Free Kentucky Real Estate Broker Examination — State Portion Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Kentucky Real Estate Broker Examination — State Portion practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1The Kentucky Real Estate Commission wants an outside testing entity to administer the broker licensing examination. What may the commission do?

   1. A. Contract with an entity to conduct the examinations
   2. B. Delegate licensing decisions to a county clerk
   3. C. Require each principal broker to write the examination
   4. D. Transfer examination authority to a local planning commission

   Answer: A

   Explanation: KRS 324.281(5)(c) makes it a commission duty to "Conduct examinations for applicants eligible under this chapter or alternatively to contract with an entity to conduct examinations." The testing contract is therefore authorized.

   Reference: Krs 324 55519 — KRS 324.281

2. 2A person manages real property for others in Kentucky in return for compensation. How does KRS 324.010 classify that activity?

   1. A. It is appraisal practice only
   2. B. It is an owner exemption
   3. C. It is clerical support
   4. D. It is real estate brokerage

   Answer: D

   Explanation: KRS 324.010(1)(a) defines real estate brokerage to include "engaging in property management" for others for compensation.

   Reference: Krs 324 53889 — KRS 324.010(1)(a)

3. 3Who owns the written brokerage-service contracts entered into by an affiliated licensee in Kentucky?

   1. A. The principal broker
   2. B. The affiliated licensee
   3. C. The local real estate association
   4. D. The client until closing

   Answer: A

   Explanation: 201 KAR 11:121 §7(1) states, "The principal broker shall be the owner of all written contracts for provision of real estate brokerage services."

   Reference: Title 201 Chapter 11 Regulation 121 • Kentucky Administrative Regulations • Legislative Research Commission — 201 KAR 11:121 §7(1)

4. 4A buyer seeks to enforce a Kentucky contract for the sale of real estate. What form does KRS 371.010 generally require?

   1. A. A writing signed by the party to be charged or that party's authorized agent
   2. B. A recorded deed before the contract is formed
   3. C. An oral agreement witnessed by two licensees
   4. D. A notarized offer approved by the commission

   Answer: A

   Explanation: KRS 371.010(6) covers a contract for the sale of real estate, and the concluding clause requires the promise, contract, memorandum, or note to be "in writing and signed by the party to be charged" or an authorized agent.

   Reference: Krs 371 010 — KRS 371.010

5. 5When must a Kentucky licensee complete, time, date, and deliver the Guide to Agency Relationships to an appropriate prospective client?

   1. A. Only after an offer is accepted
   2. B. At the earliest prescribed event, including before a contemplated written brokerage agreement
   3. C. At closing
   4. D. Only if dual agency is later proposed

   Answer: B

   Explanation: 201 KAR 11:121 §5(1) requires delivery "at the earliest of the following times" and lists the time before entering a contemplated written brokerage agreement among those triggers.

   Reference: Title 201 Chapter 11 Regulation 121 • Kentucky Administrative Regulations • Legislative Research Commission — 201 KAR 11:121 §5(1)

6. 6What must exist before a Kentucky principal broker or affiliated licensee engages in property management?

   1. A. A current written property management agreement
   2. B. A recorded lease assignment
   3. C. A court-appointed receiver
   4. D. A separate branch-office license for each property

   Answer: A

   Explanation: 201 KAR 11:121 §10(1) prohibits property management "without a current written property management agreement".

   Reference: Title 201 Chapter 11 Regulation 121 • Kentucky Administrative Regulations • Legislative Research Commission — 201 KAR 11:121 §10(1)

7. 7When must a Kentucky principal broker give the commission permission to audit the broker's escrow accounts?

   1. A. Only after an escrow complaint is filed
   2. B. Upon licensure and at each renewal
   3. C. Only when opening a branch office
   4. D. At the end of every calendar quarter

   Answer: B

   Explanation: KRS 324.111(5) states, "Upon licensure and each renewal, the principal broker shall sign a permit giving the commission the permission to audit all his or her escrow accounts."

   Reference: Krs 324 31565 — KRS 324.111

8. 8An unlicensed person advertises for sale an equitable interest in a contract to purchase real property. What does Kentucky law provide?

   1. A. The activity is unlawful without a real estate license
   2. B. The activity is exempt if no closing date is stated
   3. C. The activity requires only a business registration
   4. D. The activity is permitted if the owner approves orally

   Answer: A

   Explanation: KRS 324.020(1)(b) makes it unlawful for an unlicensed person to "Advertise for sale an equitable interest in a contract for the purchase of real property."

   Reference: Krs 324 53890 — KRS 324.020

9. 9How many principal brokers and office locations may an affiliated Kentucky licensee be affiliated with at one time?

   1. A. Two principal brokers at one office
   2. B. One principal broker at one office or branch location
   3. C. One principal broker at any number of offices
   4. D. Two principal brokers at separate branch locations

   Answer: B

   Explanation: 201 KAR 11:121 §7(8) provides that an affiliated sales associate or broker "shall only be affiliated with one principal broker at one office, or branch office, location."

   Reference: Title 201 Chapter 11 Regulation 121 • Kentucky Administrative Regulations • Legislative Research Commission — 201 KAR 11:121 §7(8)

10. 10A broker claims compensation for assisting with a Kentucky real estate sale. Which agreement generally satisfies the statute of frauds?

    1. A. An oral commission promise later described by a witness
    2. B. A commission agreement in writing and signed by the party to be charged or an authorized agent
    3. C. A handshake followed by advertising expenses
    4. D. An unsigned office ledger entry

    Answer: B

    Explanation: KRS 371.010(8) covers agreements for "commission or compensation" for a real estate sale or lease; the statute generally requires a signed writing or memorandum.

    Reference: Krs 371 010 — KRS 371.010(8), concluding clause