OpenExamsFREE PRACTICE — ANY EXAM

Montana Real Estate Broker — Requirements & Free Practice

US-MT · License preparation

346 free questions · Answer explanations · No signup required

Choose what to practice

Start with an exam below. Your examination requirements depend on your application pathway. View licensing requirements

Combined practice

Loading selected examination banks…

Licenses, application pathways and examination requirements

Each license and applicant pathway has its own requirements and exemptions. Choosing practice questions does not determine your eligibility.

Real Estate Broker

Montana broker licence, including active and inactive status.

Licensing authority: Montana Board of Realty Regulation · Application information

Annual renewal of active broker licence
No examination is required for this applicant pathway.
Annual Deadline
Renew by October 31; the Board opens renewal 60 days beforehand.
Education
Active brokers obtain 12 hours of real estate continuing education each licensing year; four hours for supervising brokers are supervising-broker education.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Renewal Form Fees
Submit completed renewal form and applicable renewal fee under MCA 37-1-141(2).

Official no-examination sources

Effective from 2026-09-22.

Licensure by endorsement / out of state waiver process
Application
Submit the Board-approved application, required documents and $90 application fee.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience Documentation
Submit the Board’s completed transaction sheets and supporting points documents; the Board determines equivalency and any applicable relief from education/experience requirements.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Other Jurisdiction Licence
Hold a current active licence in good standing. Under MCA 37-1-304 the Board compares current licensing qualifications for substantial equivalency and considers actual qualifications and work experience for a deficiency.
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Substantial Equivalency
ARM 24.210.612, effective February 21, 2026, adopts the Board’s 2025 substantial-equivalency publication. Applications from individuals licensed in substantially equivalent jurisdictions are routine as to education, examination and experience; other matters may make them nonroutine. No other jurisdiction’s credential or examination was investigated in this survey.
Waiver Checklist
The December 2025 Out-of-State Licensee/Waiver Process checklist states: "Exam results of passing the Montana state portion of the Broker examination." ARM 24.210.611(7) states: "All waiver applicants will be required to pass the state examination." These specify the state result for waiver applicants. The national examination reference is retained under the general national-and-Montana requirement in amended ARM 24.210.602(1); whether the applicant must sit it or receives recognition/waiver is an applicant condition.
Reactivate expired broker licence
No examination is required for this applicant pathway.
Education Certification
Meet accrued certification and educational requirements since last grant or renewal.
Fees
Pay current renewal and late penalty fees.
Renewal Form
Submit the completed renewal form.
Time Limit
Within two years after the renewal date; a terminated licence cannot be reactivated.

Official no-examination sources

Effective from 2026-09-22.

Annual renewal of inactive broker licence
No examination is required for this applicant pathway.
Deadline
October 31 each year.
Education
No continuing education need be obtained until conversion to active status under amended ARM 24.210.624(4).
Fee
Submit completed renewal form and the applicable inactive renewal fee.
Inactive Licence
Renew each year to prevent lapse, expiration or termination. No licensed practice is permitted while inactive.

Official no-examination sources

Effective from 2026-09-22.

Place existing broker licence on inactive status
No examination is required for this applicant pathway.
Status Change
Be a licensed broker not engaged in licensed activities; request inactive status on the Board change form and pay applicable fee. This is a status change of the existing licence.

Official no-examination sources

Effective from 2026-09-22.

Reactivate inactive broker licence
No examination is required for this applicant pathway.
Education
Complete the education that would have been required while active, capped at 24 credits.
Fee
Pay the required fee under ARM 24.210.401.
Form
Request active status on a Board-approved form.
Insurance
Submit proof of current professional liability/errors and omissions insurance.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure by examination
Age
At least 18 years of age: MCA 37-51-302(2)(a).
Application
Submit the Board-approved application, required documents and $90 application fee.
Broker Education
60 classroom or equivalent hours beyond salesperson education, in a Board-approved course taught by approved instructors, including passage of the course-material examination. The course examination has no independently identified registered identity and remains an applicant condition. ARM 24.210.611(9)(a) and the December 2025 checklist require the approved 60 hours within the preceding 18 months.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience
Two years actively licensed as a salesperson, or Board-determined equivalent experience or special education; the Board may waive experience if local conditions prevented salesperson employment: MCA 37-51-302(2)(c).
Experience Points
Provide Board forms establishing 30 points in any combination of qualifying transaction, education, supervision and educator points within the preceding 36 months under ARM 24.210.611(9). Residential transactions count one point and farm/ranch/agricultural/commercial transactions three; no more than five leases in each transaction category. Credit for both sides requires satisfactory evidence; team credit is prorated. Educational credits and supervision/educator limits follow the Board checklist. Applicant-owned, employer-owned and mortgage-broker-only transactions do not qualify.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Reputation
The Board must consider the applicant of good repute and competent; provide information needed to determine honesty, trustworthiness and competency: MCA 37-51-302(1), (3).
School Education
Accredited high school graduation or Board-determined equivalent education: MCA 37-51-302(2)(b).
Reactivate lapsed broker licence
No examination is required for this applicant pathway.
Education Certification
Comply with all applicable certification and educational requirements.
Fees
Pay current renewal and late penalty fees.
Renewal Form
Submit the completed renewal form.
Time Limit
Within 45 days after the renewal date.

Official no-examination sources

Effective from 2026-09-22.

Permanent licensure by military reciprocity
Application
Submit the Board-approved application, required documents and $90 application fee.
Board Determination
The Board may issue the permanent licence when licensing requirements are substantially equivalent; otherwise it may issue the temporary form while specific requirements are completed. Pending disciplinary charges or impairment disqualify the statutory privilege.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience Documentation
Submit the Board’s completed transaction sheets and supporting points documents; the Board determines equivalency and any applicable relief from education/experience requirements.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Military Eligibility
MCA 37-1-147 applies to eligible military members, military spouses and relocated honorably discharged applicants holding an out-of-state or United States territorial licence in good standing. Supply military status, station-transfer or relocation information as applicable.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Other Jurisdiction Licence
Hold a current active licence in good standing. Under MCA 37-1-304 the Board compares current licensing qualifications for substantial equivalency and considers actual qualifications and work experience for a deficiency.
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Substantial Equivalency
ARM 24.210.612, effective February 21, 2026, adopts the Board’s 2025 substantial-equivalency publication. Applications from individuals licensed in substantially equivalent jurisdictions are routine as to education, examination and experience; other matters may make them nonroutine. No other jurisdiction’s credential or examination was investigated in this survey.
Waiver Checklist
The December 2025 Out-of-State Licensee/Waiver Process checklist states: "Exam results of passing the Montana state portion of the Broker examination." ARM 24.210.611(7) states: "All waiver applicants will be required to pass the state examination." These specify the state result for waiver applicants. The national examination reference is retained under the general national-and-Montana requirement in amended ARM 24.210.602(1); whether the applicant must sit it or receives recognition/waiver is an applicant condition.
New original licence after termination
Age
At least 18 years of age: MCA 37-51-302(2)(a).
Application
Submit the Board-approved application, required documents and $90 application fee.
Broker Education
60 classroom or equivalent hours beyond salesperson education, in a Board-approved course taught by approved instructors, including passage of the course-material examination. The course examination has no independently identified registered identity and remains an applicant condition. ARM 24.210.611(9)(a) and the December 2025 checklist require the approved 60 hours within the preceding 18 months.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience
Two years actively licensed as a salesperson, or Board-determined equivalent experience or special education; the Board may waive experience if local conditions prevented salesperson employment: MCA 37-51-302(2)(c).
Experience Points
Provide Board forms establishing 30 points in any combination of qualifying transaction, education, supervision and educator points within the preceding 36 months under ARM 24.210.611(9). Residential transactions count one point and farm/ranch/agricultural/commercial transactions three; no more than five leases in each transaction category. Credit for both sides requires satisfactory evidence; team credit is prorated. Educational credits and supervision/educator limits follow the Board checklist. Applicant-owned, employer-owned and mortgage-broker-only transactions do not qualify.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Reputation
The Board must consider the applicant of good repute and competent; provide information needed to determine honesty, trustworthiness and competency: MCA 37-51-302(1), (3).
School Education
Accredited high school graduation or Board-determined equivalent education: MCA 37-51-302(2)(b).
Terminated Licence
The earlier licence terminated after two unrenewed years and cannot be reactivated. Reapply and meet current initial licensing requirements. A separately qualified holder of another active licence may use the endorsement route and its waiver conditions.

Probationary Real Estate Broker License

Broker licence issued for a probationary period imposed by the Board, not exceeding three years.

Licensing authority: Montana Board of Realty Regulation · Application information

Endorsement with a Board imposed probationary period
Application
Submit the Board-approved application, required documents and $90 application fee.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience Documentation
Submit the Board’s completed transaction sheets and supporting points documents; the Board determines equivalency and any applicable relief from education/experience requirements.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Other Jurisdiction Licence
Hold a current active licence in good standing. Under MCA 37-1-304 the Board compares current licensing qualifications for substantial equivalency and considers actual qualifications and work experience for a deficiency.
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Probation
Under MCA 37-1-312(1)(h), comply with a Board-ordered probationary period of no more than three years.
Substantial Equivalency
ARM 24.210.612, effective February 21, 2026, adopts the Board’s 2025 substantial-equivalency publication. Applications from individuals licensed in substantially equivalent jurisdictions are routine as to education, examination and experience; other matters may make them nonroutine. No other jurisdiction’s credential or examination was investigated in this survey.
Waiver Checklist
The December 2025 Out-of-State Licensee/Waiver Process checklist states: "Exam results of passing the Montana state portion of the Broker examination." ARM 24.210.611(7) states: "All waiver applicants will be required to pass the state examination." These specify the state result for waiver applicants. The national examination reference is retained under the general national-and-Montana requirement in amended ARM 24.210.602(1); whether the applicant must sit it or receives recognition/waiver is an applicant condition.
Initial licensure with a Board imposed probationary period
Age
At least 18 years of age: MCA 37-51-302(2)(a).
Application
Submit the Board-approved application, required documents and $90 application fee.
Broker Education
60 classroom or equivalent hours beyond salesperson education, in a Board-approved course taught by approved instructors, including passage of the course-material examination. The course examination has no independently identified registered identity and remains an applicant condition. ARM 24.210.611(9)(a) and the December 2025 checklist require the approved 60 hours within the preceding 18 months.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience
Two years actively licensed as a salesperson, or Board-determined equivalent experience or special education; the Board may waive experience if local conditions prevented salesperson employment: MCA 37-51-302(2)(c).
Experience Points
Provide Board forms establishing 30 points in any combination of qualifying transaction, education, supervision and educator points within the preceding 36 months under ARM 24.210.611(9). Residential transactions count one point and farm/ranch/agricultural/commercial transactions three; no more than five leases in each transaction category. Credit for both sides requires satisfactory evidence; team credit is prorated. Educational credits and supervision/educator limits follow the Board checklist. Applicant-owned, employer-owned and mortgage-broker-only transactions do not qualify.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Probation
Under MCA 37-1-312(1)(h), the Board may issue the applicant’s licence for a probationary period not exceeding three years. Comply with the individual Board order.
Reputation
The Board must consider the applicant of good repute and competent; provide information needed to determine honesty, trustworthiness and competency: MCA 37-51-302(1), (3).
School Education
Accredited high school graduation or Board-determined equivalent education: MCA 37-51-302(2)(b).
Annual renewal during probationary broker licensure
No examination is required for this applicant pathway.
Annual Deadline
Renew by October 31; the Board opens renewal 60 days beforehand.
Education
Active brokers obtain 12 hours of real estate continuing education each licensing year; four hours for supervising brokers are supervising-broker education.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Probation
Continue compliance with the Board order throughout its probationary period, which cannot exceed three years.
Renewal Form Fees
Submit completed renewal form and applicable renewal fee under MCA 37-1-141(2).

Official no-examination sources

Effective from 2026-09-22.

Provisional Real Estate Broker License

Department-authorized provisional form of the broker licence while a statutory condition is pending; the Board also describes a 60-day licence pending licence verification.

Licensing authority: Montana Board of Realty Regulation · Application information

Provisional out of state / licence verification pathway
Application
Submit the Board-approved application, required documents and $90 application fee.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience Documentation
Submit the Board’s completed transaction sheets and supporting points documents; the Board determines equivalency and any applicable relief from education/experience requirements.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Other Jurisdiction Licence
Hold a current active licence in good standing. Under MCA 37-1-304 the Board compares current licensing qualifications for substantial equivalency and considers actual qualifications and work experience for a deficiency.
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Pending Verification
Board guidance allows a provisional full licence for 60 days while verifying out-of-state licensure if all other licensing requirements are met. Statutory provisional authority is MCA 37-1-144; the pending-condition and failure limits apply.
Substantial Equivalency
ARM 24.210.612, effective February 21, 2026, adopts the Board’s 2025 substantial-equivalency publication. Applications from individuals licensed in substantially equivalent jurisdictions are routine as to education, examination and experience; other matters may make them nonroutine. No other jurisdiction’s credential or examination was investigated in this survey.
Waiver Checklist
The December 2025 Out-of-State Licensee/Waiver Process checklist states: "Exam results of passing the Montana state portion of the Broker examination." ARM 24.210.611(7) states: "All waiver applicants will be required to pass the state examination." These specify the state result for waiver applicants. The national examination reference is retained under the general national-and-Montana requirement in amended ARM 24.210.602(1); whether the applicant must sit it or receives recognition/waiver is an applicant condition.
Provisional initial licensure
Age
At least 18 years of age: MCA 37-51-302(2)(a).
Application
Submit the Board-approved application, required documents and $90 application fee.
Broker Education
60 classroom or equivalent hours beyond salesperson education, in a Board-approved course taught by approved instructors, including passage of the course-material examination. The course examination has no independently identified registered identity and remains an applicant condition. ARM 24.210.611(9)(a) and the December 2025 checklist require the approved 60 hours within the preceding 18 months.
Disciplinary Disclosure
Explain affirmative disciplinary disclosures and supply initiating and final disposition documents from the source, as specified by the application checklist.
Experience
Two years actively licensed as a salesperson, or Board-determined equivalent experience or special education; the Board may waive experience if local conditions prevented salesperson employment: MCA 37-51-302(2)(c).
Experience Points
Provide Board forms establishing 30 points in any combination of qualifying transaction, education, supervision and educator points within the preceding 36 months under ARM 24.210.611(9). Residential transactions count one point and farm/ranch/agricultural/commercial transactions three; no more than five leases in each transaction category. Credit for both sides requires satisfactory evidence; team credit is prorated. Educational credits and supervision/educator limits follow the Board checklist. Applicant-owned, employer-owned and mortgage-broker-only transactions do not qualify.
Insurance
Submit proof of current professional liability/errors and omissions insurance as required by MCA 37-51-325 and the Board checklist.
Licence Verification
Provide official verification of every current or former real estate licence; the application checklist asks for verifications of all current or former professional licences.
Nonresident Consent
A nonresident licensee files irrevocable acknowledged written consent to Montana legal process under MCA 37-51-306(2).
Passing Score Window
ARM 24.210.611(3) and the December 2025 checklist require application within 12 months of the examination. Pearson handbook page 14 says, "Exam results are good for three (3) years from the date of passing the exam." The rule controls the Montana application window; the handbook statement is preserved as the provider’s statement.
Pending Condition
Department must initially determine eligibility except for a pending statutory condition under MCA 37-1-144(1): examination passage, supervised work/education, inspection, licence verification or relevant criminal/action verification. Examinations may be passed before, during or after provisional issuance.
Provisional Validity
MCA 37-1-144(3)-(4) ends provisional validity upon full issuance or the statutory failure/time-limit events. The Board’s licence-verification guidance describes a full provisional licence for 60 days when all other requirements have been met.
Reputation
The Board must consider the applicant of good repute and competent; provide information needed to determine honesty, trustworthiness and competency: MCA 37-51-302(1), (3).
School Education
Accredited high school graduation or Board-determined equivalent education: MCA 37-51-302(2)(b).

State Broker

Examination outline
  • I. The Real Estate Licensing Agency's Powers (Brokers: 2 items)
    • A. Investigations, hearings, and appeals
    • B. Sanctions — 1. Disciplinary actions
    • B. Sanctions — 2. Penalties
    • C. Examination of records
  • II. Licensing (Brokers: 2 items)
    • A. Activities requiring a license
    • B. License renewal
    • C. Change in license status or information
  • III. Requirements Governing the Activities of Licensees (Brokers: 26 items)
    • A. Advertising and marketing
    • B. Broker/Salesperson relationship
    • C. Unprofessional conduct
    • D. Compensation
    • E. Disclosure — 1. Conflict of interest
    • E. Disclosure — 2. Property disclosure
    • E. Disclosure — 3. Agency disclosure
    • F. Agency duties and responsibilities
    • G. Handling of documents
    • H. Handling of monies
    • I. Listings and buyer brokerage agreements
    • J. Illegal inducements/Ethics
  • IV. Additional Topics (Brokers: 4 items)
    • A. Errors and omissions insurance
    • B. Land description
    • C. Common interest ownership/Condominium
    • D. Landlord/tenant relationship
    • E. Foreclosure and redemption
    • F. Statue of frauds
  • V. Additional Broker Topics (Brokers only: 6 items)
    • A. Trust accounts
    • B. Supervision
    • C. Place of business
    • D. Recordkeeping
    • E. Closing statements
Examination sources

Real Estate National/General Examination for Brokers

Provider
Pearson VUE
Format
National/general portion of state real estate broker licensing examinations, scored separately from the state portion; every item is classified as knowledge, application or analysis; candidates who fail retake only the portion they failed
Exam questions
80 scored items plus 5 unscored pretest items
Examination outline
  • I. REAL PROPERTY CHARACTERISTICS, LEGAL DESCRIPTIONS, AND PROPERTY USE (BROKER 10 of 80 scored items; 2 KNOWLEDGE, 5 APPLICATION, 3 ANALYSIS)
    • A. Real property vs. personal property (3 Items): 1. Fixtures, trade fixtures, emblements; 2. Attachment, severance, and bill of sale
    • B. Characteristics of real property (2 Items): 1. Economic characteristics — a. Scarcity; b. Modification / Improvement; c. Permanence of Investment / Fixity; d. Area Preference / Situs; 2. Physical characteristics — a. Immobility; b. Indestructibility; c. Non-homogeneity / Uniqueness
    • C. Legal descriptions (2 Items): 1. Methods used to describe real property; 2. Survey
    • D. Public and private land use controls – encumbrances (3 Items): 1. Public controls – governmental powers — a. Police power, eminent domain, taxation, escheat; b. Zoning ordinances; 2. Private controls, restrictions, and encroachments — a. Covenants, conditions, and restrictions (CC&Rs), HOAs; b. Easements; c. Licenses and encroachments
  • II. FORMS OF OWNERSHIP, TRANSFER, AND RECORDING OF TITLE (BROKER 8 of 80 scored items; 2 KNOWLEDGE, 3 APPLICATION, 3 ANALYSIS)
    • A. Ownership, estates, rights, and interests (4 Items): 1. Forms of ownership; 2. Freehold estate — a. Fee simple absolute; b. Fee simple defeasible, determinable, and condition subsequent; c. Life estate; d. Bundle of rights; 3. Leasehold estates and types of leases — a. Estate for years and from period to period (periodic estate); b. Estate at will and estate at sufferance; c. Gross, net, percentage leases, and etc.; 4. Liens and lien priority; 5. Air surface and sub-surface rights
    • B. Deed, title, transfer of title, and recording of title (4 Items): 1. Elements of a valid deed; 2. Types of deeds; 3. Title transfer — a. Voluntary alienation; b. Involuntary alienation; 4. Recording the title — a. Constructive and actual notice; b. Title abstract and chain of title; c. Marketable title and cloud on title; d. Attorney title opinion, quiet title lawsuit, and title insurance
  • III. PROPERTY VALUE AND APPRAISAL (BROKER 10 of 80 scored items; 2 KNOWLEDGE, 4 APPLICATION, 4 ANALYSIS)
    • A. Concept of value (3 Items): 1. Market value vs. market price; 2. Characteristics of value; 3. Principles of value
    • B. Appraisal process (3 Items): 1. Purpose and steps to an appraisal; 2. Federal oversight of the appraisal process
    • C. Methods of estimating value and Broker Price Opinions (BPO) (4 Items): 1. Sales comparison approach (market data); 2. Cost approach — a. Improvements and depreciation; b. Physical deterioration, functional, and economic obsolescence; c. Reproduction or replacement costs; 3. Income approach; 4. Gross rent and gross income multipliers; 5. Comparative Market Analysis (CMA); 6. Broker Price Opinion (BPO); 7. Assessed value and tax implications
  • IV. REAL ESTATE CONTRACTS AND AGENCY (BROKER 15 of 80 scored items; 3 KNOWLEDGE, 6 APPLICATION, 6 ANALYSIS)
    • A. Types of contracts (2 Items): 1. Express vs. implied; 2. Unilateral vs. bilateral
    • B. Required elements of a valid contract (3 Items): 1. Voluntary; 2. Agreement / Promise; 3. Legally competent parties; 4. Lawful consideration; 5. Legal act / Purpose
    • C. Contract performance (2 Items): 1. Executed vs. executory; 2. Valid vs. void; 3. Voidable vs. unenforceable; 4. Breach of contract, rescission, and termination; 5. Liquidated, punitive, or compensatory damages; 6. Electronic contracts and digital signatures; 7. Statute of Frauds; 8. Time is of the essence
    • D. Sales contract (2 Items): 1. Offer and counteroffer; 2. Earnest money and liquidated damages; 3. Equitable title; 4. Contingencies; 5. Disputes and breach of contract; 6. Option contract and installment sales contract
    • E. Types of agency and licensee-client relationships (2 Items)
    • F. Creation and termination of agency (2 Items)
    • G. Licensee obligations to parties of a transaction (2 Items)
  • V. REAL ESTATE PRACTICE (BROKER 12 of 80 scored items; 5 KNOWLEDGE, 5 APPLICATION, 2 ANALYSIS)
    • A. Responsibilities of broker (3 Items): 1. Practicing within scope of expertise; 2. Unauthorized practice of law
    • B. Brokerage agreements between the broker and principal (seller, buyer, landlord, or tenant) (3 Items): 1. Seller representation – Types of listing agreements — a. Exclusive right-to-sell and exclusive agency listing; b. Non-exclusive or open listing; c. Net listing (conflict of interest); d. Multiple listing service (MLS); 2. Buyer representation; 3. Property management agreement — a. Accounting for funds; b. Property maintenance; c. Leasing property; d. Collecting rents and security deposits; 4. Termination of agreements; 5. Services, fees, and compensation
    • C. Fair Housing (3 Items): 1. Equal opportunity in housing; 2. Protected classes; 3. Fair housing laws; 4. Illegal practices, enforcement, and penalties; 5. Prohibited advertising; 6. Housing and Urban Development (HUD); 7. Americans with Disabilities Act (ADA)
    • D. Risk management (3 Items): 1. Supervision; 2. Compliance with federal regulations; including Privacy and Do Not Contact; 3. Vicarious liability; 4. Antitrust laws; 5. Fraud and misrepresentation; 6. Types of insurance — a. Errors and Omissions; b. General Liability
  • VI. PROPERTY DISCLOSURES AND ENVIRONMENTAL ISSUES (BROKER 9 of 80 scored items; 4 KNOWLEDGE, 3 APPLICATION, 2 ANALYSIS)
    • A. Property conditions and environmental issues (5 Items): 1. Hazardous substances — a. Lead-based paint; b. Asbestos, radon, and mold; c. Groundwater contamination and underground storage tanks; d. Waste disposal sites and brownfields; e. Flood plains, flood zones, and flood insurance; 2. Clean Air and Water Acts; 3. Environmental Protection Agency (EPA) — a. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA); b. Superfund Amendment and Reauthorization Act (SARA); c. Environmental site assessments (including Phase I and II studies) and impact statements; d. Wetlands protection
    • B. Environmental and property disclosure obligations and liability (4 Items)
  • VII. FINANCING AND SETTLEMENT (BROKER 8 of 80 scored items; 3 KNOWLEDGE, 3 APPLICATION, 2 ANALYSIS)
    • A. Financing concepts and components (2 Items): 1. Methods of financing — a. Mortgage financing – conventional and non-conventional loans; b. Seller financing – land contract/contract for deed; 2. Lien theory vs. title theory and deed of trust; 3. Sources of financing (primary and secondary mortgage markets, and seller financing); 4. Types of loans and loan programs; 5. Mortgage clauses
    • B. Lender Requirements (2 Items): 1. FHA requirements; 2. VA requirements; 3. USDA loan requirements and rural development financing; 4. Conventional requirements; 5. Buyer qualification and Loan to Value (LTV); 6. Hazard and flood insurance; 7. Private mortgage insurance (PMI) and mortgage insurance premium (MIP)
    • C. Federal Financing Regulations and Regulatory Bodies (2 Items): 1. Truth-in-Lending and Regulation Z; 2. TILA-RESPA Integrated Disclosures (TRID) — a. Consumer Financial Protection Bureau (CFPB); b. Loan Estimate (LE); c. Closing Disclosure (CD); 3. Real Estate Settlement Procedures Act (RESPA) — a. Referrals; b. Rebates; 4. Equal Credit Opportunity Act (ECOA); 5. Mortgage fraud and predatory lending
    • D. Settlement and closing the transaction (2 Items)
  • VIII. REAL ESTATE MATH CALCULATIONS (BROKER 8 of 80 scored items; 3 APPLICATION, 5 ANALYSIS)
    • A. Property area calculations (1 Item): 1. Square footage; 2. Acreage total
    • B. Property valuation (2 Items): 1. Comparative Market Analysis (CMA); 2. Net Operating Income (NOI); 3. Capitalization rate; 4. Gross rent multiplier; 5. Gross income multiplier; 6. Equity in property; 7. Establishing a listing price; 8. Assessed value and property taxes
    • C. Commission/compensation (1 Item)
    • D. Loan financing costs (1 Item): 1. Interest; 2. Loan to Value (LTV); 3. Fees; 4. Amortization, discount points, and prepayment penalties
    • E. Settlement and closing costs (1 item): 1. Purchase price and down payment; 2. Monthly mortgage calculations- principal, interest, taxes, and insurance (PITI); 3. Net to the seller; 4. Cost to the buyer; 5. Prorated items; 6. Debits and credits; 7. Transfer tax and recording fee
    • F. Investment (1 Item): 1. Return on investment; 2. Appreciation; 3. Depreciation; 4. Tax implications on investment
    • G. Property management calculations (1 Item): 1. Property management and budget calculations; 2. Tenancy and rental calculations
Examination sources