Law 7 - Quiz Flashcards
When a sales associate receives an earnest money deposit, he/she should…
A. hold on to it until the closing.
B. deliver it to the seller.
C. place it in his/her own escrow account.
D. turn it over to his/her principal broker.
D. turn it over to his/her principal broker.
Who is responsible for the principal broker’s escrow account when the brokerage firm is incorporated?
A. The principal broker that has been listed with the KREC.
B. The board of directors of the corporation unless they appoint the president.
C. The president of the corporation that owns the brokerage.
D. Any officer of the corporation, so long as the KREC agrees.
A. The principal broker that has been listed with the KREC.
The interest accrued on an escrow account deposit is given to …
A. the parties after it is prorated.
B. the broker to be used for closing costs.
C. the broker to use for expenses.
D. the person agreed to in writing by all parties.
D. the person agreed to in writing by all parties.
A principal broker may release escrow funds in all of the following situations EXCEPT:
A. through performance when the transaction closes.
B. when ordered to do so by the court.
C. when all parties agree to the release.
D. when a buyer withdraws the offer after it has been accepted.
D. when a buyer withdraws the offer after it has been accepted.
Which of the following is most likely to have the right to withdraw funds from an escrow account?
A. The attorney for the buyer.
B. A sales associate.
C. A principal broker.
D. The closing official.
C. A principal broker.
Records kept by the KREC…
A. are not subject to the Kentucky Open Records act, because to do so would be a violation of the Anti-trust laws.
B. are destroyed after five (5) years.
C. are confidential and cannot be disclosed to the public.
D. may be viewed by anyone making the proper request.
D. may be viewed by anyone making the proper request.
Excess monies in the Education, Research and Recovery Fund may be used for all for all of the following EXCEPT:
A. to underwrite the costs for education seminars.
B. to provide funds for making real estate courses available at the college level.
C. To pay the rent and utility costs of the Commission’s office.
D. to fund a real estate research project at a Kentucky university.
C. To pay the rent and utility costs of the Commission’s office.
Who is responsible for drafting rules and regulations regarding real estate practices in Kentucky?
A. The Kentucky Association of REALTORS.
B. The Kentucky Real Estate Commission.
C. The National Association of REALTORS.
D. The State Legislature.
B. The Kentucky Real Estate Commission.
Examination fees that may be charged by the KREC are…
A. in the amount currently charged by the testing service.
B. in an amount not to exceed $30.
C. in the amount of $100.
D. in an amount not to exceed $100.
D. in an amount not to exceed $100.
Where does the money come from for the operation of the KREC?
A. State appropriation.
B. Kentucky Association of RELATORS.
C. License fees.
D. Income tax returns.
C. License fees.
Which of the following is grounds for the removal of a licensed member of the KREC?
A. A Commissioner who switches political parties.
B. A Commissioner who renews his/her license timely.
C. A Commissioner who is found guilty of moral turpitude.
D. A Commissioner who belongs to the National Association of REALTORS.
C. A Commissioner who is found guilty of moral turpitude.
The Governor appoints which of the following…
A. Members and the Chairman of the Commission.
B. All members of the Commission.
C. Member, Chairman and Secretary of the Commission.
D. Members, Chairman and Hearing Officer of the Commission.
B. All members of the Commission.
In order for an aggrieved party to apply for reimbursement from the recovery fund, the action must be commenced…
A. within one year of the actual knowledge of the cause of action or from the time he/she should have reasonably known the cause of action.
B. within two years of the actual knowledge of the cause of action or from the time he/she should have reasonably known the cause of action.
C. within five years of the actual knowledge of the cause of action or from the time he/she should have reasonably known the cause of action.
D. there is not time limit if the aggrieved party has actually been damaged so long as he/she acts reasonably.
B. within two years of the actual knowledge of the cause of action or from the time he/she should have reasonably known the cause of action.
A broker who conducts a real estate closing must provide which of the following with a credit and debt statement?
A. The KREC.
B. The buyer and seller.
C. The lending institution and the seller.
D. The sales associate and buyer.
B. The buyer and seller.
How long must a broker retain records relating to a real estate transaction?
A. 2 years.
B. 7 years.
C. 3 years.
D. 5 years.
D. 5 years.
