Free Kansas Contracts Practice Test — LicenseIQ

Question 1

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 2

A Kansas transaction broker must present all offers and counteroffers in a timely manner:

Accepted Answer

58-30,113(b) requires presenting all offers and counteroffers promptly, even if the property is under contract. Stopping at contract is the distractor.

Question 3

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 4

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 5

All parties sign a contract on Thursday, October 1 (no holidays). What is the latest date the broker may deposit the earnest money?

Accepted Answer

Count business days after signing: Oct 2 (1), 5 (2), 6 (3), 7 (4), 8 (5). Friday Oct 9 would be the sixth business day.

Question 6

A financing contingency in a purchase agreement protects the:

Accepted Answer

A financing (mortgage) contingency lets the buyer cancel without penalty if unable to secure the specified loan by the deadline.

Question 7

A zero-down-payment government loan program aimed at low- and moderate-income buyers in eligible rural areas is offered through the:

Accepted Answer

USDA Rural Development loans serve eligible rural buyers who meet income limits, often with no down payment.

Question 8

A Kansas broker works with a buyer but has no agency agreement and has not accepted subagency. The broker is:

Accepted Answer

58-30,103(c) makes the broker a transaction broker unless an agency relationship is established or subagency is accepted. Implied buyer agency is not the default.

Question 9

A Kansas broker wants to share a commission with an Iowa broker on a Kansas strip-mall sale. The cooperation agreement must be filed with the Commission within:

Accepted Answer

58-3077(c) requires filing within five business days of signing. The exception for out-of-state licensees on commercial property depends on a filed agreement.

Question 10

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 11

When a seller changes a term of the buyer's offer and returns it, this creates a:

Accepted Answer

Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.

Question 12

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 13

Which is NOT an essential element of a valid contract?

Accepted Answer

The essential elements are offer and acceptance (mutual consent), consideration, competent parties and legal purpose. Notarization is not required for a contract to be valid.

Question 14

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 15

A buyer's agency agreement must be in writing no later than:

Accepted Answer

58-30,103 requires a written buyer or tenant agency agreement no later than the signing of the offer. The first showing is a common but wrong guess.

Question 16

Showing a lender a higher price than the actual contract price violates the license act and can support which civil fine maximum if aggravated?

Accepted Answer

Misstating the price or terms to a lender is prohibited (58-3062(a)(14)) and is one of the categories eligible for up to $5,000 per violation with aggravation. $10,000 is a criminal repeat-offense cap.

Question 17

An offer or counteroffer becomes a binding contract when:

Accepted Answer

Acceptance must be unconditional and communicated back to the offeror; any change creates a counteroffer instead.

Question 18

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

Question 19

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 20

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 21

A party making an offer to buy is the ____, and the party receiving it is the ____.

Accepted Answer

The offeror makes the offer; the offeree receives it. When a counteroffer is made, the roles swap.

Question 22

A licensee may not obtain a signature on a purchase contract unless which term is defined?

Accepted Answer

58-3062(a)(12) requires the price, payment method, property description and method of setting the closing date to be defined. Commission splits aren't part of that list.

Question 23

The purchase agreement names a title company as escrow agent. The listing broker must deliver the agreement and earnest money to it within:

Accepted Answer

58-3062(d) requires delivery to the named non-broker escrow agent within five business days and keeping a receipt. The ten-business-day figure is the salesperson's deadline to turn documents in to the broker.

Question 24

A seller has accepted an offer. The listing agreement is silent on later offers. A second, higher offer arrives that is not contingent on ending the first contract. The listing licensee must:

Accepted Answer

K.A.R. 86-3-23 keeps the duty to submit offers unless the listing agreement says otherwise and requires advising the seller to consult an attorney before accepting a non-contingent later offer. Rejecting on the agent's own authority is wrong.

Question 25

Every Kansas residential sale contract must include a statement directing buyers who want information about registered offenders to:

Accepted Answer

58-3078 requires the notice pointing buyers to the KBI website or local sheriff. Licensees are not the source of registry information.

Kansas real estate contracts practice test

1. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

2. A Kansas transaction broker must present all offers and counteroffers in a timely manner:

3. After the buyer and seller sign a sales contract but before closing, the contract is:

4. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

5. All parties sign a contract on Thursday, October 1 (no holidays). What is the latest date the broker may deposit the earnest money?

6. A financing contingency in a purchase agreement protects the:

7. A zero-down-payment government loan program aimed at low- and moderate-income buyers in eligible rural areas is offered through the:

8. A Kansas broker works with a buyer but has no agency agreement and has not accepted subagency. The broker is:

9. A Kansas broker wants to share a commission with an Iowa broker on a Kansas strip-mall sale. The cooperation agreement must be filed with the Commission within:

10. A contract that is missing an essential element, such as consideration, is:

11. When a seller changes a term of the buyer's offer and returns it, this creates a:

12. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

13. Which is NOT an essential element of a valid contract?

14. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

15. A buyer's agency agreement must be in writing no later than:

16. Showing a lender a higher price than the actual contract price violates the license act and can support which civil fine maximum if aggravated?

17. An offer or counteroffer becomes a binding contract when:

18. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

19. A licensee representing the seller who learns the buyer will pay more than the offer must:

20. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

21. A party making an offer to buy is the , and the party receiving it is the .

22. A licensee may not obtain a signature on a purchase contract unless which term is defined?

23. The purchase agreement names a title company as escrow agent. The listing broker must deliver the agreement and earnest money to it within:

24. A seller has accepted an offer. The listing agreement is silent on later offers. A second, higher offer arrives that is not contingent on ending the first contract. The listing licensee must:

25. Every Kansas residential sale contract must include a statement directing buyers who want information about registered offenders to:

Sources