Kansas Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. A Kansas buyer offers noncash earnest money. What must occur before the owner accepts the offer?

   • ATell the owner about it and show it in the purchase agreementcorrect
   • BReplace the written agreement with the broker's oral assurance
   • CTreat it as cash unless the owner later objects
   • DDisclose it only to the buyer's lender after closing

   Why: K.S.A. 58-3062 requires communicating noncash earnest money before acceptance and reflecting it in the purchase agreement. Calling it cash would conceal a material payment term.

   Contracts

2. 2. In a Kansas in-house transaction with no designated agents appointed, when must the buyer sign the transaction-broker addendum?

   • AOnly at the transaction's closing
   • BOnly after the seller signs the contract
   • CBefore the offer is writtencorrect
   • DOnly after the lender approves financing

   Why: K.S.A. 58-30,109 requires the buyer's signature before writing the offer and the seller's before signing the contract. The two sides have different triggering events.

   Agency

3. 3. A Kansas transaction broker receives another offer while the property is under a sale contract. What duty does 58-30,113 impose?

   • AAll later offers must be destroyed unread
   • BThe buyer's lender decides whether an offer is presented
   • CTimely presentation of offers and counteroffers continuescorrect
   • DThe broker must accept the new offer for the seller

   Why: K.S.A. 58-30,113 requires timely presentation even while a sale contract exists. Presenting another offer does not give the broker authority to accept it for the seller.

   Agency

4. 4. A Kansas licensee's sibling will acquire an interest in the property being negotiated. Where must the covered interest be disclosed?

   • AOnly on the annual income tax return
   • BOnly in the licensee's private diary
   • CIn the sales contract or leasecorrect
   • DOnly in an oral conversation after recording

   Why: K.A.R. 86-3-19 requires disclosure in the sales contract or lease of existing or future property interests held by the licensee or immediate family, defined as spouse, parent, child or sibling.

   Property disclosures

5. 5. A Kansas license has been continuously deactivated for more than five years. What extra requirement applies in addition to the specified education, fee and application?

   • AThe original-applicant examinationcorrect
   • BOnly a brokerage reference letter
   • COnly payment of the ordinary active renewal fee
   • DNo examination regardless of inactive duration

   Why: K.S.A. 58-3047(g) additionally requires the original-applicant examination for reinstatement after more than 5 continuous deactivated years, along with 6 education hours per inactive year, fee and application.

   Practice of real estate

6. 6. Kansas earnest money is in trust and the transaction has not closed or terminated. No different written agreement exists. May the broker take a commission from it?

   • ANo, the ordinary entitlement has not yet arisencorrect
   • BYes, if the trust account will still have some money
   • CYes, as soon as the buyer signs an offer
   • DYes, whenever the broker has advertised the property

   Why: K.S.A. 58-3061 generally withholds commission entitlement from earnest money until closing or termination unless all parties agree otherwise in writing. A remaining bank balance is not the test.

   Practice of real estate

7. 7. A Kansas written brokerage agreement omits its expiration date. Which term does BRRETA require?

   • AAutomatic annual renewal with no ending date
   • BAn expiration date supplied only after closing
   • CA fixed date of expirationcorrect
   • DAn unlimited term until a party complains

   Why: K.S.A. 58-30,103 requires a fixed expiration date, along with the other specified agreement terms. The agreement cannot leave its duration indefinitely open.

   Contracts

8. 8. A Kansas broker deposits earnest money before the seller accepts the offer. What identifying record does the rule require?

   • AThe same number used for every pending offer
   • BOnly the buyer's Social Security number
   • CA unique transaction number for the offercorrect
   • DNo identifier until the deed is recorded

   Why: K.A.R. 86-3-22(b) requires a unique offer transaction number when earnest money is deposited before acceptance.

   Contracts

9. 9. A Kansas salesperson promises that any buyer will make a guaranteed profit on resale. Which statement is correct?

   • AThe promise is allowed if the buyer uses cash
   • BThe promise is allowed if past local prices increased
   • CThe promise is required when giving a market analysis
   • DGuaranteeing future resale profits is prohibitedcorrect

   Why: K.S.A. 58-3062 prohibits guarantees of future resale profits. Historical appreciation does not make the outcome of a buyer's future resale certain.

   Practice of real estate

10. 10. A Kansas broker will represent a buyer as an agent. By what point must the buyer agency agreement be written?

    • AOnly after the inspection is completed
    • BOnly after the buyer requests a commission refund
    • CNo later than signing an offer to purchasecorrect
    • DOnly after the seller accepts the offer

    Why: K.S.A. 58-30,103 requires the written buyer or tenant agency agreement no later than signing the offer. Acceptance or inspection is a later event and does not satisfy that timing.

    Agency