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Rhode Island Real Estate Broker — Requirements & Free Practice

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Real Estate Broker

Individual broker license. Principal and associate broker are working capacities of the broker license; an associate broker is a licensed real estate broker engaged by another broker.

Licensing authority: rhode island department of business regulation · Application information

Transfer of broker affiliation
No examination is required for this applicant pathway.
Existing License
Hold an existing individual broker license and change brokerage affiliation.
Insurance
The transfer form included in the entity-application packet requires an errors and omissions insurance certificate.
License Return
A license need not be returned unless revoked or voluntarily surrendered (§ 2.10(B)).
Transfer Form
The prior principal broker notifies DBR of disaffiliation; the new principal broker signs and submits a transfer form (§ 2.10(A)).

Official no-examination sources

Effective from 2026-09-22.

Initial licensure for a Rhode Island attorney
No examination is required for this applicant pathway.
Application
Submit a completed Broker/Attorney application and its requested reputation recommendations.
Background Check
Provide the Rhode Island criminal history record.
Certification
Provide Rhode Island Supreme Court certification or current Rhode Island Bar Association membership certificate.
Fees
Application checklist requires $180 to RI General Treasurer and $25 to Real Estate Recovery Account.
Insurance
Provide errors and omissions insurance.
Lead Training
Provide the three-hour Lead Poisoning/Lead Hazard Mitigation certificate.
Qualification
Be an attorney-at-law licensed by the Rhode Island Supreme Court; § 5-20.5-4(d) grants the broker license on application and payment without examination.
Tax Status
Submit the tax status affidavit included in the application.

Official no-examination sources

Effective from 2026-09-22.

Initial issuance delayed more than one year after examination
Accommodation
An oral examination or time extension may be requested and granted at DBR discretion; this is a delivery accommodation, not a separately established examination (§ 2.6(A)).
Age And Residency
Be a United States citizen or legal resident and at least the legal age of majority (§ 5-20.5-3(c)).
Application Timing
File within one year of passing; where parts are passed on different dates, the year begins on the later date (handbook page 3).
Background Check
Provide the Rhode Island Attorney General BCI background check.
Delay
Passed the licensing examination but failed to remit the original license fee within one year.
Education
Complete 90 hours of approved broker study; salesperson qualification hours do not count, and broker hours more than four years before application are not accepted (§ 2.7(B)-(C)).
Experience
Two years of full-time real estate salesperson experience immediately before application, validated by the employing broker (§ 5-20.5-4(b) and broker application).
Fees
The current broker application requires $180 payable to RI General Treasurer and $25 payable to Real Estate Recovery Account.
Handbook Instruction
The January 2026 handbook says: “If you have not applied for your license within one year of passing both parts, you must retake the examination(s).”
Insurance
Provide errors and omissions insurance; individual coverage minimums are $50,000 per claim and $150,000 aggregate (§ 2.28(A)(1)).
Lead Training
Provide a three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
Recommendations
Provide three unrelated Rhode Island residents who have known the applicant for three years and attest to honesty and trustworthiness (§ 5-20.5-3(c)).
Reexamination Discretion
§ 5-20.5-4(c) allows DBR to require resubmission to and passing of the written examination described in subsection (a); the examinations remain leaves despite that discretion.
Tax Status
File required Rhode Island tax returns and pay taxes due, or enter a written payment agreement satisfactory to the Tax Administrator (application Tax Payer Status Affidavit).
Trustworthiness
DBR may require additional evidence of honesty, trustworthiness, integrity, reputation, and competency (§ 5-20.5-4(b)).
Restoration following suspension or revocation
Administrative Penalty
DBR may require an administrative penalty after considering aggravating or mitigating circumstances.
Background Check
DBR may require an updated Rhode Island BCI.
Board Discretion
Under § 2.17 DBR may impose successful completion of the written examination of the same type as initial licensure; these currently offered examinations are retained because the rule identifies them. The applicant may be excused at DBR discretion.
Continuing Education
DBR may require successful completion of specified continuing education.
Prior Discipline
The individual broker license was suspended or revoked in a disciplinary action.
Rehabilitation
DBR may require sufficient evidence of rehabilitation where warranted.
Initial licensure by examination — nonresident
Accommodation
An oral examination or time extension may be requested and granted at DBR discretion; this is a delivery accommodation, not a separately established examination (§ 2.6(A)).
Age And Residency
Be a United States citizen or legal resident and at least the legal age of majority (§ 5-20.5-3(c)).
Application Timing
File within one year of passing; where parts are passed on different dates, the year begins on the later date (handbook page 3).
Background Check
Provide the Rhode Island Attorney General BCI background check.
Education
Complete 90 hours of approved broker study; salesperson qualification hours do not count, and broker hours more than four years before application are not accepted (§ 2.7(B)-(C)).
Experience
Two years of full-time real estate salesperson experience immediately before application, validated by the employing broker (§ 5-20.5-4(b) and broker application).
Fees
The current broker application requires $180 payable to RI General Treasurer and $25 payable to Real Estate Recovery Account.
Home Background Check
Submit a CHR or CORI from the home-state law-enforcement agency in addition to the Rhode Island BCI.
Insurance
Provide errors and omissions insurance; individual coverage minimums are $50,000 per claim and $150,000 aggregate (§ 2.28(A)(1)).
Lead Training
Provide a three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
Office Exception
A nonresident broker regularly engaged in the business, licensed with a definite office elsewhere, need not maintain an office in Rhode Island when that licensing jurisdiction gives Rhode Island brokers the same privilege (§ 5-20.5-10(a)).
Recommendations
Provide three unrelated Rhode Island residents who have known the applicant for three years and attest to honesty and trustworthiness (§ 5-20.5-3(c)).
Residence
Applicant does not reside in Rhode Island and does not qualify for the separately described reciprocal or mutual-recognition pathways.
Service Of Process
Irrevocably appoint DBR’s director as attorney for service of process (§ 5-20.5-10(d)).
Tax Status
File required Rhode Island tax returns and pay taxes due, or enter a written payment agreement satisfactory to the Tax Administrator (application Tax Payer Status Affidavit).
Trustworthiness
DBR may require additional evidence of honesty, trustworthiness, integrity, reputation, and competency (§ 5-20.5-4(b)).
Initial licensure by examination — resident
Accommodation
An oral examination or time extension may be requested and granted at DBR discretion; this is a delivery accommodation, not a separately established examination (§ 2.6(A)).
Age And Residency
Be a United States citizen or legal resident and at least the legal age of majority (§ 5-20.5-3(c)).
Application Timing
File within one year of passing; where parts are passed on different dates, the year begins on the later date (handbook page 3).
Background Check
Provide the Rhode Island Attorney General BCI background check.
Education
Complete 90 hours of approved broker study; salesperson qualification hours do not count, and broker hours more than four years before application are not accepted (§ 2.7(B)-(C)).
Experience
Two years of full-time real estate salesperson experience immediately before application, validated by the employing broker (§ 5-20.5-4(b) and broker application).
Fees
The current broker application requires $180 payable to RI General Treasurer and $25 payable to Real Estate Recovery Account.
Insurance
Provide errors and omissions insurance; individual coverage minimums are $50,000 per claim and $150,000 aggregate (§ 2.28(A)(1)).
Lead Training
Provide a three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
Office
A resident broker must maintain a fixed office in Rhode Island (§ 5-20.5-7).
Recommendations
Provide three unrelated Rhode Island residents who have known the applicant for three years and attest to honesty and trustworthiness (§ 5-20.5-3(c)).
Residence
Rhode Island resident.
Tax Status
File required Rhode Island tax returns and pay taxes due, or enter a written payment agreement satisfactory to the Tax Administrator (application Tax Payer Status Affidavit).
Trustworthiness
DBR may require additional evidence of honesty, trustworthiness, integrity, reputation, and competency (§ 5-20.5-4(b)).
Relicensure after expiration — More than one year but no more than four years
Accommodation
An oral examination or time extension may be requested and granted at DBR discretion; this is a delivery accommodation, not a separately established examination (§ 2.6(A)).
Age And Residency
Be a United States citizen or legal resident and at least the legal age of majority (§ 5-20.5-3(c)).
Application Timing
File within one year of passing; where parts are passed on different dates, the year begins on the later date (handbook page 3).
Background Check
Provide the Rhode Island Attorney General BCI background check.
Education
Broker prelicensing is not repeated solely because of this lapse interval under § 2.7(B); complete the new application requirements.
Experience
Two years of full-time real estate salesperson experience immediately before application, validated by the employing broker (§ 5-20.5-4(b) and broker application).
Fees
The current broker application requires $180 payable to RI General Treasurer and $25 payable to Real Estate Recovery Account.
Insurance
Provide errors and omissions insurance; individual coverage minimums are $50,000 per claim and $150,000 aggregate (§ 2.28(A)(1)).
Lapse
More than one year but no more than four years.
Late Fee
The renewal form lists a $100 reinstatement late fee in addition to applicable renewal fees; DBR may impose administrative penalties.
Lead Training
Provide a three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
New Application
File a new application and retake the examination under § 2.6(C) and § 5-20.5-11(b).
Recommendations
Provide three unrelated Rhode Island residents who have known the applicant for three years and attest to honesty and trustworthiness (§ 5-20.5-3(c)).
Tax Status
File required Rhode Island tax returns and pay taxes due, or enter a written payment agreement satisfactory to the Tax Administrator (application Tax Payer Status Affidavit).
Trustworthiness
DBR may require additional evidence of honesty, trustworthiness, integrity, reputation, and competency (§ 5-20.5-4(b)).
Relicensure after expiration — More than four years
Accommodation
An oral examination or time extension may be requested and granted at DBR discretion; this is a delivery accommodation, not a separately established examination (§ 2.6(A)).
Age And Residency
Be a United States citizen or legal resident and at least the legal age of majority (§ 5-20.5-3(c)).
Application Timing
File within one year of passing; where parts are passed on different dates, the year begins on the later date (handbook page 3).
Background Check
Provide the Rhode Island Attorney General BCI background check.
Education
Complete at least 90 approved hours; prior broker study older than four years is not accepted, and salesperson study hours do not count (§ 2.7(B)-(C)).
Experience
Two years of full-time real estate salesperson experience immediately before application, validated by the employing broker (§ 5-20.5-4(b) and broker application).
Fees
The current broker application requires $180 payable to RI General Treasurer and $25 payable to Real Estate Recovery Account.
Insurance
Provide errors and omissions insurance; individual coverage minimums are $50,000 per claim and $150,000 aggregate (§ 2.28(A)(1)).
Lapse
More than four years.
Late Fee
The renewal form lists a $100 reinstatement late fee in addition to applicable renewal fees; DBR may impose administrative penalties.
Lead Training
Provide a three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
New Application
File a new application and retake the examination under § 2.6(C) and § 5-20.5-11(b).
Recommendations
Provide three unrelated Rhode Island residents who have known the applicant for three years and attest to honesty and trustworthiness (§ 5-20.5-3(c)).
Tax Status
File required Rhode Island tax returns and pay taxes due, or enter a written payment agreement satisfactory to the Tax Administrator (application Tax Payer Status Affidavit).
Trustworthiness
DBR may require additional evidence of honesty, trustworthiness, integrity, reputation, and competency (§ 5-20.5-4(b)).
Reinstatement within one year after expiration
No examination is required for this applicant pathway.
Application
Submit the renewal application and $170 broker renewal fee.
Board Reciprocity CEInstructions
The DBR renewal form also lists reciprocal and mutual-recognition CE exemptions and demands an active copy of the qualifying license. Statutory and regulatory CE provisions remain the controlling terms.
Continuing Education
Unless exempt, submit 24 approved hours from the preceding two-year period, including nine CORE hours of which at least three are Fair Housing (§ 2.30).
Disclosures
Answer criminal-conviction and professional-license discipline questions and attach required documentation.
Existing License
Hold a Rhode Island individual real estate broker license.
Insurance
Maintain errors and omissions insurance and provide certificate of coverage by renewal (§ 5-20.5-25).
Lapse
License expired no more than one year ago.
Late Fee
Pay the $100 late fee in addition to renewal fees; DBR may impose administrative penalties considering aggravating or mitigating circumstances (§ 2.9(F)).
Statutory Exemptions
§ 5-20.5-6(d) exempts attorneys licensed under § 5-20.5-4(d); an initial license approved within 180 days of its expiration has a first-renewal CE exemption. § 2.30(D) also exempts valid licenses originally issued before December 12, 1984.
Tax Status
Attest to filing required state returns and paying taxes due or an approved payment agreement.
Term
Renew every two years; licenses issued before January 1, 2020 renew on May 1 of each even-numbered year, and later licenses renew on their issuance anniversary (§ 2.9).

Official no-examination sources

Effective from 2026-09-22.

Licensure under the Mutual Recognition Agreement
RI Broker - State Part
Background Checks
Provide Rhode Island BCI and a criminal history record from the home-state law-enforcement agency.
Eligible Applicant
Applicant resides in Florida and holds a valid broker license there; satisfy the Mutual Recognition Agreement at the same license level.
Fees
Submit the completed reciprocal broker application, $180 to RI General Treasurer and $25 to Real Estate Recovery Account.
Insurance
Provide errors and omissions insurance.
Lead Training
Provide the three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
License Held
Hold the active corresponding broker license required by DBR and provide a Letter of Good Standing. A license held elsewhere is an applicant condition.
Service Of Process
Appoint DBR’s director as attorney for service of process under § 5-20.5-10(d).
State Examination
DBR requires the Rhode Island state portion before application; the uniform portion is waived.
Uniform Waiver
The uniform portion is waived when the evidence satisfies the reciprocal-waiver requirements of § 5-20.5-4(a).
Licensure by reciprocal credentials
RI Broker - State Part
Background Checks
Provide Rhode Island BCI and a criminal history record from the home-state law-enforcement agency.
Board Checklist Difference
DBR’s January 2024 Reciprocal Broker application lists an application, background checks, lead training, insurance and good standing for this group without an exam score. Its operative scope states: “The following requirements apply to Non-residents who reside in Connecticut or Massachusetts, who currently have an active Real Estate Broker license in either state.” The document requires a state examination specifically for mutual-recognition applicants; consult DBR about how it applies the statutory state examination to reciprocal credentials.
Eligible Applicant
The Rhode Island reciprocal application applies to nonresidents residing in Connecticut or Massachusetts with an active broker license there. These are conditions of a Rhode Island route, not separate survey jurisdictions.
Fees
Submit the completed reciprocal broker application, $180 to RI General Treasurer and $25 to Real Estate Recovery Account.
Insurance
Provide errors and omissions insurance.
Lead Training
Provide the three-hour Lead Poisoning/Lead Hazard Mitigation completion certificate.
License Held
Hold the active corresponding broker license required by DBR and provide a Letter of Good Standing. A license held elsewhere is an applicant condition.
Service Of Process
Appoint DBR’s director as attorney for service of process under § 5-20.5-10(d).
Statutory Reading
§ 5-20.5-4(a) requires the written state examination and expressly waives only the uniform portion. § 5-20.5-10(a) recognizes a reciprocal license subject to § 5-20.5-4. The state examination is retained under those statutory terms.
Uniform Waiver
The uniform portion is waived when the evidence satisfies the reciprocal-waiver requirements of § 5-20.5-4(a).
Relicensure after revocation caused by a recovery account payment
Board Restoration Conditions
Repayment does not itself restore the license. For future restoration, § 2.17 permits DBR to impose the initial written examination, continuing education, an updated BCI, rehabilitation evidence and an administrative penalty. The identified initial examinations are retained with this discretion recorded.
Repayment
Repay the full recovery-account payment plus interest at 12 percent per year; bankruptcy discharge does not remove this statutory disability.
Revocation
A court-authorized payment from the recovery account automatically revoked the broker license (§ 5-20.5-5(c)(5)).
Timely renewal
No examination is required for this applicant pathway.
Application
Submit the renewal application and $170 broker renewal fee.
Board Reciprocity CEInstructions
The DBR renewal form also lists reciprocal and mutual-recognition CE exemptions and demands an active copy of the qualifying license. Statutory and regulatory CE provisions remain the controlling terms.
Continuing Education
Unless exempt, submit 24 approved hours from the preceding two-year period, including nine CORE hours of which at least three are Fair Housing (§ 2.30).
Disclosures
Answer criminal-conviction and professional-license discipline questions and attach required documentation.
Existing License
Hold a Rhode Island individual real estate broker license.
Insurance
Maintain errors and omissions insurance and provide certificate of coverage by renewal (§ 5-20.5-25).
Statutory Exemptions
§ 5-20.5-6(d) exempts attorneys licensed under § 5-20.5-4(d); an initial license approved within 180 days of its expiration has a first-renewal CE exemption. § 2.30(D) also exempts valid licenses originally issued before December 12, 1984.
Tax Status
Attest to filing required state returns and paying taxes due or an approved payment agreement.
Term
Renew every two years; licenses issued before January 1, 2020 renew on May 1 of each even-numbered year, and later licenses renew on their issuance anniversary (§ 2.9).
Timeliness
Submit before license expiration.

Official no-examination sources

Effective from 2026-09-22.

corporate broker license

Entity broker license designating its principal broker; other active brokers and salespersons require individual licenses.

Licensing authority: department of business regulation · Application information

Entity broker licensure with a designated licensed principal broker
No examination is required for this applicant pathway.
Application
Submit the completed Corporate Broker Application and $10 application fee.
Background Check
Provide Rhode Island criminal history record; nonresidents also provide their home-state record.
Entity Type
Corporation, partnership, or limited liability company.
Existing Broker
The entity designates its already licensed Rhode Island principal broker; this license is an applicant condition, not an examination leaf. Other active brokers and salespersons need their own individual licenses (§ 5-20.5-8).
Insurance
Provide an errors and omissions insurance certificate.
Licensee List
Provide the list of all Rhode Island licensed salespersons and brokers of the entity.
Nonresident Good Standing
A nonresident principal broker must provide the specified certificate or good-standing letter naming the principal broker and entity.
Organization
Provide articles of incorporation or organization/filing registration as specified in the entity checklist.
Principal Designation
Submit meeting minutes designating the principal broker.
Service Of Process
The application includes a corporate power of attorney for a nonresident entity.
Tax Status
Submit the tax payer status affidavit.
Transfers
Provide transfer forms and insurance certificates for each transferring individual licensee.

Official no-examination sources

Effective from 2026-09-22.

Entity broker license reinstatement within one year after expiration
No examination is required for this applicant pathway.
Application
Submit the Broker/Corporate renewal application and $170 fee plus $100 late fee.
Discretionary Penalty
DBR may impose administrative penalties as a reinstatement condition under § 2.9(F).
Existing License
Entity broker license expired no more than one year ago; maintain the designated licensed principal broker.
Insurance
Maintain errors and omissions coverage.
Tax Status
Submit the tax attestation and requested agency information.

Official no-examination sources

Effective from 2026-09-22.

Timely entity broker license renewal
No examination is required for this applicant pathway.
Application
The DBR Real Estate Renewal Application expressly lists Broker/Corporate renewals at $170.
Existing License
Hold the entity broker license and designate a currently licensed principal broker (§ 5-20.5-8).
Insurance
Maintain the applicable errors and omissions coverage.
Principal Qualification
Maintain the principal broker’s individual license and that individual’s applicable continuing education.
Tax Status
Submit the renewal tax attestation and requested license/agency information.
Timeliness
Submit before expiration under the two-year term in § 2.9.

Official no-examination sources

Effective from 2026-09-22.

Temporary License to Representative of Deceased Broker

Temporary license issued without examination to a deceased sole-proprietor real estate broker’s legal representative or an individual designated by that representative and approved by the director, upon filing the required bond and paying the prescribed fee; authorizes continuing the business for no more than one year from the date of death.

Licensing authority: Rhode Island Department of Business Regulation, Real Estate Section · Application information

Temporary issuance to a designated representative
No examination is required for this applicant pathway.
Application
Apply through the legal representative; issuance is without examination under § 5-20.5-9.
Bond
File the required bond.
Duration
Authority is limited to continuing the deceased broker’s business for no more than one year from the date of death.
Fee
Pay the prescribed fee.
Qualification
Be designated by the deceased sole-proprietor broker’s legal representative and approved by DBR’s director.
Source Inspection
The current statutory artifact triggered a short-page warning. Inspection confirmed that it contains the full operative § 5-20.5-9 text; it is used as a genuinely short statute.

Official no-examination sources

Effective from 2026-09-22.

Temporary issuance to the deceased broker’s legal representative
No examination is required for this applicant pathway.
Application
Apply through the legal representative; issuance is without examination under § 5-20.5-9.
Bond
File the required bond.
Duration
Authority is limited to continuing the deceased broker’s business for no more than one year from the date of death.
Fee
Pay the prescribed fee.
Qualification
Be the legal representative of a deceased licensed broker who was sole proprietor of the real estate business.
Source Inspection
The current statutory artifact triggered a short-page warning. Inspection confirmed that it contains the full operative § 5-20.5-9 text; it is used as a genuinely short statute.

Official no-examination sources

Effective from 2026-09-22.

RI Broker - State Part

Provider
Pearson VUE
Format
Written examination administered by computer; oral accommodation requests are subject to DBR discretion under § 2.6(A).
Exam questions
The effective state outline specifies 60 scored broker items and 10 unscored pretest items. The Available Exams table instead lists 50 exam questions and 10 pretest questions for the same state exam. The published broker outline and its percentages are retained.
Time limit
1.5 hours
Passing score
Scaled score of 70
Exam fee
$50
Examination outline
  • I. Duties and Obligations under Licensing Law (3%)
    • A. Powers and authority of the Department of Business Regulation
    • B. Rhode Island Real Estate Commission
  • II. Licensing Requirements (10%)
    • A. Activities requiring a license
    • B. Status of license
    • B.1. Status of license: Transfer, renewal, lapsed
    • B.2. Status of license: Continuing Education
    • C. Eligibility for licensing
    • C.1. Eligibility for licensing: Real Estate Recovery Account
    • C.2. Eligibility for licensing: Errors and omissions insurance
    • C.3. Eligibility for licensing: Other Requirements
  • III. Statutory Requirements Governing the Activities of Licensees (37%)
    • A. Advertising
    • B. Broker/salesperson relationship
    • C. Commissions
    • D. Disclosure
    • D.1. Disclosure: Conflict of interest
    • D.2. Disclosure: Material disclosure
    • E. Handling of documents
    • F. Handling of monies
    • G. Listings and purchase and sales agreements
    • H. Unfair inducements
    • I. Unauthorized practice of law
    • J. General obligations of licensees
  • IV. Additional Topics (30%)
    • A. Fair Housing Practice Act RIGL 34-37-1
    • B. Landlord-Tenant Law RIGL 34-18-1
    • C. Agricultural Functions of Department of Environmental Management RIGL 2-1-5 to 2-1-27
    • D. Fire Safety Code – General Provisions RIGL 23-28.1
    • E. Onsite Wastewater Treatment System (OWTS) RIGL 5-20.8-2
    • F. Cesspool Act RIGL 23-19.15
    • G. Sale of Real Property by Non-residents- Withholding Requirements RIGL 44-30-71.3
    • H. Lead Disclosure 216-RICR-50-15-3
    • I. Real Estate Sales Disclosure RIGL 5-20.8
    • J. Condominium Sales RIGL 34-36-1.1
    • K. Relationships in Residential Real Estate Transactions RIGL 5-20.6
  • V. Broker Only (20%)
    • A. Place of business
    • B. Office Policies & Procedures
    • B.1. Office Policies & Procedures: Record keeping
    • B.2. Office Policies & Procedures: Broker Supervision
    • B.3. Office Policies & Procedures: Additional responsibilities
    • C. Commingling
    • D. Escrow accounts
    • E. License required for ownership RIGL 5-20.5-27
    • F. Investigations, hearings, and appeals
    • G. Sanctions
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