Free Kentucky Real Estate Salesperson Practice Exam 2025

Brokers in Kentucky are required to keep transaction records for a minimum of 3 years after the closing date, as per regulatory requirements.

In dual agency, both the buyer and seller must sign a written disclosure and consent form before proceeding with the transaction.

A definite expiration date is required in every listing agreement in Kentucky for the contract to be legally enforceable.

The fiduciary duty of accounting means keeping accurate financial records, managing escrow funds, and providing clients with transaction details.

Hosting open houses or performing any activities on behalf of others in a real estate transaction requires a valid license.

The Kentucky Real Estate Commission’s main role is to protect the public by licensing professionals and enforcing real estate regulations.

If a licensee fails to renew their license on time, the license becomes expired, and the individual may not practice until it is reinstated.

The listing agreement is a required document to list a property. It establishes the seller-agent relationship and must be signed.

Conversion refers to the illegal act of using client or escrow funds for personal use—this is a serious violation with legal consequences.

Commingling occurs when client funds are mixed with a licensee’s personal or business funds—this is a clear license law violation.

Kentucky real estate licensees must complete 6 hours of continuing education annually, including mandatory law training.

Imprisonment without trial is not a lawful penalty for license violations. Disciplinary actions typically include fines, suspension, or revocation.

An exclusive right to sell listing offers the greatest commission protection for the broker, regardless of who secures the buyer.

Earnest money must be deposited into a trust account by the end of the next business day after acceptance of the offer, per Kentucky law.

Dual agency involves representing both buyer and seller in a transaction and requires written, informed consent from both parties.

All parties to a real estate transaction must be treated honestly and fairly, even if fiduciary duties are only owed to clients.

Assisting others in buying or selling real estate for compensation is a licensed activity, requiring a valid real estate license under Kentucky law.

The Kentucky Real Estate Commission’s primary function is to enforce licensing laws, investigate complaints, and ensure public protection through regulation.

Agency disclosure must occur at the earliest practicable time, typically when showing property or engaging in a transaction-related conversation.

The Principal Broker is responsible for supervising licensees in the brokerage and ensuring compliance with real estate laws and ethical conduct.

The Agency Consent Agreement is the required document to establish agency relationships in Kentucky. It outlines the type and scope of representation.

An agency is the formal relationship created between a licensee and client, authorizing the licensee to act on the client’s behalf in real estate matters.

A client is the individual to whom a licensee owes fiduciary duties such as loyalty, obedience, and full disclosure under Kentucky agency law.

If a condo association fails to properly assess and collect dues, the resulting lien may be voidable, meaning it can be legally challenged or set aside.

Licensees must notify the Kentucky Real Estate Commission within 10 days of a change in home address to ensure proper recordkeeping and communication.

Performing real estate activities for compensation requires a valid Kentucky license. Unlicensed practice is prohibited.

Upon receiving a written complaint, a licensee should acknowledge, document, and escalate the issue to the supervising broker.

An agency agreement in Kentucky must include scope of representation, terms, and compensation, ensuring legal clarity.

Closing statements should be delivered at or immediately after closing, providing accurate documentation of the transaction.

Earnest money must be deposited in a separate escrow account and handled according to the purchase agreement terms.

Failure to report an address change may result in fines or disciplinary action, as license records must remain current.

Agency status must be disclosed at first substantive contact, such as when discussing a specific property or entering a negotiation.

The Kentucky Real Estate Commission is the sole authority for disciplining licensees, including issuing fines and suspensions.

Licensees have 10 days to notify the Kentucky Real Estate Commission of a change in residence or business address.

Unlicensed assistants cannot show property or perform licensed tasks. Their role is limited to clerical or administrative duties.

Kentucky law prohibits licensees from being affiliated with more than one principal broker at the same time.

The principal broker is legally responsible for ensuring the accuracy and legality of all advertising by affiliated licensees.

All licensees must be under the supervision of a principal broker, who is responsible for ensuring legal compliance and proper conduct.

Before placing a sign on a property, a licensee must obtain written permission from the property owner to comply with advertising rules.

A licensee must disclose their licensed status when making an offer for themselves or family, as required under Kentucky disclosure laws.

Escrow accounts must be reconciled monthly and kept separate from personal or operating funds to ensure proper client fund management.

Any modification to a signed contract must be initialed and dated by all parties for it to be valid and enforceable.

A person who sells property for others and receives compensation is legally considered a licensee under Kentucky real estate law.

Exclusive buyer agency agreements must clearly state the responsibilities, compensation, and terms between the buyer and the licensee.

Active licensees in Kentucky must complete 6 hours of continuing education annually, including 3 hours specifically in real estate law.

Agency disclosure must be provided at first substantive contact with a prospective client to ensure transparency from the outset.

Licensees must retain transaction records for at least 3 years, including contracts, disclosures, and escrow records.

Written offers must be presented to the seller promptly, typically within 24 hours, to uphold legal and ethical duties.

Violations of Kentucky real estate law are typically classified as Class A misdemeanors, which may involve criminal penalties and license sanctions.

A principal broker in Kentucky may delegate supervisory duties only to a designated manager registered with the Commission. This ensures proper oversight.