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Texas Real Estate Broker — Requirements & Free Practice

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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.

Individual Real Estate Broker License

Ordinary individual broker licence; secondary pathways include renewal, reinstatement, reactivation and military licensing.

Licensing authority: Texas Real Estate Commission · Application information

Licensure for a current broker with comparable out of state requirements
Age
At least 18 years old at application.
Alternate continuing education
Under §1101.359, provide evidence of the continuing education hours that would have been required for timely renewal during the preceding two years.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Board generic education and experience notice
TREC’s general broker page states: “Candidates for a broker license must also meet the following experience requirements:” and requires four active years and 720 points; its general education list states 270 qualifying hours and 630 related hours. These generic implementing statements are retained as the Board’s notice; §1101.356(b) controls the comparable-broker exemption.
Current comparable broker licence
At application, hold a broker licence elsewhere whose requirements TREC finds comparable; under §1101.356(b), subsection (a) education and experience requirements do not apply.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Nonresident if applicable
If resident outside Texas, comply with §1101.360 consent to service; §535.133 excepts a place of business in Texas.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Reinstatement on active status within two years
No examination is required for this applicant pathway.
Application
Submit reinstatement application and prescribed fees; satisfy honesty, trustworthiness and integrity.
Continuing education
Complete the CE that would have been required for timely renewal during the preceding two years to reinstate on active status; may instead request inactive status.
Examination waiver
Reinstatement expressly requires no examination; the equivalent prior broker licence qualifies for the statutory waiver.
Prior licence
Held an individual Texas broker licence in the two years before applying; expired more than six months and apply within the two-year reinstatement boundary.

Official no-examination sources

Effective from 2026-09-22.

Active renewal with deferred continuing education
No examination is required for this applicant pathway.
Application
File a renewal application and pay the prescribed renewal fee before expiration; disclose required fitness information.
Continuing education
Pay the CE deferral fee with renewal and complete outstanding CE within 60 days after expiration; otherwise TREC places the licence on inactive status. Subsequent-period CE does not accrue until deferred CE is complete.
Fingerprints
Comply with the fingerprinting requirements of the Act.
Pending complaints
TREC may renew while a complaint is pending; an order violation may cause renewal denial.

Official no-examination sources

Effective from 2026-09-22.

Extended renewal for an active duty military service member
No examination is required for this applicant pathway.
Fee
Pay the renewal application fee in effect when the previous licence expired.
Military orders
Provide official orders or acceptable documentation showing active duty during the last renewal period.
Renewal extension
Two additional years to renew without increased fees, education, experience or examination requirements.

Official no-examination sources

Effective from 2026-09-22.

New original licence after expiration beyond the reinstatement window
Age
At least 18 years old at application.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Expired licence
A licence expired for six months or longer cannot be renewed. Outside the two-year reinstatement/examination-waiver window, obtain a new original licence under the current original-licensing requirements.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.
Return from inactive to active status
No examination is required for this applicant pathway.
Application
Apply for return to active status and pay the required fee.
Continuing education
Satisfy the CE required by the Act and rules, including CE during the two preceding years under §1101.366(f).
Inactive licence
Hold an inactive individual broker licence.

Official no-examination sources

Effective from 2026-09-22.

Timely active renewal
No examination is required for this applicant pathway.
Application
File a renewal application and pay the prescribed renewal fee before expiration; disclose required fitness information.
Continuing education
For active renewal, complete 18 hours including Legal Update I (4), Legal Update II (4), contracts (3), and Broker Responsibility (6).
Fingerprints
Comply with the fingerprinting requirements of the Act.
Pending complaints
TREC may renew while a complaint is pending; an order violation may cause renewal denial.

Official no-examination sources

Effective from 2026-09-22.

Licensure by examination
Age
At least 18 years old at application.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.
Expedited military licensure: current comparable licence
Age
At least 18 years old at application.
Alternative competency
TREC may accept education, CE, written/practical examinations, good-standing or recommendation letters, work experience or Executive Director methods instead of the specified licensing exam or education/experience. Unidentified examinations are applicant conditions only.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Expedited eligibility
Hold a current out-of-state licence similar in scope of practice and in good standing, as defined by §55.0042.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
Military credit
For service members and veterans, TREC credits verified relevant service, training or education; restricted out-of-state licences do not qualify for this credit.
Military fee waiver
TREC waives base application and examination fees.
Military status
Military service member, military veteran or military spouse; upload supporting documentation with the supplemental application information.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Processing
TREC issues the qualifying nonprovisional licence no later than the tenth business day after application.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.
Waiver review
Under §55.004(b), the Executive Director may waive prerequisites after credential review. TREC’s page says: “Within the online application, you will be asked questions relating to whether you held the same license in Texas within the last five years, and whether you hold a similar license in good standing in another state to determine if you qualify for expedited processing and waiving of certain license requirements.” Applicant-specific waiver decisions remain conditions.
Expedited military licensure: prior Texas licence
Age
At least 18 years old at application.
Alternative competency
TREC may accept education, CE, written/practical examinations, good-standing or recommendation letters, work experience or Executive Director methods instead of the specified licensing exam or education/experience. Unidentified examinations are applicant conditions only.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Expedited eligibility
Held the same Texas broker licence within the five years preceding application. If the equivalent licence expired less than two years ago, the statutory and rule examination waiver applies.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
Military credit
For service members and veterans, TREC credits verified relevant service, training or education; restricted out-of-state licences do not qualify for this credit.
Military fee waiver
TREC waives base application and examination fees.
Military status
Military service member, military veteran or military spouse; upload supporting documentation with the supplemental application information.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Processing
TREC issues the qualifying nonprovisional licence no later than the tenth business day after application.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.
Waiver review
Under §55.004(b), the Executive Director may waive prerequisites after credential review. TREC’s page says: “Within the online application, you will be asked questions relating to whether you held the same license in Texas within the last five years, and whether you hold a similar license in good standing in another state to determine if you qualify for expedited processing and waiving of certain license requirements.” Applicant-specific waiver decisions remain conditions.
Military recognition authorizing practice without obtaining an ordinary Texas licence
No examination is required for this applicant pathway.
Application
Provide relocation orders, spouse marriage certificate when applicable, and notarized affidavit of identity, truthfulness, understood Texas scope and good standing in every applicable state.
Duration
Authority lasts while stationed in Texas; after divorce or similar change of spousal status, former spouse may continue until the third anniversary of the recognition application.
Military status
Military service member or military spouse currently stationed, or whose spouse is stationed, at a Texas military installation.
Other licence
Hold a current licence similar in scope of practice in good standing; good standing requires no suspension, revocation, surrender during investigation, discipline or current unprofessional-conduct investigation.
Practice
Recognition authorizes practice without obtaining the ordinary Texas licence; comply with all other Texas practice laws and sponsorship requirements.

Official no-examination sources

Effective from 2026-09-22.

Military application with service credit and discretionary alternative competency
Age
At least 18 years old at application.
Alternative competency
TREC may accept education, CE, written/practical examinations, good-standing or recommendation letters, work experience or Executive Director methods instead of the specified licensing exam or education/experience. Unidentified examinations are applicant conditions only.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
Military credit
For service members and veterans, TREC credits verified relevant service, training or education; restricted out-of-state licences do not qualify for this credit.
Military fee waiver
TREC waives base application and examination fees.
Military status
Military service member, military veteran or military spouse; upload supporting documentation with the supplemental application information.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.
Nonresident licensure by examination
Age
At least 18 years old at application.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Nonresident consent
A nonresident is subject to the same licence requirements; submit irrevocable consent to service of process under §1101.360. Rule §535.133 does not require that consent when the broker’s place of business is in Texas.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.

Probationary Individual Real Estate Broker License

Individual broker licence subject to the conditions in the Commission order.

Licensing authority: Texas Real Estate Commission · Application information

Probationary initial issuance
Age
At least 18 years old at application.
Application
Submit TREC application and fee; complete licensing requirements within one year of filing.
Attorney applicants
TREC states attorneys must first qualify as sales agents, then satisfy broker education and experience requirements; TREC evaluates relevant college/law courses for education credit.
Commission order
TREC must determine probationary issuance appropriate and specify reasonable conditions in its order; conditions may limit practice, require training or reporting and require compliance with other orders.
Experience
Four years of active licensed sales agent or broker experience in the preceding 60 months; at least one qualifying transaction in each of four years and at least 720 practical-experience points; report and substantiate claimed transactions.
Experience education credit
Up to 300 related education hours may be credited at one hour per two qualifying experience points above 720.
Failed attempts
After three consecutive failures, complete 30 additional qualifying hours for a failed national or state portion, or 60 hours for failure of both, before reexamination or a new application.
Fingerprints
Provide TREC-specific fingerprints and clear the DPS/FBI background check before a licence issues.
Fitness
Satisfy TREC as to honesty, trustworthiness and integrity; disclose required criminal and disciplinary history.
Immigration status
United States citizen or lawfully admitted alien.
National waiver
Under 22 TAC §535.57, TREC may waive the national examination for an equivalent active licence holder elsewhere who passed a comparable national examination accredited or certified by a nationally recognized real estate regulator association; provide a licence history. That prior qualification is an applicant condition, not an additional identified examination.
Passing results
Pass both portions before application expires; each passing portion remains valid for one year and need not be retaken during its validity.
Qualifying education
270 qualifying classroom hours, including Principles I and II, Agency, Contracts, Promulgated Contract Forms, Finance and Brokerage; Brokerage must be completed within two years before application.
Related education
630 additional related classroom hours, including the six-hour Broker Responsibility Course; an accredited bachelor’s or higher degree credits 300 related hours.
Late renewal with reinstatement of the remaining probationary term
No examination is required for this applicant pathway.
Application
Satisfy late-renewal requirements and fees under §535.91.
Commission order
Remaining probationary period is reinstated effective the day after renewal of the previous licence; renewal is on inactive status until reactivation requirements are met.
Expired licence
Licence expires before probation ends and qualifies for late renewal within six months.

Official no-examination sources

Effective from 2026-09-22.

Renewal of a probationary broker licence
No examination is required for this applicant pathway.
Application
File a renewal application and pay the prescribed renewal fee before expiration; disclose required fitness information.
Commission order
Unless the probationary order provides otherwise, renew after the probationary period by filing renewal, satisfying applicable education and paying fees; all applicable order conditions continue.
Continuing education
For active renewal, complete 18 hours including Legal Update I (4), Legal Update II (4), contracts (3), and Broker Responsibility (6).
Fingerprints
Comply with the fingerprinting requirements of the Act.
Pending complaints
TREC may renew while a complaint is pending; an order violation may cause renewal denial.

Official no-examination sources

Effective from 2026-09-22.

Texas Broker Real Estate Examination — State Law Portion

Provider
Pearson VUE
Format
Computer-based examination with narrative and contract case studies
Exam questions
50 scored items, including 10 case-study items; 5–10 unscored pretest items
Time limit
90 minutes for the state examination
Passing score
38 of 50 scored questions answered correctly; rule requires at least 75% in each portion
Exam fee
$58 per examination reservation, including a state-only reservation
Examination outline
  • I. COMMISSION DUTIES & POWERS (3 ITEMS)
    • A. General Powers
    • A. General Powers — 1. Composition, Duties, and Powers
    • A. General Powers — 2. Real Estate Advisory Committees
    • B. Handling of Complaints
    • B. Handling of Complaints — 1. Investigations
    • B. Handling of Complaints — 2. Hearings and Appeals
    • C. Penalties for Violation
    • C. Penalties for Violation — 1. Unlicensed Activity
    • C. Penalties for Violation — 2. Authority for Disciplinary Actions
    • C. Penalties for Violation — 3. Recovery Trust Account
  • II. LICENSING (4 ITEMS)
    • A. Activities Requiring License
    • A. Activities Requiring License — 1. Scope of Practice
    • A. Activities Requiring License — 2. Exemptions
    • A. Activities Requiring License — 3. Business Entities
    • A. Activities Requiring License — 4. Inspectors and Appraisers
    • B. Licensing Process
    • B. Licensing Process — 1. General Requirements (fitness, sponsor, etc.)
    • B. Licensing Process — 2. Education
    • B. Licensing Process — 3. Examination
    • B. Licensing Process — 4. Grounds to Deny an Application
    • B. Licensing Process — 5. Appeals to Application Denial
    • B. Licensing Process — 6. Background Check
    • C. License Maintenance and Renewal
    • C. License Maintenance and Renewal — 1. Continuing Education
    • C. License Maintenance and Renewal — 2. Place of Business
    • C. License Maintenance and Renewal — 3. Change of Sales Agent Sponsorship
    • C. License Maintenance and Renewal — 4. Inactive Status
    • C. License Maintenance and Renewal — 5. Assumed Names
  • III. STANDARDS OF CONDUCT (9 ITEMS)
    • A. Professional Ethics and Conduct
    • B. Grounds for Discipline
    • C. Unauthorized Practice of Law
    • D. Trust Accounts
    • E. Splitting Fees
    • F. Rebates
    • G. Advertising
  • IV. AGENCY & BROKERAGE (10 ITEMS)
    • A. Disclosure
    • B. Intermediary Practice
    • C. Duties to Client (including Minimum Services)
    • D. Enforcing Compensation Agreements
    • E. Broker-Sales Agent Relationships
    • F. Broker’s Responsibility for Acts of Sales Agent
    • G. Appropriate Use of Unlicensed Assistants
  • V. CONTRACTS (8 ITEMS)
    • A. Promulgated Contracts, Forms, and Addenda
    • B. Statute of Frauds
    • C. Seller Disclosure Requirements
  • VI. SPECIAL TOPICS (6 ITEMS)
    • A. Community Property
    • B. Homestead Protections and Tax Exemptions
    • C. Deceptive Trade Practices Act
    • D. Wills and Estates
    • E. Landlord-Tenant Issues
    • F. Foreclosure and Short Sales
    • G. Recording Statutes
    • H. Mechanic’s and Materialman’s Liens
    • I. Veterans Land Board
    • J. Home Owners Associations
    • K. Equitable Interest
  • VII. CASE STUDIES (10 ITEMS)
    • A. Narrative Cases
    • B. Contract Forms and Addenda
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