KY Real Estate flashcards
KY Real Estate · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Principal broker
- The licensed broker responsible for a Kentucky brokerage's real estate transactions, escrow account, and supervision of affiliated sales associates and brokers.
- Sales associate
- A Kentucky licensee who must work under and be supervised by a principal broker and may not operate an independent brokerage.
- KREC
- The Kentucky Real Estate Commission, the state agency that licenses real estate brokers and sales associates and enforces Kentucky real estate license law.
- Commingling
- Mixing client or escrow funds with a broker's operating funds; Kentucky brokerage escrow money must be kept in a designated escrow account.
- Unlicensed assistant limits
- An unlicensed assistant may perform clerical tasks but may not negotiate, show property, discuss contract terms, or perform activities requiring a real estate license.
- Agency disclosure guide
- The KREC-prescribed consumer guide that explains seller agency, buyer agency, and dual agency and must be provided to Kentucky consumers under agency rules.
- Continuing education renewal
- Kentucky licensees must satisfy KREC continuing education requirements to renew an active license; an inactive license does not authorize brokerage activity.
- OLD CAR
- A fiduciary duty memory aid: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care owed by an agent to a client.
- Dual agency
- A brokerage represents both buyer and seller in one transaction; Kentucky requires informed written consent from both parties before dual representation.
- Designated agency
- A brokerage assigns different licensees to represent the buyer and seller in the same transaction, reducing conflicts within one firm when state rules permit.
- Confidentiality duty
- The agent must protect client information that could harm the client if disclosed; the duty continues after the agency relationship ends.
- Statute of frauds
- A legal rule requiring certain contracts, including real estate sale contracts, to be in writing and signed by the party to be charged.
- Earnest money
- A buyer's deposit showing commitment to the purchase; it is applied to the price or refunded according to the contract's terms.
- Contract contingency
- A contract condition such as financing, inspection, or appraisal that must be satisfied for the transaction to proceed without breach.
- Fee simple absolute
- The most complete real property estate; it has no fixed ending date and may be inherited by the owner's heirs.
- Life estate
- An estate lasting for the life of a named person; when that life ends, the remainderman receives the property.
- Easement appurtenant
- An easement that benefits a neighboring parcel and passes with ownership of the dominant tenement.
- Lien theory state
- A state such as Kentucky where a mortgage creates a lien and the borrower retains title while the lender holds a security interest.
- Tenants in common
- Co-owners hold separate, possibly unequal shares without survivorship; each owner may transfer or devise their share.
- Deed delivery
- A deed must be delivered to and accepted by the grantee; without delivery, title does not transfer even if the deed is signed.
- Loan-to-value ratio
- Loan amount divided by property value or purchase price, whichever is lower; it measures the lender's risk.
- Discount point
- One percent of the loan amount paid upfront to reduce the interest rate; points are a form of prepaid interest.
- PITI payment
- A monthly housing payment that includes principal, interest, property taxes, and hazard insurance; it is often used in loan qualifying.
- Capitalization rate
- Net operating income divided by property value; value equals net operating income divided by the capitalization rate.
- Sales comparison approach
- An appraisal method estimating value by comparing recent sales of similar properties and adjusting for differences; it is most reliable for owner-occupied homes.
- External obsolescence
- Loss of value caused by factors outside the property, such as neighborhood decline, zoning changes, or market conditions.
- Exclusive right to sell
- A listing agreement paying the broker regardless of who procures the buyer during the listing period.
- Exclusive agency listing
- A listing agreement paying the broker unless the owner personally procures the buyer during the listing period.
- Open listing
- A listing agreement allowing multiple brokers; only the broker who procures the buyer earns the commission.
- Closing Disclosure
- A settlement statement for covered residential loans that must be delivered at least three business days before consummation.
- RESPA kickback rule
- RESPA prohibits giving or receiving fees or things of value for referrals of settlement service business involving a federally related mortgage loan.
- Fair housing classes
- Federal protected classes are race, color, religion, sex, national origin, familial status, and disability; state and local laws may add classes.