Kentucky Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Kentucky real estate exam, and it's also one of the most misunderstood. The Kentucky Real Estate Commission (KREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Kentucky law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for KY-specific rules are among the most common failures on the state portion.
Kentucky Exam Study Resources
Everything you need to pass — in one place.
Kentucky Agency — Practice Questions & Answers
118 questions on Agency from the Kentucky real estate question bank. First 10 are free — sign up to unlock all 118.
Q1. In Kentucky, the Seller's Disclosure of Conditions form is required for:
Explanation
Kentucky requires sellers to complete a Seller's Disclosure of Conditions form for most residential property transfers, giving buyers material information about the property.
Q2. In Kentucky, which agency relationship allows a licensee to work with both the buyer and seller without representing either as a fiduciary?
Explanation
Transaction brokerage (also called non-agency) in Kentucky allows a licensee to assist both parties without acting as a fiduciary for either side.
Q3. Which fiduciary duty requires a Kentucky agent to place the client's interests above all others, including the agent's own?
Explanation
The fiduciary duty of loyalty requires the agent to place the client's interests above all others, including the agent's own financial interests.
Q4. An agent who discloses a buyer's financial desperation to a seller is violating the duty of:
Explanation
Disclosing a buyer's confidential information (such as their willingness to pay more) violates the agent's fiduciary duty of confidentiality owed to the buyer.
Q5. In Kentucky, a buyer's agent has a duty to disclose to their buyer client:
Explanation
A buyer's agent in Kentucky has a duty to disclose all material facts known about the property and the transaction that could affect the buyer's decision.
Q6. An agency relationship may be terminated by:
Explanation
An agency relationship may be terminated by completion of the agency's purpose, expiration of the contract term, mutual agreement, death or incapacity of either party, or breach of the agreement.
Q7. In Kentucky, a 'disclosed limited agent' represents:
Explanation
A disclosed limited agent in Kentucky represents both the buyer and seller in the same transaction, but only with the written informed consent of both parties.
Q8. Which of the following is NOT a fiduciary duty owed by an agent to their client?
Explanation
Profit maximization for the agent is never a fiduciary duty. The fiduciary duties are loyalty, disclosure, obedience, confidentiality, reasonable care, and accounting.
Q9. An agent's duty to 'account' means the agent must:
Explanation
The duty to account requires the agent to keep accurate records of all money and property entrusted to them and to provide accounting statements to the client upon request.
Q10. Subagency exists when:
Explanation
Subagency occurs when one broker acts on behalf of another broker's client, typically when a selling broker is a subagent of the listing broker and thus represents the seller.
Q11. A buyer's representation agreement in Kentucky:
108 more Agency questions
Create a free account to unlock all 118 Kentucky Agency questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Kentucky topics