What Is the Kentucky Real Estate Broker Exam?
The Kentucky Real Estate Broker exam assesses the competency of aspiring real estate brokers seeking state licensure. The exam is broken into two multiple-choice portions: General and State. The General portion pertains to national broker information while the State portion is specific to the laws of Kentucky. To take the exam and apply for a broker license, a candidate must meet certain work and education requirements first.
Kentucky Real Estate Broker Exam: General Portion
The Kentucky Real Estate Broker exam: General portion contains 75 questions. Examinees can expect to demonstrate their knowledge of real estate laws, practices, and ethics that generally apply to brokers in the USA. The General portion contains the following 11 content categories:
- Property Ownership: Test takers will see questions involving the types of real estate, such as houses, condominiums, and duplexes, as well as the legalities that make up owning property including surveys, water rights, and easements.
- Land Use Controls and Regulations: Examinees can expect to answer questions about property taxes, zoning, flood zones, and potential rules of Homeowners Associations. Other topics include hazard mitigation and adherence to building codes.
- Valuation and Market Analysis: Questions about this category will require test takers to demonstrate their knowledge of property appraisals and how comparables apply to competitive market analysis.
- Financing: Examinees will be tested on their knowledge of real estate sales terminology, the different types of loans and their advantages, financing options, and lending procedures.
- General Principles of Agency: In this category of the test, topics cover the real estate agent's commitment to their clients, the contracts between them, and the importance of integrity in those relationships.
- Property Disclosures: This category of the test involves questions about property inspections and other important disclosures the broker may need to relay to the client, such as environmental issues.
- Contracts : The examinee must demonstrate an understanding of basic clauses and obligations in contracts, such as breaches, enforceability, and parties' rights. Candidates will also have to know how to properly conduct counteroffers.
- Leasing and Property Management : This section of the test assesses the test taker's understanding of lease agreements, rates, and the responsibilities surrounding general property management.
- Transfer of Title : Examinees will be tested on their knowledge of title insurance, deeds, warranties (including homes under construction), and the process of closing a real estate deal. Other topics in this section include the process of foreclosure.
- Practice of Real Estate : A range of topics make up this section, including escrow accounts, federal laws such as the American Disabilities Act, the importance of honest advertising, and antitrust laws.
- Real Estate Calculations : In this section, an examinee must determine figures such as property taxes, broker commissions, and estimated property values. Candidates will have to demonstrate an understanding of what makes up a mortgage payment, such as principal and interest.
Kentucky Real Estate Broker Exam: State Portion
The Kentucky Real Estate Broker exam: State portion is comprised of 50 questions. In this portion, test takers will have to answer questions that are specific to the laws surrounding brokers and the sale of real estate in Kentucky. The State subtest contains 6 content categories, including:
- Real Estate Commission : Examinees will be tested on their knowledge of topics covering audits, fines, and means of enforcement such as litigation. A candidate will also have to demonstrate an understanding of the scenarios that lead to broker license suspension.
- Requirements for a License : The test taker can expect to see questions related to the renewal of a real estate or brokerage license, the importance of ongoing professional development, and Errors and Omissions insurance.
- Brokerage Activities and Requirements : This section tests an examinee's understanding of the relationship between the broker and the sales associate, recordkeeping, commissions, the ramifications of an unlicensed brokerage, and the broker lien law.
- License Law Requirements for Contracts : Examinees can expect to answer questions regarding sales and listing contracts, including how offers are conducted. This category includes how purchase offers are to be submitted as well as the duties of the licensed broker during the sale or transfer of real estate.
- Disclosures and Agency Issues : This content category covers the importance of several types of real estate disclosures, including if there's any personal gain in the transaction and honesty regarding the property's condition.
- Property Management : This category outlines real estate procedures, general guidelines, and how to safely manage security deposits. A candidate will have to demonstrate an understanding that a written agreement between the broker and the buyer/seller is required to conduct any real estate transaction in the state of Kentucky.
Frequently asked Questions
How hard is the Kentucky Real Estate Broker exam?
The Kentucky Real Estate Broker exam is designed to assess the test taker's competency in the legalities involved in real estate. It is recommended that a test taker review relevant study guides and take practice tests before exam day.
How long is the Kentucky Real Estate Broker exam?
The Kentucky Real Estate Broker exam is broken into two multiple-choice portions: General and State. The General portion contains 75 questions while the State portion contains 50, totaling 125 questions in all. A test taker will have 240 minutes (4 hours) to complete the exam.
What is a passing score for the Kentucky Real Estate Broker exam?
A candidate must answer a minimum of 75% of the questions correctly to pass the Kentucky Real Estate Broker exam. This applies to both portions, and candidates will see their pass/fail status after the exam is complete.
Can I retake the Kentucky Real Estate Broker exam?
Yes, you may retake the Kentucky Real Estate Broker exam as many times as necessary to pass. If a candidate passes one portion of the test, they will only need to retake the failed portion. However, the candidate must pass the remaining portion of the test within four months, or they will be required to retake the entire test.
How much does the Kentucky Real Estate Broker exam cost?
The Kentucky Real Estate Broker exam costs $100 to take. All registration fees must be paid via credit card (Visa, Mastercard, etc.).
Can I use a calculator on the Kentucky Real Estate Broker exam?
Yes, you may use a calculator on the Kentucky Real Estate Broker exam. Calculators must be powered by a battery; they cannot make noise, have printing capabilities, or possess all characters of the alphabet.