1. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
2. Under K.A.R. 86-3-31, which is a mitigating factor when the Commission evaluates a broker's failure to supervise?
Answer & explanation
Answer: B. 86-3-31(b) lists written policies, training, ongoing education or review, and record systems as mitigating. Independent-contractor status does not reduce supervision duties.
3. A broker received a 4.2% commission totaling $12,600. What was the sale price?
Answer & explanation
Answer: C. Sale price = commission / rate = $12,600 / 0.042 = $300,000.
4. A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?
Answer & explanation
Answer: A. Purchase price = loan / LTV = $276,000 / 0.80 = $345,000. ($220,800 wrongly multiplies by 0.80.)
5. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?
Answer & explanation
Answer: A. Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)
6. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
7. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?
Answer & explanation
Answer: C. Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.
8. How long is a regular term for a Kansas Real Estate Commission member?
Answer & explanation
Answer: B. Members serve four-year terms and until a successor qualifies. Five years is tempting because it is the residency and broker-experience requirement, not the term.
9. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?
Answer & explanation
Answer: C. Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.
10. How many members serve on the Kansas Real Estate Commission?
Answer & explanation
Answer: A. K.S.A. 74-4201 creates a five-member Commission appointed by the governor. Seven is Missouri's number and a common carryover; three is the minimum number of broker members, not the total.
11. A supervising broker moves the primary office. Written notice to the Commission is due within:
Answer & explanation
Answer: B. 58-3060(c) requires written notice within five days of changes in office location, trade name or broker designation. Ten days is the licensee's personal-change reporting deadline under 86-3-15.
12. Which statement about the makeup of the Kansas Real Estate Commission is correct?
Answer & explanation
Answer: C. 74-4201 requires at least three members with five years as brokers and at least one member who has never been a broker. Members are appointed by the governor, not elected; one comes from each congressional district, which is why the election distractor tempts.
13. A new highway interchange built next to a residential subdivision lowers home values. This is:
Answer & explanation
Answer: D. Loss in value caused by factors outside the property boundaries is external obsolescence.
14. When a salesperson leaves a brokerage, the supervising broker must notify the Commission and request deactivation:
Answer & explanation
Answer: A. 58-3047(c) requires the broker to notify the Commission immediately. Ten days applies to the written statement when the departure involves a violation.
15. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?
Answer & explanation
Answer: D. $20,000 x 0.50 = $10,000 to the buyer's broker.
16. A licensee who disagrees with a final Commission disciplinary order seeks review:
Answer & explanation
Answer: A. 58-3058 provides for review under the Kansas Judicial Review Act. A judicial review is not a new jury trial, and the Human Rights Commission handles discrimination complaints, not license appeals.
17. How long must a person have been a Kansas citizen and resident immediately before appointment to the Commission?
Answer & explanation
Answer: D. Each member must have been a Kansas citizen and resident for five years immediately before appointment. One year is the Missouri-style answer and does not apply here.
18. One discount point equals what percentage of the loan amount?
Answer & explanation
Answer: B. One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.
19. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?
Answer & explanation
Answer: B. Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.
20. A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?
21. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?
Answer & explanation
Answer: C. Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.
22. The 30-hour Kansas Real Estate Practice course must be completed within what period before the Commission receives the salesperson application?
Answer & explanation
Answer: D. 58-3046a(c) requires the Practice course within six months before the application is received. Twelve months is the Principles window.
23. What constitutes a quorum of the Kansas Real Estate Commission?
Answer & explanation
Answer: A. K.S.A. 74-4202 says a majority of members is a quorum, so three of five. Requiring all members would paralyze the Commission and is not the rule.
24. A commercial space of 2,400 rentable square feet is quoted at $27 per square foot per year. What is the monthly rent?
Answer & explanation
Answer: B. Annual rent = 2,400 x $27 = $64,800; monthly = $64,800 / 12 = $5,400. Commercial rates are quoted per square foot per YEAR.
25. A home sells for $400,000 with a 5% total commission. What is the total commission?
Answer & explanation
Answer: B. $400,000 x 0.05 = $20,000.
Sources
Source verification pending. Confirm current requirements with your state regulator.