Kentucky Real Estate Broker Exam — All Questions

Kentucky requires a licensee to provide a consumer with the agency-relationship disclosure:

• a.Only after a contract is signed
• b.No later than the point at which specific real estate assistance is first provided, before confidential information is shared✓
• c.Only if the consumer is unrepresented by an attorney
• d.Within 30 days after closing

Kentucky requires licensees to disclose the agency relationship to consumers early—by the time specific real estate assistance is first provided and before the consumer shares confidential information. This lets the consumer understand whether the licensee represents the seller, the buyer, or both before negotiating. The disclosure is documented in writing.

Under Kentucky law, a licensee may act as a dual agent representing both buyer and seller only if:

• a.The transaction is below a set dollar amount
• b.The principal broker files a separate application for each transaction
• c.Both parties give informed written consent to the dual agency✓
• d.The two parties use the same lender

Kentucky permits dual agency only with the informed written consent of both the buyer and the seller. Because a dual agent cannot fully advocate for either party, the licensee must disclose the limited nature of the representation and keep each party's confidential information private. The principal broker is responsible for ensuring affiliated licensees follow these rules.

In Kentucky, when a brokerage designates one licensee to represent the seller and another to represent the buyer in the same transaction, this arrangement is known as:

• a.Designated agency✓
• b.Universal agency
• c.Subagency by the MLS
• d.Nonagency facilitation

Kentucky allows designated agency, in which the principal broker appoints separate affiliated licensees to represent the buyer and the seller in the same transaction, so each consumer receives individual representation while the firm handles both sides. The arrangement must be disclosed and does not eliminate the duties owed to the parties or the escrow requirements.