Determine your answer, then click the arrow to see the correct response.
Which of the Following Is NOT Typically Included in a Standard Property Disclosure Form in Kansas?
A) The current mortgage balance
B) Known defects or issues with the property
C) Past flood or fire damage
D) The seller’s reason for selling the property
Correct Answer: D) The seller’s reason for selling the property
Explanation: The property disclosure form typically includes information about the property’s condition and known issues but does not usually include the seller’s reason for selling.
Which Document Is Used To Formally Transfer Ownership of a Property From Seller to Buyer?
A) Lease Agreement
B) Purchase Agreement
C) Deed
D) Title Report
Correct Answer: C) Deed
Explanation: A Deed is the legal document used to transfer ownership of property from the seller to the buyer.
A Kansas Homeowner Is Selling Their Property and Receives an Offer That Includes an Escalation Clause. What Does This Clause Do?
A) It limits the buyer's offer to the asking price
B) It allows the buyer to increase their offer up to a specified maximum if competing offers are higher
C) It requires the buyer to pay the full asking price
D) It eliminates the need for a down payment
Correct Answer: B) It allows the buyer to increase their offer up to a specified maximum if competing offers are higher
Explanation: An escalation clause enables the buyer to increase their offer automatically in response to higher competing offers, up to a specified limit.
What Is a "Bona Fide" Offer in Real Estate?
A) An offer made with no intention of purchasing
B) An offer made with a serious intent to buy and in good faith
C) An offer that is not in writing
D) An offer with a low purchase price
Correct Answer: B) An offer made with a serious intent to buy and in good faith
Explanation: A bona fide offer is genuine and made with serious intent to purchase the property in good faith.
What Does "Zoning" Refer to in Kansas Real Estate?
A) The process of determining the property’s market value
B) Regulations that dictate land use and property development
C) The appraisal of the property
D) The process of negotiating the sale price
Correct Answer: B) Regulations that dictate land use and property development
Explanation: Zoning refers to regulations that control how land and property can be used and developed, including restrictions on residential, commercial, and industrial uses.
A Kansas Real Estate Agent Is Working With a Buyer Who Wants To Make an Offer on a Property That Is Not Listed on the Market. What Is the Best Course of Action for the Agent?
A) Advise the buyer to wait for the property to be officially listed
B) Assist the buyer in making a direct offer to the property owner
C) Recommend that the buyer look for other available properties
D) Encourage the buyer to wait until the property is officially listed
Correct Answer: B) Assist the buyer in making a direct offer to the property owner
Explanation: If the buyer is interested in a property not currently listed, the agent can assist in making a direct offer to the property owner.
Which Type of Insurance Is Required for All Real Estate Brokers in Kansas?
A) Professional liability insurance
B) Health insurance
C) Property insurance
D) Life insurance
Correct Answer: A) Professional liability insurance
Explanation: Professional liability insurance, also known as errors and omissions insurance, is required for real estate brokers in Kansas to protect against claims of negligence or errors in their professional services.
A Kansas Property Has an Outstanding Lien for Unpaid Property Taxes. Who Is Typically Responsible For Paying Off the Lien at Closing?
A) The buyer
B) The seller
C) The real estate agent
D) The closing agent
Correct Answer: B) The seller
Explanation: Outstanding liens, including unpaid property taxes, are typically the responsibility of the seller to clear before the property can be sold and transferred to the buyer.
Which Document Is Typically Used To Outline the Terms and Conditions of a Rental Agreement Between a Landlord and a Tenant?
A) Purchase Agreement
B) Lease Agreement
C) Listing Agreement
D) Disclosure Statement
Correct Answer: B) Lease Agreement
Explanation: A Lease Agreement is the document used to outline the terms and conditions of a rental arrangement between a landlord and a tenant.
A Kansas Seller Wants To List Their Home for Sale but Has an Existing Lease Agreement With a Tenant. What Should the Real Estate Agent Advise?
A) List the home without informing the tenant
B) Advise the seller to terminate the lease before listing the property
C) Negotiate with the tenant to allow showings while the lease is in effect
D) Ignore the lease and proceed with the sale
Correct Answer: C) Negotiate with the tenant to allow showings while the lease is in effect
Explanation: The agent should advise the seller to negotiate with the tenant to allow showings while respecting the terms of the existing lease agreement.