Free Kentucky Real Estate Sales Associate Examination — State Portion Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Kentucky Real Estate Sales Associate Examination — State Portion practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Who must issue a Kentucky sales associate license after an applicant passes the required examination?

   1. A. The county clerk
   2. B. The commission
   3. C. The principal broker
   4. D. The Secretary of State

   Answer: B

   Explanation: KRS 324.040(3) provides, "After an applicant passes the required examination, the commission shall issue a license to him." The issuing body is the commission.

   Reference: Krs 324 040 — KRS 324.040

2. 2A person manages real property for others for compensation in Kentucky. Is that activity within real estate brokerage?

   1. A. Only if the property is commercial
   2. B. Only if rent is collected in cash
   3. C. Yes, property management is included
   4. D. No, management is categorically excluded

   Answer: C

   Explanation: KRS 324.010(1)(a) defines real estate brokerage to include "engaging in property management" for others for compensation. The activity is licensed brokerage.

   Reference: Krs 324 010 — KRS 324.010(1)(a)

3. 3May a Kentucky sales associate generally supervise another licensed sales associate?

   1. A. Yes, after six months
   2. B. Yes, with the associate's consent
   3. C. No, except as specifically authorized by statute
   4. D. Yes, if no trust funds are involved

   Answer: C

   Explanation: KRS 324.020(5) says, "Except as authorized in KRS 324.112(1) and 324.425, no sales associate shall supervise another licensed sales associate." The general rule is no.

   Reference: Krs 324 020 — KRS 324.020

4. 4Under Kentucky's Statute of Frauds, which agreement must be written and signed to support an action?

   1. A. A week-to-week parking arrangement
   2. B. An oral promise to show a home
   3. C. A contract for the sale of real estate
   4. D. A request for public records

   Answer: C

   Explanation: KRS 371.010(6) includes "any contract for the sale of real estate" among agreements requiring a signed writing. The sale contract falls within the statute.

   Reference: Krs 371 010 — KRS 371.010

5. 5Which knowledge arrangement makes a Kentucky licensee's representation of more than one party sanctionable?

   1. A. Only the principal broker knows the licensee represents both parties
   2. B. All parties for whom the licensee acts know of the dual role
   3. C. Each represented party knows before brokerage services are performed
   4. D. The agency agreement discloses the role to every represented party

   Answer: A

   Explanation: KRS 324.160(4)(e) sanctions "Acting for more than one (1) party in a transaction without the knowledge of all parties for whom the licensee acts." The principal broker's knowledge alone does not supply the required knowledge of every represented party.

   Reference: Krs 324 160 — KRS 324.160

6. 6What must exist before a Kentucky principal broker or affiliated licensee engages in property management?

   1. A. A condominium certificate
   2. B. A broker-lien filing
   3. C. A current written property-management agreement
   4. D. An oral tenant waiver

   Answer: C

   Explanation: 201 KAR 11:121 Section 10(1) states a broker or affiliated licensee "shall not engage in property management without a current written property management agreement." The current written agreement is mandatory.

   Reference: Title 201 Chapter 11 Regulation 121 • Kentucky Administrative Regulations • Legislative Research Commission — 201 KAR 11:121 Section 10(1)

7. 7When must a Kentucky principal broker sign a permit allowing commission audits of all escrow accounts?

   1. A. Only after a complaint
   2. B. At each escrow closing
   3. C. Upon licensure and each renewal
   4. D. Once every five years

   Answer: C

   Explanation: KRS 324.111(5) says, "Upon licensure and each renewal, the principal broker shall sign a permit giving the commission the permission to audit all his or her escrow accounts." Thus the permit is required at licensure and renewal.

   Reference: Krs 324 111 — KRS 324.111

8. 8An unlicensed person advertises for sale an equitable interest in a Kentucky real-property purchase contract. Which rule applies?

   1. A. The general owner exemption permits this advertising
   2. B. The out-of-state broker cooperation exception permits it
   3. C. Calling the transaction a contract assignment permits it
   4. D. A broker or sales-associate license is required for the activity

   Answer: D

   Explanation: KRS 324.020(1)(b) makes it unlawful for an unlicensed person to "Advertise for sale an equitable interest in a contract for the purchase of real property." Neither a transaction label nor a different statutory exception removes that express licensing requirement.

   Reference: Krs 324 020 — KRS 324.020

9. 9Under whose supervision must a Kentucky sales associate engage in real estate brokerage?

   1. A. The county clerk
   2. B. Any experienced associate
   3. C. The affiliated principal broker
   4. D. The closing attorney

   Answer: C

   Explanation: KRS 324.010(6) defines a sales associate as one who, when brokering, acts "under the supervision of the principal broker." The affiliated principal broker supplies the supervision.

   Reference: Krs 324 010 — KRS 324.010

10. 10Which Kentucky lease falls within KRS 371.010's signed-writing requirement?

    1. A. A six-month lease
    2. B. A month-to-month lease
    3. C. A one-year lease
    4. D. A lease longer than one year

    Answer: D

    Explanation: KRS 371.010(6) covers "any lease thereof for longer than one year." A lease exceeding one year requires the statutory writing.

    Reference: Krs 371 010 — KRS 371.010