Kentucky Real Estate Broker Exam

Kentucky Real Estate Broker Exam: General Portion

The Kentucky Real Estate Broker exam: General portion contains 75 questions. Examinees can expect to demonstrate their knowledge of real estate laws, practices, and ethics that generally apply to brokers in the USA. The General portion contains the following 11 content categories:

• Property Ownership: Test takers will see questions involving the types of real estate, such as houses, condominiums, and duplexes, as well as the legalities that make up owning property including surveys, water rights, and easements.
• Land Use Controls and Regulations: Examinees can expect to answer questions about property taxes, zoning, flood zones, and potential rules of Homeowners Associations. Other topics include hazard mitigation and adherence to building codes.
• Valuation and Market Analysis: Questions about this category will require test takers to demonstrate their knowledge of property appraisals and how comparables apply to competitive market analysis.
• Financing: Examinees will be tested on their knowledge of real estate sales terminology, the different types of loans and their advantages, financing options, and lending procedures.
• General Principles of Agency: In this category of the test, topics cover the real estate agent's commitment to their clients, the contracts between them, and the importance of integrity in those relationships.
• Property Disclosures: This category of the test involves questions about property inspections and other important disclosures the broker may need to relay to the client, such as environmental issues.
• Contracts : The examinee must demonstrate an understanding of basic clauses and obligations in contracts, such as breaches, enforceability, and parties' rights. Candidates will also have to know how to properly conduct counteroffers.
• Leasing and Property Management : This section of the test assesses the test taker's understanding of lease agreements, rates, and the responsibilities surrounding general property management.
• Transfer of Title : Examinees will be tested on their knowledge of title insurance, deeds, warranties (including homes under construction), and the process of closing a real estate deal. Other topics in this section include the process of foreclosure.
• Practice of Real Estate : A range of topics make up this section, including escrow accounts, federal laws such as the American Disabilities Act, the importance of honest advertising, and antitrust laws.
• Real Estate Calculations : In this section, an examinee must determine figures such as property taxes, broker commissions, and estimated property values. Candidates will have to demonstrate an understanding of what makes up a mortgage payment, such as principal and interest.

Kentucky Real Estate Broker Exam: State Portion

The Kentucky Real Estate Broker exam: State portion is comprised of 50 questions. In this portion, test takers will have to answer questions that are specific to the laws surrounding brokers and the sale of real estate in Kentucky. The State subtest contains 6 content categories, including:

• Real Estate Commission : Examinees will be tested on their knowledge of topics covering audits, fines, and means of enforcement such as litigation. A candidate will also have to demonstrate an understanding of the scenarios that lead to broker license suspension.
• Requirements for a License : The test taker can expect to see questions related to the renewal of a real estate or brokerage license, the importance of ongoing professional development, and Errors and Omissions insurance.
• Brokerage Activities and Requirements : This section tests an examinee's understanding of the relationship between the broker and the sales associate, recordkeeping, commissions, the ramifications of an unlicensed brokerage, and the broker lien law.
• License Law Requirements for Contracts : Examinees can expect to answer questions regarding sales and listing contracts, including how offers are conducted. This category includes how purchase offers are to be submitted as well as the duties of the licensed broker during the sale or transfer of real estate.
• Disclosures and Agency Issues : This content category covers the importance of several types of real estate disclosures, including if there's any personal gain in the transaction and honesty regarding the property's condition.
• Property Management : This category outlines real estate procedures, general guidelines, and how to safely manage security deposits. A candidate will have to demonstrate an understanding that a written agreement between the broker and the buyer/seller is required to conduct any real estate transaction in the state of Kentucky.