CHP 69 - Practice Exam

Question 1

If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?

Answer 1

Seller

Question 2

If an industrial property is described as “special purpose,” it is ______.

Answer 2

Unsuitable for many uses and processes

Question 3

Who is likeliest to be an individual holding either a standard or reciprocal license and who is employed as a full-time employee for a real estate developer at a new housing tract?

Answer 3

Builder-owner salesperson

Question 4

an on-site salesperson at a new single-family home development site who works 40+ hours per week while trying to sell the builder’s new home to buyer prospects.

Answer 4

Builder-owner salesperson

Question 5

The principle underlying depreciation from physical deterioration is that ____________.

Answer 5

a property loses the same increment of value each year over the economic life of the property.

Question 6

Conversion

Answer 6

What is the name for the act of spending client funds without permission from a trust fund account?

Question 7

A Principal expressly appoints an Agent to represent them by ______.

Answer 7

Signed contracts

Question 8

First step in construction building

Answer 8

Grading or site prep of land - underground utility hookups

Question 9

handling one or more real estate transactions for a certain client over a relatively long period of time.

Answer 9

General Agency

Question 10

The most important factor determining whether a broker will specialize in commercial brokerage or remain a generalist is

Answer 10

the size of the commercial property market.

Question 11

An ethics complaint hearing requires screening by the _______.

Answer 11

Grievance Committee

Question 12

Which advertising guidelines do most agents need to follow the most closely?

Answer 12

Broker’s office policy manual

Question 13

The ‘damage and destruction’ clause in a lease generally establishes which of the following?

Answer 13

That the tenant is responsible for restoration of the tenant’s alterations

Question 14

Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the grant. What type of estate existed?

Answer 14

Fee simple defeasible

Question 15

What is another common name for the lot and block system of legal descriptions?

Answer 15

The recorded plat method

Question 16

Who can financially be held liable for a Salesperson or Associate Broker being physically assaulted at an open house showing?

Answer 16

Principal and executive brokers AND the assailant

Question 17

What does title insurance best protect against?

Answer 17

Past Histories

• chain of title
• zoning
• easements

Question 18

What is the difference between the Articles of the Code and the Standards of Practice?

Answer 18

The Articles are broad statements of ethical principles while the Standards support, interpret, and amplify the Articles under which they are included.

Question 19

What does standard coverage title insurance protect and isnure against

Answer 19

Past events

Question 20

Who has to cover any trust fund balance shortages

Answer 20

Principal Broker

Question 21

Whats the presumed time frame for broker when submitting offer

Answer 21

Time of the essence

Question 22

Who is must often the main closing agent in KY

Answer 22

Title officer

Question 23

A principals actions or spoken words can create a type of _____ agreement

Answer 23

Implicit

Question 24

What year was the Code of Ethics adopted

Answer 24

1913