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Maryland Real Estate Salesperson — Requirements & Free Practice

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Real Estate Salesperson License

A real estate salesperson license requiring applicants to be at least 18, pass the commission’s examination, and obtain a licensed broker’s commitment to affiliation.

Licensing authority: Maryland Real Estate Commission · Application information

Additional salesperson license for an existing associate broker
No examination is required for this applicant pathway.
Application
Comply with §17-313(j), including application, commitment evidence, applicable notice, fee, and additional requested documentation. This route retains the existing license.
Broker Commitment
Obtain the additional sponsoring broker commitment for affiliation upon issuance.
Current Broker Notice
Where already affiliated, provide each current broker written notice of intended additional affiliation.
Existing License
Holds a current Maryland associate broker license.

Official no-examination sources

Effective from 2026-09-22.

Additional salesperson license for an existing broker
No examination is required for this applicant pathway.
Application
Comply with §17-313(j), including application, commitment evidence, applicable notice, fee, and additional requested documentation. This route retains the existing license.
Broker Commitment
Obtain the additional sponsoring broker commitment for affiliation upon issuance.
Current Broker Notice
Where already affiliated, provide each current broker written notice of intended additional affiliation.
Existing License
Holds a current Maryland broker license.

Official no-examination sources

Effective from 2026-09-22.

Additional salesperson license for an existing salesperson
No examination is required for this applicant pathway.
Application
Comply with §17-313(j), including application, commitment evidence, applicable notice, fee, and additional requested documentation. This route retains the existing license.
Broker Commitment
Obtain the additional sponsoring broker commitment for affiliation upon issuance.
Current Broker Notice
Where already affiliated, provide each current broker written notice of intended additional affiliation.
Existing License
Holds a current Maryland salesperson license.

Official no-examination sources

Effective from 2026-09-22.

Transfer affiliation to another broker
No examination is required for this applicant pathway.
Application
Surrender the current certificate/card; submit transfer application, termination acknowledgment or statement, new broker commitment evidence, and fee; the Commission issues a new certificate/card upon compliance (§17-311).
Broker Commitment
Obtain a new broker commitment.
Existing License
Holds a Maryland salesperson license.

Official no-examination sources

Effective from 2026-09-22.

Change residential or commercial practice designation
No examination is required for this applicant pathway.
Designation
Request Commercial or Residential designation on the official designation-change form. Commercial designation authorizes only commercial transactions; residential designation permits both.
Existing License
Current salesperson license in good standing.
Submission
Submit the official form or online request; broker must sign; no fee. This changes the designation of the existing license.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure by examination
Affiliation
Obtain a licensed broker commitment for affiliation upon licensure (§§17-303(f), 17-307(c)); active practice requires affiliation.
Age
At least 18 years old (§17-303(c)).
Application
Submit the Commission application, examination results, applicable license and Guaranty Fund fees, and any requested documentation (§17-307).
Character
Good character and reputation; the Commission may request information demonstrating professional competence and character (§§17-303(b),(g), 17-307(a)(5)).
Course Deadline
Pass both portions within one year of prelicensing course completion; otherwise complete a new prelicensing course (COMAR 09.11.01.09G).
Designation
Commercial-only designation limits practice to commercial transactions; residential designation permits both commercial and residential transactions (MREC Licensing FAQ 4). The official original application states: "A Real Estate license may be designated as Commercial." Its short, text-bearing form was independently inspected and confirmed.
Education
Commission-approved 60-hour basic real estate course including three hours of real estate ethics, or Commission-approved college real estate courses including three hours of ethics (§17-303(d); COMAR 09.11.01.09). Course completion assessments are education conditions.
Inactive Application
The PSI bulletin, printed page 9, states: "An inactive license may be requested; no affiliation is needed; no real estate licensed activities may be performed; review the inactive law for requirements." This instruction is recorded alongside the statutory broker-commitment requirement; an inactive license does not authorize practice.
Nonresident
If not resident in Maryland, submit the consent and related documents required under §17-514 (§17-307(e)).
Score Deadline
Apply for licensure within one year of passing both portions (COMAR 09.11.01.09F).
Exchange an associate broker license for a salesperson license
No examination is required for this applicant pathway.
Affiliation
Obtain a licensed broker commitment for affiliation upon issuance.
Application
Surrender the current certificate/card; submit the prescribed application, required termination acknowledgment when applicable, broker commitment evidence, fee and any additional requested documentation (§17-312(g)); the Commission cancels the prior license and grants the new license upon compliance (§17-312(h)).
Existing License
Holds the Maryland associate broker license being exchanged.

Official no-examination sources

Effective from 2026-09-22.

Exchange a broker license for a salesperson license
No examination is required for this applicant pathway.
Affiliation
Obtain a licensed broker commitment for affiliation upon issuance.
Application
Surrender the current certificate/card; submit the prescribed application, required termination acknowledgment when applicable, broker commitment evidence, fee and any additional requested documentation (§17-312(g)); the Commission cancels the prior license and grants the new license upon compliance (§17-312(h)).
Existing License
Holds the Maryland broker license being exchanged.

Official no-examination sources

Effective from 2026-09-22.

Requalification after expiration for more than three years
Affiliation
Obtain a licensed broker commitment for affiliation upon licensure (§§17-303(f), 17-307(c)); active practice requires affiliation.
Age
At least 18 years old (§17-303(c)).
Application
Submit the Commission application, examination results, applicable license and Guaranty Fund fees, and any requested documentation (§17-307).
Character
Good character and reputation; the Commission may request information demonstrating professional competence and character (§§17-303(b),(g), 17-307(a)(5)).
Course Deadline
Pass both portions within one year of prelicensing course completion; otherwise complete a new prelicensing course (COMAR 09.11.01.09G).
Designation
Commercial-only designation limits practice to commercial transactions; residential designation permits both commercial and residential transactions (MREC Licensing FAQ 4). The official original application states: "A Real Estate license may be designated as Commercial." Its short, text-bearing form was independently inspected and confirmed.
Education
Commission-approved 60-hour basic real estate course including three hours of real estate ethics, or Commission-approved college real estate courses including three hours of ethics (§17-303(d); COMAR 09.11.01.09). Course completion assessments are education conditions.
Expired Status
The prior salesperson license expired more than three years ago.
Inactive Application
The PSI bulletin, printed page 9, states: "An inactive license may be requested; no affiliation is needed; no real estate licensed activities may be performed; review the inactive law for requirements." This instruction is recorded alongside the statutory broker-commitment requirement; an inactive license does not authorize practice.
Nonresident
If not resident in Maryland, submit the consent and related documents required under §17-514 (§17-307(e)).
Requalification
The Board Licensing FAQ states a maximum of three years before retesting; its renewal page instructs applicants beyond three years to contact the Commission for current education and examination requirements.
Score Deadline
Apply for licensure within one year of passing both portions (COMAR 09.11.01.09F).
Reinstatement within three years of expiration
No examination is required for this applicant pathway.
Character
Good character and reputation.
Education
Meet applicable continuing education for the unlicensed period.
Expiration Window
Apply within three years after expiration (§17-314(e)).
Fees
Pay reinstatement fee; the Board implementing page also requires all past-due renewal fees.
Submission
Electronic reinstatement within two years; if electronic reinstatement is unavailable but still within three years, request a paper application at least 30 days before the three-year period ends.

Official no-examination sources

Effective from 2026-09-22.

First renewal under initial salesperson continuing education requirements
No examination is required for this applicant pathway.
Application
Submit renewal application, renewal fee, and names of affiliated brokers (§17-314(c)).
Completion Deadline
Complete continuing education at least 30 days before license expiration; late completion subjects the applicant to a reinstatement fee (§17-314(c)(1)(iv),(2)).
Continuing Education
15 mandatory hours: contracts 3; brokerage relationships/disclosure 3 (commercial agency for commercial designation); principles of practice 3; property management and landlord-tenant laws 3; professionalism 1.5; financing 1.5. No substitution of other education or out-of-state continuing education (MREC CE Requirements, effective October 1, 2025).
Education Waiver
The Commission may waive continuing education for demonstrated good cause (§17-315(f)). Course examinations are conditions of completing education, not a separately registered licensing examination.
Existing License
Currently holds a salesperson license and remains entitled to be licensed; renew before expiration for another two-year term (§17-314(c)).
Inactive Status
Inactive status does not remove renewal and education duties and is limited to three years (§17-316(c),(d)).
Renewal Category
First renewal of a salesperson license initially issued on or after October 1, 2023.
Supervisory Designation
If designated branch manager or team leader, applicable supervision training is additionally required by §§17-315(b)(2)(vi) and COMAR 09.11.01.23.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after suspension following a Guaranty Fund payment
No examination is required for this applicant pathway.
Application And Discretion
Apply for reinstatement; reissuance is at Commission discretion and distinct disciplinary sanctions continue to apply.
Prior Suspension
License suspended by operation of law upon payment from the Guaranty Fund for licensee conduct.
Repayment
Repay the Fund in full plus 12% interest from payment before consideration of reinstatement (COMAR 09.11.01.20A).

Official no-examination sources

Effective from 2026-09-22.

Requalification after three years on inactive status
Affiliation
Obtain a licensed broker commitment for affiliation upon licensure (§§17-303(f), 17-307(c)); active practice requires affiliation.
Age
At least 18 years old (§17-303(c)).
Application
Submit the Commission application, examination results, applicable license and Guaranty Fund fees, and any requested documentation (§17-307).
Character
Good character and reputation; the Commission may request information demonstrating professional competence and character (§§17-303(b),(g), 17-307(a)(5)).
Course Deadline
Pass both portions within one year of prelicensing course completion; otherwise complete a new prelicensing course (COMAR 09.11.01.09G).
Designation
Commercial-only designation limits practice to commercial transactions; residential designation permits both commercial and residential transactions (MREC Licensing FAQ 4). The official original application states: "A Real Estate license may be designated as Commercial." Its short, text-bearing form was independently inspected and confirmed.
Education
Commission-approved 60-hour basic real estate course including three hours of real estate ethics, or Commission-approved college real estate courses including three hours of ethics (§17-303(d); COMAR 09.11.01.09). Course completion assessments are education conditions.
Inactive Application
The PSI bulletin, printed page 9, states: "An inactive license may be requested; no affiliation is needed; no real estate licensed activities may be performed; review the inactive law for requirements." This instruction is recorded alongside the statutory broker-commitment requirement; an inactive license does not authorize practice.
Inactive Expiration
Failure to reactivate within three years after placement on inactive status requires compliance with §§17-301 through 17-308 to obtain a license (§17-316(c),(e)).
Nonresident
If not resident in Maryland, submit the consent and related documents required under §17-514 (§17-307(e)).
Score Deadline
Apply for licensure within one year of passing both portions (COMAR 09.11.01.09F).
Reactivation of an inactive salesperson license
No examination is required for this applicant pathway.
Affiliation
Provide adequate evidence of a licensed broker commitment for affiliation on reactivation.
Application
Request reactivation and pay reissuance fee.
Education
Complete the continuing education that would have been required for renewal while inactive.
Inactive Window
Reactivate before the license expires three years after inactive placement.

Official no-examination sources

Effective from 2026-09-22.

Expedited permanent licensure for eligible military applicants
Affiliation
Obtain a licensed broker commitment for affiliation upon licensure (§§17-303(f), 17-307(c)); active practice requires affiliation.
Age
At least 18 years old (§17-303(c)).
Application
Submit the Commission application, examination results, applicable license and Guaranty Fund fees, and any requested documentation (§17-307).
Character
Good character and reputation; the Commission may request information demonstrating professional competence and character (§§17-303(b),(g), 17-307(a)(5)).
Course Deadline
Pass both portions within one year of prelicensing course completion; otherwise complete a new prelicensing course (COMAR 09.11.01.09G).
Designation
Commercial-only designation limits practice to commercial transactions; residential designation permits both commercial and residential transactions (MREC Licensing FAQ 4). The official original application states: "A Real Estate license may be designated as Commercial." Its short, text-bearing form was independently inspected and confirmed.
Education
Commission-approved 60-hour basic real estate course including three hours of real estate ethics, or Commission-approved college real estate courses including three hours of ethics (§17-303(d); COMAR 09.11.01.09). Course completion assessments are education conditions.
Existing License
Current active comparable or equivalent out-of-state license; waivers may be granted only to active licensees. Education and experience are reviewed individually (§17-308 and MREC Out-of-State License Recognition).
Expedited Processing
Submit the full licensing application, fees, and any required background-check application evidence; issuance is within 60 days of a completed qualifying application. Expedited processing does not itself waive standard examination requirements.
Inactive Application
The PSI bulletin, printed page 9, states: "An inactive license may be requested; no affiliation is needed; no real estate licensed activities may be performed; review the inactive law for requirements." This instruction is recorded alongside the statutory broker-commitment requirement; an inactive license does not authorize practice.
License History
Submit a certificate from the jurisdiction where first licensed, dated within 120 days of submission; the mailing instructions additionally request the original within 30 days of issue. Submit a signed cover letter listing current jurisdictions in licensing order and prior Maryland licensure.
Military Eligibility
An active service member, eligible veteran, or eligible spouse; provide the statutory status and military-assignment or Maryland-residency evidence. Each out-of-state license must be in good standing and at least one must have been held for one year (§2.5-106).
Nonresident
If not resident in Maryland, submit the consent and related documents required under §17-514 (§17-307(e)).
Score Deadline
Apply for licensure within one year of passing both portions (COMAR 09.11.01.09F).
Waiver
The Commission may waive any Subtitle 3 requirement for a comparable or equivalent out-of-state licensee upon the evidence and fee required by §17-308. A waiver of an examination is an applicant condition. The page sends qualifying applicants examination registration information and does not identify a universal portion exemption.
Licensure through out of state license recognition and discretionary waiver
Affiliation
Obtain a licensed broker commitment for affiliation upon licensure (§§17-303(f), 17-307(c)); active practice requires affiliation.
Age
At least 18 years old (§17-303(c)).
Application
Submit the Commission application, examination results, applicable license and Guaranty Fund fees, and any requested documentation (§17-307).
Character
Good character and reputation; the Commission may request information demonstrating professional competence and character (§§17-303(b),(g), 17-307(a)(5)).
Course Deadline
Pass both portions within one year of prelicensing course completion; otherwise complete a new prelicensing course (COMAR 09.11.01.09G).
Designation
Commercial-only designation limits practice to commercial transactions; residential designation permits both commercial and residential transactions (MREC Licensing FAQ 4). The official original application states: "A Real Estate license may be designated as Commercial." Its short, text-bearing form was independently inspected and confirmed.
Education
Commission-approved 60-hour basic real estate course including three hours of real estate ethics, or Commission-approved college real estate courses including three hours of ethics (§17-303(d); COMAR 09.11.01.09). Course completion assessments are education conditions.
Existing License
Current active comparable or equivalent out-of-state license; waivers may be granted only to active licensees. Education and experience are reviewed individually (§17-308 and MREC Out-of-State License Recognition).
Inactive Application
The PSI bulletin, printed page 9, states: "An inactive license may be requested; no affiliation is needed; no real estate licensed activities may be performed; review the inactive law for requirements." This instruction is recorded alongside the statutory broker-commitment requirement; an inactive license does not authorize practice.
License History
Submit a certificate from the jurisdiction where first licensed, dated within 120 days of submission; the mailing instructions additionally request the original within 30 days of issue. Submit a signed cover letter listing current jurisdictions in licensing order and prior Maryland licensure.
Nonresident
If not resident in Maryland, submit the consent and related documents required under §17-514 (§17-307(e)).
Score Deadline
Apply for licensure within one year of passing both portions (COMAR 09.11.01.09F).
Waiver
The Commission may waive any Subtitle 3 requirement for a comparable or equivalent out-of-state licensee upon the evidence and fee required by §17-308. A waiver of an examination is an applicant condition. The page sends qualifying applicants examination registration information and does not identify a universal portion exemption.
Standard licensure after relocating the principal place of business to Maryland
Affiliation
Obtain a licensed broker commitment for affiliation upon licensure (§§17-303(f), 17-307(c)); active practice requires affiliation.
Age
At least 18 years old (§17-303(c)).
Application
Submit the Commission application, examination results, applicable license and Guaranty Fund fees, and any requested documentation (§17-307).
Character
Good character and reputation; the Commission may request information demonstrating professional competence and character (§§17-303(b),(g), 17-307(a)(5)).
Conversion Deadline
Notify the Commission promptly and obtain a standard license within 90 days (§17-3A-09).
Course Deadline
Pass both portions within one year of prelicensing course completion; otherwise complete a new prelicensing course (COMAR 09.11.01.09G).
Designation
Commercial-only designation limits practice to commercial transactions; residential designation permits both commercial and residential transactions (MREC Licensing FAQ 4). The official original application states: "A Real Estate license may be designated as Commercial." Its short, text-bearing form was independently inspected and confirmed.
Education
Commission-approved 60-hour basic real estate course including three hours of real estate ethics, or Commission-approved college real estate courses including three hours of ethics (§17-303(d); COMAR 09.11.01.09). Course completion assessments are education conditions.
Inactive Application
The PSI bulletin, printed page 9, states: "An inactive license may be requested; no affiliation is needed; no real estate licensed activities may be performed; review the inactive law for requirements." This instruction is recorded alongside the statutory broker-commitment requirement; an inactive license does not authorize practice.
Nonresident
If not resident in Maryland, submit the consent and related documents required under §17-514 (§17-307(e)).
Prior Passing Scores
The Board states: "If the principal place of business moves to Maryland, reciprocal licensees who have not previously taken an exam must do so". Prior passing scores and applicable waivers affect the applicant; currently offered standard examinations remain leaves.
Prior Reciprocal License
Holds a Maryland reciprocal salesperson license and establishes a principal place of business in Maryland.
Score Deadline
Apply for licensure within one year of passing both portions (COMAR 09.11.01.09F).
Renewal under regular continuing education requirements
No examination is required for this applicant pathway.
Application
Submit renewal application, renewal fee, and names of affiliated brokers (§17-314(c)).
Completion Deadline
Complete continuing education at least 30 days before license expiration; late completion subjects the applicant to a reinstatement fee (§17-314(c)(1)(iv),(2)).
Continuing Education
15 hours: legal/legislative update 3; ethics 3; brokerage relationships/disclosure 3; fair housing 2 for residential designation or Americans with Disabilities Act 2 for commercial-only designation; electives 4. A team leader or branch manager must meet the applicable 1.5-hour supervision requirement and corresponding elective distribution.
Education Waiver
The Commission may waive continuing education for demonstrated good cause (§17-315(f)). Course examinations are conditions of completing education, not a separately registered licensing examination.
Existing License
Currently holds a salesperson license and remains entitled to be licensed; renew before expiration for another two-year term (§17-314(c)).
Inactive Status
Inactive status does not remove renewal and education duties and is limited to three years (§17-316(c),(d)).
Renewal Category
License initially issued before October 1, 2023, or a renewal after the first renewal.
Substitution
Recognized out-of-state elective credits may be accepted; Maryland mandated courses must satisfy Commission rules.

Official no-examination sources

Effective from 2026-09-22.

Restoration after a summary suspension
No examination is required for this applicant pathway.
Prior Suspension
A summary suspension under §17-328.
Restoration
Comply with the conditions in the Commission suspension order, or obtain a different disposition following the statutory hearing (§17-328(c)); the order and applicant-specific conditions govern restoration.

Official no-examination sources

Effective from 2026-09-22.

Temporary License

Discretionary temporary authority for an active service member, eligible veteran, or eligible spouse holding out-of-state licensure for less than one year, while completing Maryland licensing requirements.

Licensing authority: real estate commission · Application information

Temporary military licensure pending completion of Maryland requirements
No examination is required for this applicant pathway.
Board Discretion
The Commission may issue the temporary license and determines its limited duration. It may not issue it if issuance poses a risk to public health, welfare, or safety (§2.5-107).
Eligible Applicant
Active service member, eligible veteran, or eligible spouse; an out-of-state valid license held for less than one year; every out-of-state license must be in good standing (§2.5-107(a)).
Pending Permanent Requirements
The temporary license authorizes practice while additional Maryland permanent licensing requirements are completed. Those requirements belong to the permanent-license pathway and are pending applicant conditions, not examinations required to obtain this temporary authority.

Official no-examination sources

Effective from 2026-09-22.

Reciprocal Real Estate Salesperson License

Reciprocal salesperson license based on a current qualifying out-of-state license, with a principal place of business outside Maryland.

Licensing authority: Maryland Real Estate Commission · Application information

Reciprocal licensure under the Maryland published MD OK agreement
Maryland Real Estate Commission Laws, Rules, and Regulations (State Portion)
Agreement Eligibility
Meets the Maryland-published MD-OK reciprocity agreement requirements; contact the MREC Education Department.
Business Location
Principal place of business outside Maryland (§17-3A-02).
Continuing Validity
Reciprocal license is void if the underlying license expires or becomes inactive; two-year term; other agreement terms apply.
Disclosures
Submit the licensing authority certificate and disciplinary history, required attestations about proceedings and convictions, familiarity with Maryland law/rules/ethics, consent to service of process, and fees (§17-3A-04).
Education Exemption
Excused from continuing education by the Maryland-published agreement summary; must pass the Maryland state portion.
Existing License
Current active license in the category corresponding to a Maryland salesperson license; full certified license history.
Sponsorship
Sponsoring broker must already hold a Maryland standard or reciprocal license; submit broker sponsorship letter (§17-3A-05 and MREC reciprocal application instructions).
Reciprocal licensure under the Maryland published MD PA agreement
No examination is required for this applicant pathway.
Agreement Eligibility
Meets the Maryland-published MD-PA reciprocity agreement requirements; category is salesperson.
Business Location
Principal place of business outside Maryland (§17-3A-02).
Continuing Validity
Reciprocal license is void if the underlying license expires or becomes inactive; two-year term; other agreement terms apply.
Disclosures
Submit the licensing authority certificate and disciplinary history, required attestations about proceedings and convictions, familiarity with Maryland law/rules/ethics, consent to service of process, and fees (§17-3A-04).
Education Exemption
Excused from examination and continuing education under the Maryland-published MD-PA agreement summary.
Existing License
Current active license in the category corresponding to a Maryland salesperson license; full certified license history.
Sponsorship
Sponsoring broker must already hold a Maryland standard or reciprocal license; submit broker sponsorship letter (§17-3A-05 and MREC reciprocal application instructions).

Official no-examination sources

Effective from 2026-09-22.

Renewal of a reciprocal salesperson license
No examination is required for this applicant pathway.
Business Location
Principal place of business outside Maryland (§17-3A-02).
Continuing Validity
Reciprocal license is void if the underlying license expires or becomes inactive; two-year term; other agreement terms apply.
Disclosures
Submit the licensing authority certificate and disciplinary history, required attestations about proceedings and convictions, familiarity with Maryland law/rules/ethics, consent to service of process, and fees (§17-3A-04).
Existing License
Current active license in the category corresponding to a Maryland salesperson license; full certified license history.
Renewal Proof
At renewal, prove a current license in the jurisdiction of the principal business location and no disciplinary action, current investigation or proceeding alleging misconduct there (§17-3A-10(b)); comply with the applicable renewal application and fee procedures.
Sponsorship
Sponsoring broker must already hold a Maryland standard or reciprocal license; submit broker sponsorship letter (§17-3A-05 and MREC reciprocal application instructions).

Official no-examination sources

Effective from 2026-09-22.

Maryland Real Estate Commission Laws, Rules, and Regulations (State Portion)

Provider
PSI Services LLC
Format
Computer-administered written examination
Exam questions
30 scored questions; unscored experimental items may be included
Time limit
30 minutes
Passing score
21 of 30 points (70%)
Examination outline
  • Duties and Powers of the Real Estate Commission (4 Sales, 5 Broker)
    • General Powers
    • Investigations, Hearings, and Appeals
    • Suspensions, Revocations, and Penalties
    • Guaranty Fund
  • Licensing Requirements (4 Sales, 8 Broker)
    • Activities Requiring a License
    • Change in License Status
    • License Renewals
    • Continuing Education Requirements
    • Partnerships and Corporations
    • Place of Business
    • Percentage of Ownership for Businesses
  • Brokerage Relationships (7 Sales, 7 Broker)
    • Listing Agreements
    • Disclosure of Brokerage Relationship
    • Disclosure of Interest in Property/Conflict of Interest
    • Disclosures
  • Supervision (5 Sales, 6 Broker)
    • Handling Monies including Trust Monies
    • Recordkeeping Requirements (electronic recordkeeping)
    • Supervision Requirements
    • Knowledge of Other Maryland State Laws (short sale, home improvements, PIFHA)
  • Business Conduct (6 Sales, 9 Broker)
    • Offers
    • Commissions (including rebates)
    • Advertising and Signs
    • Fair Housing Laws and Regulations
    • Summary Suspensions/Convictions
  • Ethics (4 Sales, 5 Broker)
    • Unfair Inducements
    • Dealings with Other Licensees
    • General Ethics
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