Kansas License Law Quiz Flashcards
1
Q
A broker wants to name his business Surefire Realty. He must:
a. Obtain permission from the Kansas Real Estate Commission
b. Advertise his intent in the local newspaper
c. Hire licensees and support staff
d. Register the name with the state Attorney General
A
a. Obtain permission from the Kansas Real Estate Commission
2
Q
A broker’s responsibility with regard to the closing of a sale is to:
a. Provide a copy of the settlement statement for the transaction to KREC
b. Provide a copy of the settlement statement to the buyer only
c. Provide a copy of the settlement statement for the transaction to all parties of the transaction.
d. Provide a copy of the settlement statement for the transaction to the client only
A
c. Provide a copy of the settlement statement for the transaction to all parties of the transaction.
3
Q
A branch office must:
a. Be located in the same town as the main office
b. Be staffed and under the supervision of a licensed branch broker
c. Be in a central location
d. Have a full time secretary
A
b. Be staffed and under the supervision of a licensed branch broker
4
Q
The real estate recovery revolving fund:
a. Provides funds to reimburse licensees for fees they can’t recover
b. Provides funds for sellers to make up the difference between the asking price and the appraised value when the appraisal is lower than the sale price
c. Reimburses persons who suffer a loss of money as the result of a licensee violating the license law
d. Is required by the federal consumer protection legislation
A
c. Reimburses persons who suffer a loss of money as the result of a licensee violating the license law
5
Q
You are the seller’s broker, negotiating a difficult sales contract between an experienced seller and R novice buyer of real estate:
a. You have no concern about the buyer’s lack of experience.
b. You refuse to continue to negotiate with the buyer.
c. You insist that the purchaser employ an attorney.
d. You suggest that the purchaser consider employing an attorney.
A
c. You insist that the purchaser employ an attorney.
6
Q
In order to recover a commission a licensed broker must:
a. Advertise in the local homes guide.
b. Have a license in any state.
c. Have a valid listing agreement.
d. Present the offer personally to all of the parties to the transaction
A
c. Have a valid listing agreement.
7
Q
A broker lists a property for sale at $10,000 with a 5% commission and obtains a verbal offer from a prospective buyer. The seller indicates to the broker that the offer is acceptable if submitted in writing, but before it is put into writing, the purchaser backs out. The broker is entitled to:
a. $500 commission.
b. No commission.
c. Partial commission.
d. A 6% commission.
A
b. No commission.
8
Q
A landowner subdivides his acreage and offers the lots for sale. Broker Mike tells the landowner that he can sell the lots. After Mike sells a few lots, the landowner refuses to pay him the agreed on commission. Broker Mike can:
a. Report the landowner to the Kansas Real Estate Commission.
b. Report the landowner to his local board of REALTORS.
c. File a lien against the landowner’s real estate
d. File suit in district court for payment of the commission.
A
d. File suit in district court for payment of the commission.
9
Q
Salesperson Judy finally concluded some extremely difficult negotiations that resulted in the sale of a listed property. For her efforts, she can legally accept extra commission from:
a. The seller.
b. The buyer.
c. Both the buyer and seller.
d. Her broker.
A
d. Her broker.
10
Q
The rules of law which apply to the responsibilities and obligations of a person who acts for another are:
a. Fiduciary
b. Ethics
c. Agency
d. Statute of frauds
A
c. Agency
11
Q
In law, fraud consists of:
a. Forgetting to notify the client concerning the time of an inspection
b. Providing information to a party to the transaction prior to confirming its accuracy
c. Knowingly failing to notify a buyer that there is hidden water damage that has seriously effected the habitability of the property
d. Suggesting that water leaks that caused stains on the ceiling have been repaired prior to inspecting the roof.
A
c. Knowingly failing to notify a buyer that there is hidden water damage that has seriously effected the habitability of the property
12
Q
In order to be entitled to sales commission, a broker:
a. Must submit a commission letter to the Kansas Real Estate Commission.
b. May be licensed only in another state.
c. Must show that she/he was licensed at the time of the sale.
d. May charge a 7% fee.
A
c. Must show that she/he was licensed at the time of the sale.
13
Q
Which of the following best describes the term “procuring cause”.
a. One who works for another
b. One who procures for legal considerations.
c. One who originates an action that results in a desired transaction.
d. One who believes he/she caused a desired transaction.
A
c. One who originates an action that results in a desired transaction.
14
Q
Which of the following actions on the part of a licensee could result in revocation of their license?
a. Continuing to submit written offers to an owner when there is already a contract on the property.
b. Continuing to submit written offers to a buyer when there is a contract on a property.
c. Quoting to prospective buyers of a property a sale price other that the one specified by the seller.
d. Refusing to present a written offer to a seller, even with the written instructions from the seller to not do so.
A
c. Quoting to prospective buyers of a property a sale price other that the one specified by the seller.
15
Q
In order to sell property placed under their control by court order a receiver in bankruptcy must have which of the following?
a. A salesperson’s license.
b. A broker’s license.
c. A desire to assist the owner based on the owner’s instructions.
d. Specific instructions from the court.
A
d. Specific instructions from the court
16
Q
A licensed broker is hired by Mr. York to find a buyer for his real estate. The broker places an ad in the paper and gets a letter from Mrs. Widgeons that says, “Your offer on Mr. York’s real estate is accepted.” Which of the following is true?
a. The broker has earned a commission.
b. Mr.York can definitely hold Mrs. Widgeons to a contract to buy.
c. The broker must get Mrs. Widgeons to make a written offer that Mr. York can accept in writing
d. The statute of frauds does not cover this transaction.
A
c. The broker must get Mrs. Widgeons to make a written offer that Mr. York can accept in writing
17
Q
A broker’s license may be revoked if he/she:
a. Fails to pay his Board of REALTORS dues.
b. Does not reconcile the general account on a monthly basis.
c. Commingles client’s money with company funds.
d. Tries to renew the license after it has expired.
A
c. Commingles client’s money with company funds.
18
Q
Agency is a legal relationship between:
a. A broker and agent.
b. Salesperson and customer.
c. Agent and client.
d. Principal and client.
A
c. Agent and client
19
Q
The Kansas real estate commission has the power to suspend or revoke a license after a proper hearing EXCEPT when?
a. Any time where the license has been obtained by false or fraudulent representation.
b. When the licensee has been found guilty of performing or attempting to perform any of the prohibited acts as stated in the license law.
c. When application for license renewal is late.
d. When the licensee has fraudulently misrepresented information to the parties to the transaction.
A
c. When application for license renewal is late.
20
Q
Which of the following is usually exempt from real estate licensure?
a. Owners of real estate selling their own property, or delegating such right to an attorney-in-fact.
b. A salesperson showing new homes of a subdivision. c. A public official selling the property of a colleague in the same office for compensation.
d. A self-appointed guardian selling the property for a minor.
A
a. Owners of real estate selling their own property, or delegating such right to an attorney-in-fact.
21
Q
A licensee collects one-half of the sales commission from both the seller and the buyer without either of them knowing the other paid half. Which of the following statements is true?
a. Such an act would generally lead to suspension or revocation of the real estate license.
b. The licensee can be paid by both the buyer and the seller.
c. Written permission to receive payment from someone other than the broker’s client is not necessary.
d. The buyer and the seller can both present their payments directly to the licensee without any further paperwork.
A
a. Such an act would generally lead to suspension or revocation of the real estate license.
22
Q
Which of the following can hold earnest money in escrow?
a. Any licensee.
b. The salesperson or associate broker who is working for the seller.
c. The real estate broker or an attorney.
d. A third party escrow agent without the permission of the KREC.
A
c. The real estate broker or an attorney.
23
Q
The general law which governs the relationship between the seller or buyer and the broker he/she employs in the sale of real property is the:
a. Statute of limitations.
b. Statute of frauds.
c. Law of trust.
d. Law of Agency.
A
d. Law of Agency.
24
Q
In his dealings with a principal’s property, an agent should:
a. Treat the principal’s interests as paramount to all other legal considerations
b. Treat the principal’s interests cavalierly.
c. Treat the principal with “kid gloves”.
d. Take the principal to dinner
A
a. Treat the principal’s interests as paramount to all other legal considerations
25
Allen, Bettina, Chester, and Dorothy are officers forming Northeast Wilson County REALTORS, Inc. Chester is the office manager of the Corporation, and his sole duty is to supervise the closing secretary who draws up deeds and necessary papers to close real estate transactions. Chester:
a. Need not be a licensed broker nor need to be supervised by a licensed broker since he does not perform any of the acts set forth in the e Kansas License Law pertaining to "Real Estate Broker".
b. Needs to be licensed because he is a supervisor.
c. Need not be licensed if the closing secretary has a license.
d. Needs to be licensed as a corporation officer.
a. Need not be a licensed broker nor need to be supervised by a licensed broker since he does not perform any of the acts set forth in the e Kansas License Law pertaining to "Real Estate Broker".
26
If a licensed real estate salesperson desires to sell his own residence:
a. He must advertise it under the name of his employing broker.
b. He may advertise it "For Sale by Owner" provided the advertisement clearly informs the public that he is licensed.
c. If he advertises it clearly informing the public that he is licensed he need not include that fact in any sales contract.
d. If he lists the property with his employing broker he must advertise it as "agent owned".
b. He may advertise it "For Sale by Owner" provided the advertisement clearly informs the public that he is licensed.
27
A broker must include which of the following in advertisement for sale?
a. The owner's asking price.
b. Date of possession of the property.
c. A post office box number and telephone number only.
d. The name and address of the broker's company.
d. The name and address of the broker's company.
28
28. When the license of a broker is suspended or revoked, his/her salespersons must?
a. Find a new employer/broker.
b. Continue listing and selling.
c. Cease listing and selling.
d. Obtain a broker's license.
c. Cease listing and selling.
29
Unless some other written agreement has been made, the broker will usually collect her/his sales commission from the seller:
a. When the buyer takes possession of the property (provided the seller has received his/her money and the sale is closed).
b. When the seller lists the property with the broker.
c. When the seller has received his/her money, all instruments have been signed, and the sale is closed. d. When a ready, willing and able buyer, secured by the broker, has signed a purchase contract at the seller's price and terms.
c. When the seller has received his/her money, all instruments have been signed, and the sale is closed.
30
30. If a salesperson loses her/his license because of a judgment against her/him and the State Recovery Fund pays out this amount what must she/he do to get the license reactivated?
a. Pay back ½ the amount and then make monthly payments.
b. Pay back the full amount plus any accrued interest.
c. File a counter suit to refute the judgment.
d. Ignore the judgment and continue to practice real estate.
b. Pay back the full amount plus any accrued interest.
31
31. Who can receive a commission from a broker on the sale of a property?
a. A broker in another state who has a Kansas Broker's license.
b. A broker in another state.
c. A salesperson in another state.
d. Another broker in town even if the seller refuses to compensate other broker It is an arrangement between the brokers and is none of the sellers business.
a. A broker in another state who has a Kansas Broker's license.
32
Mrs. Cynthia Green is the executrix of her mother's estate. Upon the death of her mother, in order to sell her mother's property to a friend of the family:
a. Mrs. Green should be a licensed Kansas real estate salesperson.
b. Mrs. Green should have a real estate broker or salesperson licensed to advertise the property for sale. c. Mrs. Green should ask the court to sell the property to her friend.
d. Mrs. Green should seek the advice of an attorney or hire a broker to represent her in the sale of the property to her friend.
d. Mrs. Green should seek the advice of an attorney or hire a broker to represent her in the sale of the property to her friend.
33
33. A licensee must notify all parties in writing at the time a real estate purchase agreement is signed
a. How much real estate commission the licensee is receiving.
b. What legal recourse is available if one of the parties backs out of the contract.
c. In what capacity the agent is working.
d. What the commission split is between the broker and salesperson.
c. In what capacity the agent is working.
34
34. As a licensed salesperson selling your own property:
a. You are required to list the property with your broker. b. You must inform all prospective buyers verbally and in the written sales contract that you the owner, are also a licensed real estate agent.
c. You must inform all prospective buyers that you the owner are also a member of the board of REALTORS.
d. You only need to give verbal disclosure of you being a licensed real estate agent.
b. You must inform all prospective buyers verbally and in the written sales contract that you the owner, are also a licensed real estate agent.
35
A licensed real estate salesperson can only receive a commission from:
a. Clients he/she successfully represents.
b. Builders whose property she/he sells.
c. Customers he/she successfully helps with the transfer of ownership of property.
d. Her/his broker upon successfully helping with the transfer of property.
d. Her/his broker upon successfully helping with the transfer of property.
36
When can a broker withdraw money from the trust account prior to closing?
a. When he has the consent of the seller.
b. When he has the consent of the buyer.
c. When there are sufficient funds in the account to cover the commission and all other disbursements required by the transaction.
d. With the written consent of all parties to the transaction.
d. With the written consent of all parties to the transaction.
37
A licensed broker may do which of the following regarding his/her residence?
a. Move without notifying the KREC.
b. Establish an office in her/his home, if zoning allows it. c. Keep trust funds in his business safe at home.
d. Put a sign on the property advertising the business as required by the license law.
b. Establish an office in her/his home, if zoning allows it.
38
Which of the following statements is true regarding a real estate salesperson's license?
a. It must be on display in the place of business of the employing broker.
b. When transferring from broker to broker, the salesperson may hang his/her license on the wall of the new broker without notifying the KREC.
c. Notify the KREC when the license is moved from the broker's office to the conference room in the place of business of the employing broker.
d. It must be kept secured in a safe where it is difficult to get a hold of to protect it from theft.
a. It must be on display in the place of business of the employing broker.
39
If a Broker's license is revoked he/she may:
a. Petition the State Attorney General to review the order of revocation.
b. Make an appeal to the District Court of the county where the broker resides or to the District Court of Shawnee County.
c. Contact the Governor to intervene.
d. Make a suitable contribution to the Recovery Revolving Fund in return of the license.
b. Make an appeal to the District Court of the county where the broker resides or to the District Court of Shawnee County.
40
In order for a broker to maintain any action in the courts of Kansas for the collection of compensation due:
a. He/she must be licensed at the time he/she takes the matter to court.
b. She/he must be licensed at the time the alleged cause of action arose.
c. He/she must be licensed in a state where Kansas has reciprocity agreement.
d. She/he must be licensed even though the license was inactive at the time the alleged cause of action arose.
b. She/he must be licensed at the time the alleged cause of action arose.
41
A broker's trust account:
a. May contain no personal funds of the broker.
b. May contain up to $100 of his/her own money providing the sum shall be specifically identified.
c. Must be reconciled every month even if there was no activity in the fund.
d. Must be an interest bearing account.
b. May contain up to $100 of his/her own money providing the sum shall be specifically identified.
42
A person who does not collect a fee or does not expect to collect a fee but assists in or directs the procuring of prospects for others:
a. Must be a licensed broker or salesperson.
b. May do so without being licensed since no fee or compensation is expected.
c. Must be registered with KREC before any fees can be paid.
d. May be paid a nominal (less than $25) consideration for their efforts.
b. May do so without being licensed since no fee or compensation is expected.
43
The law requires that all real estate listings:
a. May have a provision for automatically renewing itself, but may only be renewed once for no more that 180 days.
b. May be verbal
c. Must require cooperation and compensation for subagents and buyer's agents.
d. Must have a fixed date of expiration.
d. Must have a fixed date of expiration.
44
An agent is considered to have earned a commission: a. Only if the sale is completed and title is transferred. b. When a purchaser is found who is ready, willing and able to buy on the terms of the seller's offer to sell.
c. When a purchaser is found who is ready willing and able to buy on the terms of the seller's offer to sell, even if the buyer backs out at the closing.
d. Prior to the seller's acceptance of a full price offer.
b. When a purchaser is found who is ready, willing and able to buy on the terms of the seller's offer to sell.
45
A licensee is required to furnish a copy of the brochure to a prospective buyer or seller in which of the following instances:
a. If the transaction is regarding the sale of property by public auction.
b. The licensee is acting solely as a principal and not as an agent for another.
c. At the first practical opportunity to a prospective buyer or seller.
d. The customer or client has already received the brochure from another member of the licensee's brokerage firm.
c. At the first practical opportunity to a prospective buyer or seller.
46
A broker is entitled to collect a commission from both the seller and the buyer:
a. If he has a written agreement with one of them.
b. When the buyer and seller are related.
c. With the written permission of both parties.
d. When both parties have an attorney.
c. With the written permission of both parties.
47
The employment contract between an agent and a principal creates:
a. A situation wherein the agent promises to buy the principals property if no other buyer can be found within a specified period.
b. A relationship which requires the principal to pay the agent at the end of the agreement whether property ownership has transferred or not.
c. An agency with fiduciary duties and obligations.
d. Maybe ignored by the principal, but not the agent.
c. An agency with fiduciary duties and obligations.
48
A licensee who becomes involved in a hearing:
a. Is required to pay all expenses for the hearing regardless of its outcome.
b. Does not have to appear if she/he is only a witness.
c. Is entitled to examine all complainants and other witnesses.
d. Is not required to bring any documentation that the KREC may request. The commission should have all of the necessary documentation prior to the hearing.
c. Is entitled to examine all complainants and other witnesses.
49
During the redemption period following foreclosure, the defaulted mortgagor may recover the property from the holder of the certificate of purchase:
a. By paying the highest bidder for the property, plus interest, taxes and costs up to the date of redemption. b. Only through transfer of the sheriff’s deed.
c. By paying the highest bidder for the property
d. By paying the mortgagee for the property, plus interest, taxes and costs up to the date of redemption.
a. By paying the highest bidder for the property, plus interest, taxes and costs up to the date of redemption.
50
If a ruling of the KREC is not in favor of the respondent in a hearing, the respondent:
a. Must abide by the decision of the KREC.
b. May appeal the decision to the District Court where the respondent resides.
c. Should ask his/her broker to intercede.
d. Should bring suit against the KREC to impeach the members for incompetence.
b. May appeal the decision to the District Court where the respondent resides.
51
Before a license can be revoked or suspended, the licensee is usually entitled to:
a. Have the state's attorney represent him/her in court. b. A hearing before the KREC.
c. A hearing before the Grievance Committee of KAR.
d. A KAR appointed attorney.
b. A hearing before the KREC.
52
A person appointed by a court to manage and settle the estate of a deceased person who left no will, and for that purpose, is exempt from real estate licensure requirements, is a(n).
a. Executor. b. Administrator. c. Trustee. d. Beneficiary.
b. Administrator.
53
Which of the following would normally be a reason for suspension or revocation of a real estate license?
a. Charging more than the usual commission.
b. Offering property for sale on terms or at a price other than that stipulated by the owner.
c. Offering property for sale on terms or at a price other than that in the listing agreement with the owner's written permission.
d. Refusing to present a written offer to a seller from a specific broker, with the seller's written permission or instructions.
b. Offering property for sale on terms or at a price other than that stipulated by the owner.
54
A real estate licensee should generally reveal that he/she holds a real estate license:
a. When representing a principal to a third party.
b. In all transactions except personal ones.
c. In any real estate transaction.
d. As the licensee deems advisable, based on personal knowledge of the situation and careful judgment.
c. In any real estate transaction.
55
Which can the broker accept as earnest money without asking the principal?
a. A post dated check.
b. A promissory note.
c. The clear title to a 1956 Mustang in mint condition.
d. Cash.
d. Cash.
56
Charlie Jones owns 6% of the Fine Foods Grocery Corporation. The corporation authorized him to lease its excess warehouse space to the public for which he will receive commission. Charlie:
a. Does not need a real estate salesperson's or broker's license since he owns 6% of the common stock.
b. May do this with the permission of the KREC since he owns 6% of the common stock.
c. Does need a real estate salesperson's or broker's license even though he owns 6% of the common stock. d. May not do this even with permission.
a. Does not need a real estate salesperson's or broker's license since he owns 6% of the common stock.
57
A person is eligible for an original broker's license:
a. If he had a salesperson's license in the State of Kansas for 18 months immediately preceding the date of application.
b. If he has had the equivalent of 2 years experience as a real estate salesperson and can show proof to the Governor of the state of Kansas.
c. If he completes the 24-hour broker's training, passes the broker's examination, has been licensed and actively engaged in real estate activities for one of the past five years.
d. If he completes the 24 hour pre-license broker's course, passes the broker's examination, has been licensed and actively engaged in real estate activities for two of the past five years.
d. If he completes the 24 hour pre-license broker's course, passes the broker's examination, has been licensed and actively engaged in real estate activities for two of the past five years.
58
Allen, Bettina, Chester, and Dorothy are officers of the Wilson County REALTORS, Inc. and apply for a broker's license.
a. A broker's license will be issued to Wilson County REALTORS, Inc.
b. All officers of this corporation who are actively engaged in the real estate business must be licensed as individual brokers.
c. All officers of this corporation must be licensed as individual brokers regardless of their involvement in the real estate business.
d. Only the president of the corporation must be licensed even though the other officers will be actively engaged in the real estate business.
b. All officers of this corporation who are actively engaged in the real estate business must be licensed as individual brokers.
59
Always Buy Character Corporation's principal business is the construction of new homes and the sales thereof. Always Buy Character Corporation must:
a. Have at least one of their officers licensed as a real estate salesperson.
b. Have all of their employees who are actively engaged in these sales, licensed as real estate brokers or salespersons.
c. Have a broker's license in the corporation's name.
d. Not worry about licensure.
b. Have all of their employees who are actively engaged in these sales, licensed as real estate brokers or salespersons.
60
Which of the following statements is true regarding a real estate salesperson's license?
a. The license must be on display in the place of business of the employing broker.
b. A copy of the license must be on display in the licensees vehicle for customers and clients to see.
c. The licensee only has to take the license to the new broker when the licensee changes companies.
d. The supervising broker of the main office is required to maintain the licenses of all licensees who work for the company, even those in the branch offices.
a. The license must be on display in the place of business of the employing broker.
61
A broker can pay a commission to:
a. A broker in another state provided that broker has a non-resident Kansas license.
b. A broker in another state even if that broker does not have a non-resident Kansas license.
c. Any licensed salesperson
d. Any employee who aids in the production of closed transactions.
a. A broker in another state provided that broker has a non-resident Kansas license.
62
Which type of listing agreement gives the broker the most protection?
a. An open listing
b. An exclusive agency listing
c. A net listing
d. An exclusive right to sell listing
d. An exclusive right to sell listing
63
Joe Smith, an employee of Great Central Insurance, Corp., sells his home to his employer, who in turn must obtain a purchaser for the home.
a. Great Central Insurance, Corp. may do so without having an officer of the corporation licensed as a real estate broker in this state.
b. Great Central Insurance, Corp. May NOT do so without having an officer of the corporation licensed as a real estate broker in this state.
c. Great Central Insurance, Corp. MUST hire a broker to handle the sale of the home.
d. Great Central Insurance, Corp. MUST see that their Personnel Manager here in their Salina, KS office has a real estate license as a broker, since she win be handling the transaction.
64. A person who acts to sell real estate for others, and receives compensation for doing so:
a. Great Central Insurance, Corp. may do so without having an officer of the corporation licensed as a real estate broker in this state.
64
A person who acts to sell real estate for others, and receives compensation for doing so:
a. Would be considered to be performing real estate brokerage acts.
b. Would NOT be considered to be a real estate broker if he only did so one time.
c. Would have to have a power of attorney.
d. Would probably never be discovered by KREC, so should not worry about being licensed.
a. Would be considered to be performing real estate brokerage acts.
65
A salesperson who accepts a commission on a real estate sale from someone other than his employing broker:
a. Can do so if the person providing the check is a licensed broker with another firm.
b. Can do so if the person providing the payment is his client.
c. Can have his license revoked or suspended.
d. Can do so as long as all parties to the transaction agree in writing.
c. Can have his license revoked or suspended.
66
Which of the following is true of disputes between licensees concerning the division of a commission?
a. The KREC will ALWAYS rule on matters such as these.
b. The salesperson may NOT bring suit against his employing broker to recover a commission he feels he has earned, but has not been paid.
c. The salesperson may bring suit against his employing broker to recover a commission he feels he has earned, but has not been paid.
d. The licensee need not have been licensed at the time of the act.
c. The salesperson may bring suit against his employing broker to recover a commission he feels he has earned, but has not been paid.
67
A person would need a Kansas real estate license for all of the following EXCEPT:
a. Holding an "open house" for a real estate company, and discussing the terms of the sale.
b. While in Kansas, selling out of state property, as long as he was licensed in the state where the property was located.
c. Working as an assistant for a broker explaining or interpreting information regarding a listed property, over the phone, to a member of the public.
d. An executor of an estate and selling the property according to the will.
d. An executor of an estate and selling the property according to the will.
68
A person applying for a salesperson's license must:
a. Be 16 years or over.
b. Be affiliated with a broker before she takes the test. c. File the application with the Commission within four months of the earliest passing date of the exam.
d. Be a citizen of the State of Kansas for a minimum of three years.
c. File the application with the Commission within four months of the earliest passing date of the exam.
69
A broker need not have which of the following in his trust account records:
a. Date offer was presented.
b. All deposits of the account
c. All withdrawals from the account.
d. Current balance of the account.
a. Date offer was presented.
70
Under the rules and regulations of KREC the broker shall:
a. Sign all copies of all documents.
b. Give a signed copy of the listing agreement to the buyer and seller.
c. Give a signed copy of all sales contracts to the seller and buyer.
d. Keep at least $100 of her/his own money in the trust account
c. Give a signed copy of all sales contracts to the seller and buyer.
71
Once a broker has placed money in the trust account it can be released in all the following ways EXCEPT:
a. A signed release from all parties to the transaction.
b. On demand of an attorney of one of the parties to the transaction.
c. A court order.
d. Closing and settlement of the transaction.
b. On demand of an attorney of one of the parties to the transaction.
72
KREC may refuse to issue a license to an individual for all of the following reasons EXCEPT:
a. A person who has been convicted of certain felonies. b. A person who, without a license, engaged in real estate activities for a fee.
c. A person who has had his license revoked in his state of residence.
d. A person who has taken bankruptcy within the past two years.
d. A person who has taken bankruptcy within the past two years.
73
Which of the following may a broker legally do with specific approval from her principal?
a. Accept a promissory note for an earnest money deposit.
b. Withdraw the commission from the trust account prior to closing.
c. Release the earnest money deposit to the seller if the buyer defaults.
d. Retain interest accrued on money in her trust account.
a. Accept a promissory note for an earnest money deposit.
74
A broker may legally pay compensation to:
a. A licensed broker in a different company
b. A licensed salesperson of another licensed broker if all parties are members of a multiple listing service.
c. A neighbor, who is not licensed, for a referral as long as it is $25, or less.
d. All of the above.
a. A licensed broker in a different company
75
A broker:
a. May NOT have more than one trust account in each branch office.
b. May have more than one trust account as long as she maintains all such trust accounts in one bookkeeping system.
c. May have more than one trust account if the KREC is advised of each such account.
d. Must maintain her accounts in a bank or savings and loan company.
c. May have more than one trust account if the KREC is advised of each such account.
76
A licensee acting as an "associate broker" may:
a. Perform any and all activities that a broker may perform.
b. Perform any and all activities that a salesperson may perform.
c. Must maintain a trust account
d. Must be an owner in the company.
b. Perform any and all activities that a salesperson may perform.
77
Which of the following would not need a real estate license in the State of Kansas?
a. An executor who, for compensation, carries out the instructions of the will.
b. A person with the owner's power of attorney who receives compensation for selling that owner's property. c. A person acting as a property manager on commercial property for which he receives a fee.
d. A person receiving a fee for selling land on which a mobile home is to be placed.
a. An executor who, for compensation, carries out the instructions of the will.
78
A licensee whose license is deactivated may do any of the following EXCEPT:
a. Reinstate his license at any time during the period for which the license is issued.
b. Hold the license in deactivated status for a period of two years without having to retake the test.
c. Renew her license without payment of a renewal fee. d. Take a job in another profession.
c. Renew her license without payment of a renewal fee.
79
A property listed with Alpha Realty is placed in a multiple listing service. A salesperson from the Delta Agency obtains an offer on the property that is accepted by the seller. Alpha's principal broker will share the commission with which of the following?
a. The salesperson from the Delta Agency.
b. The principal broker from the Delta Agency.
c. The multiple listing service.
d. The KREC.
b. The principal broker from the Delta Agency.
80
A broker, associate broker or salesperson may:
a. Place a "for sale" sign on any property wherein he has the owner's verbal permission.
b. Represent and be paid by both buyer and seller under circumstances.
c. Without permission from his ex-broker, "take" listings he has obtained with him when he transfers to a different company
d. Place a "for sale" sign on any property wherein he has a written listing agreement or written permission.
d. Place a "for sale" sign on any property wherein he has a written listing agreement or written permission.
81
A licensee is not required to submit a written offer to a seller:
a. If it is for less than the seller told the licensee he would be willing to consider as his bottom dollar.
b. If the licensee knows that the seller has already accepted another offer, and has provided written instructions to discontinue bringing offers once there is a contract an the property.
c. If there is no earnest money deposit.
d. If the seller is already considering another written offer.
b. If the licensee knows that the seller has already accepted another offer, and has provided written instructions to discontinue bringing offers once there is
82
Which of the following is an example of an illegal document?
a. A broker offers a prospective buyer a free trip to Hawaii if the buyer buys a certain property.
b. A seller offers a 14% commission on a listing so his property will sell fast.
c. A broker giving a different rate of commission to a client than she does to another.
d. A broker offering a 4% split of the commission to a cooperating broker.
a. A broker offers a prospective buyer a free trip to Hawaii if the buyer buys a certain property.
83
A real estate broker must inform the KREC of all of the following EXCEPT:
a. The rate of commission charged to clients.
b. The termination of any licensee she supervises or employs.
c. The address of any branch office he owns.
d. A change in the name of her real estate brokerage firm.
a. The rate of commission charged to clients.
84
When a salesperson accepts an earnest money deposit from a purchaser, it:
a. Must be in the form of cash or check so it can be placed in the broker's trust account.
b. Must be deposited in the broker's trust account as soon as the broker is able to do so, but within three days maximum.
c. Must be at least $500.
d. Should be returned to the buyer if the offer is not accented by the seller.
d. Should be returned to the buyer if the offer is not accented by the seller.
85
The KREC may do all of the following EXCEPT:
a. Periodically publish a list of the names of Kansas licensees.
b. Assist real estate institutes and foundations financially, as long as there is no benefit to licensees.
c. Give information regarding the filing of claims for payments under the recovery revolving fund.
d. Give information regarding the acts for which recovery may be allowed.
b. Assist real estate institutes and foundations financially, as long as there is no benefit to licensees.
86
The KREC must:
a. Annually select a chairperson who must be one of the appointed commissioners.
b. Have all members present at each meeting in order to have authority to conduct its business.
c. Arbitrate disputes between members of the public and real estate companies.
d. Set commission rates for all licensed brokers in the State of Kansas.
a. Annually select a chairperson who must be one of the appointed commissioners.
87
The KREC employs a director who:
a. Must be one of the commissioners.
b. Must be a licensed agent in the State of Kansas.
c. Is in addition to the commissioners.
d. Must be licensed as a broker in the State of Kansas.
c. Is in addition to the commissioners.
88
Twenty months ago, Broker Burns' unlicensed secretary absconded with $50,000 from Burns' trust account. The money was from an all cash sale of Mr. and Mrs. Brown's property. Which of the following is true? Mr. and Mrs. Brown:
a. After following the proper procedure, will have access to the revolving fund even though the secretary was unlicenced.
b. Will NOT have access to the revolving fund because the secretary was unlicensed.
c. Will NOT have access to the revolving fund because they suffered a loss of more that $15,000.
d. Have access to the revolving fund because the act for which they are seeking recovery took place more than two years ago.
a. After following the proper procedure, will have access to the revolving fund even though the secretary was unlicenced.
89
A broker's unlicensed secretary may legally:
a. Negotiate the terms of a real estate sale.
b. Attempt to secure a listing from a seller on the telephone.
c. Inform a potential buyer of the details concerning a specific property.
d. Submit advertising to the local newspaper.
d. Submit advertising to the local newspaper.
90
To qualify for an original resident broker's license in Kansas, the applicant must:
a. Have been licensed and actively engaged in the real estate business for at least one of the last five years.
b. Have been licensed and actively engaged in the real estate business for at least two of the last five years.
c. Have been licensed and actively engaged in the real estate business for at least one of the last four years.
d. Have been licensed and actively engaged in the real estate business for at least two of the last four years.
b. Have been licensed and actively engaged in the real estate business for at least two of the last five years.
91
A willful first time violation of any provision of the License Law Act is a misdemeanor punishable by: a. Imprisonment for not more than 12 months.
b. A fine of not less than $100 nor more than $1,000.
c. Imprisonment for not more than 12 months and/or a fine of not less than $100 and not more than $1,000.
d. Six months community service and a $1,500 fine.
c. Imprisonment for not more than 12 months and/or a fine of not less than $100 and not more than $1,000.
92
The following act by a salesperson would be grounds for revocation of license:
a. Induce a buyer client to make a full price offer based on market conditions that favor the seller.
b. Inform a seller customer about the inability of the buyer client to get financing.
c. Induce a seller to break an exclusive listing agreement.
d. Inform a buyer customer about a leaking basement.
c. Induce a seller to break an exclusive listing agreement.
93
Which of the following would be considered commingling?
a. The broker does not deposit the earnest money check until the sales agreement has been signed by all parties to the transaction.
b. The broker, at the request of the buyer, does not deposit the earnest money check until closing of the transaction.
c. The broker secures an automobile that is presented in lieu of cash for earnest money, in a special lot used for such purposes.
d. The broker deposits the earnest money into his/her personal account.
d. The broker deposits the earnest money into his/her personal account.
94
It would be a violation of the Brokerage Relationships in Real Estate Transactions Law for a broker representing the seller to:
a. Tell the seller the highest price he thinks the buyer will pay.
b. Tell the buyer the lowest price he thinks the seller will accept.
c. Tell the seller the buyer filed for bankruptcy two years ago.
d. Tell the buyer that there was water in the basement in the last big rain.
b. Tell the buyer the lowest price he thinks the seller will accept.
95
Mary Smith is a real estate broker doing business as Smith Realty at 409 Fifth Street. All of the following advertisements are examples of misleading advertising EXCEPT:
a. Property for sale. Smith Realty, BR-595.
b. Property for sale. Write Mary Smith, P.O. Box 5, or call BR-595.
c. Property for sale. Call agent, BR-595.
d. Property for sale. Call BR-595.
a. Property for sale. Smith Realty, BR-595.
96
A person shall not be qualified to make a claim for recovery from the real estate recovery revolving fund if: a. The person is NOT a spouse of the judgment debtor. b. The claimant was damaged by the actions of an un-licenced employee of the broker.
c. The person is a licensed broker or salesperson who acted as principal in the real estate transaction which is the subject of the claim.
d. The claimant was damaged by the actions of a licensed agent selling the property "For Sale By Owner".
c. The person is a licensed broker or salesperson who acted as principal in the real estate transaction which is the subject of the claim.
97
In the event R broker buys property listed with him, he need not give notice that he is licensed to the seller if: a. He buys it in his wife's name.
b. He pays full asking price.
c. He buys it contract for deed.
d. The broker must always disclose that he is a principal in a real estate transaction even if his license is deactivated.
d. The broker must always disclose that he is a principal in a real estate transaction even if his license is deactivated.
98
An independent broker who is a member of a national franchise:
a. May advertise in her/his own name without using the franchise name.
b. May advertise using the franchise name without using her own name.
c. Need not notify the KREC of her affiliation with the franchise.
d. Must register that name with KREC.
d. Must register that name with KREC.
99
In the event a broker's license is revoked he shall:
a. Apply to the Attorney General to review the findings. b. Appeal to the District Court in the county where he lives or in Shawnee County.
c. Appeal to the Kansas Association of REALTORS to review the findings.
d. Appeal directly to the Kansas Supreme Court to review the case.
b. Appeal to the District Court in the county where he lives or in Shawnee County.
100
The broker is responsible for:
a. Delivering a detailed accounting of disbursements she handled to the seller at the time the transaction is consummated.
b. Delivering a detailed accounting of disbursements she handled to the buyer at the time the transaction is consummated.
c. Retaining records of each transaction for three years. d. Retaining records of each transaction for five years.
c. Retaining records of each transaction for three years.
101
A salesperson can legally accept compensation from:
a. The seller.
b. The buyer.
c. A property manager for referring a new tenant.
d. The branch broker who supervises her.
d. The branch broker who supervises her.
102
To place a "For Sale" sign on the property a salesperson must:
a. Have the written permission of the property owner.
b. Have the written permission of the broker.
c. Have the verbal permission of the property owner.
d. Stick it in the ground as soon as possible.
a. Have the written permission of the property owner.
103
A broker decides to operate his firm under the name "Best Buy Real Estate".
a. He must obtain the approval of KREC to use this firm name.
b. Obtain the approval of the board of REALTORS to use this firm name.
c. Obtain the approval of his attorney to use this name. d. Not obtain any approval to use this firm name, after all it is his business.
a. He must obtain the approval of KREC to use this firm name.
104
A resident broker may maintain more than one trust account if:
a. The KREC is advised of each such account and is authorized to examine such accounts.
b. The broker maintains at least one trust account in this state.
c. The broker maintains at least one interest bearing trust account in this state.
d. The board of REALTORS is advised of each such account and is authorized to examine all such accounts.
a. The KREC is advised of each such account and is authorized to examine such accounts.
105
A licensee may place her license on deactivated status, which means:
a. Her broker should send the license to the KREC in Topeka.
b. She may only make referrals to her broker to be compensated.
c. She does NOT have to advise anyone she is a licensee if she is a principal in a real estate transaction while the license is deactivated.
d. She may still maintain a desk at the broker's branch office.
a. Her broker should send the license to the KREC in Topeka.
106
A person may sell real estate without a real estate license if:
a. He is selling property owned by a corporation of which he is an employee and of which he owns 4% of the stock.
b. She is selling her daughters property.
c. He is selling his own property.
d. She is helping a friend and only asks for less than $100 as compensation.
c. He is selling his own property.
107
A licensee can do all EXCEPT:
a. Buy properties for investment.
b. Advertise their commission rates in the newspaper.
c. Induce a party to break a contract for listing, lease or sale.
d. NOT show his pocket card each time he takes a listing.
c. Induce a party to break a contract for listing, lease or sale
108
A buyer asks a licensee about the title to the property. What should the licensee do regarding this question?
a. Refer the buyer to the licensee's broker.
b. Recommend that the buyer consult an attorney.
c. Keep an attorney on retainer to handle this type questions.
d. Answer to the best of the licensee's knowledge.
b. Recommend that the buyer consult an attorney.
109
Which of the following acts is not considered a MINISTERIAL act?
a. Attend open house and answer questions from a prospective buyer.
b. Answer questions in the office from a consumer that walks in.
c. Suggest a fair offering price for a buyer customer.
d. Make a referral to another broker.
c. Suggest a fair offering price for a buyer customer.
110
A listing agreement terminates on all but which of the following:
a. Mutual agreement of the parties.
b. Expiration of agency agreement.
c. The transaction is closed.
d. You get a purchase agreement accepted.
d. You get a purchase agreement accepted.
111
A transaction broker is responsible for performing all of the following EXCEPT?
a. Presenting all offers in a timely manner.
b. Account for all money and property received.
c. Conduct an independent inspection of the property for the benefit of any party.
d. Exercise reasonable skill and care
c. Conduct an independent inspection of the property for the benefit of any party.
112
Which of the following statements is false concerning designated agents?
a. Designated agent means one person designated to represent a client.
b. A designated agent for a client is the exclusive agent of the client for any transaction.
c. If two licensees in the same firm are designated agents for both sides of the transaction, the broker is a transaction broker.
d. If two licensees are designated to act as legal agent for a buyer client and the buyer wants to see a listing of either licensee, neither licensee could continue to represent the buyer.
a. Designated agent means one person designated to represent a client.
