Free Kentucky Agency Practice Test — LicenseIQ

Question 1

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 2

An agent writes an offer on property she knows is already under an executory contract. What must the offer state?

Accepted Answer

201 KAR 11:121 §3(4) requires backup offers to be contingent in writing on the existing contract's non-performance and to state the disposition of any deposit.

Question 3

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 4

A seller's exclusive listing with Firm A expires in two months. Under Commission rules, when may an agent from Firm B discuss a future listing with the seller?

Accepted Answer

201 KAR 11:121 §3(7) bars soliciting a subsequent listing before expiration except when all three conditions are met using KREC Form 403. Contact after expiration or cancellation is allowed.

Question 5

Which duties does a Kentucky licensee owe a client?

Accepted Answer

201 KAR 11:121 §1(1)(d) lists the client fiduciary duties. Good faith and fair dealing alone are owed to consumers.

Question 6

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 7

A listing agent receives a buyer's signed offer at 3:00 p.m. on Tuesday. What is the latest the seller's disclosure may be delivered to the buyer?

Accepted Answer

72 hours = 3 days. Tuesday 3:00 p.m. + 72 hours = Friday 3:00 p.m. (KRS 324.360).

Question 8

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 9

Under KRS 324.162, an agent representing a party has no affirmative duty to disclose information to the acquiring party that:

Accepted Answer

KRS 324.162 removes any affirmative duty beyond what Chapter 324 or federal law requires. Known material defects still must be disclosed under KRS 324.160(4)(b).

Question 10

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 11

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 12

A prospective client refuses to sign the acknowledgment on the Guide to Agency Relationships. What should the licensee do?

Accepted Answer

201 KAR 11:121 §5(2) requires requesting a signature and, if it is refused or not given, documenting delivery with the date and time.

Question 13

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 14

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 15

Which statement about designated agency in Kentucky is correct?

Accepted Answer

KRS 324.121 bars self-designation, requires written designation, provides that knowledge is not imputed, and preserves separate representation with unaffiliated brokers.

Question 16

Midway through a listing, a buyer from the same office makes the transaction an in-house sale. What does the regulation require?

Accepted Answer

201 KAR 11:121 §6(3) requires updating the agreement and obtaining new written consent if the agency relationship changes.

Question 17

A listing agent tells a buyer's agent, 'If your buyer backs out, I will sue him personally,' with no legal basis. This is:

Accepted Answer

KRS 324.160(4)(p) prohibits making or circulating an unjustified threat of legal proceedings or other action.

Question 18

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 19

When a principal broker designates one agent for the seller and another for the buyer in the same transaction, who is the dual agent?

Accepted Answer

KRS 324.121 makes the principal broker (or designated manager) the dual agent in a limited fiduciary capacity. The designated agents continue to represent their own clients.

Question 20

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 21

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 22

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 23

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 24

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 25

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Kentucky real estate agency practice test

1. Which fiduciary duty continues even after the agency relationship has ended?

2. An agent writes an offer on property she knows is already under an executory contract. What must the offer state?

3. A property manager owes fiduciary duties primarily to the:

4. A seller's exclusive listing with Firm A expires in two months. Under Commission rules, when may an agent from Firm B discuss a future listing with the seller?

5. Which duties does a Kentucky licensee owe a client?

6. Which statement about dual agency is correct?

7. A listing agent receives a buyer's signed offer at 3:00 p.m. on Tuesday. What is the latest the seller's disclosure may be delivered to the buyer?

8. An agent authorized to perform a single specific act for a principal is a:

9. Under KRS 324.162, an agent representing a party has no affirmative duty to disclose information to the acquiring party that:

10. Which of the following is a fiduciary duty an agent owes the principal?

11. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

12. A prospective client refuses to sign the acknowledgment on the Guide to Agency Relationships. What should the licensee do?

13. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

14. A material defect that a seller/agent must disclose is one that:

15. Which statement about designated agency in Kentucky is correct?

16. Midway through a listing, a buyer from the same office makes the transaction an in-house sale. What does the regulation require?

17. A listing agent tells a buyer's agent, 'If your buyer backs out, I will sue him personally,' with no legal basis. This is:

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

19. When a principal broker designates one agent for the seller and another for the buyer in the same transaction, who is the dual agent?

20. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

21. The client a broker represents is the:

22. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

23. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

24. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

25. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

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