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Nebraska Real Estate Broker — Requirements & Free Practice

US-NE · License preparation

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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 License

Individual broker license, including associate, self-employed and designated roles and active or inactive status. Hardship is a route of this license.

Licensing authority: Nebraska Real Estate Commission · Application information

Authorization to act as designated broker for other licensees
No examination is required for this applicant pathway.
Business Filings
Provide applicable business filings and subordination authorization; arrange a trust account or approved waiver.
Education
Complete approved trust accounting, brokerage finance, business ethics and risk-management education before supervising another licensee, subject to the hardship extension.
Existing License
Already hold the broker license; designated broker is a role under that license.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure under designated broker hardship provision
Age
At least nineteen years old.
Alternative Education
Eighteen real-estate credit hours at an accredited university or college, or six approved courses totaling 180 class hours.
Application
Submit the application, fees and documents and obtain approval to test; an application expires one year after receipt.
Background Check
Original applicants supply fingerprints and authorize an FBI criminal-history check through the Nebraska State Patrol; pay its actual cost.
Character
Honesty, trustworthiness, integrity and competence under section 81-885.12; disclose convictions and pending charges for Commission review.
Designated Broker
Before supervising another licensee as designated broker, complete additional approved trust accounting, brokerage finance, business ethics and risk-management education.
Designated Role
License must issue as designated broker; the Commission may extend its additional education requirement for up to six months under the hardship provision.
Experience Exception
Special application and hearing establish that an existing brokerage cannot retain a designated broker with two years of experience.
General Education
High-school graduation or equivalency, or the exempt-school, home-school or Commission-acceptable alternatives in section 81-885.13(1)(b).
Insurance
Active practice requires compliant errors and omissions insurance under section 81-885.55, subject to its statutory exception.
Issuance Deadline
Complete all license-issuance requirements within thirty days after passing.
Military Fee Relief
Under section 81-885.14(2), an active-duty member or spouse assigned to a permanent Nebraska duty station has an issuance-fee exemption if licensed elsewhere or licensed in Nebraska within three years before becoming a Nebraska resident after assignment.
Post License
Complete twelve hours of approved post-license education within 180 days; otherwise the license is inactive until completion. Completion evidence is valid four years for an application.
Professional Practice
Complete six approved hours in professional practice and standards; resident instructions specify course 0003 if not taken in the last four years.
Initial licensure by examination
Age
At least nineteen years old.
Application
Submit the application, fees and documents and obtain approval to test; an application expires one year after receipt.
Background Check
Original applicants supply fingerprints and authorize an FBI criminal-history check through the Nebraska State Patrol; pay its actual cost.
Broker Education
Sixty approved class hours beyond salesperson education; do not repeat courses used for the salesperson license.
Character
Honesty, trustworthiness, integrity and competence under section 81-885.12; disclose convictions and pending charges for Commission review.
Designated Broker
Before supervising another licensee as designated broker, complete additional approved trust accounting, brokerage finance, business ethics and risk-management education.
Experience
Two active full-time years as a licensed salesperson or broker, or equivalent part-time experience, before examination.
General Education
High-school graduation or equivalency, or the exempt-school, home-school or Commission-acceptable alternatives in section 81-885.13(1)(b).
Insurance
Active practice requires compliant errors and omissions insurance under section 81-885.55, subject to its statutory exception.
Issuance Deadline
Complete all license-issuance requirements within thirty days after passing.
Military Fee Relief
Under section 81-885.14(2), an active-duty member or spouse assigned to a permanent Nebraska duty station has an issuance-fee exemption if licensed elsewhere or licensed in Nebraska within three years before becoming a Nebraska resident after assignment.
Post License
Complete twelve hours of approved post-license education within 180 days; otherwise the license is inactive until completion. Completion evidence is valid four years for an application.
Professional Practice
Complete six approved hours in professional practice and standards; resident instructions specify course 0003 if not taken in the last four years.
Late renewal before July 1 of the ensuing year
No examination is required for this applicant pathway.
Active Status
Meet active renewal education and insurance requirements, or retain inactive status.
Deadline
File before July 1 of the ensuing year.
Fee
Pay renewal and monthly late fees.
Practice Restriction
A license canceled December 31 does not authorize practice until renewed.

Official no-examination sources

Effective from 2026-09-22.

Military reinstatement after service exceeding three years
Active Status
Meet all active-status requirements including the current broker examination before reinstatement.
Military Fee Relief
Under section 81-885.14(2), an active-duty member or spouse assigned to a permanent Nebraska duty station has an issuance-fee exemption if licensed elsewhere or licensed in Nebraska within three years before becoming a Nebraska resident after assignment.
Service
Discharge more than three years after beginning service.
Military reinstatement after service ending within three years
No examination is required for this applicant pathway.
Application Deadline
Apply within six months of discharge.
Board Instruction
The military document cites section 011 for reinstatement; the current pinned Title 299 provision is section 010.
Discharge Evidence
Provide separation or discharge papers showing discharge other than dishonorable.
Renewal Relief
Renewal fees and continuing education are not required during qualifying service.
Service
Enter the armed service or be called to active duty after license issuance; discharge within three years of beginning service.

Official no-examination sources

Effective from 2026-09-22.

Resident licensure by recognition when moving to Nebraska
No examination is required for this applicant pathway.
Affidavit
Certify review of and familiarity with the License Act and Commission rules and agree to be bound by them.
Application
Submit the application, documents and fees; an application expires one year after receipt.
Background Check
Supply fingerprints and authorize the criminal-history check required by section 81-885.17(4).
Education
Complete approved three-hour Nebraska License Law and Agency course 0604R covering the License Act and sections 76-2401 through 76-2430.
Insurance
Compliant errors and omissions insurance is required for active practice, subject to section 81-885.55.
Military Fee Relief
Under section 81-885.14(2), an active-duty member or spouse assigned to a permanent Nebraska duty station has an issuance-fee exemption if licensed elsewhere or licensed in Nebraska within three years before becoming a Nebraska resident after assignment.
Prior License
Hold a current broker license in good standing in the resident or immediately prior resident regulatory jurisdiction and supply certified proof or verification. A broker license from a single-license jurisdiction must authorize employment of other licensees.
Residency
Move directly from the jurisdiction in which the current license was held; reside in Nebraska before issuance.
Role
Meet applicable affiliation, business filing, trust-account and designated-broker supervision-education requirements.

Official no-examination sources

Effective from 2026-09-22.

Reactivation after no more than three continuous inactive years
No examination is required for this applicant pathway.
Education
Complete deficient continuing education, capped at one two-year period, and file evidence.
Inactivity
No more than three continuous years inactive.
Insurance
Provide compliant insurance for active status.
Issuance
Meet active affiliation, business and transfer requirements and pay applicable fees.
Post License
If inactive because of incomplete required post-license education, submit its completion evidence under section 81-885.13(9).

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after cancellation beyond the late renewal period
Age
At least nineteen years old.
Application
Submit the application, fees and documents and obtain approval to test; an application expires one year after receipt.
Background Check
Original applicants supply fingerprints and authorize an FBI criminal-history check through the Nebraska State Patrol; pay its actual cost.
Character
Honesty, trustworthiness, integrity and competence under section 81-885.12; disclose convictions and pending charges for Commission review.
Designated Broker
Before supervising another licensee as designated broker, complete additional approved trust accounting, brokerage finance, business ethics and risk-management education.
General Education
High-school graduation or equivalency, or the exempt-school, home-school or Commission-acceptable alternatives in section 81-885.13(1)(b).
Insurance
Active practice requires compliant errors and omissions insurance under section 81-885.55, subject to its statutory exception.
Issuance Deadline
Complete all license-issuance requirements within thirty days after passing.
Military Fee Relief
Under section 81-885.14(2), an active-duty member or spouse assigned to a permanent Nebraska duty station has an issuance-fee exemption if licensed elsewhere or licensed in Nebraska within three years before becoming a Nebraska resident after assignment.
New Application
Meet all new-applicant requirements and applicable continuing education under section 81-885.53; statutory military fee exception remains applicable.
Post License
Complete twelve hours of approved post-license education within 180 days; otherwise the license is inactive until completion. Completion evidence is valid four years for an application.
Prior License
Resident broker license canceled for failure to renew; late renewal is no longer available.
Professional Practice
Complete six approved hours in professional practice and standards; resident instructions specify course 0003 if not taken in the last four years.
Reinstatement after more than three continuous inactive years
Active Status
Issue on active status with compliant insurance and applicable issuance requirements.
Application
Submit broker reinstatement application and examination fee.
Deadline
Pass the current broker examination within one year of receipt of the application.
Education
Complete required makeup continuing education; the current checklist specifies twelve hours if waived, including six in designated subject matter.
Inactivity
Continuously inactive for more than three years.
Renewal on active status
No examination is required for this applicant pathway.
Deadline
Renew before December 1; original license expires December 31 of issuance year and subsequent renewals are for two years.
Education
Complete twelve hours of approved continuing education and six hours of broker-approved training per two-year period; continuing education is not required for the first renewal.
Fee
Submit renewal application and fee.
Insurance
Report compliant errors and omissions insurance before active renewal.
Status
Existing active broker license.

Official no-examination sources

Effective from 2026-09-22.

Renewal on inactive status
No examination is required for this applicant pathway.
Application
Submit application and fee before December 1, noting inactive status.
Education
Inactive renewal does not require current continuing education; deficient education must be completed before reactivation.
Status
Retain inactive status; perform no licensed activities.

Official no-examination sources

Effective from 2026-09-22.

Full reinstatement following successful disciplinary probation
No examination is required for this applicant pathway.
Completion
Satisfactorily complete probation; a violation during probation causes immediate suspension.
Discipline
Commission stays suspension and places the licensee on probation.
Order
Comply with the particular Commission order and the requirements of the existing broker license.

Official no-examination sources

Effective from 2026-09-22.

Transfer of broker affiliation or business status
No examination is required for this applicant pathway.
Business And Role
Record business form and names; maintain qualifications for the selected broker role.
Documents
Supply all transfer documents, fees and information.
Inactive Interval
Inactive from termination of employment until completed transfer.

Official no-examination sources

Effective from 2026-09-22.

Nonresident Real Estate Broker License

Individual nonresident broker license issued by recognition under section 81-885.17.

Licensing authority: Nebraska Real Estate Commission · Application information

Authorization to act as designated broker for other licensees
No examination is required for this applicant pathway.
Business Filings
Provide applicable business filings and subordination authorization; arrange a trust account or approved waiver.
Education
Complete approved trust accounting, brokerage finance, business ethics and risk-management education before supervising another licensee, subject to the hardship extension.
Existing License
Already hold the broker license; designated broker is a role under that license.

Official no-examination sources

Effective from 2026-09-22.

Late renewal before July 1 of the ensuing year
No examination is required for this applicant pathway.
Active Status
Meet active renewal education and insurance requirements, or retain inactive status.
Deadline
File before July 1 of the ensuing year.
Fee
Pay renewal and monthly late fees.
Practice Restriction
A license canceled December 31 does not authorize practice until renewed.

Official no-examination sources

Effective from 2026-09-22.

Nonresident licensure by recognition
No examination is required for this applicant pathway.
Affidavit
Certify review of and familiarity with the License Act and Commission rules and agree to be bound by them.
Application
Submit the application, documents and fees; an application expires one year after receipt.
Background Check
Supply fingerprints and authorize the criminal-history check required by section 81-885.17(4).
Business Form
Nonresident brokers-in-charge operate as in their resident jurisdiction; associate brokers may be supervised differently if Nebraska law permits.
Commission Discretion
Issuance is discretionary under section 81-885.17(1)(a).
Education
Complete approved three-hour Nebraska License Law and Agency course 0604R covering the License Act and sections 76-2401 through 76-2430.
Insurance
Compliant errors and omissions insurance is required for active practice, subject to section 81-885.55.
Prior License
Hold a current broker license in good standing in the resident or immediately prior resident regulatory jurisdiction and supply certified proof or verification. A broker license from a single-license jurisdiction must authorize employment of other licensees.
Residency
Remain a nonresident, actively engaged in the business with a place of business in the resident regulatory jurisdiction.
Role
Meet applicable affiliation, business filing, trust-account and designated-broker supervision-education requirements.

Official no-examination sources

Effective from 2026-09-22.

Military reinstatement after service exceeding three years
Active Status
Meet all active-status requirements including the current broker examination before reinstatement.
Military Fee Relief
Under section 81-885.14(2), an active-duty member or spouse assigned to a permanent Nebraska duty station has an issuance-fee exemption if licensed elsewhere or licensed in Nebraska within three years before becoming a Nebraska resident after assignment.
Service
Discharge more than three years after beginning service.
Military reinstatement after service ending within three years
No examination is required for this applicant pathway.
Application Deadline
Apply within six months of discharge.
Board Instruction
The military document cites section 011 for reinstatement; the current pinned Title 299 provision is section 010.
Discharge Evidence
Provide separation or discharge papers showing discharge other than dishonorable.
Renewal Relief
Renewal fees and continuing education are not required during qualifying service.
Service
Enter the armed service or be called to active duty after license issuance; discharge within three years of beginning service.

Official no-examination sources

Effective from 2026-09-22.

Reactivation after no more than three continuous inactive years
No examination is required for this applicant pathway.
Education
Complete deficient continuing education, capped at one two-year period, and file evidence.
Inactivity
No more than three continuous years inactive.
Insurance
Provide compliant insurance for active status.
Issuance
Meet active affiliation, business and transfer requirements and pay applicable fees.
Post License
If inactive because of incomplete required post-license education, submit its completion evidence under section 81-885.13(9).

Official no-examination sources

Effective from 2026-09-22.

Nonresident reapplication by recognition after cancellation
No examination is required for this applicant pathway.
Affidavit
Certify review of and familiarity with the License Act and Commission rules and agree to be bound by them.
Application
Submit the application, documents and fees; an application expires one year after receipt.
Background Check
Supply fingerprints and authorize the criminal-history check required by section 81-885.17(4).
Education
Complete approved three-hour Nebraska License Law and Agency course 0604R covering the License Act and sections 76-2401 through 76-2430.
Insurance
Compliant errors and omissions insurance is required for active practice, subject to section 81-885.55.
New Application
Meet new nonresident applicant requirements under section 81-885.17, including a qualifying current resident-jurisdiction broker license.
Prior License
Hold a current broker license in good standing in the resident or immediately prior resident regulatory jurisdiction and supply certified proof or verification. A broker license from a single-license jurisdiction must authorize employment of other licensees.
Prior Nebraska License
Nonresident license canceled and late-renewal period expired.
Role
Meet applicable affiliation, business filing, trust-account and designated-broker supervision-education requirements.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after more than three continuous inactive years
Active Status
Issue on active status with compliant insurance and applicable issuance requirements.
Application
Submit broker reinstatement application and examination fee.
Deadline
Pass the current broker examination within one year of receipt of the application.
Education
Complete required makeup continuing education; the current checklist specifies twelve hours if waived, including six in designated subject matter.
Inactivity
Continuously inactive for more than three years.
Renewal on active status
No examination is required for this applicant pathway.
Deadline
Renew before December 1; original license expires December 31 of issuance year and subsequent renewals are for two years.
Education
Complete twelve hours of approved continuing education and six hours of broker-approved training per two-year period; continuing education is not required for the first renewal.
Fee
Submit renewal application and fee.
Insurance
Report compliant errors and omissions insurance before active renewal.
Status
Existing active broker license.

Official no-examination sources

Effective from 2026-09-22.

Renewal on inactive status
No examination is required for this applicant pathway.
Application
Submit application and fee before December 1, noting inactive status.
Education
Inactive renewal does not require current continuing education; deficient education must be completed before reactivation.
Status
Retain inactive status; perform no licensed activities.

Official no-examination sources

Effective from 2026-09-22.

Full reinstatement following successful disciplinary probation
No examination is required for this applicant pathway.
Completion
Satisfactorily complete probation; a violation during probation causes immediate suspension.
Discipline
Commission stays suspension and places the licensee on probation.
Order
Comply with the particular Commission order and the requirements of the existing broker license.

Official no-examination sources

Effective from 2026-09-22.

Transfer of broker affiliation or business status
No examination is required for this applicant pathway.
Business And Role
Record business form and names; maintain qualifications for the selected broker role.
Documents
Supply all transfer documents, fees and information.
Inactive Interval
Inactive from termination of employment until completed transfer.

Official no-examination sources

Effective from 2026-09-22.

Nebraska Real Estate Broker Licensing Examination — State-Specific Portion

Examination outline
  • I. Duties and Powers of the Real Estate Commission (5 items)
    • A. General powers of the Nebraska Real Estate Real Commission (NREC)
    • B. Investigations, complaints, and hearings
    • C. Disciplinary action
    • C. Disciplinary action — 1. License suspension, revocation, and probation
    • C. Disciplinary action — 2. Fines and sanctions
  • II. Licensing (7–8 items)
    • A. Licensing requirements
    • B. Activities requiring a real estate license
    • B. Activities requiring a real estate license — 1. Sales
    • B. Activities requiring a real estate license — 2. Auctions
    • B. Activities requiring a real estate license — 3. Property management
    • C. Exemptions to real estate licensure
    • D. Unlicensed assistants
    • E. License required to appraise
    • F. Nonresident license reciprocal agreements
    • G. Handling of licenses
    • G. Handling of licenses — 1. License transfer
    • G. Handling of licenses — 2. License renewal
    • G. Handling of licenses — 3. Branch office
    • H. Errors and omissions insurance
  • III. Statutory Requirements Governing the Activities of Licensees (17–18 items)
    • A. Advertising
    • B. Designated broker/associate broker/salesperson relationships
    • C. Broker supervision
    • C. Broker supervision — 1. Teams
    • D. Commissions and compensation
    • E. Funds of others/72-hour rule
    • F. Offering inducements
    • G. Unauthorized practice of law
    • H. Illegal acts
    • I. Trust accounts
    • J. Record keeping
  • IV. Agency (15 items)
    • A. Licensee duties
    • B. Required property disclosures
    • C. Cooperative transactions
    • D. Disclosure of a conflict of interest
    • E. Preparation and handling of offers and other documents
    • F. Listings
    • G. Closings
  • V. Additional Topics (5 items)
    • A. Subdivided and out-of-state land sales
    • B. Nebraska Fair Housing Law
    • C. Equitable interest
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