Kentucky Real Estate Broker — Requirements & Free Practice
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Real Estate Broker License
Kentucky broker licensure, including affiliated and principal broker practice, inactive status, and statutory issuance and restoration pathways.
Licensing authority: Kentucky Real Estate Commission · Application information
Reinstatement within one year after failure to affiliate or enter inactive status
- Individual Requirements
- The Commission describes the reinstatement checklist as generic; individual applicants may accrue additional fees, fines, or documents according to the duration and reason for cancellation.
- Reinstatement
- Pay the applicable fee and submit Form 200 for active affiliation, or Form 201 and Form 203 with ERP coverage for inactive status.
- Status
- Broker license cancelled for the stated reason, with no revocation or suspension and reinstatement within one year of cancellation.
Official no-examination sources
Effective from 2024-04-04.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.160
KRS 324.160(2), cancelled license reissuance
- Current official implementing material checked October 2
Steps to Reinstate a Cancelled License, Reinstatement within one year after failure to affiliate or enter inactive status
Reinstatement within one year after failure to complete Core or continuing education
- Individual Requirements
- The Commission describes the reinstatement checklist as generic; individual applicants may accrue additional fees, fines, or documents according to the duration and reason for cancellation.
- Reinstatement
- Complete delinquent education; enter the applicable written delinquency plan and pay the statutory or regulatory fines and fees; submit affiliation or principal-broker company forms or inactive-status insurance as applicable.
- Status
- Broker license cancelled for the stated reason, with no revocation or suspension and reinstatement within one year of cancellation.
Official no-examination sources
Effective from 2024-04-04.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.160
KRS 324.160(2), cancelled license reissuance
- Current official implementing material checked October 2
Steps to Reinstate a Cancelled License, Reinstatement within one year after failure to complete Core or continuing education
Reinstatement within one year after failure to maintain insurance
- Individual Requirements
- The Commission describes the reinstatement checklist as generic; individual applicants may accrue additional fees, fines, or documents according to the duration and reason for cancellation.
- Reinstatement
- Provide Form 203 with compliant insurance; affiliated brokers submit Form 200; principal brokers submit Form 202 and an acceptance Form 200 for each affiliate; pay the applicable reinstatement fees.
- Status
- Broker license cancelled for the stated reason, with no revocation or suspension and reinstatement within one year of cancellation.
Official no-examination sources
Effective from 2024-04-04.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.160
KRS 324.160(2), cancelled license reissuance
- Current official implementing material checked October 2
Steps to Reinstate a Cancelled License, Reinstatement within one year after failure to maintain insurance
Reinstatement within one year after failure to renew
- Individual Requirements
- The Commission describes the reinstatement checklist as generic; individual applicants may accrue additional fees, fines, or documents according to the duration and reason for cancellation.
- Reinstatement
- Submit renewal Form 208; for an affiliated active broker submit acceptance Form 200 and insurance Form 203; for a principal broker submit company Form 202, affiliate acceptance forms, insurance and the stated fees.
- Status
- Broker license cancelled for the stated reason, with no revocation or suspension and reinstatement within one year of cancellation.
Official no-examination sources
Effective from 2024-04-04.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.160
KRS 324.160(2), cancelled license reissuance
- Current official implementing material checked October 2
Steps to Reinstate a Cancelled License, Reinstatement within one year after failure to renew
New issuance after missing the education suspension reinstatement period
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Experience
- Sales associate experience averaging at least 20 hours a week for 24 months before application; submit the notarized principal-broker statement or other commission-accepted documentation.
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
- Status
- Failed to reinstate within 90 days after the end of an education-related suspension; the license is cancelled and initial-licensure requirements apply, including retaking the examination.
Reinstatement within 90 days after an education related suspension
- Documents Fees
- Submit all documents required for reinstatement, pay all reactivation, renewal and transfer fees, and comply with all Commission orders.
- Education
- Complete all delinquent mandatory education.
- Examination Authority
- KRS 324.045(2) does not extend the general renewal examination exemption to suspended licenses; Section 13(9) supplies the specific timely reinstatement requirements.
- Status
- Suspension imposed under 201 KAR 11:210 Section 13; apply within 90 days following its expiration.
Official no-examination sources
Effective from 2019-12-16.
- 201 KAR 11:210
201 KAR 11:210 Section 13(9)(a)-(c), exhaustive timely reinstatement
- KRS 324.045
KRS 324.045(2), renewal examination exemption
New broker issuance after expiration or cancellation exceeding one year
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Commission Checklist Conflict
- The Commission generic Steps to Reinstate a Cancelled License document says: "If a license has been cancelled for longer than one (1) year, the individual must obtain a National Criminal History Check, pass the sales associate licensing exam, and submit an application to KREC." That sales-associate examination belongs to another profession and is a condition only. The higher-ranked broker licensure provisions and the broker initial-licensure rule carry this broker route.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Experience
- Sales associate experience averaging at least 20 hours a week for 24 months before application; submit the notarized principal-broker statement or other commission-accepted documentation.
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
- Status
- Broker license expired or cancelled for more than one year; meet current initial issuance requirements and re-sit the appropriate broker examination.
Reactivation of an expired license before a one year lapse
- Active Requirements
- Meet applicable active-license requirements, including education, E&O, affiliation or principal-broker company information.
- Fees
- Pay delinquent fees and the applicable late-renewal fine.
- Status
- Expired license with a lapse of less than one year.
Official no-examination sources
Effective from 2020-01-01.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.090
KRS 324.090(3), reactivation before a one-year lapse
- KRS 324.160
KRS 324.160(2), cancellation reissuance within one year
Initial licensure by examination
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Experience
- Sales associate experience averaging at least 20 hours a week for 24 months before application; submit the notarized principal-broker statement or other commission-accepted documentation.
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
Initial licensure with discretionary degree based experience reduction
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Experience
- The Commission may reduce the experience requirement to one year for an applicant with an associate degree in real estate or a baccalaureate degree with a real estate major or minor; reduction is discretionary under KRS 324.046(4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
Automatic continuation and renewal during active duty
- Duration
- Continue throughout active duty and at least six months after discharge.
- Prior License
- In good standing and duly Kentucky-licensed when activated into Armed Forces active duty.
- Renewal
- Renew without dues, fees, or other typical renewal acts; continuing education is excused when military circumstances prevent it and a waiver is requested, or when the licensed occupation is performed as military duty documented in DD-214.
Official no-examination sources
Effective from 2011-06-08.
- KRS 12.355
KRS 12.355(1)-(3), active-duty continuation and renewal
- KRS 12.010
KRS 12.010(8), administrative body definition
Military connected equivalent license recognition
- Compact
- A qualifying interstate-compact license instead follows the compact and applicable statutes under KRS 12.245(4).
- Decision
- Issuance within 30 days of a complete application unless a listed exception applies; the Commission may deny upon substantive evidence of significant training, education or experience deficiency creating a health or safety risk.
- License Held
- Equivalent license from another United States jurisdiction, active or expired for less than two years, in good standing; no disciplinary suspension.
- Military Eligibility
- United States military, Reserve or National Guard member, veteran, or spouse of a member or veteran.
- Proof
- Submit license and good-standing evidence and DD-214 or other qualifying military-service proof, or orders documenting transfer to a Kentucky military assignment.
Official no-examination sources
Effective from 2024-07-15.
- KRS 12.245
KRS 12.245(1), mandatory equivalent-license issuance and exceptions
- KRS 12.245
KRS 12.245(2), documentary requirements
- KRS 12.010
KRS 12.010(8), administrative body definition
Expedited regular broker issuance for a qualifying military spouse
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Military Spouse
- Married to a current Armed Forces member assigned to a Kentucky duty station; hold a valid equivalent broker license from another United States jurisdiction; meet statutory broker qualifications and submit the prescribed application.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Processing Fees
- Issue within 30 days without dues or fees under KRS 12.357(1); for regular electronic issuance or renewal, refund required fees within 30 days when subsection (4) conditions are met.
Regular renewal with military spouse fee protection
- Course Assessments
- Any examination attached to a chosen continuing-education course is an educational completion condition; the official renewal provision does not identify a separate statewide examination.
- Education
- Comply with KRS 324.085 as amended effective July 15, 2026: 12 hours per biennial period, six in the first year, six of the 12 in law; extra biennial hours may be accumulated in the first year. The older 201 KAR 11:210 Section 11(1) states: 'Three (3) of the hours of continuing education shall be in law, and three (3) of the hours of continuing education may be electives.' It requires six hours each year. Those implementation terms remain stated for the applicant, with current KRS 324.085 controlling. Complete the Kentucky Core course every four years unless exempt.
- Fee Refund
- If electronic application requires fees, refund those fees within 30 days when KRS 12.357(4)(a) conditions are met.
- Insurance
- Maintain the required active E&O coverage or inactive ERP coverage and provide insurance certification when required.
- Military Spouse
- Spouse of a current Armed Forces member; meet regular broker renewal statutory requirements and submit the prescribed renewal application before the regular deadline.
- Prior License
- Current Kentucky broker license that has not been revoked or suspended and has not expired without renewal for more than one year.
- Renewal
- Renew biennially by March 31 in an even-numbered year using the portal or KREC Form 208; pay applicable fees and verify contact information.
Official no-examination sources
Effective from 2026-07-15.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.090
KRS 324.090(1), biennial renewal
- 201 KAR 11:210
201 KAR 11:210 Section 8(1)-(4), renewal procedure
- KRS 12.357
KRS 12.357(4), regular issuance and renewal qualifications and refunds
- KRS 12.010
KRS 12.010(8), administrative body definition
- KRS 324.085
KRS 324.085(1)(a)-(d), current biennial continuing education
Regular broker issuance with qualifying military training and experience
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Examination Nonwaiver
- Military training and experience cannot substitute for a specified examination prerequisite under KRS 12.354(5)(b).
- Experience
- Sales associate experience averaging at least 20 hours a week for 24 months before application; submit the notarized principal-broker statement or other commission-accepted documentation.
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Military Training
- Military member or veteran separated with an honorable, under honorable conditions, or general under honorable conditions discharge within two years; submit DD-214 or proof of qualifying training. The Commission may accept military training, education and experience satisfying its statutory requirements and may deny insufficient equivalence.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
Reactivation of an inactive broker license
- Criminal History
- Submit an acceptable criminal-record check under KRS 324.310(4)(a).
- Education
- Complete Core if it has not been taken in four years; if inactive more than one education cycle, complete Core plus six elective continuing-education hours; pre-June 19, 1976 licensees retain the statutory education exemption.
- Fees Insurance
- Pay reactivation fees, meet requirements applicable to active licensees, and provide compliant E&O coverage.
- Status
- Hold an inactive broker license and request active status through Form 201 or the portal.
Official no-examination sources
Effective from 2021-01-01.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.310
KRS 324.310(3)-(4), exhaustive reactivation requirements
- 201 KAR 11:210
201 KAR 11:210 Section 10(4)-(5), inactive reactivation
Reciprocal issuance under Kentucky agreement for Florida license holders
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Agreement Eligibility
- The Kentucky Commission requires an active Florida broker license for at least 2 years immediately before the application under its named agreement or memorandum; eligibility is assessed by Kentucky.
- Agreement Review
- Review the Kentucky Commission named agreement or memorandum to determine qualification; submit license history, insurance, criminal-history check, and required fees.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Reciprocal Law Course
- Complete the 40-hour reciprocal license law course through a KREC-approved provider and submit its completion certificate.
Reciprocal issuance under Kentucky agreement for Illinois license holders
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Agreement Eligibility
- The Kentucky Commission requires an active Illinois broker license for at least 2 years immediately before the application under its named agreement or memorandum; eligibility is assessed by Kentucky.
- Agreement Review
- Review the Kentucky Commission named agreement or memorandum to determine qualification; submit license history, insurance, criminal-history check, and required fees.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Reciprocal Law Course
- Complete the 40-hour reciprocal license law course through a KREC-approved provider and submit its completion certificate.
Reciprocal issuance under Kentucky agreement for Mississippi license holders
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Agreement Eligibility
- The Kentucky Commission requires an active Mississippi broker license for at least 2 years immediately before the application under its named agreement or memorandum; eligibility is assessed by Kentucky.
- Agreement Review
- Review the Kentucky Commission named agreement or memorandum to determine qualification; submit license history, insurance, criminal-history check, and required fees.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Reciprocal Law Course
- Complete the 40-hour reciprocal license law course through a KREC-approved provider and submit its completion certificate.
Reciprocal issuance under Kentucky agreement for Ohio license holders
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Agreement Eligibility
- The Kentucky Commission requires an active Ohio broker license for at least 2 years immediately before the application under its named agreement or memorandum; eligibility is assessed by Kentucky.
- Agreement Review
- Review the Kentucky Commission named agreement or memorandum to determine qualification; submit license history, insurance, criminal-history check, and required fees.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Reciprocal Law Course
- Complete the 40-hour reciprocal license law course through a KREC-approved provider and submit its completion certificate.
Reciprocal issuance under Kentucky agreement for Tennessee license holders
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Agreement Eligibility
- The Kentucky Commission requires an active Tennessee broker license for at least 3 years immediately before the application under its named agreement or memorandum; eligibility is assessed by Kentucky.
- Agreement Review
- Review the Kentucky Commission named agreement or memorandum to determine qualification; submit license history, insurance, criminal-history check, and required fees.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Reciprocal Law Course
- Complete the 40-hour reciprocal license law course through a KREC-approved provider and submit its completion certificate.
Reciprocal issuance from an active equivalent license
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
Biennial renewal of an active broker license
- Course Assessments
- Any examination attached to a chosen continuing-education course is an educational completion condition; the official renewal provision does not identify a separate statewide examination.
- Education
- Comply with KRS 324.085 as amended effective July 15, 2026: 12 hours per biennial period, six in the first year, six of the 12 in law; extra biennial hours may be accumulated in the first year. The older 201 KAR 11:210 Section 11(1) states: 'Three (3) of the hours of continuing education shall be in law, and three (3) of the hours of continuing education may be electives.' It requires six hours each year. Those implementation terms remain stated for the applicant, with current KRS 324.085 controlling. Complete the Kentucky Core course every four years unless exempt.
- Insurance
- Maintain the required active E&O coverage or inactive ERP coverage and provide insurance certification when required.
- Prior License
- Current Kentucky broker license that has not been revoked or suspended and has not expired without renewal for more than one year.
- Renewal
- Renew biennially by March 31 in an even-numbered year using the portal or KREC Form 208; pay applicable fees and verify contact information.
Official no-examination sources
Effective from 2026-07-15.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.090
KRS 324.090(1), biennial renewal
- 201 KAR 11:210
201 KAR 11:210 Section 8(1)-(4), renewal procedure
- KRS 324.085
KRS 324.085(1)(a)-(d), current biennial continuing education
- 201 KAR 11:210
201 KAR 11:210 Section 11(1), annual education implementation
Biennial renewal while inactive
- Course Assessments
- Any examination attached to a chosen continuing-education course is an educational completion condition; the official renewal provision does not identify a separate statewide examination.
- Education
- An inactive licensee is exempt from continuing education while inactive, except education required for subsequent reactivation.
- Insurance
- Maintain the required active E&O coverage or inactive ERP coverage and provide insurance certification when required.
- Prior License
- Current Kentucky broker license that has not been revoked or suspended and has not expired without renewal for more than one year.
- Renewal
- Renew biennially by March 31 in an even-numbered year using the portal or KREC Form 208; pay applicable fees and verify contact information.
- Status
- License remains inactive; do not engage in brokerage for others; pay biennial renewal fees.
Official no-examination sources
Effective from 2019-12-16.
- KRS 324.045
KRS 324.045(2), renewal examination exemption
- KRS 324.090
KRS 324.090(1), biennial renewal
- 201 KAR 11:210
201 KAR 11:210 Section 8(1)-(4), renewal procedure
- KRS 324.310
KRS 324.310(2), inactive status conditions
- 201 KAR 11:210
201 KAR 11:210 Section 12(5), inactive education exemption
Discretionary reissuance at least five years after revocation
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Experience
- Sales associate experience averaging at least 20 hours a week for 24 months before application; submit the notarized principal-broker statement or other commission-accepted documentation.
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
- Revocation
- At least five years must have passed after revocation; another license is solely at Commission discretion, and the applicant must retake the appropriate examination and meet contemporary licensing requirements.
Temporary Real Estate Broker License
Temporary occupational licensure authorized by KRS 12.354 or KRS 12.357, applied to Kentucky real estate brokers; issuance remains subject to the qualifications and discretion of the applicable statute.
Licensing authority: Kentucky Real Estate Commission
Temporary broker issuance for a qualifying military spouse
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Education
- Provide proof of 21 academic credit hours or equivalent approved through a reciprocity agreement, under 201 KAR 11:210 Section 3(3)(c) and (4).
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- License Held
- An active equivalent real estate license from another United States jurisdiction and certification issued within the preceding 90 days; furnish license history and disciplinary information for every jurisdiction where previously licensed.
- Management Exemption
- The Commission Brokerage Management page states: "The regulation does not apply to broker candidates who are applying for a license through reciprocity." KRS 324.141(1)(a)3 nevertheless requires all other pre-license qualifications and KRS 324.046(1)(a) names broker management. The requirement retains the management assessments on those statutory terms; the applicant should use the Commission stated exemption or commission-approved education equivalence as applicable.
- Military Spouse
- Spouse of a current Armed Forces member assigned to a Kentucky duty station with a valid broker license from another United States jurisdiction; satisfy Kentucky statutory broker requirements.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- National Portion
- Only the state-law portion is involved in reciprocal licensure under KRS 324.141(1)(a)2 and 201 KAR 11:210 Section 3(3)(d).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Processing Fees
- Issue within 30 days of the qualifying application without dues or fees.
- Temporary Term
- Temporary license expires six months after issuance and is not renewable under KRS 12.357(3).
Discretionary temporary broker issuance based on military training
All of the following:
- Active Practice Status
- An affiliated broker practices under a principal broker; a principal broker must satisfy the office, escrow, and company-information requirements applicable to that status.
- Application
- Submit the Score Report/License Application and all applicable supporting documents and fees; passing required portions is valid for 60 days.
- Character
- Honesty, truthfulness, good reputation, trustworthiness, and competence under KRS 324.045.
- Criminal History
- Request the national criminal history check before the licensure examination; the report must be obtained within the 90 days preceding the license application.
- Discretion
- Temporary issuance is discretionary; insufficient military equivalence may be denied, and specified examination prerequisites cannot be replaced by military experience.
- Education
- At least 21 academic credit hours or equivalent: nine academic credit hours of real estate courses excluding sales associate prelicense education, three of Broker Management, and nine commission-approved broker electives; no duplicate course credit.
- Experience
- Sales associate experience averaging at least 20 hours a week for 24 months before application; submit the notarized principal-broker statement or other commission-accepted documentation.
- High School
- High school diploma or its equivalent under KRS 324.040(3).
- Insurance
- Active licensure requires compliant errors and omissions insurance; inactive status requires one year of extended reporting period coverage.
- Management Final
- Pass the currently offered management-course final; course completion predates the license application. A prior passing course result remains relevant even if the applicant need not retake it.
- Management Project
- Pass the individual course practicum or project before sitting the management final.
- Military Training
- KRS 12.354 permits temporary issuance for a military member or veteran with qualifying separation within two years and military training, education, and experience satisfying broker requirements; submit DD-214 or other training proof.
- Minimum Age
- At least 18 years of age under KRS 324.040(3).
- Nonresident Consent
- A nonresident applicant must file Consent to Jurisdiction and Service of Process, KREC Form 205.
- Portion Timing
- Pass both licensure portions within four months of passing the first; then apply within 60 days. After three failures of a required portion, wait at least 30 days before retaking.
Temporary Principal Broker Status
Commission-permitted principal-broker closing status for an affiliated licensee after death or incapacity; this authorization is limited to closing the existing business and does not represent ordinary initial broker licensure.
Licensing authority: Kentucky Real Estate Commission
Temporary authorization to close a deceased or incapacitated principal broker business
- Affiliation
- A sales associate affiliated with the principal broker at the time of death or incapacity; the rule describes an affiliated licensee requesting this status.
- Discretion Application
- The Commission decides permission on the merits of each case; submit Notification of Death or Incapacity of a Licensee, Form 206.
- Scope
- Complete and close only the then-existing business, for no more than six months.
Official no-examination sources
Effective from 2019-12-16.
- KRS 324.425
KRS 324.425, temporary permission to close a deceased or incapacitated principal broker business
- 201 KAR 11:210
201 KAR 11:210 Section 15(1)-(2), temporary principal broker status
Broker Management Skills Course Final Examination
- Provider
- Commission-approved broker education provider
- Format
- Comprehensive closed-book multiple-choice final examination
- Exam questions
- At least 75 multiple-choice questions
- Passing score
- At least 75 percent
Examination outline
Broker Management Skills
- Leadership and management skills
- Communications and decision-making
- Analyzing the business environment
- Analyzing the market
- Developing a business plan, including structuring the organization, business systems, and finances
- Business policies and procedures
- Marketing and advertising
- The practical and legal realities of staffing
- Recruiting, selecting, and hiring the staff
- Professional development
- Critiquing operations
- Managing risk
Examination sources
- 201 KAR 11:170
201 KAR 11:170 Section 7(2)(e)1-3, approved final examination
- 201 KAR 11:170
201 KAR 11:170 Section 7(2)(c)1-12, management course scope
- 201 KAR 11:170
201 KAR 11:170 Section 7(2)(e)4-6, final examination retakes
Broker Management Skills Course Scenario-Based Practicum or Project
This assessment does not have a question bank.
- Provider
- Commission-approved broker education provider
- Format
- Individual practicum or project
- Passing score
- Pass on a pass-fail scale
Examination sources
- 201 KAR 11:170
201 KAR 11:170 Section 7(2)(d), practicum and pass-fail assessment
Kentucky Real Estate Broker Examination — State Portion
- Provider
- PSI Services LLC
- Format
- Computer-administered written examination
- Exam questions
- 50 scored state questions; 5 to 10 experimental questions may be administered and are unscored
- Time limit
- 90 minutes for the state portion
- Passing score
- At least 75% correct
Examination outline
Real Estate Commission (Broker 7 Items)
- General Powers
- General Powers — Authority to issue licenses
- General Powers — Examination and audit of records
- General Powers — Administration of Education, Research, and Recovery Fund
- Enforcement Powers
- Enforcement Powers — Investigations, hearings, and appeals, emergency suspension
- Enforcement Powers — Sanctions
- Sanctions — Fines
- Sanctions — License suspension, revocation, and other action
- Sanctions — Criminal action
Requirements for a License (Broker 8 Items)
- Activities requiring a license
- Eligibility
- Renewal of license
- License procedures
- License procedures — License changes and information to be reported
- License procedures — Inactive license
- Continuing and post-license education
- Errors & Omissions insurance, ERP required to deactivate license
- Criminal background check
Brokerage Activities and Requirements (Broker 18 Items)
- Broker/sales associate relationship
- Broker/sales associate relationship — Team and group management and rules (broker only)
- Commissions
- Advertising
- Handling of monies
- Handling of documents
- Place of business
- Records
- Escrow accounts
- Improper conduct
- Unlicensed assistants
- Broker lien law
- Zero (no-call) list
- Brokerage management (broker only)
- Unlicensed brokerage
License Law Requirements for Contracts (Broker 6 Items)
- Statute of Frauds
- Listing contracts
- Purchase contracts
- Purchase contracts — Submission of offers
- Purchase contracts — Finance provisions
- Purchase contracts — Other required provisions
- Licensee Duties
Disclosures and Agency Issues (Broker 8 Items)
- Agency relationships, requirements, and disclosure
- Disclosures of personal interests in real estate transactions
- Condominium seller certificates
- Seller disclosure of property condition
- Other disclosure issues (stigmatizing factors)
Property Management (Broker 3 Items)
- Must have written agreement
- Procedures and guidelines
- Handling of security deposits
Examination sources
- PSI Candidate Information Bulletin
Printed page 10, left column, Kentucky state outline heading
- PSI Candidate Information Bulletin
Printed page 10, Kentucky State Content Outline, Real Estate Commission section heading
- PSI Candidate Information Bulletin
Printed page 10, Kentucky State Content Outline, Requirements for a License section heading
- PSI Candidate Information Bulletin
Printed page 10, Kentucky State Content Outline, Brokerage Activities and Requirements section heading
- PSI Candidate Information Bulletin
Printed page 10, Kentucky State Content Outline, License Law Requirements for Contracts section heading
- PSI Candidate Information Bulletin
Printed page 10, Kentucky State Content Outline, Disclosures and Agency Issues section heading
- PSI Candidate Information Bulletin
Printed page 10, Kentucky State Content Outline, Property Management section heading
- PSI Candidate Information Bulletin
Printed page 6, right column, Score Reporting, pass standard
- PSI Candidate Information Bulletin
Printed page 6, left column, computer administration
- PSI Candidate Information Bulletin
Printed page 7, examination summary table, state items and points
- Current official implementing material checked October 2
KY Broker, Test Portions, State
- PSI Candidate Information Bulletin
Printed page 2, left column, reciprocity candidates test only the state portion
- PSI Candidate Information Bulletin
Printed page 2, left column, reciprocal registration request
National Broker Exam — National Portion (Real Estate Principles and Practices)
- Provider
- PSI Services LLC
- Format
- National portion of state real estate broker licensing examinations with its own minimum passing score; scenario-based questions with more than four options and one best answer, each option weighted zero, one or two points; candidates who fail one portion retake only that portion
Examination outline
I. Property Ownership (Broker 10%) (10%)
- A. Real and personal property; conveyances
- B. Land characteristics and legal descriptions: 1. Metes and bounds method of legal property description; 2. Lot and block (recorded plat) method of legal property description; 3. Government survey (rectangular survey) method of legal property description; 4. Measuring structures (linear and square footage); 5. Land measurement
- C. Encumbrances and effects on property ownership: 1. Types of liens and their effect on the title and value of real property; 2. Easements, rights of way and licenses, including their effect on the title, value and use of real property; 3. Encroachments and their effect on the title, value and use of real property; 4. Potential encumbrances on title, such as probate, leases, or adverse possession; 5. Property rights that may be conveyed separately from use of the land surface, such as mineral and other subsurface rights, air rights, or water rights
- D. Types of ownership: 1. Ownership in severalty/sole ownership; 2. Implications of ownership as tenants in common; 3. Implications of ownership in joint tenancy; 4. Forms of common-interest ownership, such as Timeshares, Condominiums and Co-ops; 5. Property ownership held in a trust or by an estate; 6. Ownership by business entities; 7. Life Estate ownership
II. Land use Controls (Broker 5%) (5%)
- A. Government rights in land: 1. Government rights to impose property taxes and special assessments; 2. Government rights to acquire land through eminent domain, condemnation and escheat
- B. Government controls on land use
- C. Private controls: 1. Deed conditions or restrictions on property use; 2. Subdivision covenants, conditions and restrictions (CC&Rs) on property use; 3. Condominium and owners’ associations regulations or bylaws on property use
III. Valuation (Broker 8%) (8%)
- A. Appraisals: 1. Appraisals for valuation of real property; 2. Situations which require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice; 3. General steps in appraisal process
- B. Estimating Value: 1. Economic principles and property characteristics that affect value of real property; 2. Sales or market comparison approach to property valuation and appropriate uses; 3. Cost approach to property valuation and appropriate uses; 4. Income analysis approach to property valuation and appropriate uses
- C. Comparative Market Analysis (CMA): 1. Competitive/Comparative Market Analysis (CMA), BPO or equivalent; 2. Automated Valuation Method (AVM), appraisal valuation and Comparative Market Analysis (CMA)
IV. Financing (Broker 9%) (9%)
- A. Basic Concepts and Terminology: 1. Loan financing (for example, points, LTV, PMI, interest, PITI); 2. General underwriting process (e.g., debt ratios, credit scoring and history); 3. Standard mortgage/deed of trust clauses and conditions; 4. Essential elements of a promissory note
- B. Types of Loans: 1. Conventional loans; 2. Amortized loans, partially amortized (balloon) loans, interest-only loans; 3. Adjustable-rate mortgage (ARM) loans; 4. Government Loans — a. FHA insured loans; b. VA guaranteed loans; c. USDA/Rural Development loan programs; 5. Owner financing (for example, installment or land contract/contract for deed); 6. Reverse-mortgage loans; 7. Home equity loans and lines of credit; 8. Construction loans; 9. Rehab loans; 10. Bridge loans
- C. Financing and Lending: 1. Real Estate Settlement Procedures Act (RESPA), including kickbacks; 2. Truth-in-Lending Act (Regulation Z), including advertising; 3. Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures); 4. Equal Credit Opportunity Act; 5. Lending Process (application through loan closing); 6. Risky loan features, such as prepayment penalties and balloon payments
V. Contracts (Broker 19%) (19%)
- A. General Contract Law: 1. General principles of contract law; 2. Elements necessary for a contract to be valid; 3. Effect of the Statute of Frauds; 4. Offer and a contract; 5. Enforceability of contracts; 6. Void, voidable and unenforceable contracts; 7. Bilateral and unilateral contracts; 8. Nature and use of option agreements; 9. Notice, delivery, acceptance and execution of contracts; 10. Appropriate use, risks, and advantages of electronic signatures and paperless transactions; 11. Rights and obligations of the parties to a contract; 12. Possible remedies for breach or non-performance of contract; 13. Termination, rescission and cancellation of contracts
- B. Purchase and Lease Contracts: 1. Addenda and amendments to contracts; 2. Purchase agreements; 3. Contract contingencies and methods for satisfying them; 4. Leases and rental agreements; 5. Lease-purchase agreements; 6. Types of leases
- C. Proper handling of multiple offers and counteroffers
VI. Agency (Broker 13%) (13%)
- A. Agency and non-agency relationships: 1. Agency relationships and how they are established; 2. Types of listing contracts; 3. Buyer brokerage/tenant representation contracts; 4. Other brokerage relationships, including transaction brokers and facilitators; 5. Powers of attorney and other assignments of authority; 6. Conditions for termination of agency or brokerage service agreements
- B. Agent Duties: 1. Fiduciary duties of agents; 2. Agent's duties to customers/non-clients, including honesty and good faith
- C. Agency Disclosures: 1. Disclosure of agency/representation; 2. Disclosure of possible conflict of interest or self-interest
VII. Property Disclosures (Broker 7%) (7%)
- A. Property Condition: 1. Seller's property condition disclosure requirements; 2. Property conditions that may warrant inspections or a survey; 3. Red flags that warrant investigation of public or private land use controls
- B. Environmental and Government Disclosures: 1. Environmental issues requiring disclosure; 2. Federal, state, or local disclosure requirements regarding the property
- C. Disclosure of material facts and material defects
VIII. Property Management (Broker 5%) (5%)
- A. Duties and Responsibilities: 1. Procurement and qualification of prospective tenants; 2. Fair housing and ADA compliance specific to property management; 3. How to complete a market analysis to identify factors in setting rents or lease rates; 4. Property manager responsibility for maintenance, improvements, reporting and risk management (BROKER ONLY); 5. Handling landlord and tenant funds; trust accounts, reports and disbursements (BROKER ONLY); 6. Provisions of property management contracts (BROKER ONLY)
- B. Landlord and tenant rights and obligations
IX. Transfer of Title (Broker 6%) (6%)
- A. Types of deeds
- B. Title Insurance and Searches: 1. Title insurance policies and title searches; 2. Potential title problems and resolutions; 3. Marketable and insurable title
- C. Closing Process: 1. When transfer of ownership becomes effective; 2. Process and importance of recordation; 3. Settlement procedures (closing) and parties involved; 4. Home and new construction warranties
- D. Special Processes: 1. Special issues in transferring foreclosed properties; 2. Special issues in short sale transactions; 3. Special issues in probate transactions
X. Practice of Real Estate (Broker 12%) (12%)
- A. Antidiscrimination: 1. Federal Fair Housing Act general principles and exemptions; 2. Protected classes under Federal Fair Housing Act; 3. Protections against discrimination based on gender identity and sexual orientation; 4. Prohibited conduct under Federal Fair Housing Act (Redlining, Blockbusting, Steering, Disparate Treatment); 5. Fair housing advertising rules; 6. Americans with Disabilities Act (ADA) obligations pertaining to accessibility and reasonable accommodations
- B. Legislation and Regulations: 1. Licensees’ status as employees or independent contractors; 2. Antitrust laws and types of violations, fines and penalties; 3. Do-Not-Call List rule compliance; 4. Proper use of Social Media and Internet communication and advertising
- C. Duties and Responsibilities: 1. Protection of confidential personal information (written, verbal or electronic); 2. Duties when handling funds of others in transactions; 3. Licensee responsibility for due diligence in real estate transactions
- D. Supervisory Responsibilities (BROKER ONLY): 1. Broker's supervisory responsibilities (licensees, teams and unlicensed assistants and employees) (BROKER ONLY); 2. Broker relationship with licensees (employees or independent contractors and governing rules) (BROKER ONLY)
XI. Real Estate Calculations (Broker 6%) (6%)
- A. Calculations for Transactions: 1. Seller’s net proceeds; 2. Buyer funds needed at closing; 3. Real property tax and other prorations; 4. Real property transfer fees; 5. PITI (Principal, Interest, Taxes and Insurance) payments estimate given loan rate and term
- B. General Concepts: 1. Equity; 2. Rate of return/Capitalization rate; 3. Loan-to-Value ratio; 4. Discount points and loan origination fees
Examination sources
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
Description of Examinations and Examination Content Outlines, section I heading
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
National portion content outline, section XI heading
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
National portion content outline, section X.D heading
- PSI Services LLC, Georgia Real Estate Candidate Information Bulletin
Content Outlines, national portion heading
- PSI Services LLC, Georgia Real Estate Candidate Information Bulletin
National portion content outline, section V heading
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
Examination Summary Table note
- PSI Services LLC, Georgia Real Estate Candidate Information Bulletin
Description of Examinations, scenario-based items
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
Score Reporting, passing requirement
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
License Application Instructions, retake rule
- PSI Services LLC, Virginia Real Estate Candidate Information Bulletin
Introduction, examinations and portions