National Contracts + Agency
32%of exam
ContractsAgencyOffersFiduciary duties
National Property + Title
21%of exam
OwnershipLand controlsDeedsClosing
National Finance + Value
25%of exam
ValuationFinancingPITIProrations
National Practice + Disclosures
22%of exam
Fair housingDisclosuresProperty managementAdvertising
Kentucky Law + Brokerage
Not publishedof exam
KRECLicensingEscrowState contracts
Quick Facts
- Exam
- Sales Associate
- Provider
- PSI for KREC
- Items
- 80 general + 50 state
- Time
- 150 + 90 minutes
- Pass
- 75% correct minimum
- Education
- 96 hours or six credits
- Partial pass
- Four-month window
- Application
- 60 days after passing
Contract Sequence
Offer -> acceptance -> enforceable agreement
Offer: proposalAcceptance: assentConsideration: value
National Concept Picker
- Ownership restriction→Check encumbrance
- Value estimate→Choose valuation approach
- Loan question→Compare financing terms
- Binding agreement→Test contract elements
- Representation issue→Identify agency duty
- Closing math→Compute prorations
Contract Basics
- Offer
- Proposed agreement
- Acceptance
- Unqualified assent
- Consideration
- Bargained-for value
- Statute of Frauds
- Writing requirement
- Void
- Never legally valid
- Voidable
- One party may rescind
Agency Basics
- Seller agent
- Represents seller
- Buyer agent
- Represents buyer
- Dual agent
- Represents both parties
- Transaction broker
- Nonagency facilitation
- Fiduciary duty
- Client-first duty
- Agency disclosure
- Relationship notice
Title Transfer Scan
Deed -> record -> title review
Deed: conveyRecord: noticeTitle: defects
Easement vs Encroachment
Easement
- Use right
- No ownership transfer
Encroachment
- Physical intrusion
- Boundary problem
Right vs intrusion
Property Ownership
- Real property
- Land plus attachments
- Personal property
- Movable property
- Fixture
- Attached personal property
- Easement
- Nonpossessory use right
- Encroachment
- Physical boundary intrusion
- Life estate
- Ownership for life
Land Use + Title
- Police power
- Regulate health and safety
- Eminent domain
- Public taking power
- Escheat
- Property returns to state
- Deed
- Conveys ownership interest
- Recordation
- Public notice process
- Title insurance
- Title-defect protection
PITI Payment Parts
PITI: principal, interest, taxes, insurance
P: principalI: interestT: taxesI: insurance
CMA vs Appraisal
CMA
- Broker market estimate
- Comparable listings/sales
Appraisal
- Value opinion
- Licensed appraisal context
Estimate vs appraisal
Valuation Tools
- Appraisal
- Value opinion
- CMA
- Broker market estimate
- Sales comparison
- Compare similar sales
- Cost approach
- Replacement cost less depreciation
- Income approach
- Income-based value
- AVM
- Automated value estimate
Note vs Mortgage
Note
- Promise repayment
- Evidence of debt
Mortgage
- Secures debt
- Property collateral
Promise vs security
Financing + Math
- Promissory note
- Promise to repay
- Mortgage
- Debt security instrument
- PITI
- Principal interest taxes insurance
- LTV
- Loan divided by value
- Points
- Loan cost percentage
- Proration
- Closing-period allocation
National Practice
- Fair Housing Act
- Federal discrimination law
- Steering
- Channeling protected buyers
- Blockbusting
- Fear-based solicitation
- Redlining
- Area-based lending denial
- Material defect
- Important condition fact
- Do Not Call
- Telemarketing compliance
Kentucky Deadline Pair
Four months, then 60 days
Four: partial pass60: application
Dual vs Designated Agency
Dual agency
- Both parties represented
- Limited fiduciary capacity
Designated agency
- Different affiliated licensees
- Separate client representation
One role vs separate roles
Kentucky License Path
- Need prelicense route→96 hours or six credits
- Before exam reservation→Initiate FBI report
- Before exam reservation→Finish required education
- Pass one portion→Retake failed portion(Four-month window)
- Pass both portions→Apply within 60 days
- Fail a portion three times→Wait 30 calendar days
KREC Licensing
- KREC
- Kentucky licensing commission
- Sales associate
- Kentucky entry license
- Prelicense route
- 96 hours or six credits
- FBI report
- Initiate before reservation
- Passing validity
- 60 days
- Third failure
- 30-day wait
Sales Associate vs Principal Broker
Sales associate
- Entry-level Kentucky license
- Broker affiliation
Principal broker
- Supervises affiliation
- Brokerage responsibility
Affiliate vs supervisor
Kentucky Compliance Picker
- Handle contract deposit→Use broker escrow account
- Firm serves both sides→Check dual-agency consent
- Designated agents involved→Protect confidential information
- Advertise listed property→Identify affiliated firm
- Affiliation ends→Confirm license status
- Possible license violation→Expect KREC action
Kentucky Brokerage
- Principal broker
- Supervising broker
- Affiliation
- Broker supervision relationship
- Escrow account
- Broker-held contract funds
- Designated agency
- Separate firm representatives
- License status
- Active or inactive
- KREC sanction
- Discipline for violations
Earnest Money vs Commission
Earnest money
- Contract deposit
- Escrow handling
Commission
- Brokerage compensation
- Agreement-based payment
Deposit vs compensation
Kentucky State Outline
- KREC powers
- 5 state items
- License requirements
- 10 state items
- Brokerage activities
- 18 state items
- State contracts
- 6 state items
- State agency
- 8 state items
- Property management
- 3 state items
Common Traps
Old exam structure
80 + 50 current ≠ Not 80 + 40
CMA vs appraisal
CMA estimates market ≠ Appraisal gives value opinion
Mortgage vs note
Mortgage secures debt ≠ Note promises payment
Right vs intrusion
Easement permits use ≠ Encroachment crosses boundary
Partial vs complete pass
One pass: four months ≠ Both passes: 60 days
Dual vs designated
Dual: both parties ≠ Designated: separate licensees
License vs affiliation
KREC issues license ≠ Broker supervises affiliate
Last Minute
- 1.80 general + 50 state
- 2.150 + 90 minutes
- 3.75% correct minimum
- 4.Contracts + agency: 32%
- 5.Finish education before booking
- 6.Initiate FBI report before booking
- 7.Partial pass: four months
- 8.Complete pass: apply 60 days
- 9.Third failure: wait 30 days
- 10.State items: 5-10-18-6-8-3
- 11.PSI outline: current source
Pre-licensing on Colibri
Study guide on MometrixSame family resources
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