Law 2 - Quiz

Question 1

All of the following are TRUE EXCEPT…

A. a sales associate or broker who fails to renew timely must retake the licensing exam after 6 months.
B. all licenses must renew by March 31st to avoid paying a fine up to $200
C. all licenses expire on March 31st of biennial year
D. a sales associate or broker has one year to renew a license without retaking the state licensing exam.

Answer 1

A. The sales associate may manage with the permission of the KREC only for the purpose of completing and closing the business within 6 months.

Question 2

According to Kentucky License Law, which or the following is TRUE regarding an affiliation fee?

A. It is a fee charged by the National Association of REALTORS.
B. A broker cannot charge an affiliation fee.
C. It is a fee charged by local Boards of REALTORS.
D. A broker cannot charge a fee which exceeds $50 as an affiliation fee.

Answer 2

B. A broker cannot charge an affiliation fee.

Question 3

All of the following are TRUE regarding the termination of a sales associate EXCEPT…

A. the principal broker can hand deliver a sales associate’s or broker’s license directly to the Commission upon termination of affiliation.
B. a sales associate may not perform any acts contemplated by KRS Chapter 324 when his/her license is in the possession of the KREC.
C. the principal broker must notify a sales associate of termination of affiliation by written communication.
D. the principal broker has 10 days by statue, to hand over a sales associate’s license upon termination.

Answer 3

D. the principal broker has 10 days by statue, to hand over a sales associate’s license upon termination.

Question 4

An inactive licensee is subject to all of the following requirements EXCEPT:

A. payment of the biennial license renewal fee
B. providing notice to the Commission of any residence address change
C. disclosing status as a licensee when buying or selling his/her own property
D. completion of the biennial continuing education requirements.

Answer 4

D. completion of the biennial continuing education requirements.

Question 5

Which of the following situations will NOT result in cancellation of a license?

A. Failure to transfer a license from one broker to another within 30 days.
B. Failure to renew the license before the deadline.
C. Failure to notify the Commission of a change in email address.
D. Failure of the principal broker to notify the Commission of a change of business address.

Answer 5

C. Failure to notify the Commission of a change in email address.

Question 6

Broker Goodman moved her office and forgot to inform the Commission of the charge. Broker Goodman may find that her license has been:

A. Expired
B. Suspended.
C. Canceled.
D. Revoked

Answer 6

C. Canceled.

Question 7

If the contract between the principal broker and a sales associate does not address what happens to the associate’s listing information upon release from the brokerage firm, the asssoiciate:

A. Should advise the seller that the listing is not longer in effect.
B. May take the listing information to the new brokerage firm.
C. May transfer the listing to another associate in the office.
D. Must leave the listing information with the principal broker.

Answer 7

D. Must leave the listing information with the principal broker.

Question 8

Which of the following is TRUE of a licensee who terminates his/her employment with a real estate principal broker?

A. The licensee should take the listing her/she obtained with him/her upon termination.
B. The licensee must return all listing information obtained during his/her employment to the principal broker.
C. The licensee does not have to return any information in regard to his/her listings.
D. The licensee may continue to represent the seller because he/she listed the property.

Answer 8

B. The licensee must return all listing information obtained during his/her employment to the principal broker.

Question 9

Which of the following actions or penalties CANNOT be taken against an individual who fails to complete the continuing education requirements in a timely manner?

A. Automatic suspension of the associate’s license.
B. Cancellation of the sales associate’s license.
C. Notice to the principal broker that an associate is not eligible for renewal.
D. Assessment of a find and completion of the delinquent hours within a prescribed period of time.

Answer 9

A. Automatic suspension of the associate’s license.

Question 10

Biennial continuing education requirements must be completed by:

A. March 31st
B. December 31st 201 KAR 11:230(13a)
C. April 1st
D. February 5th

Answer 10

B. December 31st

Question 11

Active licensees shall attend the Kentucky Core Course:

A. Every 4 years
B. Every year
C. Every 3 years
D. Every 8 years

Answer 11

A. Every 4 years

Question 12

A criminal background check is NOT required for which of the following applicants?

A. An applicant for a broker’s license.
B. An applicant for a license under license recognition.
C. An applicant reinstating a license within 3 months of suspension.
D. An applicant for a sales associate’s license.

Answer 12

C. An applicant reinstating a license within 3 months of suspension.

Question 13

A newly licensed agent must take which of the following Education Courses in the first 2 years.

A. Core Class
B. 6 hours of law
C. 48 hours of Post License Education
D. Broker classes

Answer 13

C. 48 hours of Post License Education

Question 14

A homeowner calls an agent and tells her that he would like her to list his property. After discussing the price and conditions with the seller over the phone, the agent may immediately do which of the following?

A. Obtain a written listing with the seller.
B. Place an advertisement for the property in a newspaper.
C. Send the information to the local MLS board.
D. Place a “for sale” sign on the property.

Answer 14

A. Obtain a written listing with the seller.

Question 15

At what point in time is a licensee allowed to advertise his other participation in a sale?

A. After the transaction is closed
B. At not point during the transaction
C. When a binding contract has been created.
D. At any time with the permission of the seller.

Answer 15

C. When a binding contract has been created.

Question 16

Which of the following statements about advertising is INCORRECT?

A. An owner may run an ad on property listed with a licensee without the brokerage company or the principal broker’s name and license status.
B. All advertising must contain the company name or the principal broker’s name along with his/her status as broker.
C. A principal broker, or his/her designee, must approve all advertising placed by a licensee.
D. A licensee may advertise public information on properties that have sold and closed even if the licensee did not have a written listing on the properties.

Answer 16

A. An owner may run an ad on property listed with a licensee without the brokerage company or the principal broker’s name and license status.

Question 17

A real estate licensee’s internet home page must include all of the following EXCEPT:

A. The licensee’s name.
B. The licensee’s home address and phone number.
C. The street address and phone number of the principal broker office location.
D. The principal broker’s name or the name of the real estate company.

Answer 17

B. The licensee’s home address and phone number.

Question 18

A Kentucky real estate company’s internet home page shall include all of the following EXCEPT:

A. The company name or the name of the principal broker.
B. The phone number for the principal office location.
C. A statement indicating that the broker is licensed in Kentucky.
D. A street address for the company’s principals office.

Answer 18

C. A statement indicating that the broker is licensed in Kentucky.

Question 19

Which of the following is TRUE?

A. A sales associate may have his/her name as part of the firm name.
B. Only brokers may have their name is in a firm name.
C. No name other than the principal broker’s name may be used as the firm name.
D. A decreased broker’s name many not remain a part of the firm name for longer than two years after the date of death.

Answer 19

A. A sales associate may have his/her name as part of the firm name.

Question 20

Broker’ Bob’s listing has expired and the seller gives him oral consent to leave his sign in the yard. Which of the following is MOST TRUE?

A. The broker may leave the sign in the yard for 30 days.
B. The broker must remove the sign within 24 hours after the listing expires.
C. The broker must remove the sign because he no longer has written permission to place the sign on the property.
D. The broker must have written permission to leave the sign in the yard unless his listing was at least 90 days.

Answer 20

C. The broker must remove the sign because he no longer has written permission to place the sign on the property.