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Kentucky Real Estate Salesperson — Requirements & Free Practice

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Sales Associate License

Sales associate licensure, including initial issuance, reciprocal licensing, renewal, and reinstatement of a cancelled license.

Licensing authority: Kentucky Real Estate Commission · Application information

Reactivation after discipline of the principal broker
No examination is required for this applicant pathway.
Prior Affiliation
The principal broker's revocation or suspension automatically made the affiliated sales associate licence inactive; the sales associate's own licence was not revoked or suspended.
Reactivation
Change principal broker, obtain issuance of the replacement licence and satisfy inactive-to-active requirements in KRS 324.310. The same-year replacement is issued without charge.

Official no-examination sources

Effective from 2026-09-22.

  • KRS 324.045(2)

    KRS 324.045(2) — written examination and renewal exemption

  • KRS 324.310(2)-(4)

    KRS 324.310(2)-(4) — inactive status and reactivation

  • KRS 324.230

    KRS 324.230 — replacement licence after principal-broker discipline

Restoration after failure to affiliate or elect inactive status, within one year
No examination is required for this applicant pathway.
Fees
The Board checklist specifies a $20 payment.
Forms
To return active, submit Form 200; to enter inactive status, submit Forms 201 and 203 and extended reporting period coverage.
Restoration Window
Restore within one year of cancellation; not a revoked or suspended licence.

Official no-examination sources

Effective from 2026-09-22.

Restoration after deficient Core or continuing education, within one year
No examination is required for this applicant pathway.
Education
Complete delinquent education and comply with Commission orders; if using the rule's delinquency plan, pay the $1,000 administrative fine and satisfy the plan.
Fees
The Board checklist specifies $1,020.
Forms
Provide education proof and Form 200 for active status or Form 203 and extended reporting period coverage for inactive status.
Restoration Window
Cancelled licence restored within one year; this route excludes an actual disciplinary suspension.

Official no-examination sources

Effective from 2026-09-22.

Restoration after failure to maintain insurance, within one year
No examination is required for this applicant pathway.
Fees
The Board checklist specifies a $30 payment.
Forms
Submit Form 200, Form 203 and proof of errors and omissions insurance; meet other active-licence requirements.
Restoration Window
Restore within one year of cancellation; not a revoked or suspended licence.

Official no-examination sources

Effective from 2026-09-22.

Restoration after deficient post license education, within one year
No examination is required for this applicant pathway.
Education
Finish all delinquent post-license education before reactivation.
Fees
The Board checklist specifies a $20 payment.
Forms
Provide education completion proof and Form 200.
Restoration Window
Restore a cancelled licence within one year; not a revoked or suspended licence.

Official no-examination sources

Effective from 2026-09-22.

Restoration after failure to renew, within one year
No examination is required for this applicant pathway.
Fees
The Board checklist specifies $350 for active or $340 for inactive reinstatement after failure to renew; pay all applicable delinquent fees and meet active-licence requirements.
Forms
Submit Form 208. To return active, submit Forms 200 and 203; for inactive status, submit proof of extended reporting period coverage.
Restoration Window
Restore before a lapse of one year; not a revoked or suspended licence.

Official no-examination sources

Effective from 2026-09-22.

Reissuance after missing the education suspension restoration deadline
Active Practice
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage.
Age
Be at least 18 years old (KRS 324.040(3)).
Application
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Deadline
Failing to reinstate within 90 days following completion of the suspension cancels the licence and triggers initial licensure requirements, including retaking the examination.
Portal
Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Prelicense Education
Complete six academic credit hours in real estate at an accredited institution or approved school, equivalent to 96 classroom hours; complete education before reserving the examination.
Score Window
Pass both portions within four months and apply within 60 days after passing; required portions passed three times unsuccessfully trigger the 30-day waiting period in 201 KAR 11:210 Section 4.
Secondary Education
Hold a high school diploma or equivalent; proof and translation requirements are in 201 KAR 11:210 Sections 1 and 5.
Restoration within 90 days after an education suspension
No examination is required for this applicant pathway.
Deadline
Within 90 days after the suspension expires, complete delinquent mandatory continuing education, submit reinstatement documents, and pay all necessary fees.
Orders
Comply with Commission orders and other applicable licensing requirements. KRS 324.045(2) removes the ordinary renewal exemption for suspended licences; the specific Board restoration procedure in Section 13(9) requires education, documents and fees.
Suspension
Commission suspension under 201 KAR 11:210 Section 13 after default or a hearing.

Official no-examination sources

Effective from 2026-09-22.

Restoration after a disciplinary suspension
Commission Conditions
KRS 324.045(2) excepts suspended licences from the no-examination renewal rule. Examination applicability and additional restoration conditions depend on the Commission's order; retain the currently offered licensing examinations as conditional leaves. The specific timely education-suspension procedure is recorded separately.
Practice
Do not conduct brokerage during suspension. Meet other active-licensure, education, insurance, affiliation and fee requirements imposed by law and the Commission order.
Suspension
Previously held a Kentucky sales associate licence suspended by the Commission, and now seeking restoration after the suspension period.
Temporary authorization to close a deceased or incapacitated principal broker's existing business
No examination is required for this applicant pathway.
Commission Discretion
The Commission may permit one affiliated sales associate, on the merits of the case, to complete and close only the then-existing business for no more than six months.
Existing License
Be a licensed sales associate affiliated with the principal broker when death or incapacity occurred.
Filing
Submit Notification of Death or Incapacity of a Licensee, KREC Form 206. This is authorization attached to the existing sales associate licence.

Official no-examination sources

Effective from 2026-09-22.

Reactivation from inactive status
No examination is required for this applicant pathway.
Application
Submit Form 201 or use the portal and pay applicable reactivation fees.
Education
If Core has not been completed in four years, complete Core; if inactive for more than one education cycle, complete Core plus six elective hours. Persons licensed before June 19, 1976 have the stated education exemption.
Qualifications
Meet active-licence requirements, provide an acceptable criminal record check, complete applicable education, affiliate with a principal broker, and maintain errors and omissions insurance.

Official no-examination sources

Effective from 2026-09-22.

Placement of an existing licence in inactive status
No examination is required for this applicant pathway.
Existing License
Hold an existing active Kentucky sales associate licence.
Filing
Submit Form 201 or use the Online Services Portal; obtain one year of extended reporting period insurance and submit Form 203 and proof of coverage.
Practice
Do not conduct brokerage while inactive; continue paying biennial renewal fees.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure by examination
Active Practice
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage.
Age
Be at least 18 years old (KRS 324.040(3)).
Application
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Portal
Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Prelicense Education
Complete six academic credit hours in real estate at an accredited institution or approved school, equivalent to 96 classroom hours; complete education before reserving the examination.
Score Window
Pass both portions within four months and apply within 60 days after passing; required portions passed three times unsuccessfully trigger the 30-day waiting period in 201 KAR 11:210 Section 4.
Secondary Education
Hold a high school diploma or equivalent; proof and translation requirements are in 201 KAR 11:210 Sections 1 and 5.
Continued good standing and renewal during qualifying active military duty
No examination is required for this applicant pathway.
Duration
Good-standing continuation lasts through active duty and at least six months after discharge.
Initial Status
Be duly licensed in Kentucky and in good standing with the Commission at the time of activation.
Renewal
Renew without dues or fees or any other act normally required for renewal. Continuing education is waived when duty prevents training and a waiver is requested, or when the licensed occupation is performed in military duties as documented by DD-214.

Official no-examination sources

Effective from 2026-09-22.

Expedited issuance on equivalent licensure for a military applicant, veteran or spouse
No examination is required for this applicant pathway.
Documentation
Submit the applicable DD-214 or other qualifying military-service proof or military orders documenting transfer to Kentucky, plus licence and good-standing proof.
Existing License
Provide equivalent occupational documentation from another United States jurisdiction, active or expired for less than two years, in good standing at present or expiration and not suspended for discipline.
Military Status
Qualify as a United States military, Reserves or National Guard member, veteran, or spouse covered by KRS 12.245.
Review
The Commission must issue within 30 days after a completed application unless an enumerated exception applies, including substantive evidence of significant training, education or experience deficiency creating a public health or safety risk. Interstate compact practice instead follows compact requirements.
Statutory Reading
KRS 12.245 establishes a specific issuance pathway based on equivalent licensing documentation and enumerated exceptions; its complete applicant requirements do not add a Kentucky examination. The ordinary KRS 324.141 reciprocity route remains separately recorded.

Official no-examination sources

Effective from 2026-09-22.

Expedited regular reciprocity licensure for an active duty military spouse
Kentucky Real Estate Sales Associate Examination — State Portion
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Existing License
Hold an active real estate licence in another United States jurisdiction; submit the licensing authority certification issued within the preceding 90 days, including licence history and disciplinary information (KRS 324.141; 201 KAR 11:210 Section 3).
Expedited Application
Apply in the Commission's required format and satisfy statutory qualifications. KRS 12.357 requires issuance within 30 days without dues or fees; qualifying electronic-application fees are refunded within 30 days.
Implementation Notice
PSI bulletin p. 2 describes eligibility under particular reciprocity agreements. The broader active-licence pathway and examination set are determined by KRS 324.141(1) and 201 KAR 11:210 Section 3; agreement-specific qualifications are applicant conditions.
Nonresident Consent
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Practice And Portal
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage. Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Prelicense Qualifications
Fulfill other pre-license qualifications, including six academic credit hours or an equivalent education requirement approved by the Commission under a reciprocity agreement.
Relationship To Military Transfer
This KRS 12.357 route preserves ordinary statutory licensure qualifications; the independent equivalent-documentation route under KRS 12.245 is separately recorded.
Score Window
Pass the Kentucky state-law portion and submit the completed application within 60 days.
Spouse Status
Provide proof of marriage to a current Armed Forces member, that member's assignment to a duty station in Kentucky, and a valid equivalent professional licence from another United States jurisdiction.
Initial regular licensure with recognition of military training
Active Practice
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage.
Age
Be at least 18 years old (KRS 324.040(3)).
Application
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Military Training
Within two years after qualifying honorable or general discharge, submit DD-214 or other military training proof. The Commission may credit military education, training and experience that satisfy its requirements; it may decline insufficient equivalence. Military training cannot replace a required postsecondary degree or examination (KRS 12.354).
Portal
Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Prelicense Education
Complete six academic credit hours in real estate at an accredited institution or approved school, equivalent to 96 classroom hours; complete education before reserving the examination.
Score Window
Pass both portions within four months and apply within 60 days after passing; required portions passed three times unsuccessfully trigger the 30-day waiting period in 201 KAR 11:210 Section 4.
Secondary Education
Hold a high school diploma or equivalent; proof and translation requirements are in 201 KAR 11:210 Sections 1 and 5.
Licensure by reciprocity
Kentucky Real Estate Sales Associate Examination — State Portion
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Existing License
Hold an active real estate licence in another United States jurisdiction; submit the licensing authority certification issued within the preceding 90 days, including licence history and disciplinary information (KRS 324.141; 201 KAR 11:210 Section 3).
Implementation Notice
PSI bulletin p. 2 describes eligibility under particular reciprocity agreements. The broader active-licence pathway and examination set are determined by KRS 324.141(1) and 201 KAR 11:210 Section 3; agreement-specific qualifications are applicant conditions.
Nonresident Consent
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Practice And Portal
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage. Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Prelicense Qualifications
Fulfill other pre-license qualifications, including six academic credit hours or an equivalent education requirement approved by the Commission under a reciprocity agreement.
Score Window
Pass the Kentucky state-law portion and submit the completed application within 60 days.
Biennial renewal of an unrevoked, unsuspended licence
No examination is required for this applicant pathway.
Education
Active licensees must complete 12 hours each biennial term, including six in the first year and six in real estate law; statutory exemptions and post-license education apply. The Board instruction also asks for six hours annually, three in law, and a Core course every four years.
Fees
Pay biennial renewal fees and verify residential address, telephone and email information.
Insurance
Maintain errors and omissions coverage for active status; inactive status prohibits brokerage and follows its insurance requirements.
Licence Status
Hold a current licence not revoked or suspended and apply by March 31 of the renewal year; active and inactive statuses use the same renewal route.

Official no-examination sources

Effective from 2026-09-22.

Reissuance after expiration or cancellation exceeding one year
Active Practice
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage.
Age
Be at least 18 years old (KRS 324.040(3)).
Application
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Portal
Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Prelicense Education
Complete six academic credit hours in real estate at an accredited institution or approved school, equivalent to 96 classroom hours; complete education before reserving the examination.
Prior License
Previously held a Kentucky sales associate licence now expired or cancelled for more than one year; obtain a new national criminal history check, pass the sales associate examination, and reapply. Previously completed pre-license education does not expire; prove required qualifications.
Score Window
Pass both portions within four months and apply within 60 days after passing; required portions passed three times unsuccessfully trigger the 30-day waiting period in 201 KAR 11:210 Section 4.
Secondary Education
Hold a high school diploma or equivalent; proof and translation requirements are in 201 KAR 11:210 Sections 1 and 5.
Discretionary reissuance after revocation
Active Practice
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage.
Age
Be at least 18 years old (KRS 324.040(3)).
Application
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Portal
Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Prelicense Education
Complete six academic credit hours in real estate at an accredited institution or approved school, equivalent to 96 classroom hours; complete education before reserving the examination.
Revocation
No new licence may issue during the five years following revocation. After five years, reissuance remains at the Commission's discretion and requires retaking the appropriate examination and meeting contemporary requirements.
Score Window
Pass both portions within four months and apply within 60 days after passing; required portions passed three times unsuccessfully trigger the 30-day waiting period in 201 KAR 11:210 Section 4.
Secondary Education
Hold a high school diploma or equivalent; proof and translation requirements are in 201 KAR 11:210 Sections 1 and 5.

Temporary License

Temporary sales associate licensure authorized by KRS 12.354 for qualifying military service members or veterans, and KRS 12.357 for qualifying military spouses. The spouse form expires after six months and is not renewable; KRS 12.354 states no fixed temporary term. Both preserve applicable statutory qualifications.

Licensing authority: Kentucky Real Estate Commission · Application information

Six month temporary reciprocity licensure for an active duty military spouse
Kentucky Real Estate Sales Associate Examination — State Portion
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Existing License
Hold an active real estate licence in another United States jurisdiction; submit the licensing authority certification issued within the preceding 90 days, including licence history and disciplinary information (KRS 324.141; 201 KAR 11:210 Section 3).
Expedited Application
Apply in the Commission's required format and satisfy statutory qualifications. KRS 12.357 requires issuance within 30 days without dues or fees; qualifying electronic-application fees are refunded within 30 days.
Implementation Notice
PSI bulletin p. 2 describes eligibility under particular reciprocity agreements. The broader active-licence pathway and examination set are determined by KRS 324.141(1) and 201 KAR 11:210 Section 3; agreement-specific qualifications are applicant conditions.
Nonresident Consent
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Practice And Portal
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage. Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Prelicense Qualifications
Fulfill other pre-license qualifications, including six academic credit hours or an equivalent education requirement approved by the Commission under a reciprocity agreement.
Relationship To Military Transfer
This KRS 12.357 route preserves ordinary statutory licensure qualifications; the independent equivalent-documentation route under KRS 12.245 is separately recorded.
Score Window
Pass the Kentucky state-law portion and submit the completed application within 60 days.
Spouse Status
Provide proof of marriage to a current Armed Forces member, that member's assignment to a duty station in Kentucky, and a valid equivalent professional licence from another United States jurisdiction.
Temporary Term
The temporary licence expires six months after issuance and is not renewable (KRS 12.357(3)).
Discretionary temporary licensure with recognition of military training
Active Practice
For active practice, affiliate with a Kentucky principal broker and obtain compliant errors and omissions insurance. An initially inactive licence does not authorize brokerage.
Age
Be at least 18 years old (KRS 324.040(3)).
Application
Submit the Commission application, recent photograph, education documentation, required fees, and consent to jurisdiction and service of process if residing outside Kentucky.
Background Check
Request the national criminal history check before taking the examination; the report must be within 90 calendar days before the license application. Statutory character standards and the Commission review of criminal history apply.
Military Training
Within two years after qualifying honorable or general discharge, submit DD-214 or other military training proof. The Commission may credit military education, training and experience that satisfy its requirements; it may decline insufficient equivalence. Military training cannot replace a required postsecondary degree or examination (KRS 12.354).
Portal
Within ten days of receiving a licence number and OP ID, create the Online Services Portal account, verify address and phone number, and provide an email address.
Postlicense Education
Complete 48 hours of approved post-license education within two years after receiving or activating the initial sales associate licence, unless extended for good cause (KRS 324.085(2)).
Prelicense Education
Complete six academic credit hours in real estate at an accredited institution or approved school, equivalent to 96 classroom hours; complete education before reserving the examination.
Score Window
Pass both portions within four months and apply within 60 days after passing; required portions passed three times unsuccessfully trigger the 30-day waiting period in 201 KAR 11:210 Section 4.
Secondary Education
Hold a high school diploma or equivalent; proof and translation requirements are in 201 KAR 11:210 Sections 1 and 5.
Temporary Authority
KRS 12.354 permits the Commission to issue a temporary licence subject to the statutory qualifications; it states no fixed temporary term. This is subject to the Commission's equivalence decision and does not replace examination prerequisites.

Kentucky Real Estate Sales Associate Examination — State Portion

Provider
PSI Services LLC
Format
Computer-administered written examination
Exam questions
50 scored state questions; additional unscored experimental questions may be administered
Time limit
90 minutes for the state portion
Passing score
At least 75% correct
Exam fee
$100 for one portion or both portions
Examination outline
  • Real Estate Commission (Sales Associate 5 Items)
    • General Powers — Authority to issue licenses
    • General Powers — Examination and audit of records
    • General Powers — Administration of Education, Research, and Recovery Fund
    • Enforcement Powers — Investigations, hearings, and appeals, emergency suspension
    • Enforcement Powers — Sanctions — Fines
    • Enforcement Powers — Sanctions — License suspension, revocation, and other action
    • Enforcement Powers — Sanctions — Criminal action
  • Requirements for a License (Sales Associate 10 Items)
    • Activities requiring a license
    • Eligibility
    • Renewal of license
    • License procedures — License changes and information to be reported
    • License procedures — Inactive license
    • Continuing and post-license education
    • Errors & Omissions insurance, ERP required to deactivate license
    • Criminal background check
  • Brokerage Activities and Requirements (Sales Associate 18 Items)
    • Broker/sales associate relationship
    • Commissions
    • Advertising
    • Handling of monies
    • Handling of documents
    • Place of business
    • Records
    • Escrow accounts
    • Improper conduct
    • Unlicensed assistants
    • Broker lien law
    • Zero (no-call) list
    • Unlicensed brokerage
  • License Law Requirements for Contracts (Sales Associate 6 Items)
    • Statute of Frauds
    • Listing contracts
    • Purchase contracts — Submission of offers
    • Purchase contracts — Finance provisions
    • Purchase contracts — Other required provisions
    • Licensee Duties
  • Disclosures and Agency Issues (Sales Associate 8 Items)
    • Agency relationships, requirements, and disclosure
    • Disclosures of personal interests in real estate transactions
    • Condominium seller certificates
    • Seller disclosure of property condition
    • Other disclosure issues (stigmatizing factors)
  • Property Management (Sales Associate 3 Items)
    • Must have written agreement
    • Procedures and guidelines
    • Handling of security deposits
Examination sources

Real Estate Salesperson Examination — National Portion (Real Estate Principles and Practices)

Provider
PSI Services LLC
Format
National portion of a state real estate salesperson examination delivered by PSI; a minimum score must be achieved on each portion, and a candidate who fails one portion (state or national) retakes only that portion
Exam questions
80 scored questions (80 points), plus one to ten unscored experimental items
Examination outline
  • I. Property Ownership (Sales 10%, Broker 10%) (10%)
    • A. Real and personal property; conveyances
    • B. Land characteristics and legal descriptions: 1. Metes and bounds method of legal property description; 2. Lot and block (recorded plat) method of legal property description; 3. Government survey (rectangular survey) method of legal property description; 4. Measuring structures (linear and square footage); 5. Land measurement
    • C. Encumbrances and effects on property ownership: 1. Types of liens and their effect on the title and value of real property; 2. Easements, rights of way and licenses, including their effect on the title, value and use of real property; 3. Encroachments and their effect on the title, value and use of real property; 4. Potential encumbrances on title, such as probate, leases, or adverse possession; 5. Property rights that may be conveyed separately from use of the land surface, such as mineral and other subsurface rights, air rights, or water rights
    • D. Types of ownership: 1. Ownership in severalty/sole ownership; 2. Implications of ownership as tenants in common; 3. Implications of ownership in joint tenancy; 4. Forms of common-interest ownership, such as Timeshares, Condominiums and Co-ops; 5. Property ownership held in a trust or by an estate; 6. Ownership by business entities; 7. Life Estate ownership
  • II. Land use Controls (Sales 5%, Broker 5%) (5%)
    • A. Government rights in land: 1. Government rights to impose property taxes and special assessments; 2. Government rights to acquire land through eminent domain, condemnation and escheat
    • B. Government controls on land use
    • C. Private controls: 1. Deed conditions or restrictions on property use; 2. Subdivision covenants, conditions and restrictions (CC&Rs) on property use; 3. Condominium and owners’ associations regulations or bylaws on property use
  • III. Valuation (Sales 8%, Broker 8%) (8%)
    • A. Appraisals: 1. Appraisals for valuation of real property; 2. Situations which require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice; 3. General steps in appraisal process
    • B. Estimating Value: 1. Economic principles and property characteristics that affect value of real property; 2. Sales or market comparison approach to property valuation and appropriate uses; 3. Cost approach to property valuation and appropriate uses; 4. Income analysis approach to property valuation and appropriate uses
    • C. Comparative Market Analysis (CMA): 1. Competitive/Comparative Market Analysis (CMA), BPO or equivalent; 2. Automated Valuation Method (AVM), appraisal valuation and Comparative Market Analysis (CMA)
  • IV. Financing (Sales 10%, Broker 9%) (10%)
    • A. Basic Concepts and Terminology: 1. Loan financing (for example, points, LTV, PMI, interest, PITI); 2. General underwriting process (e.g., debt ratios, credit scoring and history); 3. Standard mortgage/deed of trust clauses and conditions; 4. Essential elements of a promissory note
    • B. Types of Loans: 1. Conventional loans; 2. Amortized loans, partially amortized (balloon) loans, interest-only loans; 3. Adjustable-rate mortgage (ARM) loans; 4. Government Loans (a. FHA insured loans; b. VA guaranteed loans; c. USDA/Rural Development loan programs); 5. Owner financing (for example, installment or land contract/contract for deed); 6. Reverse-mortgage loans; 7. Home equity loans and lines of credit; 8. Construction loans; 9. Rehab loans; 10. Bridge loans
    • C. Financing and Lending: 1. Real Estate Settlement Procedures Act (RESPA), including kickbacks; 2. Truth-in-Lending Act (Regulation Z), including advertising; 3. Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures); 4. Equal Credit Opportunity Act; 5. Lending Process (application through loan closing); 6. Risky loan features, such as prepayment penalties and balloon payments
  • V. Contracts (Sales 19%, Broker 19%) (19%)
    • A. General Contract Law: 1. General principles of contract law; 2. Elements necessary for a contract to be valid; 3. Effect of the Statute of Frauds; 4. Offer and a contract; 5. Enforceability of contracts; 6. Void, voidable and unenforceable contracts; 7. Bilateral and unilateral contracts; 8. Nature and use of option agreements; 9. Notice, delivery, acceptance and execution of contracts; 10. Appropriate use, risks, and advantages of electronic signatures and paperless transactions; 11. Rights and obligations of the parties to a contract; 12. Possible remedies for breach or non-performance of contract; 13. Termination, rescission and cancellation of contracts
    • B. Purchase and Lease Contracts: 1. Addenda and amendments to contracts; 2. Purchase agreements; 3. Contract contingencies and methods for satisfying them; 4. Leases and rental agreements; 5. Lease-purchase agreements; 6. Types of leases
    • C. Proper handling of multiple offers and counteroffers
  • VI. Agency (Sales 13%, Broker 13%) (13%)
    • A. Agency and non-agency relationships: 1. Agency relationships and how they are established; 2. Types of listing contracts; 3. Buyer brokerage/tenant representation contracts; 4. Other brokerage relationships, including transaction brokers and facilitators; 5. Powers of attorney and other assignments of authority; 6. Conditions for termination of agency or brokerage service agreements
    • B. Agent Duties: 1. Fiduciary duties of agents; 2. Agent's duties to customers/non-clients, including honesty and good faith
    • C. Agency Disclosures: 1. Disclosure of agency/representation; 2. Disclosure of possible conflict of interest or self-interest
  • VII. Property Disclosures (Sales 7%, Broker 7%) (7%)
    • A. Property Condition: 1. Seller's property condition disclosure requirements; 2. Property conditions that may warrant inspections or a survey; 3. Red flags that warrant investigation of public or private land use controls
    • B. Environmental and Government Disclosures: 1. Environmental issues requiring disclosure; 2. Federal, state, or local disclosure requirements regarding the property
    • C. Disclosure of material facts and material defects
  • VIII. Property Management (Sales 3%, Broker 5%) — items marked (BROKER ONLY) in this area are not part of the salesperson examination (3%)
    • A. Duties and Responsibilities: 1. Procurement and qualification of prospective tenants; 2. Fair housing and ADA compliance specific to property management; 3. How to complete a market analysis to identify factors in setting rents or lease rates (items 4. Property manager responsibility for maintenance, improvements, reporting and risk management; 5. Handling landlord and tenant funds; trust accounts, reports and disbursements; and 6. Provisions of property management contracts are marked BROKER ONLY)
    • B. Landlord and tenant rights and obligations
  • IX. Transfer of Title (Sales 6%, Broker 6%) (6%)
    • A. Types of deeds
    • B. Title Insurance and Searches: 1. Title insurance policies and title searches; 2. Potential title problems and resolutions; 3. Marketable and insurable title
    • C. Closing Process: 1. When transfer of ownership becomes effective; 2. Process and importance of recordation; 3. Settlement procedures (closing) and parties involved; 4. Home and new construction warranties
    • D. Special Processes: 1. Special issues in transferring foreclosed properties; 2. Special issues in short sale transactions; 3. Special issues in probate transactions
  • X. Practice of Real Estate (Sales 12%, Broker 12%) — subsection D. Supervisory Responsibilities is marked (BROKER ONLY) and is not part of the salesperson examination (12%)
    • A. Antidiscrimination: 1. Federal Fair Housing Act general principles and exemptions; 2. Protected classes under Federal Fair Housing Act; 3. Protections against discrimination based on gender identity and sexual orientation; 4. Prohibited conduct under Federal Fair Housing Act (Redlining, Blockbusting, Steering, Disparate Treatment); 5. Fair housing advertising rules; 6. Americans with Disabilities Act (ADA) obligations pertaining to accessibility and reasonable accommodations
    • B. Legislation and Regulations: 1. Licensees’ status as employees or independent contractors; 2. Antitrust laws and types of violations, fines and penalties; 3. Do-Not-Call List rule compliance; 4. Proper use of Social Media and Internet communication and advertising
    • C. Duties and Responsibilities: 1. Protection of confidential personal information (written, verbal or electronic); 2. Duties when handling funds of others in transactions; 3. Licensee responsibility for due diligence in real estate transactions
  • XI. Real Estate Calculations (Sales 7%, Broker 6%) (7%)
    • A. Calculations for Transactions: 1. Seller’s net proceeds; 2. Buyer funds needed at closing; 3. Real property tax and other prorations; 4. Real property transfer fees; 5. PITI (Principal, Interest, Taxes and Insurance) payments estimate given loan rate and term
    • B. General Concepts: 1. Equity; 2. Rate of return/Capitalization rate; 3. Loan-to-Value ratio; 4. Discount points and loan origination fees
Examination sources