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Real Estate Test > Ky Real Estate Test Ch 1 Quiz questions > Flashcards

Ky Real Estate Test Ch 1 Quiz questions Flashcards

1
Q

True or False & Why

A Commissioner may be removed for conviction of a felony crime.

A

True

If a Commissioner is convicted of, pleads guilty to, or enters an Alford Plea to a felony crime, he/she may be removed from the Commission.

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2
Q

True or False & Why

All KREC Commissioners must have a broker’s license.

A

False

Six of the seven must have a license, but not necessarily a broker’s license

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3
Q

True or False

Fees and fines paid to the KREC are deposited into the general fund of the state treasury.

A

True

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4
Q

True or False & Why

The primary duty of the KREC is to protect licensees.

A

False

The KREC’s primary purpose is to protect the consumer.

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5
Q

True or False & Why

KREC Commissioners are paid at least $300.00 per each day of official business, subject to maximum annual compensation of $6,000.00 per year, plus actual and reasonable expenses in performing their duties.

A

Ture

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6
Q

True or False & Why

KREC Commissioners are appointed for six (6) year terms.

A

False

The terms are for three (3) years, and a Commissioner may not serve more than two consecutive three(3) year terms for a total of six (6) years.

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7
Q

True or False & Why

The license examination fee cannot exceed $75.

A

False

The license examination fee cannot exceed $100.

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8
Q

True or False & Why

All licensees must take continuing education classes.

A

False

Licensees who were licensed prior to June 19, 1976, are exempt from the continuing education requirement.

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9
Q

True or False & Why

One Commissioner is appointed by the Governor.

A

False

All of the Commissioners are appointed by the governor.

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10
Q

True or False & Why

If a real estate licensee is being investigated, he/she is required to provide KREC files from only the past two years.

A

False

A licensee is required to cooperate with the KREC in all requests, regardless of the time period.

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11
Q

True or False & Why

If a licensee is found guilty of fraud and refuses to pay the damages, the KREC may pay damages up to $100,000 from the real estate education, research, and recovery fund.

A

False

The maximum amount that the KREC can pay any one aggrieved party for damages incurred because of a licensee’s fraudulent behavior is $20,000, with an aggregate to all aggrieved parties damaged by that one licensee of $50,000.

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12
Q

True or False & Why

KREC Commissioners are appointed by KYR.

A

False

The KREC Commissioners are appointed by the Governor. The licensee members are chosen by the Governor from a list provided by the Kentucky REALTORS®. One is chosen by the Governor at his/her discretion.

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13
Q

True or False & Why

License renewal fees cannot exceed $50 per year.

A

False

License renewal fees cannot exceed $30 per year.

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14
Q

True or False & Why

Money to operate the KREC comes from the general fund of the state treasury.
Correct answer:

A

True

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15
Q

True or False & Why

A license issued to a licensee is delivered or mailed to their principal broker.

A

True

The license is not given to the licensee.

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16
Q

True or False & Why

If the real estate education, research, and recovery fund pays the aggrieved party, the licensee’s license will be suspended or revoked until the money is paid back, plus 10% interest.

A

True

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17
Q

True or False & Why

The Kentucky Real Estate Commission office is located in Lexington.

A

False

The KREC is located in Frankfort.

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18
Q

True or False & Why

The KREC sets the amount of commission that brokers charge sellers when listing their property.

A

False

Individual principal brokers set the fees they will charge for their services and set the fees they pay their associates. To do otherwise violates federal and state anti-trust laws.

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19
Q

True or False & Why

Under a recent change to the law, the KREC must oversee homeowners’ associations.

A

False

Under a recent change in license law, the KREC does not have jurisdiction over Homeowners’ associations.

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20
Q

True or False & Why

Records of the KREC are subject to the Kentucky open records act.

A

True

Anyone wanting to examine the records/files at the KREC may submit an open records request.

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21
Q

All licensees must take continuing education, except those

A. who apply for hardship exemptions.

B. who sell fewer than three properties per year.

C. who was licensed as a broker prior to January 1, 2000.

D. who were licensed prior to June 19, 1976.

A

D. who were licensed prior to June 19, 1976.

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22
Q

Commissioners serve for

A. three-year terms.

B. three year terms that can be renewed indefinitely.

C. three terms unless they change political parties and then the number is unlimited.

D. three year terms and can serve only two consecutive terms.

A

D. three year terms and can serve only two consecutive terms.

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23
Q

The KREC website is:

A

www.krec.ky.gov

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24
Q

If a licensee is found guilty of committing fraud in a real estate transaction and the consumer is awarded damages that the licensee refuses to pay, the

A. claim must be filed with the commission within one (1) year of the event or when it was reasonably discovered to collect from the fund.

B. Kentucky real estate commission education, research and recovery fund will pay the consumer.

C. All of the above.

D. licensee will have his/her license suspended or revoked.

A

C. All of the above.

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25
Q

The sales associates license must contain all of the following EXCEPT

A. name of associate.

B. name of associate’s principal broker.

C. address of the associate.

D. age of the licensee.

A

D. age of the licensee.

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26
Q

Once a license is issued, the

A. license is sent to the licensee by certified mail.

B. license may be picked up by the licensee.

C. license is mailed or delivered to the principal broker.

D. license is kept on file at the KREC offices for inspection.

A

C. license is mailed or delivered to the principal broker.

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27
Q

The real estate education, research and recovery fund must maintain a balance of:

A. $50,000

B. $100,000

C. $400,000

D. $20,000

A

C. $400,000

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28
Q

If an aggrieved party wants to make a claim against the real estate education, research, and recovery fund, he/she must make that claim within:

A. 180 days of the event

B. 2 years from the date it was reasonably discovered

C. 1 year from the date of the event or from when it was reasonably discovered

D. 6 months from the date of the event

A

C. 1 year from the date of the event or from when it was reasonably discovered

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29
Q

The Kentucky Real Estate Commission office is located in:

A

Frankfort

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30
Q

The Kentucky real estate commission has

A. Six commissioners appointed by Kentucky REALTORS®.

B. Six commissioners appointed by the governor and one by the Kentucky REALTORS®.

C. Six commissioners confirmed by the senate.

D. Seven commissioners appointed by the governor.

A

D. Seven commissioners appointed by the governor.

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31
Q

There can be no more than

A. two members of the Democratic party at any one time.

B. two women Commissioners at one time.

C. four Commissioners that are members of the same political party at one time.

D. two Commissioners from Louisville at any one time.

A

C. four Commissioners that are members of the same political party at one time.

32
Q

The governor must select the licensee members of the KREC from a list provided by the

A. current Commissioners.

B. Kentucky Senate.

C. governor’s office.

D. Kentucky REALTORS®.

A

D. Kentucky REALTORS®.

33
Q

In addition to reasonable and necessary expenses, KREC commissioners are paid up to

A

$6,000

34
Q

The primary purpose of the KREC is to

A

protect the consumer.

35
Q

In addition to investigating and disciplining licensees, the KREC

A

supports educational opportunities for licensees

36
Q

Records of the KREC

A. are subject to the open records law.

B. are private and may only be shown to the Commissioners.

C. may be obtained with a court order.

D. must be kept for five (5) years.

A

A. are subject to the open records law.

37
Q

To carry out its licensing function, the KREC

A. may retain the services of a testing service.

B. must write and approve all questions to assure they conform with Kentucky law.

C. must conduct all testing at the KREC offices.

D. enters into three (3) year contracts with the testing service to insure fairness.

A

A. may retain the services of a testing service.

38
Q

Funds to run the KREC are provided by

A

general fund of the state treasury.

39
Q

Funds to run the KREC are provided by

A

the general fund of the state treasury.

40
Q

True or False & Why

A licensee will receive an informal reprimand after a hearing.

A

False

The discipline would be a formal reprimand.

41
Q

True or False & Why

An emergency hearing can be held if the KREC receives information that a principal

broker is inappropriately handling his/her escrow account.

A

True

42
Q

True or False & Why

A prima facie case is one that alleges facts that, if true, would violate the license law.

A

True

43
Q

True or False & Why

If a license is revoked, it is automatically reissued at the end of five (5) years.

A

False

The minimum period for revocation is five (5) years, but it will not be reissued unless the licensee petitions the Commissioners and they decide the licensee can apply for a new license.

44
Q

True or False & Why

All decisions by the Executive Director after a hearing are subject to appeal.

A

True

The decision can be appealed within thirty (30) days to the circuit court in the county where the licensee has his/her principal place of business.

45
Q

True or False & Why

If a licensee receives a subpoena from the KREC to attend a hearing, the licensee

has a right to refuse to appear at the hearing.

A

False

A subpoena is not an invitation, rather it is a command. The licensee may, of course, retain legal counsel and try to have the subpoena set aside. If the licensee simply ignores the subpoena it can result in criminal action taken against his/her.

46
Q

True or False & Why

Taking additional continuing education classes is a discipline that may be ordered by the KREC after a hearing or as part of a settlement agreement.

A

True

Once the hearing is concluded, and the appeal is finished, if the licensee is found to have violated one of the licensing laws or regulations, the KREC may impose sanctions. Sanctions that may be imposed against the licensee are one or more of the following:

1) Suspension of the license for a set time period, depending on the severity of the violation
2) Revocation of the license for a minimum period of five (5) years
3) Fine not to exceed $1,000
4) Licensee probation for a period of up to twelve (12) months
5) Completion of additional continuing education class hours; and 6) Issuing a formal or informal reprimand.

47
Q

True or False & Why

By statute, the KREC primary duty is to protect the licensees.

A

False

Under the statutes, the KREC’s primary duty is to protect the public.

48
Q

True or False & Why

There are seven (7) real estate commissioners.

A

True

49
Q

True or False & Why

The complaint is filed by the respondent.

A

False

The complaint is filed by the complainant, not the respondent.

50
Q

True or False & Why

A person’s right to present evidence at a hearing is part of the due process protections provided in the federal constitution.

A

True

The right to present evidence, to confront the person that accuses you, and to be treated fairly are all part of the due process rights provided under the federal constitution.

51
Q

True or False & Why

The KREC may seek injunctive relief against a person practicing real estate without a license.

A

True

52
Q

True or False & Why

The respondent is also known as the aggrieved party.

A

False

The aggrieved party is the complainant, not the respondent.

53
Q

True or False & Why

The managing broker is the person who must adequately supervise all affiliated licensees.

A

False

The principal broker must adequately supervise the affiliated licensees.

54
Q

True or False & Why

f one of the parties disagrees with the Hearing Officer’s Findings of Facts, Conclusions of Law or Recommended Discipline, that party may file exceptions.

A

True

55
Q

True or False & Why

The maximum fine that can be assessed after a hearing or pursuant to a settlement agreement is $500.

A

False

The max fine is $1,000

56
Q

True or False & Why

The KREC office is located in Frankfort.

A

True

57
Q

True or False & Why

The hearing officer issues the final decision after a hearing.

A

False

The hearing officer issues Findings of Fact, Conclusions of Law, and Recommended Discipline, but the Executive Director makes the final decision and enters the final order.

58
Q

True or False & Why

Mediation is a voluntary process that may be used to resolve KREC disputes.

A

True

59
Q

True or False & Why

Fraud is an intentional act of making material misrepresentations.

A

True

Under the license law, fraud has four elements: making a material fact that is known to be false or made recklessly, made to induce an act, it induces the act, and someone is injured.

60
Q

True or False & Why

Fraud is an intentional act of making material misrepresentations.

A

True

Under the license law, fraud has four elements: making a material fact that is known to be false or made recklessly, made to induce an act, it induces the act, and someone is injured.

61
Q

When the complainant mailed the complaint to the KREC, she failed to have her signature notarized. Which of the following is true?

A. A notarized signature is not required.

B. The KREC will review the complaint and send out an investigator to get the signature.

C. The KREC will dismiss the complaint.

D. The KREC will likely return it to her to get her signature notarized.

A

D. The KREC will likely return it to her to get her signature notarized.

62
Q

After a hearing, the respondent was placed on probation for twelve (12) months. This means that the respondent

A

can continue to work, but the KREC will monitor his activities.

63
Q

The KREC web site is:

A

www.krec.ky.gov

64
Q

When the respondent receives a complaint from the KREC, the licensee has ___ days to respond to the complaint.

A

10 days

65
Q

The KREC secretary received an anonymous phone call stating that a principal broker had taken $100,000 out of his escrow account and closed the office. Under the statute the KREC can

A. hold an emergency hearing.

B. only send the principal broker a complaint

C. do nothing unless there is a written verified complaint.

D. call the local county attorney.

A

A. Hold an emergency hearing.

An escrow account is a trust account where the principal broker holds money belonging to his/her client.

One specific type of case that allows the KREC to hold an emergency hearing is a case involving an alleged license law violation relating to an escrow account.

66
Q

After a hearing, the Hearing Officer files all of the following with the KREC EXCEPT

A. Recommended Discipline.

B. Findings of Fact.

C. Conclusions of Law.

D. Investigator’s Report.

A

D. Investigator’s Report.

The Hearing Officer hears the testimony, rules on admissibility of evidence, writes Findings of Fact and Conclusions of Law, and recommends discipline in the event he/she believes a license law violation has occurred.

Once the Hearing Officer completes his/her work, he/she forwards the documents to the Executive Director of the Real Estate Authority, the Commissioners, the Complainant, and the Respondent.

67
Q

The respondent’s discipline included a $1,000 fine, six (6) hours of additional continuing education in agency law, and a formal reprimand. This discipline

A. is excessive unless fraud was proven.

B. is appropriate if the evidence showed a license law violation

C. violates the respondent’s due process.

D. cannot be imposed, because the KREC can only assess one punishment for a violation of the license law.

A

B. is appropriate if the evidence showed a license law violation

68
Q

An aggrieved party has how long to file a complaint against a licensee?

A

One (1) year from either actual knowledge of the cause of action or the time circumstances would have reasonably put him on notice.

69
Q

A licensee had his license suspended for 12 months. He has one sales contract that had not closed at the time of the suspension

A

He can be paid the commission because the work was completed prior to the suspension.

70
Q

The maximum that the real estate education, research, and recovery fund can pay an aggrieved party is

A

$20,000

71
Q

An investigation can be instituted by the KREC

A. when there is a verified complaint with a prima facie allegations.

B. All are correct

C. when they receive confidential communication of a potential violation.

D. if they are given proof of an escrow violation.

A

B. All are correct

72
Q

When the respondent files his/her response to a verified complaint, he/she does NOT have to send a copy of the

A. sales contract.

B. closing statement.

C. independent contractor agreement.

D. listing contract.

A

C. independent contractor agreement.

In the Response, the Respondents must identify themselves, state their answers to the allegations made in the Complaint, sign the Response, and have their signatures notarized.

In addition to responding to the allegations, the Response must include a copy of the: (1) listing contract; (2) purchase contract; (3) seller’s disclosure of property condition form; (4) agency disclosure statement (or agency consent agreement); (5) guide to agency relationships; and (6) settlement statement (this form is also known as a closing statement).

73
Q

After a hearing, the respondent believed the hearing officer and the Executive Director violated his due process. The respondent can

A. file an appeal in Franklin County, because all administrative agency appeals must be filed in Frankfort.

B. file an appeal in the circuit court of the country where he has his principal place of business.

C. automatically go to the Supreme Court because it is a due process violation.

D. do nothing, because his license was revoked and he no longer has a relationship with the KREC.

A

B. file an appeal in the circuit court of the country where he has his principal place of business.

Once the Executive Director makes his/her final decision and enters the Order, the Complainant or the Respondent has thirty (30) days to file an Appeal.

The first Appeal is filed in the Circuit Court of the County where the Respondent has his/her principal place of business or where the licensee resides.

When an Appeal is filed, the Kentucky Real Estate Commission becomes a Respondent in the Appeal.

The KREC legal counsel has to file a brief arguing why the KREC was correct in its decision.

74
Q

The seller told a listing broker that the basement flooded about five (5) years ago. After discussing it, the seller and licensee decided that five (5) years had been a long time without flooding; therefore, they did not need to disclose it to prospective buyers. If the new buyer has a flood in the basement, the buyer would MOST LIKELY

A. not do anything because the statute of limitations is one (1) year and the flooding was five (5) years ago.

B. file a criminal complaint with the Kentucky Attorney General.

C. send out a KREC investigator.

D. file a complaint with the KREC alleging fraudulent dealing.

A

D. file a complaint with the KREC alleging fraudulent dealing.

75
Q

Which of the following does NOT describe the KREC

A. it is an administrative agency designed to educate and protect real estate licensees.

B. it is a licensing agency with the duty to issue real estate licenses.

C. it is an administrative agency designed to educate and discipline real estate license

D. it is a regulatory agency with the duty to protect the public.

A

A. it is an administrative agency designed to educate and protect real estate licensees.

76
Q

“This is to certify that a true and correct copy was sent to: ______ at _________ on the day of ____, 20__” is an example of a/an

A

certificate of service.

In a legal proceeding, there is a statement at the end of the document certifying that a copy of the document has been sent to all other parties in the case. A certificate of service is required of all pleadings filed in a KREC case.

77
Q

If the KREC offers a licensee a chance to mediate a settlement, the licensee

A

can agree to mediate or not.

Real Estate Test (30 decks)

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