Lowry Flashcards
1
Q
Which of the following statements BEST describes what happens to mineral rights when the land is sold? a. They will always pass with the sale of the land
b. Mineral rights can’t be sold separately from the land.
c. They pass to the buyer unless specifically noted.
d. They must be specified in the deed
A
c. They pass to the buyer unless specifically noted.
2
Q
Which of the following items would NOT be an appurtenance? a. Right
b. Privilege
c. Improvement
d. Reversion
A
d. Reversion
3
Q
- A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the seller’s personal property to remain with the house. The personal property would transfer to the buyer under which of the following conditions?
a. If it looks good in a particular spot in the house. . b. If it was included in the contract.
c. If it was verbally stated by the listing broker.
d. If it was agreed to verbally between the seller and buyer
A
b. If it was included in the contract.
4
Q
- A buyer bought a property. The property contained a nice set of built-in bookshelves. Which statement is true regarding the built-in bookshelves?
a. They must be transferred through a bill of sale.
b. They stay with the property as they are permanently attached.
c. They could be removed only if the removal did not cause permanent damage to the property.
d. They could be sold separately as bookshelves are classified as personal property
A
b. They stay with the property as they are permanently attached.
5
Q
- When property is taken for public improvements from an unwilling owner, it is referred to as:
a. police power.
b. taxation.
c. escheat.
d. eminent domain
A
d. eminent domain
6
Q
- The state government can take property that has been abandoned by the owner through what right?
a. eminent domain.
b. taxation.
c. police power.
d. escheat.
A
d. escheat.
7
Q
- Fee simple title would BEST be described as receiving:
a. diminished rights in a property.
b. the maximum rights in a property.
c. a life estate in a property.
d. dower or courtesy rights in a property
A
b. the maximum rights in a property.
8
Q
- A child owns a life estate and sells the property to a friend. Which of the following statements is true
regarding the friend’s estate?
a. It ends when the friend dies.
b. It ends when the child dies.
c. It becomes a fee absolute when the child dies.
d. It becomes a fee absolute when the friend dies.
A
b. It ends when the child dies
9
Q
9. Jimmy and Susan owned a commercial property as joint tenants. If Susan dies, who would receive the property? a. Susan’s estate. b. Susan’s family. c. Jimmy’s family. d. Jimmy.
A
d. Jimmy.
10
Q
- A person owned a condominium and leased it to Katherine for one year. What did this create?
a. a leasehold estate
b. a time share
c. a tenancy by the entireties.
d. a conditional fee estate.
A
a. a leasehold estate
11
Q
- Which of the following is a voluntary lien against a person’s property?
a. mortgage lien
b. mechanics lien
c. judgment lien
d. property tax lien
A
a. mortgage lien
12
Q
12. A trespass of an improvement (such as a corner of a building) onto a neighboring property is which of the following? a. An encroachment b. An easement c. A license d. A lien.
A
a. An encroachment
13
Q
- Which of the following would transfer legal use but not ownership of a property?
a. a deed restriction
b. an encroachment
c. an easement
d. a lien
A
c. an easement
14
Q
- Which of the following is an encroachment?
a. using a residential lot for a business use
b. a building with a roof that extends over the property line
c. placing a fence on the edge of a disputed boundary line
d. violating a subdivision deed restrictions
A
b. a building with a roof that extends over the property line
15
Q
- An owner of a condominium unit failed to pay their property taxes. Which of the following acts is MOST
likely to occur?
a. a tax lien will be placed against the condominium complex
b. an investigation of the condominium complex will reveal a cloud on the title
c. the condominium complex will suffer from a tax sale
d. ownership of the condominium unit will be jeopardized
A
d. ownership of the condominium unit will be jeopardized
16
Q
- When ownership is conveyed by the transfer of shares of stock, this is:
a. joint tenancy
b. tenants in common
c. condominium
d. cooperative
A
d. cooperative
17
Q
- As a condition of owning space in a condominium, the owners were assessed a monthly fee for the use of
the clubhouse and swimming pool. An owner did not use either the clubhouse or the swimming pool. The owner:
a. could file a suit to partition the use of the clubhouse and swimming pool
b. could sell their rights to the use of the clubhouse and swimming pool to another party
c. would receive a 50% discount on the monthly fee
d. would still be required to pay the full monthly assessment
A
d. would still be required to pay the full monthly assessment
18
Q
- A relocation company purchased a property. The relocation company in trying to sell the property only
wanted to guarantee the property since the time they have owned it. The type of deed necessary to accomplish this
would be a:
a. quitclaim deed
b. general warranty deed
c. special warranty deed
d. bargain and sale deed
A
c. special warranty deed
19
Q
- The purpose of the encumbrance clause in a general warranty deed is to protect against:
a. zoning laws
b. unrecorded liens that may affect the value of property
c. ad valorem taxes
d. recorded covenants
A
b. unrecorded liens that may affect the value of property
20
Q
- When does title to real estate transfer from seller to the buyer?
a. when the contract is accepted by all parties
b. when the deed is delivered and accepted
c. when the deed is recorded
d. when the sale price is paid in full.
A
b. when the deed is delivered and accepted
21
Q
- Documents are recorded to provide:
a. constructive knowledge
b. actual knowledge
c. practical knowledge
d. official knowledge
A
a. constructive knowledge
22
Q
- In which of the following instances is a quitclaim deed most generally used?
a. when a normal deed is unavailable
b. when the seller only guarantees title for a certain time period
c. if a decedent’s will is involved in the property
d. to quiet a cloud on the title.
A
d. to quiet a cloud on the title.
23
Q
- Which of the following items would NOT place a limitation on your rights in property?
a. taxation
b. police power
c. title insurance
d. eminent domain
A
c. title insurance
24
Q
- A property with a total value of $40,000 was appraised for tax purposes at 25% of market value. If the tax
rate was $3 per $100 of the appraised tax value, how much tax was owed?
a. $ 100
b $ 300
c. $ 600
d. $ 1,200
A
b $ 300
25% of 40000 is 10,000 3 per hundred is also 30 dollars per 1000
another way to work it would be take 3% of 10000. It’s moving decimal
points.
25
26. An established family grocery store is in an area that has recently been zoned residential. If the grocery
store was to be sold, what document would be needed to allow continued use of the grocery store?
a. building permit
b. special use permit
c. pre-existing non-conforming use
d. variance
c. pre-existing non-conforming use
26
27. Property used for something other than the current zoning is referred to as a:
a. use by amendment
b. buffer zone
c. non-conforming
d. license
c. non-conforming
27
28. What is the purpose of a mortgagor giving a mortgage to the mortgagee?
a. to promise payment for the loan to purchase
b. so all the terms of the mortgage agreement will be known
c. to pledge property as security for the loan
d. so the borrower can convey property to lender
c. to pledge property as security for the loan
28
29. The primary purpose of a mortgagor giving a mortgage to the mortgagee is to:
a. secure the mortgage
b. secure the debt
c. secure the deed
d. secure the title insurance
b. secure the debt
29
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30. A property appraised for $42,000. If the buyer borrowed $28,000, what is the difference between the two
amounts called?
a. buyer’s equity
b. net income
c. the debt service
d. the title
```
a. buyer’s equity
30
31. Which of the following statements is true of an adjustable rate mortgage (ARM)?
a. the interest rate changes based on the market index agreed to up front
b. the interest rate can only change with the borrower’s consent
c. the interest rate cannot change unless it goes up or down more than 2% from the original starting
interest rate.
d. the loan cannot be sold on the secondary mortgage market
a. the interest rate changes based on the market index agreed to up front
31
32. A buyer purchased a $60,000 house and was able to obtain a $36,000 loan. The loan was amortized over 20
years with an interest rate of 9% and a principal and interest payment of $323.90 per month. What was the total
interest paid over the term of the loan?
a. $ 36,000
b. $ 41,736
c. $ 77,736
d. $116, 604
b. $ 41,736
This is a question many people make much harder then it really is.
You need to determine first which information is irrelevant to the answer.
20 years is 240 months. If you pay $323.90 for 240 months that equals
$77.736 subtract the amount borrowed of $36,000 and you arrive at the
answer.
32
33. Upon which of the following events would a prepayment penalty be enforced?
a. being late on a monthly mortgage payment
b. the tax escrow amount being insufficient
c. the loan being paid in full before its due date
d. a listing agreement expires
c. the loan being paid in full before its due date
33
34. Two creditors have an agreement to switch the lien priority. This agreement would be referred to as:
a. subrogation
b. subordination
c. defeasance
d. satisfaction
b. subordination
34
35. A buyer purchased a seller’s home and assumed the seller’s loan. The seller does not want to remain liable
for the loan. What should the seller do?
a. put in the sales contract that the seller will not be liable anymore.
b. have the buyer agree to release of liability in the sales contract
c. arrange for the title company to give a release of liability to the seller
d. arrange for the lender to give a release of liability to the seller
d. arrange for the lender to give a release of liability to the seller
35
36. Which of the following mortgages uses both real and personal property as security?
a. chattel
b. package loan
c. purchase money
c. blanket
b. package loan
36
37. A seller sold property to a buyer. Since the buyer did not have enough money for the down payment, the
seller took back a mortgage on the property and loaned the down payment money to the buyer. The seller’s interest
in the property is secured by a:
a. package mortgage
b. purchase money mortgage
c. growing equity mortgage
d. reverse annuity mortgage
b. purchase money mortgage
37
39. In order for a veteran to receive a VA loan, the veteran must first obtain a:
a. certificate of owner-occupancy
b. certificate of eligibility
c. pre-approval from a VA approved lender before making an offer to purchase
d. non-compete agreement from a VA lender
b. certificate of eligibility
38
38. Which of the following statements is correct regarding a VA loan?
a. the VA makes the loan and the lender guarantees the loan
b. the lender makes the loan and the VA insures the veteran
c. the lender makes the loan and the VA guarantees the loan
d. a veteran can obtain a VA loan in the purchase of a rental house
c. the lender makes the loan and the VA guarantees the loan
39
41. A buyer purchased a property for $79,650. The buyer obtained a first mortgage for 83% of the purchase
price with a 6% down payment. The owner financed the balance of purchase price. What would be the amount for
the second mortgage financed by the seller?
a. $ 8,235.81
b. $ 8,761.50
c. $ 13,540.50
d. $ 17,345.98
b. $ 8,761.50
100% (purchase price) - 83% (loan percentage amount) = 17% x
79650 = 13,540.50 6% (actual amount they had for down payment) of
79,650=4779 subtract from 13,540.50 = 8761.50#42-a. You don't pay interest
on money you don't borrow. You only pay costs/interest on the loan
amount.
40
43. A buyer was interested in purchasing a home. The buyer found a house to buy but had to obtain financing
to purchase. The buyer talked to a lender who gave the buyer in writing a commitment on the interest rate and
discount points. This letter is called a:
a. lock-in commitment
b. good faith estimate
c. disclosure statement
d. uniform settlement statement
a. lock-in commitment
41
44. A property sold for $60,000 with the buyer obtaining a $57,200 loan. The seller agreed to pay 6 discount
points. How much would the seller owe for the discount points?
a. nothing, as the buyer always pays the discount points
b. $ 2,358
c. $ 3,432
d. $ 3,600
c. $ 3,432
42
42. Discount points of 1% would be computed based upon the:
a. loan amount
b. sale price
c. sale price less earnest money
d. sale price less earnest money and mortgage insurance
a. loan amount
43
46. What is it called when a buyer purchases a property, makes monthly installment payments to the seller, and
receives the deed after the entire purchase is completely paid?
a. an option
b. a lease
c. a right of first refusal
d. an installment contract
d. an installment contract ?
44
47. Which document is required under the Real Estate Settlement Procedures Act to be given before closing?
a. A good faith estimate of closing costs
b. An estimate of the seller’s net proceeds
c. A closing statement approved by a broker
d. A sales contract
a. A good faith estimate of closing costs
45
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48. According to the Real Estate Settlement Procedures Act (RESPA), the closing statement must be signed by
the buyers, sellers, and _________.
a. listing broker
b. closing agent
c. salesperson
d. recorder of deed
```
b. closing agent
46
49. Which of the following would be an example of a lender violating the usury laws?
a. a lender charging less than the maximum legal amount
b. a lender charging more than the maximum legal amount
c. a lender refusing to make loans in questionable areas
d. a lender refusing to make loans under a certain dollar amount
b. a lender charging more than the maximum legal amount
47
50. Dual agency is allowed in a real estate transaction as long as:
a. both the buyer and seller sign off in the final sales contract
b. both parties give written informed consent right up front.
c. both parties pay compensation.
d. dual agency is illegal in Kansas
d. dual agency is illegal in Kansas
48
51. What does a person have who can sign legal papers for another person?
a. an attorney-in-fact
b. a power of attorney
c. an ostensible agency
d. an attorney at law
b. a power of attorney
49
52. Which type of relationship is established between a principal and a broker?
a. trustor
b. trustee
c. blanket
d. fiduciary
d. fiduciary
50
53. Which of the following statements is true of a salesperson?
a. a salesperson is always an independent contractor for a broker
b. a salesperson is an agent for the broker
c. a salesperson has a fiduciary obligation to the general public
d. a salesperson can sign a listing without authorization from the broker
b. a salesperson is an agent for the broker
51
54. A listing agent is showing the listed property to a prospective buyer. The buyer tells the listing agent that a
favorable change in zoning is coming with regard to the listed property. What should the listing agent do?
a. call the broker for help
b. tell the seller because of the fiduciary obligation to the seller
c. don’t tell the seller as this violated confidentiality to the buyer
d. don’t tell anyone as the buyer could sue the agent for damages if the information was disclosed
b. tell the seller because of the fiduciary obligation to the seller
52
55. Between the time a buyer and seller signed a sales contract and closing, the zoning on the property was
changed. Does the listing agent need to disclose this fact to the buyer who is a customer?
a. yes, because the listing agent owes a fiduciary responsibility to the buyer
b. yes, the agent should notify the buyer immediately as it is a material fact.
c. no, the buyer is out of luck because of caveat emptor
d. no, the agent should not tell the buyer because that might hurt the seller
b. yes, the agent should notify the buyer immediately as it is a material fact.
53
56. A broker listed a property for sale at $450,000. The actual value of the property was $490,000. The broker
had his sister purchase the property for $400,000, put $5,000 of earnest money in the broker’s escrow account, and
received $6,000 in commission on the sale. The broker then gained ownership from his sister through a prior,
undisclosed agreement. The broker is in violation of:
a. listing a property for $450,000 which had a value of $490,000
b. offering the property for less than the full list price
c. not disclosing his future ownership interest through his sister’s purchase
d. taking the $6,000 in commission on the sale
c. not disclosing his future ownership interest through his sister’s purchase
54
57. Which of the following would be a violation of the Sherman Anti-Trust Laws?
a. a group of brokers setting a common commission rate
b. a broker establishing a commission split between the employer and employee
c. an agent directing buyers toward areas based on race
d. a lender limiting loans to a certain geographical area
a. a group of brokers setting a common commission rate
55
58. A broker sold a commercial property for $1.5 million. The broker earned a total commission of $88,500. If
the broker was paid 6% on the first $1.2 million of sales price, what was the broker’s rate of commission on the
amount of sale price over $1.2 million?
a. 3%
b. 4.5%
c. 5%
d. 5.5%
d. 5.5%
56
59. An agreement whereby a person is hired to investigate potential tenants, collect rent and furnish monthly
financial statements for an owner is called a:
a. lease
b. listing agreement
c. customer/client agreement
d. property management agreement
d. property management agreement
57
60. A property manager of a 10 unit apartment received a commission of 8% of the annual gross rental income
plus $175 for each new tenant. Six of the units rent for $650 each per month and the remainder rent for $550 each
per month. The manager was able to find four new tenants during the year. If there was a 10% vacancy factor,
what was the property manager’s annual income?
a. $1,188
b. $4,880
c. $5,970
d. $6,556
c. $5,970
58
61. At closing, all parties receive a copy of the:
a. settlement statement
b. loan commitment letter
c. sales contract
d. agency contract
a. settlement statement
59
62. Who enforces the real estate license law in Kansas?
a. Kansas Legislature
b. Kansas Real Estate Commission
c. Kansas Attorney General
d. Director of the Kansas Real Estate Commission
a. Kansas Legislature
60
63. If a person is employed by a utility company to acquire easements on behalf of the utility. Which of the
following statements is true?
a. No license would be required if the person was paid by salary only.
b. A license would be required for this person
c. A license would be required only if the person was not paid a salary
d. No license would be required if the person acquired gross easements, not appurtenant easement
d. No license would be required if the person acquired gross easements, not appurtenant easement
61
64. Jim’s mother died without a will. Jim was appointed as administrator by the probate court. Jim hired a
manager to manage the commercial property without fees paid to the manager. Jim hired an unlicensed auctioneer
to auction the agricultural property at a 10% commission fee. Jim then hired an attorney to sell the house as part of
the normal attorney duties. Which of the parties would be in violation of Kansas License Law?
a. The manager of the commercial property
b. The attorney selling the house
c. The auctioneer selling agricultural land.
d. Jim operating as the court administrator
c. The auctioneer selling agricultural land.
62
65. A person auctioning land needs a real estate license to auction for each of the following entities EXCEPT
when the person is auctioning for:
a. the executor of the will of the owner of the vacant land.
b. the government as a part of their regular duties.
c. an owner of the vacant land.
d. an attorney who is preparing all the legal documents
c. an owner of the vacant land.
63
66. An Arkansas broker is doing seminars on Arkansas property at dinners in various places in Kansas. Some
people have asked him if they can buy the properties. Which is true regarding her need for a Kansas license?
a. He does NOT need a license because she is licensed in Arkansas.
b. He does NOT need a license as long as he doesn’t give free dinners.
c. He does NOT need a license since he is NOT a resident of Kansas.
d. He needs a Kansas license to market Arkansas properties in Kansas.
d. He needs a Kansas license to market Arkansas properties in Kansas.
64
67. How are the Kansas real estate commissioners compensated?
a. Subsistence and mileage.
b. Subsistence and clothing allowance.
c. Mileage and clothing allowance.
d. Mileage and vehicle purchase.
a. Subsistence and mileage.
65
68. A person passed the salesperson’s test in February. The person did not make and application for license
until September. In order to obtain a license, the person must do all of the following EXCEPT:
a. retake and pass the test again as it’s been over 6 months.
b. submit proof they have been a Kansas resident the past full year.
c. affiliate with a broker.
d. submit proof that the person is honest, reliable and has good integrity
b. submit proof they have been a Kansas resident the past full year.
66
70. A resident licensee of another state who wants a Kansas license must do all EXCEPT:
a. pass the state law portion of the examination.
b. sign a notice of irrevocable consent to the Director of the KREC.
c. affiliate with a licensed Kansas broker.
d. maintain an office in Kansas.
d. maintain an office in Kansas.
67
71. A broker who moves his personal residence should do which of the following?
a. Nothing, the KREC only needs notification if he moves the office.
b. Notify the KREC about the new address at the next renewal.
c. Return his license to the KREC
d. Notify the KREC in writing within 10 days
d. Notify the KREC in writing within 10 days
68
73. How long can a licensee remain inactive without having to retest?
a. within 1 year.
b. within 2 years.
c. within 5 years.
d. indefinitely.
c. within 5 years.
69
69. For what number of years is a license issued?
a. one year.
b. two years.
c. three years.
d. four years.
b. two years.
70
75. Which of the following statements is true regarding a broker wanting to use a name for the brokerage
company other than the broker’s own name?
a. the broker has to get the approval to use the name from the KREC.
b. the broker must register the name with the secretary of state.
c. the broker must obtain approval from the Board of Realtors ® in that area.
d. this would not be allowed as a broker must use their own name.
a. the broker has to get the approval to use the name from the KREC.
71
76. A buyer asks a selling salesperson about the title to the property listed by another broker. What should the
salesperson do regarding this question?
a. refer the buyer to the salesperson’s broker.
b. refer the buyer to an attorney.
c. keep an attorney on retainer to handle these questions.
d. answer to the salesperson’s best knowledge.
b. refer the buyer to an attorney.
72
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72. If a Kansas licensee is denied or rejected for licensure in another state, how many days does that person
have to notify the KREC?
a. 2
b. 5
c. 7
d. 10
```
d. 10
73
78. How long is a broker required to keep all real estate records?
a. 1 year
b. 2 years.
c. 3 years.
d. 7 years
c. 3 years.
74
79. When is it ok for a broker to sign papers on behalf of a seller (principal)?
a. when this is provided for in the listing agreement
b. when the broker has a properly certified power of attorney.
c. when the seller verbally accepts an offer and instructs the broker to do so.
c. a broker can never sign papers on behalf of a seller.
b. when the broker has a properly certified power of attorney.
75
80. Which of the following is allowed under the Kansas License Law?
a. a broker calling a seller who’s listed with another broker under an open listing.
b. putting a for sale sign in a seller’s yard without written permission from the seller.
c. depositing $500 of the broker’s own money into the broker’s escrow account.
d. listing a seller’s property with the provision that the seller receives a certain dollar amount and the
commission is anything over that amount
a. a broker calling a seller who’s listed with another
76
81. When can earnest money be disbursed out of an escrow account in the event of a dispute between buyer
and seller?
a. if the seller thinks the transaction won’t close.
b. if the buyer thinks the transaction won’t close.
c. the broker can disburse to either party depending upon who the broker thinks has the better legal
case.
d. upon order of the court.
d. upon order of the court.
77
82. In the main office of a real estate company, who is responsible for assigning the escrow numbers to all
escrow documentation?
a. Supervising broker.
b. Branch broker.
c. The salesperson in the main office that had the property listed.
d. An Associate broker.
a. Supervising broker.
78
83. A broker has $500 of the broker’s own money in the broker’s escrow account. This is:
a. allowed as long as the amount is not over $500.
b. not allowed as a broker cannot put any of the broker’s own money in the escrow account.
c. this is commingling.
d. creative accounting.
c. this is commingling.
79
84. A buyer contracted to buy a house, but was turned down on the loan. He demanded to have his earnest
money returned to him. In which case can the broker do this?
a. only upon proof of the lender’s refusal of the loan.
b. the broker can use his own discretion in this matter.
c. if both seller and buyer agree to this in writing.
d. never, because the earnest money has to be held until a court decision is reached.
c. if both seller and buyer agree to this in writing.
80
85. A branch broker is not required to maintain a transaction numbering system if:
a. the branch office maintains no trust account.
b. a computer based system is used.
c. the salespersons assign all transaction numbers.
d. the branch office maintains a separate trust account
a. the branch office maintains no trust account.
81
86. A cooperating broker who has written an offer on another broker’s exclusive listing should:
a. submit the offer to the seller directly.
b. submit the offer to the lender.
c. deposit earnest money in their own trust account.
d. submit the offer to the listing broker
d. submit the offer to the listing broker
82
87. A licensee owns a property. The licensee decides to sell the property as a for-sale-by-owner rather than
listing it with the licensee’s real estate company. Which of the following statements is true?
a. the licensee is required to have the buyer receive an appraisal.
b. the licensee must verbally tell any buyer about the license.
c. only the sales contract must state that the licensee is the owner.
d. it must be indicated to the public that a licensee has an ownership interest in the property and it
must be included in the sales contract.
d. it must be indicated to the public that a licensee has an ownership interest in the property and it
must be included in the sales contract.
83
88. The Kansas Real Estate Commission can suspend or revoke a person’s license after a hearing in the
following circumstances EXCEPT:
a. anytime a license was obtained by fraud or using fraudulent information.
b. a licensee who fraudulently misrepresented facts to buyers or sellers.
c. failure to renew in a timely manner.
d. a licensee performing any of the prohibited acts in the license law
c. failure to renew in a timely manner.
84
89. A salesperson buys a house that is in foreclosure pursuant to redemption rights. Who must the salesperson
contact immediately as to this purchase?
a. the sheriff of the county the property is in.
b. the mortgage holder.
c. the KREC.
d. the attorney general.
b. the mortgage holder.
85
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90. A licensee had their real estate license revoked by the KREC. The licensee could appeal their decision to
the:
a. Board of Realtors ®.
b. Court for Judicial Review.
c. Director of the KREC.
d. Governor of Kansas.
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b. Court for Judicial Review.
86
91. A home is listed at $70,000 but the listing salesperson tells a prospective buyer he could buy the home for
$60,000. The seller accepts the buyer’s offer for $60,000. Later, the seller learns what the salesperson told the
buyer. The KREC could:
a. fine the salesperson and broker for $10,000.
b. make the salesperson give back his commission to the seller.
c. fine, restrict or revoke the salesperson’s license.
d. fine the broker $10,000.
c. fine, restrict or revoke the salesperson’s license.
87
92. A broker has been found guilty of two minor violations of the Kansas License Law. What is the maximum
fine that can be imposed by the Kansas Real Estate Commission (KREC)?
a. $ 500.
b. $ 1,000.
c. $ 10,000.
d. $ 20,000.
b. $ 1,000.
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93. When would money be paid from the recovery fund?
a. to reimburse a member of the public to whom a broker has done wrong upon the order of the court.
b. to reimburse a licensee to whom a member of the public has done a wrong if they can prove it to the
KREC.
c. to reimburse a licensee to whom another licensee has done a wrong.
d. to reimburse a member of the public due to an error or omission by a broker or salesperson.
a. to reimburse a member of the public to whom a broker has done wrong upon the order of the court.
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94. The recovery fund has dropped below $100,000. A licensee has been sent a notice to pay the $5 or $10 to
reimburse the fund. However, the licensee has not responded. What could the KREC do?
a. fine the licensee.
b. suspend his license for one year.
c. revoke his license.
d. suspend his license until the amount is paid.
d. suspend his license until the amount is paid.
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95. Over the last 2 years, a licensee sold 10 different homes that were over a toxic waste dump without
disclosing this fact to the buyers. Each of the buyers received an $8,000 judgment against the licensee. What is the
maximum amount that could be paid out of the recovery revolving fund in this situation?
a. $ 15,000.
b. $ 30,000.
c. $ 50,000.
d. $ 80,000
c. $ 50,000.
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96. Under the Brokerage Relationships in Real Estate Transactions Act (BRRETA), if a listing broker is aware
of a roof leak, the broker is required to:
a. not disclose if the seller is going to fix the roof leak.
b. not disclose as the buyers can obtain their own roof inspections.
c. disclose only if the buyers do not obtain an inspection.
d. disclose to all possible buyers as this is a material condition concerning the property.
d. disclose to all possible buyers as this is a material condition concerning the property.
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97 According to the Brokerage Relationships in Real Estate Transactions Act (BRRETA), which of the
following must a seller’s agent reveal to a customer?
a. the ages of all the improvements on the properties.
b. the condition of all the improvements on the surrounding properties.
c. any and all material defects in the title if known.
d. all of the owners of the property for the last 10 years.
c. any and all material defects in the title if known.
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98. Which of the following would be a violation under the Brokerage Relationships in Real Estate Transactions
Act (BRRETA)?
a. not signing the agency agreement in the presence of a seller client.
b. disclosing to a customer about a title defect.
c. encouraging a seller or buyer client to cancel the agreement with their agent.
d. requiring that other agents call the listing broker first before showing the property.
c. encouraging a seller or buyer client to cancel the agreement with their agent.
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99. The Brokerage Relationships in Real Estate Transaction Act (BRRETA) does NOT prohibit which of the
following?
a. a commission fee based on the difference between a net amount to the seller and the sales price.
b. a referral fee paid to an unlicensed person
c. an oral, non-exclusive listing.
d. an auctioneer handling the sale of real estate without a license
c. an oral, non-exclusive listing.
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100. Which of the following would not be considered a ministerial act?
a. answering phones in a real estate office
b. setting appointments to view property
c. suggesting a fair offering price to a buyer customer.
d. making a referral to another broker
c. suggesting a fair offering price to a buyer customer.
96
Ownership that’s only available to married couples, property may not be sold without the agreement of both parties.
Tenancy by the entirety
97
Prohibits the discrimination of number of children, religion and national origin
Fair Housing Act of 1968
98
A valid real estate contract must contain which of the following elements
Competency
An offer and an acceptance
A legal object ie. a property
99
A valid deed must be
Signed
Identify the properties and parties involved
Witnessed
100
Which expenses are tax-deductible of owning a house
Real estate taxes
| Mortgage Interest
101
Transaction broker
Intermediary
Nonagent
Facilitator
