Kentucky · Real estate exam prep
20 free Kentucky practice questions with no signup required. When you're ready for more, the full RealReady bank has 1,045 questions for the 2026 exam that cover both national principles and Kentucky law.
Practice
Use this like a free Kentucky real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.
Correct: B Prosecuting criminal cases in court
KREC can refer cases for criminal prosecution but does not prosecute cases itself. KREC's powers include licensing, auditing, investigating, and conducting administrative hearings.
Correct: B Commingling of client funds
Commingling means mixing money belonging to others with personal or business funds. KRS 324.111(1) requires all contract deposits and money belonging to others to be kept in an escrow account separate from personal or office accounts. Violating that requirement is grounds for discipline under KRS 324.160(4)(t), and failing to account for or remit others' money is separately covered by KRS 324.160(4)(h).
Correct: B Affiliation with a principal broker
A Kentucky sales associate must be affiliated with a principal broker before they can practice. The license must be held under the principal broker.
Correct: D Notify KREC of the transfer
When a sales associate transfers to a new brokerage, they must notify KREC of the change. The license must be held under the new principal broker.
Correct: A $100,000 per claim
Kentucky requires all active licensees to maintain E&O insurance with a minimum of $100,000 per claim, excluding investigation and defense costs.
Correct: C Transactional brokerage
In transactional brokerage (limited service), the licensee owes only duties of good faith and fair dealing. The party is NOT a client, and no fiduciary relationship exists.
Correct: C No, all commissions go through the broker
In Kentucky, all commissions must be paid through the principal broker. A client cannot pay a sales associate directly — compensation flows from the principal broker.
Correct: C Within the State of Kentucky
All escrow accounts must be maintained within the State of Kentucky. This ensures KREC can effectively audit and oversee the accounts.
Correct: C The company or principal broker's name registered with KREC
201 KAR 11:105 Section 2(2) requires every advertisement to include the full name of the real estate brokerage company registered with the commission, or the full name of the principal broker registered with the commission with a clear designation of principal broker status. This applies to all advertising, including print, internet, and social media.
Correct: B Failure to present all offers
Licensees must present all written offers to the seller without delay, regardless of the offer amount, unless the seller has waived or modified that duty in writing (201 KAR 11:121 §2). Failing to submit an offer is treated as gross negligence under KRS 324.160(4)(v).
Correct: C All contracts for the sale of real property
Kentucky's Statute of Frauds requires all contracts for the sale of real property to be in writing to be enforceable, regardless of the property value.
Correct: D KREC Form 402
KREC Form 402 is the Seller's Disclosure of Property Condition form. Form 400 is the agency disclosure ('A Guide to Agency Relationships').
Correct: D Full disclosure of their licensed status
Licensees must disclose any personal interest in a transaction. When buying or selling their own property, they must fully disclose their status as a licensed real estate professional.
Correct: C Yes, a real estate license is required
Property management activities require a real estate license in Kentucky. There is no separate property management license category. Limited exemptions exist under KRS 324.030(5) for regular salaried employees of the owner and for on-site managers compensated primarily with use of a rental unit.
Correct: D Licensing and regulating real estate agents
KREC's primary function is licensing and regulating real estate brokers and sales associates in Kentucky. It issues licenses, conducts investigations, and enforces KRS Chapter 324.
Correct: A Paying a commission to an unlicensed person
Paying commissions to unlicensed persons for brokerage activities is a specific ground for discipline. Licensees may set any commission rate and may decline listings.
Correct: C Real estate brokerage requiring a license
HB 62 (2023) defines advertising for sale an equitable interest in a purchase contract as real estate brokerage. Wholesalers must hold a license or engage a licensed broker.
Correct: A Report the change to KREC
Licensees must report address, name, or brokerage changes to KREC. This keeps the Commission's records accurate for communication and enforcement purposes.
Correct: B File KREC Form 203 annually
Licensees with private E&O coverage must file KREC Form 203 (Certification of Insurance Coverage) annually to verify their coverage meets minimum requirements.
Correct: D No, the broker cannot be a designee
In Kentucky, the principal broker cannot designate himself/herself as a designated agent. The principal broker acts in a limited fiduciary capacity as a dual agent overseeing the transaction.
The RealReady app has all 1,045 questions covering both national real estate principles and Kentucky-specific law. The full app also includes:
Unlike other real estate prep apps, we don't cut off access or charge a monthly subscription fee. It's a one-time $17.99, and it's yours forever.
About the exam
Kentucky sets its real estate exam pass mark at 75% on each portion, higher than the 70% many neighboring states accept, and the national and state portions are scored separately, so memorizing national content alone won't be enough to pass. That makes Kentucky-specific preparation matter as much as the national material.
Kentucky's exam leans hard on KRS Chapter 324 and the Commission's own regulations, the Real Estate Education, Research and Recovery Fund, mandatory agency disclosure and the way Kentucky treats single and dual agency, the broker's statutory lien, escrow and trust-account handling, advertising rules, the seller's disclosure of property condition, and the no-call list. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need Kentucky-specific practice questions.
FAQ
The Kentucky Real Estate Sales Associate Examination has 120 scored multiple-choice questions, split into an 80-question national portion (general real estate principles) and a 40-question Kentucky state portion (laws, rules, and Commission regulations). PSI may also add 5 to 10 unscored experimental questions that look identical to the scored ones, which is why you'll sometimes see the test described as having around 130 questions. Those extra items don't count toward your score and the time you spend on them isn't held against you.
You need at least 75% correct on each portion, scored separately. The national and state portions are graded independently, so a strong national score won't carry a weak state score. If you pass one portion and fail the other, you only retake the part you failed, as long as you pass both within four months of passing the first one. Miss that window and you have to sit both portions again.
The PSI examination fee is $100, and that single fee covers you whether you sit one portion or both on the same day. Registration fees are not refundable and expire one year after you register, so a failed retake means another $100 registration.
Four hours (240 minutes) total when you take both portions in one sitting. PSI allots 150 minutes for the 80-question national portion and 90 minutes for the 40-question Kentucky portion. You take it on a computer at a PSI testing center, with Kentucky sites in Louisville, Lexington, Bowling Green, Paducah, Somerset, and Maysville (plus nearby out-of-state PSI centers such as Cincinnati and Nashville), and you get your pass or fail result on screen before you leave.
The Kentucky Real Estate Sales Associate Examination is administered by PSI for the Kentucky Real Estate Commission (KREC). You register and schedule your exam date through PSI.
The state portion is where most first-time candidates lose ground. The 80-question national portion is the same general real estate content you'd see on any PSI exam, but Kentucky's 40 state-law questions are dense. The biggest single bucket is brokerage activities and requirements, 14 questions covering how licensees handle monies, escrow accounts, advertising, recordkeeping, the broker's lien, and unlicensed assistants, and that's where candidates who only studied national principles get caught. Honest practice on a Kentucky-specific practice exam is the difference between passing on the first try and retaking the $100 exam.
The 80-question national portion covers property ownership, land-use controls, valuation and market analysis, financing, general principles of agency, property condition and disclosures, transfer of title, the practice of real estate, contracts, and real estate math, in the proportions PSI sets in its general content outline. The 40-question Kentucky portion is weighted by PSI as roughly 14 items on brokerage activities and requirements, 7 items on the Kentucky Real Estate Commission's powers and the Recovery Fund, 7 items on license requirements, 5 items on license-law requirements for contracts, 4 items on disclosures and agency issues, and 3 items on property management.
After finishing your 96-hour Kentucky pre-license course, the highest-leverage thing you can do is grind through Kentucky-specific practice questions with honest feedback on every miss. Generic real estate practice tests will help with the national portion but won't catch you on Kentucky's rules, especially the brokerage-activity and Commission topics that make up more than half of the state portion. The RealReady app gives you the full bank of Kentucky questions plus the national bank, with progress tracking and a missed-question mode so you can drill what you're weak on. Most users study 30 to 60 minutes a day for 2 to 4 weeks before sitting the exam.
The 20 Kentucky practice questions on this page are free, no account or signup needed. Unlocking the rest of the Kentucky bank is a single in-app purchase you pay once and own, with no recurring charge and no time limit on access.
Yes. RealReady has a dedicated Kentucky question bank built for the Kentucky real estate exam, covering the national principles every candidate sees plus the Kentucky law that trips people up, like KRS Chapter 324 and the Commission's regulations, the Real Estate Education, Research and Recovery Fund, and the broker's statutory lien.
No. RealReady is exam practice, not a pre-license course, so it doesn't count toward Kentucky's required pre-license education hours. Use it after or alongside your coursework to drill realistic practice questions and find your weak spots before exam day.
