1. 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.
2. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)
3. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:
Answer & explanation
Answer: B. Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.
4. 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.
5. Under 201 KAR 11:210, which criminal history must the Commission investigate before licensure?
Answer & explanation
Answer: C. The regulation requires investigation of felony convictions within 10 years and misdemeanor convictions within 5 years, and permits review of other evidence of dishonesty. Investigation does not mean automatic denial.
6. A consumer complaint against a licensee must generally be filed with the Commission within what time?
Answer & explanation
Answer: A. 201 KAR 11:190 sets a one-year limit measured from actual or constructive knowledge. Five years is the record-retention period, which is a different rule.
7. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:
Answer & explanation
Answer: B. Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.
8. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?
Answer & explanation
Answer: B. Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.
9. 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.)
10. Which restriction applies to the makeup of the Kentucky Real Estate Commission?
Answer & explanation
Answer: D. KRS 324.281 bars two members from the same county and allows no more than four (not three) from one political party. Post-2000 appointees are limited to two consecutive terms.
11. 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.
12. A house with only one bathroom and very small closets in a market expecting more suffers from:
Answer & explanation
Answer: C. Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.
13. 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.
14. To claim a commission lien under KRS 376.075, a broker must file a sworn statement with the county clerk within:
Answer & explanation
Answer: B. KRS 376.075(4) requires filing within six months after services cease. The lien dissolves unless an enforcement action begins within 12 months of filing.
15. 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?
16. 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.)
17. Annual taxes are $3,650. Using a 365-day year, what is the daily proration amount?
Answer & explanation
Answer: D. $3,650 / 365 = $10 per day. (The course's default convention is a 360-day year; this question specifies 365.)
18. On a $250,000 loan, how much is 2 discount points?
Answer & explanation
Answer: A. 1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.
19. A rectangular lot is 100 ft by 150 ft. How many square feet is it?
Answer & explanation
Answer: C. Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)
20. Under Commission rules, when must the parties receive copies of documents the licensee prepared and they signed?
Answer & explanation
Answer: D. 201 KAR 11:121 §9(4) requires the principal broker to ensure signers receive copies at signing. Refusing copies on demand also violates KRS 324.160(4)(q).
21. A qualifying 68-year-old owns a home assessed at $180,000. The combined tax rate is $1.10 per $100. Using the 2025-2026 homestead exemption of $49,100, what is the tax?
Answer & explanation
Answer: B. Taxable value = 180,000 - 49,100 = 130,900. Tax = 130,900 / 100 x 1.10 = $1,439.90. $1,980.00 ignores the exemption, and $540.10 is the savings, not the tax.
22. What is the maximum fine the Commission may impose per KRS 324.160(1)?
Answer & explanation
Answer: D. KRS 324.160(1) authorizes a fine of up to $1,000, along with suspension, revocation, probation, education, or reprimand. $5,000 is a common figure from other states.
23. A property sells for $212,300. What is the transfer tax at $0.50 per $500 or fraction thereof?
Answer & explanation
Answer: C. $212,300 / $500 = 424.6, which rounds up to 425 units because a fraction counts as a full $500. 425 x $0.50 = $212.50.
24. How soon must a principal broker register a new branch office with the Commission?
Answer & explanation
Answer: B. KRS 324.112 requires registration within 10 days of creating the branch.
25. An applicant for an original sales associate license pays which fees under the Commission's licensing regulation?
Answer & explanation
Answer: A. 201 KAR 11:210 lists a $60 original license fee and a $60 recovery fund fee, consistent with the 'not to exceed $60' fund fee in KRS 324.400.
Sources
Source verification pending. Confirm current requirements with your state regulator.