Free Kentucky Property Practice Test — LicenseIQ

Question 1

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 2

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 3

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 4

A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

Accepted Answer

$365,000 / 100 = 3,650 units; 3,650 x $2.85 = $10,402.50.

Question 5

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 6

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 7

Which sale is exempt from the Seller's Disclosure of Property Condition requirement?

Accepted Answer

KRS 324.360 exempts new homes with a warranty, auction sales, and court-supervised foreclosures. 201 KAR 11:121 §4 applies the form to single-family homes, duplexes through fourplexes, condos, and townhouses.

Question 8

Which person must hold a Kentucky real estate license?

Accepted Answer

Referring prospects for a fee is real estate brokerage, and a single act is enough (KRS 324.010). Owners, attorneys acting as attorneys, and executors are exempt under KRS 324.030.

Question 9

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 10

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 11

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 12

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 13

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 14

A married seller holds title alone. Why does the listing regulation require signatures of all necessary parties, including dower or curtesy interests?

Accepted Answer

201 KAR 11:121 §3(1) requires signatures of all necessary parties, expressly including dower or curtesy interests, so that a spouse's marital interest does not cloud the sale.

Question 15

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 16

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 17

A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Accepted Answer

The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Question 18

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 19

A licensee is involved with a for-sale-by-owner property. What does KRS 324.360 require?

Accepted Answer

KRS 324.360 requires the licensee to provide a blank form and request completion. A completed form must be delivered within 120 hours after an executory contract is formed.

Question 20

A sales associate wants to buy a property listed with her own brokerage. What must she do?

Accepted Answer

KRS 324.160(4)(e) requires the licensee to note licensee status in writing on the offer before buying property listed with the licensee or the licensee's broker.

Question 21

For a listed property, the listing agent must deliver the seller's disclosure to the buyer within how many hours of receiving the buyer's signed written offer?

Accepted Answer

KRS 324.360 sets a 72-hour deadline after the listing agent receives a written, signed offer. 120 hours applies to for-sale-by-owner properties after an executory contract is formed.

Question 22

A licensee sells a rental house he co-owns. When must he disclose his ownership interest?

Accepted Answer

KRS 324.160(4)(e)3 requires written disclosure of the licensee's ownership interest to all parties before the sale or the receipt of compensation.

Question 23

Which item must a Kentucky property management agreement include?

Accepted Answer

201 KAR 11:121 §10(2)(h) requires the escrow or management account's bank name, address, and account number, consistent with KRS 383.580(1). That information also goes in the lease.

Question 24

Every Kentucky real estate advertisement must include:

Accepted Answer

201 KAR 11:105 §2 requires the brokerage's full registered name, or the principal broker's name designated as principal broker. A license number is not required.

Question 25

Kentucky's Seller's Disclosure of Property Condition form must address which items, at a minimum?

Accepted Answer

KRS 324.360 requires disclosure of basement and roof condition and leaks, water source and condition, sewage source and condition, component systems, and other matters the Commission deems appropriate.

Kentucky real estate property practice test

1. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

2. A real estate licensee who is not an attorney may:

3. Under the statute of frauds, a real estate sales contract must be:

4. A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

5. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

6. In a lease, the tenant holds a estate and the landlord holds a .

7. Which sale is exempt from the Seller's Disclosure of Property Condition requirement?

8. Which person must hold a Kentucky real estate license?

9. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

10. In general, a 'stigmatized' property refers to one:

11. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

12. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

13. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

14. A married seller holds title alone. Why does the listing regulation require signatures of all necessary parties, including dower or curtesy interests?

15. A title search is performed primarily to:

16. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

17. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

18. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

19. A licensee is involved with a for-sale-by-owner property. What does KRS 324.360 require?

20. A sales associate wants to buy a property listed with her own brokerage. What must she do?

21. For a listed property, the listing agent must deliver the seller's disclosure to the buyer within how many hours of receiving the buyer's signed written offer?

22. A licensee sells a rental house he co-owns. When must he disclose his ownership interest?

23. Which item must a Kentucky property management agreement include?

24. Every Kentucky real estate advertisement must include:

25. Kentucky's Seller's Disclosure of Property Condition form must address which items, at a minimum?

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