the unlawful activity took place
- either of the above
- none of the above Either of the above: in the county where the Commission is located or in the county where the unlawful activity took place
All of the following are true regarding public records EXCEPT
- they provide constructive notice about interests in the property
- they guarantee marketable title
- they establish priority of liens
- they give notice of encumbrances they guarantee marketable title A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would a salesperson receive for her 60% share in the 10% commission? $ The commission is made up of the following:
- 4 brokers and 1 consumer
- 6 brokers and 1 consumer
- 1 consumer and 6 brokers
- 4 consumers and 1 licensee 6 brokers and 1 consumer All of the following would acquire title to real property EXCEPT
- the grantee
- the lessee
- the devisee
- the vendee The lessee
All of the following are required for a deed to be valid EXCEPT
- date
- name of the grantee
- legal description
- signature of the grantee signature of the grantee a lease that will terminate within one year of its inception
- may be oral
- must be in writing
- violates the provisions of the statue of frauds
- is invalid may be oral all of the following are true regarding public records EXCEPT
- the provide constructive notice about interests in the property
- they give notice of encumbrances
- they guarantee marketable title
- they establish priority of liens they guarantee marketable title
from a list provided by the Kentucky Association of REALTORS A standard rectangular survey system section contains
- 160 acres
- 640 acres
- 160 government lots
- 36 townships 640 acres Which of the following is NOT required for the broker to remove money from his or her escrow account?
- court order
- a mutual release
- performance on the contract
- signed affidavit signed affidavit all of the following are essential to the formation of a contract EXCEPT
- performance
- consideration
- offer
- acceptance performance
Broker Janna was accused of violating antitrust laws. Of the following, she was MOST likely accused of
- not having an equal housing opportunity sign in her office window
- dealing in unlicensed exchange services
- price fixing
- undisclosed dual agencies price fixing Under license laws, real estate advertising must contain which of the following?
- company's address
- listing agent's name
- company's telephone number
- company name or principal broker's name Company name or principal broker's name A property owner contracted to have a swimming pool installed on her property. When the pool was completed, she refused to pay for the improvement, and the contractor filed a lien for nonpayment. This lien was most likely a
- specific lien
- general lien
- special lien
- voluntary lien specific lien
modern construction reduces the potential for radon gas accumulation If a licensee fails to renew his or her license on time, the license is
- expired
- revoked
- canceled
- none of the above canceled A mortgage broker generally offers which of the following services?
- granting real estate loans using investor funds
- handling the escrow procedures
- providing credit qualifications and evaluation reports
- bringing the borrower and the lender together bringing the borrower and the lender together The Real Estate Settlement Procedures Act (RESPA) applies in a loan assumption if the
- terms of the assumed loan are modified by the lender
- lender charges less than $50 for the assumption
- buyer must be approved by the lender for the assumption to occur
- seller does NOT want to be liable for the loan in the future terms of the assumed loan are modified by the lender
Normally, the priority of general liens is determined by the
- order in which they are filed or recorded.
- order in which the cause of action arose.
- size of the claim.
- court. the order in which they are filed or recorded A lot with a depth of 80 ft and an area of 4,800 sg ft was sold for $350 per front foot. What was the total sales price?
- $35,
- $21,
- $28,
- $31, $21, Which of the following has an indeterminable duration?
- estate for years
- license
- freehold estate
- less than freehold estate freehold estate A tire company has a manufacturing plant located in an area that has just been re-zoned for residential usage. The company is allowed to continue operating the plant under the new zoning classification. However, if the plant is destroyed by fire, the tire company most likely
- subordination agreement
- partial release agreement satisfaction of mortgage Which of the following investments can not be depreciated?
- commercial building
- single family home
- 100 acres of vacant land
- shopping mall 100 acres of vacant land a broker who is the agent of the buyer should do which of the following?
- present to the seller only offers that are acceptable
- disclose to the seller that the buyer is a minority person
- disclose to the seller the maximum price the buyer is willing to pay
- advise the buyer if the listing price of the seller's house is unrealistic advise the buyer if the listing price of the seller's house is unrealistic a sales associate with one year of experience is managing a broker's branch office, which is 45 miles from the main office. Which of the following is TRUE?
- the sales associate is acting legally because she has enough experience
- the sales associate is acting illegally because she does not have enough experience
- the sales associate's experience does natter under license law
- none of the above
The sales associate is acting illegally because she does not have enough experience a recorded subdivision plat is used in the
- metes and bounds system
- rectangular survey system
- geodetic survey system
- lot and block system lot and block system The Commission cannot have more than __________ members from one political party 4 A parcel of land described as "the NW 1/4 and the SW 1/4 of Section 6, T4N, R8W of the Third Principal Meridian" was sold for $2,500 per acre. The listing broker will receive a 5% commission on the total sales price. How much will the broker receive? $5, What is the cost of constructing a fence 6 ft 6 in high around a lot measuring 90' x 175', if the cost of erecting the fence is $1,25 per linear ft and the cost of material is $.825 per sg ft of fence? $3, A building is valued as $215,000 and contains 4 apartments that rent for $470 each per month. The owner estimates that the net operating income is 65% of the gross rental receipts. What is the capitalization rate?
