Kansas Real Estate Salesperson Exam — All Questions

When a Kansas salesperson receives an earnest-money deposit, the funds must be:

• a.Kept by the salesperson until closing
• b.Deposited into the salesperson's personal account
• c.Delivered to the supervising broker to be held in the broker's trust account✓
• d.Mailed to the Kansas Real Estate Commission

Earnest money and other client funds must be handled through the supervising broker's trust (escrow) account. A salesperson must deliver received funds promptly to the broker, who must keep trust money separate from personal and business funds. Commingling or converting trust money is a serious violation of Kansas license law.

How much of a Kansas broker's own money may sit in the firm's trust account?

• a.Nothing at all
• b.Up to $500
• c.Up to $100 for account upkeep✓
• d.Up to one month of expected commissions

Commingling is a prohibited act, except that a broker may keep an amount not exceeding $100 in the trust account to pay expenses for the use and maintenance of the account. Cite: K.S.A. 58-3062(a)(2).

Absent a written agreement of all parties setting another date, when must a Kansas licensee deposit earnest money?

• a.By the end of the next banking day
• b.Within five business days after all parties sign✓
• c.Within three calendar days after all parties sign
• d.Within ten business days after all parties sign

It is a prohibited act to fail to deposit a check or cash taken as earnest money or as a lot deposit within five business days after the purchase or lot reservation agreement is signed by all parties, unless a written agreement of all parties sets a different date. Cite: K.S.A. 58-3062(a)(19).

A Kansas sale collapses and the buyer demands the earnest money back. From the broker's trust account, that deposit may be released only:

• a.On the buyer's written demand alone
• b.After the broker decides who defaulted on the contract
• c.Thirty days after the contract is formally cancelled
• d.By both parties in writing, court order, or closing✓

Once an accepted offer's earnest money is in the trust account, it may be disbursed only under written authorization of buyer and seller, under a court order, or when the transaction closes according to the parties' agreement. Cite: K.S.A. 58-3061(g).

Kansas law sets out optional contract language that treats silence as consent to distribute earnest money. What deadlines does that language use?

• a.Seven days to answer the letter, 30 days to demand✓
• b.Three days to answer the letter, 15 days to demand it
• c.Ten days to answer, 45 days to demand
• d.Fourteen days to answer the letter, 60 days to demand

The statute lets the parties agree in the sales contract that failing to answer the broker's certified letter within seven days of receipt, or failing to make written demand within 30 days of notice of cancellation, is consent to the distribution proposed. Cite: K.S.A. 58-3061(h).

A Kansas salesperson has a signed counteroffer that belongs in the transaction file. How soon must it reach the supervising or branch broker?

• a.The same business day
• b.Within five business days
• c.Within ten business days✓
• d.Before the transaction closes

A salesperson or associate broker commits a prohibited act by failing to submit to the supervising or branch broker, within 10 business days, any document that must be kept in the broker's transaction records; the clock starts when the client signs or when the document is presented. Cite: K.S.A. 58-3062(b)(6).

A Kansas broker collects an advance listing fee. What reporting does the license act require?

• a.A single accounting when the listing ends
• b.An itemized written report every 30 days and at the end✓
• c.A quarterly report filed with the commission
• d.A written report only if the principal requests one

A broker may not fail to give the principal a written report every 30 days, along with a final report, itemizing the disbursements made from advance listing fees. Cite: K.S.A. 58-3062(c)(5).

Kansas requires specific language in every contract for the sale of residential real estate. What does it tell the buyer?

• a.That radon testing is recommended before closing
• b.That the buyer should obtain an independent appraisal
• c.That the seller has completed a condition report
• d.That offender registration information is available✓

Each residential sales contract must state that Kansas law requires people convicted of certain crimes, including certain sexually violent crimes, to register with the sheriff of the county where they live, and that the buyer may get that information from the KBI homepage or the local sheriff. Cite: K.S.A. 58-3078(a).

A Kansas salesperson is selling her own house, which is not listed with any broker. What must her yard sign and online ad do?

• a.Say that a real estate licensee owns the property✓
• b.Carry the supervising broker's trade name only
• c.Carry the trade name and the ownership notice
• d.Carry neither; an unlisted owner sale is exempt

Advertising need not carry the supervising broker's trade name when the property is personally owned by the licensee and is not listed with a broker, but all advertising the licensee causes must clearly inform the public that a real estate licensee owns or has an interest in the property. Cite: K.S.A. 58-3086(c) and (e).