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Hawaii Real Estate Salesperson — Requirements & Free Practice

US-HI · License preparation

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Real Estate Salesperson License

Individual salesperson license; active and inactive are statuses of the same license. Active practice requires employment or association with a licensed Hawaii real estate broker.

Licensing authority: Hawaii Real Estate Commission · Application information

Initial licensure with real estate or business degree equivalency
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Education category
Hold a BA or BS from an accredited United States college or university with a real-estate or business major; submit the qualifying degree or original certified transcripts with the conferral date.
Equivalency approval
Before examination, obtain Commission approval of the complete education equivalency application with official supporting documents and $50 nonrefundable fee; certificate is valid for two years.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
Initial licensure by examination
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Prelicensing education
Complete the Commission-approved salesperson curriculum of at least 60 class hours before examination.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
Initial licensure with law degree education equivalency
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Education category
Graduate of an accredited United States law school; submit diploma or original certified transcripts with school seal.
Equivalency approval
Before examination, obtain Commission approval of the complete education equivalency application with official supporting documents and $50 nonrefundable fee; certificate is valid for two years.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
Renewal or restoration after qualifying active duty deployment
No examination is required for this applicant pathway.
Deadline
Request restoration within 120 days after discharge or release.
Documentation
Supply deployment and release orders, pay current renewal fee, and supply financial-integrity or federal-required documents if needed.
Exclusions
Scheduled annual or specialized training, suspended or revoked licences, and licences subject to adjudicated disciplinary action are excluded by this statute.
Military service
Armed-forces, National Guard or reserve member deployed on active duty during a state or national crisis; licence expired, forfeited or became delinquent during that deployment, or will expire within 120 days after release.

Official no-examination sources

Effective from 2026-09-22.

New salesperson licensure after five year forfeiture termination
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Prior license
Failure to apply for restoration within five years automatically terminates a salesperson or broker license; apply as a new salesperson under current requirements.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
New salesperson licensure after recovery fund termination
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Prior license
A court order authorizing payment from the recovery fund automatically terminates the prior license; former brokers and salespersons apply as new salespersons.
Repayment
Repay the full recovery-fund amount plus the statutory interest and comply with the Commission final order.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Waiting period
At least five years from the effective termination date.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
New salesperson licensure after revocation
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Education waiver
The Commission may waive applicable education under HAR §16-99-37; that waiver does not itself waive examination.
Eligibility
Complete the revocation period, comply with the Commission final order and repay the recovery fund where applicable; satisfy all new-applicant requirements.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Prior license
Previously revoked salesperson or broker licence; former brokers must apply as salespersons.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
New salesperson licensure after surrender
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Prior license
Returning to practice after voluntary surrender requires a new salesperson licence under all new-applicant requirements.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
New salesperson licensure elected instead of restoration
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Prior experience
Relinquish all prior experience and satisfy new-applicant requirements.
Prior license
A forfeited salesperson or broker licensee elects to start over as a new salesperson applicant instead of restoration.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
Initial licensure for an applicant already licensed elsewhere
Active or inactive
Apply for active or inactive status. Active status requires employment or association with a current active Hawaii brokerage firm or sole proprietor; inactive status does not authorize practice.
Age
At least 18 by examination date.
Application
Submit the completed licence application, required original certificates and examination documentation, and fees within two years of the last examination date.
Certificate currency
School completion and education-equivalency certificates are valid for two years from issuance and must be unexpired.
Character
Competency, honesty, truthfulness, financial integrity and fair dealing; disclose convictions, disciplinary matters, complaints, lawsuits, unpaid judgments, tax obligations and liens with supporting documents as applicable.
Education
Complete the Hawaii course or separately obtain education equivalency; furnish official verification of license issued within six months and pay the education equivalency application fee.
Examination window
Pass both portions within the prescribed two-year period. HAR §16-99-29(a) measures from the first examination date; the PSI bulletin measures from the first passed section. Confirm the applicable deadline with the Commission and PSI.
High school
High school diploma or equivalent by examination date.
Other license
Hold a current salesperson or broker license that was active within the prior year in a jurisdiction with similar or superior education requirements as determined by the Commission to qualify for education equivalency. Other jurisdictions’ own examinations and licenses are applicant evidence.
Reciprocity
GENINFO_210119 states: "Hawaii does not reciprocate with any other state or country." This route uses approved equivalencies to apply for a Hawaii licence.
Social security number
Provide the Social Security number required by the Licensing Branch application instructions.
Uniform equivalency
A current out-of-state licence and passing the uniform examination for the equivalent licence level may support a separate Commission uniform-section equivalency. If approved, only the Hawaii state portion must be sat. The current uniform exam remains represented with its applicant-specific waiver stated here. The uniform equivalency certificate is valid for two years.
Work authorization
United States citizen, United States national, or alien authorized to work in the United States by examination date.
Reactivation after one or more inactive renewal periods
Application
Submit activation request or Change Form, fee, and current active brokerage association.
Continuing education
Satisfy CE for one prior renewal period; the immediately preceding renewal period’s qualifying CE is credited.
Examination discretion
Where the Commission deems appropriate, retaking and passing the salesperson prelicense examination is an equivalent to CE; coursework remains another way of qualifying.
Prior license
Inactive licence for one or more renewal periods.
Reactivation of a newly issued licence in the current biennium
No examination is required for this applicant pathway.
Application
Complete Change Form sections A and B; new principal broker or broker-in-charge completes section D; pay $25 and satisfy active brokerage association.
Continuing education
The current Change Form states that CE is not required for a new salesperson or broker licensed within the current biennium.
Prior license
New salesperson licence issued within the current biennium and placed on inactive status.

Official no-examination sources

Effective from 2026-09-22.

Reinstatement after disciplinary suspension
Continuing education
For reinstatement to active status, complete CE or an approved equivalent for one prior renewal period.
Examination discretion
HAR §16-99-92 permits the salesperson prelicense examination as CE equivalency; HRS §467-9.6 permits prescribed exam sections for disciplinary reinstatement. The Commission decision and individual order determine whether the applicant must sit the exam.
Inactive status
Inactive reinstatement does not authorize practice; active-status CE provisions apply when seeking active status.
Order
Apply after the suspension, comply with all terms and conditions of the final order, supply requested additional documents and pay required fees.
Prior license
Suspended Hawaii salesperson licence.
Biennial renewal on active status
No examination is required for this applicant pathway.
Continuing education
Complete at least 20 hours of Commission-approved CE in the renewal biennium, including the mandatory core course; supply completion evidence. A salesperson first licensed in an even-numbered year is deemed to have the CE equivalency for that biennium.
Elective equivalency
A current unencumbered license and completed CE in another qualifying jurisdiction may support elective-hour equivalency; complete the Hawaii core course.
Prior license
Current salesperson licence renewed on active status.
Renewal
Submit the completed renewal application and fee by the Commission deadline; licences expire December 31 in even-numbered years.

Official no-examination sources

Effective from 2026-09-22.

Biennial renewal on inactive status
No examination is required for this applicant pathway.
Continuing education
Failure to satisfy CE results in renewal on inactive status; inactive status does not authorize practice.
Prior license
Current inactive licence, or active licence renewed without satisfying CE.
Renewal
Submit the completed renewal application and fee by the deadline.

Official no-examination sources

Effective from 2026-09-22.

Restoration after more than four and less than five years
Active status
When returning to active status, satisfy applicable CE or approved equivalent and brokerage association.
Application
Submit restoration application, documents, fees and penalties before five-year automatic termination.
Exam portions
Pass both uniform and state portions of the salesperson prelicense examination; uniform equivalency is unavailable.
Forfeiture period
More than four years but less than five years.
Restoration after more than one and less than four years
Application
Submit complete restoration application, documents, fees and penalties.
Ce use
Courses used for restoration may not be used for the upcoming renewal.
Course or exam
Complete at least 30 hours of elective CE, successfully complete the salesperson prelicense course, or pass the salesperson prelicense examination. Courses and approval decisions are applicant conditions; the registered exam alternatives remain represented.
Exam portions
If using the examination, pass both uniform and state portions; uniform equivalency is unavailable to restoration applicants.
Forfeiture period
More than one year but less than four years, whether returning to active or inactive status.
Restoration within one year to active status
Active status
Satisfy active brokerage-association requirements.
Application
Complete restoration application, documents, fees and penalties.
Continuing education
The Commission memorandum requires 20 hours of prior-biennium CE for active restoration; follow its course substitutions when prior-biennium courses are unavailable.
Exam condition
Original examination qualification remains in §467-8, which §467-11(c) incorporates. A new sitting is ordinarily unnecessary for this short forfeiture; HAR §16-99-92 also permits the salesperson examination as CE equivalency where the Commission deems appropriate.
Forfeiture period
Under one year.
Restoration within one year to inactive status
Application
Complete restoration application, documents, fees and penalties.
Continuing education
The Commission memorandum states that restoration to inactive status requires no CE.
Exam condition
The memorandum specifies no new sitting for this group. Current exams remain represented because §467-11(c) incorporates the original §467-8 examination prerequisites; this is prior-passage evidence, not an instruction to resit.
Forfeiture period
Under one year.
Inactive status
No real estate practice until reactivation.

Military Spouse Temporary Professional License — Real Estate Salesperson

Temporary professional licensure for real estate salespersons; the statewide application also covers servicemembers under federal licence portability.

Licensing authority: Hawaii Real Estate Commission · Application information

Temporary salesperson licensure through servicemember licence portability
No examination is required for this applicant pathway.
Applicant
Hold a covered professional salesperson licence from another United States jurisdiction and relocate to Hawaii because of military orders. Active-duty servicemember relocating under military service orders.
Application
Submit orders and the notarized affidavit under §4025a(c), certifying identity, truthful complete statements, understanding and compliance with Hawaii requirements and practice scope, and good standing in all licensing jurisdictions. A background check may be conducted.
Board checklist statement
DCCA’s MST-1224 checklist states: "Two Year Active Usage: the license being relied upon must have been actively used by the servicemember or the servicemember’s spouse during the two years immediately preceding the servicemember’s relocation orders." This implementing demand is disclosed as written; the current federal application list does not impose a two-year usage period.
Covered license
Good standing; no revocation, state-imposed discipline, pending unprofessional-conduct investigation or voluntary surrender during such an investigation. Other jurisdictions’ own licence and examination evidence are applicant conditions.
Practice
Subject to Hawaii standards of practice, discipline and applicable CE.
Temporary issuance
Federal §4025a(b) permits temporary issuance if required recognition cannot be carried out within 30 days. Use Hawaii’s temporary professional licence application, select Real Estate Salesperson, and pay its stated fee.

Official no-examination sources

Effective from 2026-09-22.

Temporary salesperson licensure through military spouse licence portability
No examination is required for this applicant pathway.
Applicant
Hold a covered professional salesperson licence from another United States jurisdiction and relocate to Hawaii because of military orders. Spouse accompanying a relocating servicemember; provide the marriage certificate.
Application
Submit orders and the notarized affidavit under §4025a(c), certifying identity, truthful complete statements, understanding and compliance with Hawaii requirements and practice scope, and good standing in all licensing jurisdictions. A background check may be conducted.
Board checklist statement
DCCA’s MST-1224 checklist states: "Two Year Active Usage: the license being relied upon must have been actively used by the servicemember or the servicemember’s spouse during the two years immediately preceding the servicemember’s relocation orders." This implementing demand is disclosed as written; the current federal application list does not impose a two-year usage period.
Covered license
Good standing; no revocation, state-imposed discipline, pending unprofessional-conduct investigation or voluntary surrender during such an investigation. Other jurisdictions’ own licence and examination evidence are applicant conditions.
Practice
Subject to Hawaii standards of practice, discipline and applicable CE.
Temporary issuance
Federal §4025a(b) permits temporary issuance if required recognition cannot be carried out within 30 days. Use Hawaii’s temporary professional licence application, select Real Estate Salesperson, and pay its stated fee.

Official no-examination sources

Effective from 2026-09-22.

Hawaii Real Estate Salesperson Examination — State Portion

Provider
PSI Services LLC
Format
Closed-book computer-based examination; test center or remote proctoring
Exam questions
50 scored items (50 points); 5 to 10 unscored experimental questions may be added
Time limit
90 minutes
Passing score
70%
Exam fee
$61 whether taking one or both portions
Examination outline
  • Ascertaining and Disclosing Material Facts (Salesperson 8 items)
    • Bureau of Conveyances/Land Court — Documents and indexes
    • Bureau of Conveyances/Land Court — Conveyance tax
    • Tax Office — Tax maps
    • Tax Office — Real property taxes and assessments
    • Tax Office — Other state taxes (e.g., HARPTA, GET)
    • Statutory disclosures — Seller Disclosure Law
    • Statutory disclosures — Leasehold disclosures
    • Statutory disclosures — Planned Community Associations
    • Statutory disclosures — Distressed Property and Short Sales
    • Environmental conditions
    • Hawaii land history and property rights
  • Types of Ownership (Salesperson 4 items)
    • Condominiums
    • Cooperatives
    • Time sharing plans
    • Land trust
    • Planned Unit Development
  • Property Management (Salesperson 5 items)
    • Residential Landlord-Tenant Code
  • Land Utilization (Salesperson 3 items)
    • Planning, land use, and zoning (county ordinance) — County building and planning
    • Restrictive covenants
    • State land use district
    • Special Management Areas
  • Title and Conveyances (Salesperson 6 items)
    • Estates and interests — Leaseholds
    • Tenancy
    • Liens
    • Recording systems
    • Boundary issues
    • Foreclosure
  • Contracts (Salesperson 5 items)
    • Timing
    • Contingencies — Inspections
    • Contingencies — Other
    • Validity
    • Provisions
  • Financing (Salesperson 2 items)
    • Seller Financing (e.g., Agreement of Sale, PMM)
    • Hawaii-Specific Institutional Financing
  • Escrow Process and Closing Statements (Salesperson 3 items)
    • Escrow responsibilities
    • Closing Responsibilities
    • Closing Statements
  • Professional Practices and Conduct (Salesperson 14 items)
    • Office management/supervision — Independent contractor vs. employee
    • Office management/supervision — Policies and procedures
    • Trust accounts and handling of funds
    • Advertising
    • Licensing laws and rules — Real estate brokers and salespersons
    • Licensing laws and rules — Professional and Vocational Licensing Act
    • Grounds for disciplinary action — Illegal conduct — discrimination in real property transactions
    • Grounds for disciplinary action — Unethical conduct — Standards of Practice
    • Grounds for disciplinary action — Unethical conduct — Standard of Care
    • Agency Relationships and Disclosure of Agency
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