Free Kansas Real Estate Practice Exam

Q1.A Kansas broker instructs a salesperson to place a 'For Sale' sign on a property before the listing agreement has been signed by the seller. The salesperson complies. Under the Kansas Real Estate Brokers' and Salespersons' License Act, who has committed a prohibited act?

• A.Only the broker, because salespersons must follow broker instructions
• B.Only the salesperson, because licensees are individually responsible for their own conduct
• C.Both the broker and the salesperson, because advertising a property without a written listing agreement is prohibited
• D.Neither party, because oral listing agreements are valid in Kansas and the sign merely announces availability

Q2.When managing residential rental properties, which federal law requires property managers to provide tenants with disclosure about known lead-based paint hazards in properties built before 1978?

• A.Fair Housing Act
• B.Truth in Lending Act
• C.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• D.Residential Lead-Based Paint Hazard Reduction Act

Q3.Under the Fair Housing Act, which advertising practice would be considered discriminatory steering?

• A.All of the above practices constitute illegal steering
• B.Advertising properties only in newspapers serving specific ethnic communities
• C.Using models of only one race in all real estate advertising materials
• D.Describing neighborhood demographics to discourage certain protected classes from viewing properties

Q4.Under the concept of police power, which of the following would NOT be a valid exercise of government authority over private property?

• A.Requiring environmental impact assessments for new developments
• B.Taking private property for public use without just compensation
• C.Establishing setback requirements for new construction
• D.Limiting building heights in residential areas

Q5.After an agent terminates employment at a brokerage following a harassment complaint, the brokerage's fair housing liability:

• A.Ends automatically when the agent is terminated
• B.Transfers entirely to the former agent
• C.Is resolved as long as the broker cooperates with HUD's investigation
• D.Continues — the brokerage remains the respondent in any pending complaint

Q6.A broker operating a property management division charges each tenant a $150 'lease processing fee' payable to a document preparation service that is wholly owned by the broker's spouse. The fee is not disclosed to tenants as an affiliated service, and the broker receives a monthly distribution from the document preparation company. A prospective tenant asks the broker if the fee is required and the broker says 'yes, it's a standard industry charge.' Under federal law, which of the following best describes the violations present?

• A.This arrangement likely violates RESPA Section 8 because the broker is receiving a thing of value (distributions) through a sham arrangement for settlement-related services, and the failure to disclose the affiliated business relationship violates the AfBA disclosure requirement; additionally, misrepresenting the fee as 'standard' may constitute an unfair or deceptive act under CFPB authority.
• B.No federal violation exists because RESPA only applies to purchase transactions financed by federally related mortgage loans, not to residential lease transactions.
• C.Only the Truth in Lending Act is violated because the undisclosed fee increases the effective cost of the lease, which constitutes a finance charge that must be disclosed under Regulation Z.
• D.The arrangement is permissible because the document preparation company is a separate legal entity, insulating the broker from any RESPA or disclosure obligations.

Q7.A Kansas broker's affiliated salesperson is found by KREC to have committed a prohibited act under K.S.A. 58-3062. KREC is also considering action against the broker personally. Under Kansas law, which of the following circumstances would most directly expose the broker to disciplinary liability for the salesperson's violation?

• A.The broker had actual knowledge of the salesperson's prohibited conduct and failed to take reasonable steps to prevent or stop it.
• B.The salesperson had an active Kansas license at the time of the violation, regardless of whether the broker had any knowledge or involvement.
• C.The broker is automatically subject to the same license suspension as the salesperson because the salesperson acted within the scope of employment.
• D.The broker is only exposed to discipline if the prohibited act involved the broker's personal trust account funds.

Q8.A Kansas supervising broker discovers that one of her salespersons has been negotiating real estate transactions while the salesperson's license was on inactive status. Under the Kansas Real Estate Brokers' and Salespersons' License Act, which statement BEST describes the supervising broker's potential liability?

• A.The supervising broker bears no liability because the salesperson acted independently and without authorization.
• B.The supervising broker may be subject to disciplinary action by the Kansas Real Estate Commission for failing to provide adequate supervision of the salesperson's activities.
• C.The supervising broker is automatically liable for all financial damages suffered by the parties to those transactions.
• D.The supervising broker's liability is limited to returning any commissions earned during the period the salesperson's license was inactive.

Q9.A prospective seller contacts a Kansas licensee and, during the initial phone conversation, begins describing the property and asking about listing price strategies. Under BRRETA, which statement BEST reflects the licensee's disclosure obligation at this point?

• A.No disclosure is required during a phone inquiry because no in-person meeting has occurred
• B.Disclosure is required only if the seller asks which type of agency is being offered
• C.The licensee should provide the brokerage relationship disclosure at this first substantial contact, even though it is by telephone
• D.The disclosure may be delayed until the listing agreement is signed, since the seller is not yet a client

Q10.A Kansas salesperson, acting as a buyer's agent, negotiates a purchase contract and then asks the listing broker to pay a 'marketing bonus' directly to the salesperson — not through the salesperson's employing broker. The listing broker agrees and pays the bonus. Under Kansas law, this arrangement is:

• A.Permitted if both brokers consent in writing before closing
• B.Permitted because the payment flows from a licensed broker, not an unlicensed party
• C.A prohibited act because a salesperson may only receive compensation through their employing broker
• D.Permitted as long as the salesperson reports the bonus on their federal tax return

Q11.Under Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) must include which costs in addition to the interest rate?

• A.Only the stated interest rate and loan origination fees
• B.All closing costs including title insurance and appraisal fees
• C.Interest rate plus a standardized 1% administrative fee
• D.Interest rate, points, broker fees, and certain other finance charges spread over the loan term

Q12.A Kansas salesperson license applicant has completed all required pre-license education. Under the Kansas Real Estate Brokers' and Salespersons' License Act and KREC rules, within what timeframe must the applicant pass the Kansas state licensing examination after completing their pre-license education in order for that education to remain valid for licensure purposes?

• A.The education is valid indefinitely as long as the applicant has not been licensed and subsequently had a license lapse
• B.The applicant must pass the examination within one year of completing the pre-license education
• C.The applicant must pass the examination within two years of completing the pre-license education
• D.The applicant must pass the examination within six months of completing the pre-license education

Q13.A Kansas salesperson tells a prospective buyer that a home has never had any water intrusion issues, knowing this statement is false because the seller disclosed prior basement flooding on the Seller's Disclosure form. Under K.S.A. Chapter 58, this is an example of:

• A.Puffery, which is legally permissible in Kansas real estate transactions
• B.A negligent misrepresentation that is only actionable if the buyer suffers financial harm
• C.Fraudulent misrepresentation, which is a prohibited act under the Kansas Real Estate Brokers' and Salespersons' License Act
• D.A disclosure violation that is solely the seller's responsibility

Q14.A Kansas salesperson lists a property and, without disclosing the relationship to the seller, refers the transaction to a title company in which the salesperson holds a 15% ownership interest and receives a referral fee. Under K.S.A. 58-3062, this conduct is best characterized as:

• A.Permissible as long as the referral fee does not exceed the salesperson's earned commission
• B.A prohibited conflict of interest requiring disclosure of the financial interest to all parties
• C.Allowable because title company referrals are governed solely by RESPA, not Kansas law
• D.Permissible because the ownership interest is below the 25% threshold set by the Kansas Real Estate Commission

Q15.Radon is classified by the EPA as a:

• A.Class A carcinogen and the second-leading cause of lung cancer in the U.S.
• B.Class B carcinogen requiring mandatory remediation above 2 pCi/L
• C.Nuisance pollutant with no established health threshold
• D.Regulated hazardous waste requiring state agency notification