Free Kentucky Real Estate Practice Exam

Q1.A Kentucky listing agent begins working with a potential buyer who calls about one of the agent's listed properties. At what point is the listing agent required by Kentucky law to disclose her agency relationship to the prospective buyer?

• A.Only when the buyer submits a written offer to purchase
• B.At the time of the first substantive contact with the prospective buyer
• C.Before the closing of the transaction
• D.Only if the buyer specifically asks who the agent represents

Q2.Under KRS 324.045, a Kentucky broker applicant who has been actively licensed as a salesperson in another state wishes to obtain a Kentucky broker license through reciprocity. Which of the following conditions must the applicant satisfy that distinguishes broker-level reciprocity from salesperson-level reciprocity under Kentucky law?

• A.The applicant must demonstrate that their home state offers reciprocal broker licensing privileges to Kentucky licensees on a substantially equivalent basis, and must still satisfy Kentucky's broker-specific education and experience requirements unless waived by the Kentucky Real Estate Commission.
• B.The applicant need only submit a letter of good standing from the home state licensing authority, and Kentucky automatically grants a broker license without any additional education or experience verification.
• C.The applicant qualifies for a Kentucky broker license solely by passing the Kentucky portion of the PSI broker examination, with no requirement to demonstrate supervisory experience or broker-level pre-licensing education.
• D.Reciprocity for broker licenses in Kentucky is prohibited; all broker applicants regardless of prior licensure in another state must complete the full Kentucky pre-licensing curriculum and examination from scratch.

Q3.Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, a loan originator is prohibited from receiving compensation based on which of the following?

• A.The dollar amount of the loan closed
• B.The interest rate or other loan terms
• C.The type of loan product (e.g., fixed vs. adjustable)
• D.All of the above

Q4.Which of the following IS a federal protected class under the Fair Housing Act?

• A.Familial status (presence of children under 18 or pregnant occupants)
• B.Marital status
• C.Sexual orientation (under federal FHA)
• D.Source of income

Q5.A real estate salesperson is showing homes in a predominantly white neighborhood to a white buyer and consistently avoids showing homes in an integrated neighborhood where similar properties are available at comparable prices. This practice is best described as:

• A.Redlining
• B.Blockbusting
• C.Steering
• D.Panic peddling

Q6.A tenancy has ended, possession was returned, and the tenant demanded the deposit. Which days are excluded when counting the 14-day disposition period?

• A.Only Mondays
• B.Saturdays, Sundays, and other legal holidays
• C.All weekdays
• D.No days are excluded

Q7.According to Kentucky law, which of the following is a responsibility of a principal broker regarding sales associates affiliated with the broker's office?

• A.The principal broker may allow sales associates to operate independently without any oversight as long as they hold an active license.
• B.The principal broker is responsible for supervising and reviewing the real estate activities of all sales associates affiliated with the brokerage.
• C.The principal broker must personally conduct every transaction on behalf of affiliated sales associates.
• D.The principal broker's supervisory duty applies only to sales associates who have been licensed for fewer than one year.

Q8.A deed restriction that prohibits the sale of alcohol on a property is an example of what type of land use control?

• A.Public land use control
• B.Governmental regulation
• C.Zoning ordinance
• D.Private land use control

Q9.What must the compliance-monitoring system added in R4-28-1103(B) include?

• A.Automatic termination for every mistake.
• B.A progressive disciplinary policy for policy violations that also violate real-estate law or rules.
• C.A public complaint log.
• D.A ban on delegated review.

Q10.A licensed real estate professional from another state wishes to obtain a Kentucky sales associate license without retaking the national portion of the examination. Under KRS Chapter 324, this may be possible through:

• A.Automatic reciprocity, which Kentucky extends to all 50 states
• B.Reciprocity or waiver agreements that Kentucky has established with certain qualifying states
• C.A simple letter of good standing that waives both the national and state exam portions
• D.A waiver available only to brokers, not sales associates

Q11.Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers before the consummation of a mortgage loan?

• A.The Real Estate Settlement Procedures Act (RESPA)
• B.The Equal Credit Opportunity Act (ECOA)
• C.The Truth in Lending Act (TILA)
• D.The Home Mortgage Disclosure Act (HMDA)

Q12.Which federal law requires environmental impact studies for major federal actions that significantly affect the environment?

• A.National Environmental Policy Act (NEPA)
• B.Clean Air Act
• C.Safe Drinking Water Act
• D.Comprehensive Environmental Response Act

Q13.A licensed real estate sales associate in Tennessee wishes to obtain a Kentucky sales associate license through reciprocity. Under KRS 324.046 and KREC's reciprocity policy, which condition MOST accurately describes what the Tennessee licensee must satisfy?

• A.The Tennessee licensee must complete the full 96-hour Kentucky pre-license education course and pass both portions of the PSI examination before any reciprocal license can be issued
• B.Kentucky offers full reciprocity to all licensees from any state, requiring only proof of an active out-of-state license and payment of the application fee, with no examination required
• C.The Tennessee licensee may qualify for a Kentucky license by passing the Kentucky state-law portion of the PSI examination and meeting KREC's application requirements, without retaking the national portion if Tennessee's education and exam standards are deemed equivalent
• D.Reciprocity is available only to licensees from states that share a border with Kentucky, and Tennessee licensees are therefore ineligible

Q14.In Kentucky, what is the minimum experience requirement a sales associate must meet before applying for a real estate broker's license under KRS Chapter 324?

• A.One year of active experience as a licensed sales associate
• B.Two years of active experience as a licensed sales associate
• C.Three years of active experience as a licensed sales associate
• D.Five years of active experience as a licensed sales associate

Q15.In a wraparound mortgage arrangement, what happens to the original mortgage?

• A.It is paid off and discharged
• B.It remains in place with the original borrower still liable
• C.It is automatically transferred to the new buyer
• D.It is refinanced at current market rates