Law 3 - Quiz Flashcards
Private errors and omissions must meet all of the following requirements EXCEPT:
A. the deductible for investigation and defense can be no more than $1,000.
B. the limit of liability must be less than $1,000,000 for any one claim.
C. the annual aggregate limit can be no less than $1,000,000.
D. the deductible for judgments or settlements may not exceed $2,500.
B. the limit of liability must be less than $1,000,000 for any one claim.
If a licensee has errors and omissions insurance with the insurance company receiving the state contract, and the licensee has more than two (2) errors and omissions insurance claims in three (3) years, his/her insurance…
A. will be canceled.
B. licensees may obtain coverage from a private carrier.
C. the maximum premium shall not exceed $200.
D. Licensees who have their licenses inactive must carry errors and omissions insurance.
D. Licensees who have their licenses inactive must carry errors and omissions insurance.
All of the following statements regarding Errors and Omissions Insurance Coverage are TRUE EXCEPT:
A. licensees participating in the state group plan cannot be canceled for having multiple claims.
B. licensees may obtain coverage from a private carrier.
C. the maximum premium shall not exceed $200
D. licensees who have thier licenses inactive must carry errors and omissions insurance.
D. licensees who have their licenses inactive must carry errors and omissions insurance.
According to Kentucky License Law, which of the following is TRUE regarding errors and omissions insurance?
A. Errors and omissions insurance can be obtained through the KREC at a cost not to exceed $50.
B. Inactive agents must carry errors and omissions insurance.
C. All licensees will be notified 40 days prior to license renewal of the requirements for errors and omissions insurance.
D. A broker can obtain errors and omissions insurance through a private carrier.
D. A broker can obtain errors and omissions insurance through a private carrier.
Which of the following situations would be an action that would likely be covered under the Commission’s basic group Errors and Omissions insurance policy?
A. The listing licensee misrepresenting the square footage on the listing contract. B. A client falling down the stairs and breaking his/her leg during a showing. C. Discrimination by the licensee against a member of a protected class who wanted to look at the property. D. An auto accident involving the licensee shwoing the property to clients.
A. The listing licensee misrepresenting the square footage on the listing contract.
Which of the following CANNOT be included in a written property management agreement under Kentucky law?
A. Provision outlining the conditions under which the licensee is permitted to pay expenses related to the property.
B. A copy of the lease that tenants will sign.
C. Name and address of the bank where the security deposit will be held by the broker.
D. Agreement that the license provide a quarterly written accounting to the owner.
D. Agreement that the license provide a quarterly written accounting to the owner.
How long must property management agreements, leases, owner and tenant ledgers, monthly accounting reports and bank statements for property being managed be maintained by the broker?
A. Five years.
B. One year
C. Eight years
D. Three years
A. Five years.
Written property management agreements may include a provision:
A. That automatically renews the agreement.
B. That the broker does not need to keep security deposits in an escrow account.
C. That permits the broker to raise rents and security deposits as he/she thinks appropriate.
D. The permits the broker the option of depositing the security deposits into the broker’s general operating account if he/she chooses to do so.
A. That automatically renews the agreement.
A sales associate has listed a house for sale. The owners have to move and ask the sales associate to locate a tenant until a buyer can be found. The owners agree to pay the sales associate a modest fee for the management activities. Which of the following statements is MOST CORRECT regarding this situation?
A. A sales associate can manage property independently of a principal broker.
B. There must be a written management agreement between the principal broker and the owners.
C. The owner can directly pay the associate the management fee.
D. The sales associate can manage the property with the permission of his/her broker.
B. There must be a written management agreement between the principal broker and the owners.
An unlicensed assistant may perform all of the following duties EXCEPT:
A. Interpret the terms of a real estate contract for a buyer.
B. Copy a key at the direction of the supervising licensee.
C. Distribute literature and obtain guest signatures at an Open House.
D. Write ads for review by the supervising licensee.
A. Interpret the terms of a real estate contract for a buyer.
The administrative regulations require the principal broker to do all of the following when hiring unlicensed assistants EXCEPT:
A. Establish written policies for the unlicensed assistant.
B. Inform the unlicensed assistant of the requirements under the regulations.
C. Assign a supervising licensee for the unlicensed assistant.
D. Require the unlicensed assistant to attend a Kentucky Core Course.
D. Require the unlicensed assistant to attend a Kentucky Core Course.
Pursuant to the Landlord Tenant Act that must be followed by licensees, all of the following are TRUE EXCEPT:
A. Landlords or their agents must perform a walk through inspection with the tenants prior to occupancy of the tenants and must perform a walk through inspection at the time the tenant vacates the property in order to make a claim for damages from the security deposit.
B. Leases must contain the name of the bank and teh account number where security deposits are held by the landlord.
C. Unpaid rent may be deducted from the security deposit immediately upon the tenant vacating the premises.
D. Security deposits must be deposited into an account for only security deposits and the funds cannot be commingled with general fund accounts.
C. Unpaid rent may be deducted from the security deposit immediately upon the tenant vacating the premises.
Which of the following individuals may a real estate licensee call if the person’s telephone number appears on a no-call list?
A. A buyer who is offering a bonus or prize to the licensee who locates a property to purchase within a specific period of time.
B. A person who has his/her home for sale as the owner.
C. A person who has an existing relationship with the licensee.
D. A person who has his/her home listed with another licensee.
C. A person who has an existing relationship with the licensee.
In order to retain a security deposit, a landlord is required to have taken all of the following actions EXCEPT:
A. Calling the tenant to inform him/her of the refund that is due.
B. Sending notification to the tenant at the last known address.
C. Keeping the deposit in a separate escrow account.
D. Waiting 60 days before removing the deposit.
A. Calling the tenant to inform him/her of the refund that is due.
An unlicensed assistant may NOT:
A. Unlock a property so that the home can be appraised or inspected.
B. Attend a real estate closing to assist the supervising licensee.
C. Copy a key to a property at the direction of the supervising licensee.
D. Disclose to a consumer information that is only known to the licensee.
D. Disclose to a consumer information that is only known to the licensee.
