Kansas Real Estate Practice Test

Correct: B Take and file an oath of office

K.S.A. 74-4201(b) requires each member, before entering upon the duties of office, to take and file with the commission an oath to faithfully perform those duties. Members are appointed by the Governor; Kansas law does not require Senate confirmation for KREC appointments.

Correct: A No, owners selling their own property are exempt

Property owners dealing with their own real estate are exempt from licensing requirements. A license is required when someone lists, sells, buys, or leases real estate for another person for compensation.

Correct: C Fraud in a real estate transaction

Under K.S.A. 58-3050, fraud in a real estate transaction is a specific ground for discipline by KREC. Falsifying documents to conceal material facts constitutes fraud.

Correct: B Compensate consumers harmed by licensee misconduct

The Kansas Real Estate Recovery Fund exists to protect consumers who suffer financial losses due to the misconduct of licensed real estate professionals, funded by licensee assessments under K.S.A. 58-3066.

Correct: B Duty of disclosure to the client

A seller's agent owes full fiduciary duties to the seller, including disclosure of all material information that could benefit the client's position, such as the buyer's willingness to pay more.

Correct: C At the first practical opportunity

K.S.A. 58-30,110 requires licensees to furnish prospective buyers and sellers with the brokerage relationships brochure at the first practical opportunity. Receipt must later be acknowledged by the buyer and seller in any contract for sale.

Correct: B Designate separate licensees for each party

When both buyer and seller are clients of the same brokerage in Kansas, the broker may designate separate affiliated licensees to represent each party. Each designated agent then owes full fiduciary duties to their assigned client, preserving advocacy for both sides.

Correct: B A prohibited blind ad

Kansas prohibits blind ads, which are advertisements that fail to clearly identify the responsible broker. All advertising, including social media posts, must include the broker's name so consumers know which brokerage is responsible for the listing.

Correct: C The broker and client by negotiation

In Kansas, real estate commissions are freely negotiable between the broker and the client. There is no standard, set, or prescribed rate. KREC does not establish commission rates, nor does any MLS board or state statute mandate a specific percentage.

Correct: B Grounds for license discipline by KREC

K.S.A. 58-3062 provides that substantial misrepresentation or fraud in a real estate transaction constitutes grounds for discipline by KREC. Discipline can include suspension, revocation, or other penalties, but the statute does not mandate automatic revocation or a specific fine amount.

Correct: D Commingling of trust funds

Depositing trust funds into a personal account constitutes commingling, which is a prohibited act under Kansas law. Trust funds must be kept in a separate, designated trust account and never mixed with personal or operating funds.

Correct: C A separate designated trust account

K.S.A. 58-3061 requires every broker to maintain a separate trust account specifically designated as such. This account must be distinct from the broker's personal and operating accounts to protect client funds.

Correct: C No, but industry practice uses a disclosure form

Kansas does not have a mandatory statutory seller disclosure law. However, industry practice widely uses a Seller Property Condition Disclosure Statement. Sellers are expected to disclose known material defects even without a statutory mandate.

Correct: A A licensee repeatedly violates the same regulation

KREC issues Summary Proceeding Orders — expedited orders under K.S.A. 77-537 — when a licensee repeatedly violates the same statute or regulation, when a violation is egregious, or when a violation is found while reviewing a license application. The order takes effect unless the licensee requests a hearing before the deadline.

Correct: A No, attorneys in their practice are exempt

Attorneys acting within the scope of their law practice are exempt from real estate licensing requirements. This does not extend to acting as a real estate broker outside their legal duties.

Correct: A Felony conviction is grounds for discipline

Under K.S.A. 58-3050(b), KREC must suspend or revoke the license of any licensee who pleads guilty or nolo contendere to, or is convicted of, any felony — related to real estate or not. Discipline is mandatory but not automatic: the commission must act and chooses between suspension and revocation.

Correct: A Attempt collection via writ of execution

Before claiming from the Recovery Fund, the claimant must obtain a final court judgment, then attempt to collect through a writ of execution. Only after these efforts fail can the claimant seek Recovery Fund payment.

Correct: A Loyalty, disclosure, confidentiality, accounting

K.S.A. 58-30,107 requires a buyer's agent to promote the client's interests with utmost good faith, loyalty and fidelity, disclose adverse material facts, and account for money and property received; subsection (c) adds confidentiality of client information.

Correct: B No, it was due at first practical opportunity

K.S.A. 58-30,110(a)(2) requires licensees to furnish a prospective seller with the brokerage relationships brochure at the first practical opportunity. A full in-person listing consultation is past that point, so the requirement was missed.

Correct: C Full fiduciary duties

In Kansas designated agency, only the designated agent has the duties of a seller's agent. Under K.S.A. 58-30,106, Kim must promote the seller's interests with utmost good faith, loyalty and fidelity, present all offers, keep the seller's confidences, account for funds, and disclose known adverse material facts.