Free Kansas Real Estate Practice Exam

Q1.The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide borrowers with which disclosure document within three business days of loan application?

• A.Truth-in-Lending disclosure
• B.Loan Estimate
• C.Closing Disclosure
• D.HUD-1 Settlement Statement

Q2.Which government-sponsored enterprise (GSE) primarily purchases conventional mortgage loans to provide liquidity to the mortgage market?

• A.Fannie Mae
• B.Federal Housing Administration (FHA)
• C.Veterans Administration (VA)
• D.Department of Housing and Urban Development (HUD)

Q3.Under K.S.A. 58-30,110, a Kansas licensee is NOT required to provide the "real estate brokerage relationships" disclosure brochure to a prospective buyer or seller when:

• A.The buyer is purchasing investment property
• B.The seller has previously worked with the licensee on another transaction
• C.The transaction involves the sale of commercial property or residential property of more than four units
• D.The buyer is represented by an attorney

Q4.A salesperson is preparing a purchase contract that contains a clause stating the buyer's earnest money deposit will be forfeited to the seller if the buyer defaults. This clause is best described as which type of contract provision?

• A.Acceleration clause
• B.Escalation clause
• C.Liquidated damages clause
• D.Subordination clause

Q5.Which of the following is MOST likely exempt from Kansas real estate licensure under K.S.A. 58-3034?

• A.A person who regularly shows and leases rental properties for multiple property owners in exchange for fees
• B.A real estate investor who buys and flips multiple properties per year on behalf of investor clients
• C.The executor of an estate who sells the estate's real property in the course of fulfilling fiduciary duties
• D.A retirement home that charges residents a fee to help them find assisted living facilities

Q6.The Truth-in-Lending Act (TILA) requires lenders to disclose which of the following to borrowers?

• A.The borrower's credit score
• B.The property's appraised value
• C.The Annual Percentage Rate (APR)
• D.The loan officer's commission

Q7.Under the Fair Housing Act, which of the following actions by a real estate licensee would constitute illegal discrimination?

• A.Requiring all applicants to meet the same income qualifications
• B.Showing only properties within a client's stated price range
• C.Refusing to show properties in certain neighborhoods based on a client's race
• D.Requiring a security deposit from all tenants

Q8.Under BRRETA, a Kansas buyer's agent has learned through conversations with the buyer that the buyer is willing to pay up to $30,000 more than the listing price if necessary. The seller asks the licensee directly whether the buyer would go higher than the list price. What must the licensee do?

• A.Disclose the buyer's maximum price to the seller because all material facts must be shared.
• B.Decline to disclose the information, as it is confidential information belonging to the buyer as the licensee's client.
• C.Refer the seller to another licensee so the conflict can be avoided.
• D.Disclose the information only if the seller is also represented by an agent from the same brokerage.

Q9.Under the Equal Credit Opportunity Act (ECOA), which factor would be legally permissible for a lender to consider when evaluating a mortgage loan application?

• A.The applicant's plans for having children in the future
• B.The predominant race of residents in the neighborhood where the property is located
• C.The applicant's debt-to-income ratio and credit score
• D.Whether the applicant receives alimony or child support payments

Q10.A Kansas licensed salesperson meets a prospective buyer for the first time at a listed property. According to BRRETA, when must the salesperson provide the required brokerage relationship disclosure?

• A.Before the buyer signs any purchase contract
• B.At the first scheduled showing of any property
• C.At the first practical opportunity during the first substantial contact with the prospective buyer
• D.Only after a buyer-agency agreement has been signed

Q11.Under K.S.A. 58-30,103, what does a Kansas brokerage agency agreement or transaction broker agreement MUST include?

• A.The anticipated closing price and commission rate only
• B.A fixed date of expiration, any limitation on confidentiality, terms of compensation, and a reference to the relevant duties statute
• C.The licensee's continuing education completion record
• D.A statement that dual agency is prohibited in Kansas

Q12.A homeowner's friend has no real estate license but helps the homeowner find a buyer and then accepts a commission payment from the homeowner at closing. Under K.S.A. Chapter 58, the unlicensed friend has:

• A.Done nothing wrong, because helping a friend is not considered a real estate transaction
• B.Committed a prohibited act by performing acts requiring a real estate license without holding one
• C.Acted lawfully, because Kansas only regulates licensed agents and cannot penalize unlicensed individuals
• D.Complied with Kansas law, because the payment came from the owner and not from a broker

Q13.Under federal law (24 C.F.R. Part 35), for which properties is lead-based paint disclosure required?

• A.All residential properties, regardless of age
• B.Residential properties built before 1978
• C.Only pre-1978 properties showing visible paint deterioration
• D.Commercial and multi-family buildings of any age

Q14.A Kansas salesperson collects an earnest money deposit from a buyer and deposits it into the salesperson's personal checking account for safekeeping until closing. Under the Kansas Real Estate Brokers' and Salespersons' License Act, this action is best described as:

• A.Acceptable, provided the funds are deposited within three business days
• B.Acceptable, as long as the salesperson informs the buyer
• C.A prohibited act because it constitutes commingling of trust funds with personal funds
• D.Acceptable if the salesperson obtains written consent from the seller

Q15.A broker's salesperson is working with a buyer who is African American. A seller's agent in a predominantly white subdivision repeatedly fails to return calls, claims listings are 'under contract' moments after they are shown to the buyer, and then re-lists those same properties days later. The buyer reports this pattern to the broker. As the supervising broker, what is the broker's PRIMARY obligation under the Fair Housing Act?

• A.The broker must take immediate, affirmative steps to investigate the reported conduct, cease facilitating any transaction with the offending agent, and advise the buyer of their right to file a HUD complaint, because supervising brokers have an affirmative duty to prevent discriminatory practices in their operations.
• B.The broker's only obligation is to advise the buyer to contact an attorney, as the discriminatory acts were committed by another brokerage's agent and are outside the supervising broker's jurisdiction.
• C.The broker should document the incidents but take no action until a formal HUD complaint has been filed, because acting prematurely could expose the broker to defamation claims.
• D.The broker is not responsible because the FHA imposes liability only on sellers, landlords, and lenders, not on buyer's agents or supervising brokers.