Kentucky Real Estate Practice Exam
(Free Questions & Answers)
The Kentucky real estate exam is administered by the Kentucky Real Estate Commission (KREC) and emphasizes Kentucky's minimum advertising standards — licensees must include their firm name in all advertising — and Kentucky's specific agency disclosure requirements, which mandate disclosure at the first meaningful contact with a client. The state portion also tests the Kentucky Purchase Agreement for Residential Property form and Kentucky's rules on earnest money handling and disbursement.
Administered by: Kentucky Real Estate Commission (KREC) · 120 questions · Passing score: 70%
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Updated May 2026 · Kentucky Real Estate Commission (KREC) exam outline
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Free Kentucky Real Estate Practice Exam Questions
Test your knowledge with these Kentucky real estate practice questions. Each question is based on topics from the Kentucky Real Estate Commission (KREC) exam and includes detailed explanations.
Q1. Which state agency regulates real estate licenses in Kentucky?
Explanation
The Kentucky Real Estate Commission (KREC) is the state agency responsible for licensing and regulating real estate sales associates and brokers in Kentucky.
Q2. 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.
Q3. Under Kentucky contract law, which of the following makes a contract voidable?
Explanation
A contract signed by a party who lacked legal capacity (such as a minor or someone mentally incapacitated) is voidable at the option of the incapacitated party.
Q4. Private mortgage insurance (PMI) is typically required when:
Explanation
PMI is typically required on conventional loans when the buyer's down payment is less than 20%, protecting the lender against default.
Q5. In Kentucky, which form of co-ownership does NOT include the right of survivorship?
Explanation
Tenancy in common does not include the right of survivorship. Each co-owner's interest passes to their heirs upon death, not to the other co-owners.
Q6. In the cost approach, what is the formula for estimating value?
Explanation
The cost approach formula is: Value = Land Value + Reproduction (or Replacement) Cost − Depreciation. It is often used for special-use or unique properties.
Q7. Redlining is an illegal practice in which:
Explanation
Redlining is the illegal practice of lenders denying loans or insurance in geographic areas based on the racial or ethnic composition of those neighborhoods.
Q8. A quitclaim deed:
Explanation
A quitclaim deed conveys only whatever interest the grantor currently holds — with no warranties of title. It provides the least protection to the buyer.
Q9. A Kentucky home sells for $350,000. The seller pays a 5.5% commission. How much does the seller net after commission?
Explanation
Commission = $350,000 × 0.055 = $19,250. Net to seller = $350,000 − $19,250 = $330,750. To solve this, multiply the relevant values: $350,000 at 5.5%.. The correct answer is $330,750.. This is a common calculation on the Kentucky real estate exam.
Q10. Radon is a naturally occurring radioactive gas that:
Explanation
Radon is a colorless, odorless radioactive gas that enters buildings through foundation cracks and soil. It is the second leading cause of lung cancer in the U.S. and requires testing and mitigation.
Q11. Zoning ordinances are enacted by:
Explanation
Zoning ordinances are enacted by local governments—cities and counties—to regulate land use, building density, and development within their jurisdictions.
Q12. In Kentucky, a person who manages property for others for compensation must hold:
Explanation
In Kentucky, managing real property for others for compensation constitutes real estate brokerage and requires a Kentucky real estate license.
Q13. How many hours of pre-license education are required to sit for the Kentucky real estate sales associate exam?
Explanation
Kentucky requires 96 hours of pre-license education before a candidate may sit for the sales associate licensing exam.
Q14. 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.
Q15. In Kentucky, the Statute of Frauds requires that contracts for the sale of real estate must be:
Explanation
Kentucky's Statute of Frauds requires that contracts for the sale of real property be in writing and signed by the party to be charged (the defendant) to be enforceable.
Q16. What federal law requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?
Explanation
The TRID rule (TILA-RESPA Integrated Disclosure) requires lenders to provide a Loan Estimate within three business days of receiving a completed mortgage application.
Q17. Tenancy by the entirety in Kentucky is available to:
Explanation
Tenancy by the entirety is a form of co-ownership available only to married couples, providing the right of survivorship and protection from individual creditors.
Q18. External (economic) obsolescence in property valuation refers to:
Explanation
External (economic) obsolescence is a loss of value caused by factors outside the property's boundaries, such as a nearby highway, industrial plant, or neighborhood decline.
Q19. Under the Fair Housing Act, 'familial status' protects:
Explanation
Familial status protection under the Fair Housing Act covers households that include one or more children under the age of 18, as well as pregnant women and those in the process of adoption.
Q20. At closing, proration of real estate taxes means:
Explanation
Tax proration divides annual property taxes between the buyer and seller based on their respective periods of ownership during the tax year.
Q21. A property has a net operating income (NOI) of $24,000 and a cap rate of 8%. What is the estimated value?
Explanation
Value = NOI ÷ Cap rate = $24,000 ÷ 0.08 = $300,000. To solve this, multiply the relevant values: $24,000 at 8%.. The correct answer is $300,000.. This is a common calculation on the Kentucky real estate exam.
Q22. Lead-based paint disclosure is federally required for homes built:
Explanation
Federal law (42 U.S.C. §4852d) requires sellers and landlords of housing built before 1978 to disclose known lead-based paint hazards and provide an EPA pamphlet.
Q23. A nonconforming use in zoning law refers to:
Explanation
A nonconforming use was legally established before the current zoning ordinance was enacted. It is generally allowed to continue but may not be expanded or rebuilt if destroyed.
Q24. A property manager's primary duty is to:
Explanation
A property manager acts as the owner's agent and has a fiduciary duty to act in the best interests of the property owner, including maximizing occupancy and protecting the asset.
Q25. The Kentucky real estate sales associate licensing exam consists of how many questions?
Explanation
The Kentucky real estate salesperson exam consists of 130 scored questions: 80 national and 50 state-specific, as specified in the PSI Candidate Information Bulletin.
1,500+ questions · Timed mock exams · Detailed explanations
Kentucky Real Estate Exam — What to Expect
What Is On The Kentucky Real Estate Exam?
The Kentucky real estate salesperson exam is administered by the Kentucky Real Estate Commission (KREC) and tests both national real estate principles and Kentucky-specific laws and regulations. The exam contains 120 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Kentucky — including regulations set by the Kentucky Real Estate Commission (KREC), Kentucky agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Kentucky exam include: Property Ownership, Agency Law, Contracts, Finance, Kentucky License Law. Candidates who struggle on the KY exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Kentucky law questions require targeted preparation.
Official Kentucky Exam Content Areas
Source: Kentucky Real Estate Commission (KREC) · Updated June 2026
| Content Area | Questions |
|---|---|
| National Section (11 PSI topic areas) | 80 |
| Kentucky State Section (KRS Chapter 324, KREC structure, licensing requirements, agency disclosure, trust accounts, prohibited acts) | 40 |
- ▸Administered by PSI; must score 70% on each section — 56/80 national, 28/40 state; sections scored independently
- ▸Kentucky's real estate licensing law is Kentucky Revised Statutes (KRS) Chapter 324 — the Kentucky Real Estate Commission (KREC) administers and enforces it
- ▸Kentucky state section covers KRS 324 licensing requirements, KREC structure and powers, agency disclosure obligations, trust account requirements, disciplinary authority, and prohibited acts
- ▸If one section is passed and one is failed, only the failed section must be retaken — the passing score remains valid for 4 months; after 4 months, both sections must be retaken
- ▸Kentucky's combined time limit of 2.5 hours is shorter than most states (most allow 3.5–4 hours) — practice pacing carefully; the national section (80 q) and state section (40 q) are both administered within this window
- ▸Source: Kentucky Real Estate Commission (krec.ky.gov), KRS Chapter 324, and PSI Candidate Bulletin #2312 (test-takers.psiexams.com)
Practice Kentucky questions by topic — start with Kentucky License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The Kentucky Exam?
The Kentucky real estate salesperson exam has 120 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Kentucky-specific laws administered by the Kentucky Real Estate Commission (KREC). You have 2.5 hours to complete the exam.
Kentucky Real Estate Exam Passing Score
You need a 70% to pass the Kentucky real estate exam. The first-time pass rate in Kentucky is approximately 57%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the KY-specific portion. Our Kentucky practice exam is built specifically around the Kentucky Real Estate Commission (KREC) exam outline.
Read our complete Kentucky exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The Kentucky Exam
These are the areas where Kentucky candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
Kentucky Real Estate Commission's specific licensing categories, supervision requirements, and continuing education mandates are tested. Kentucky's specific timeframes for license renewal and the consequences of late renewal are common exam topics.
Kentucky requires agency disclosure at the first meaningful contact with a potential client — earlier than most states. The specific content of Kentucky's required disclosure and the consequences of failing to disclose are frequently tested.
Kentucky requires licensees to include their firm name in all advertising. Violations of Kentucky's advertising rules are tested on the state exam, and candidates often don't know the specific requirements.
Kentucky's specific rules on earnest money disbursement, dispute resolution, and the broker's responsibilities when a dispute arises between buyer and seller are tested areas on the state portion.
Kentucky Real Estate Math
The Kentucky real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the KY exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your Kentucky Real Estate License
- 1Complete 96 hours of state-approved pre-license education covering topics required by the Kentucky Real Estate Commission (KREC).
- 2Submit your application to the Kentucky Real Estate Commission (KREC) and pay the required fees (exam fee: $100).
- 3Pass the Kentucky real estate salesperson exam (120 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by Kentucky law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Kentucky Real Estate Commission (KREC).
Best Study Strategy For The Kentucky Exam
Start with Kentucky license law first. State-specific regulations administered by the Kentucky Real Estate Commission (KREC) make up a significant portion of the KY exam and are not covered in most national study materials.
Master the math early. The Kentucky real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Kentucky exam has 120 questions within a 2.5 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the KY exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Kentucky law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Kentucky may have additional protected classes. Know both federal and Kentucky-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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