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Illinois Real Estate Salesperson — Requirements & Free Practice

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Real Estate Auction Certification

Allows a licensed auctioneer to establish the time, place and method of a real estate auction, advertise it, and cry or call it; other brokerage activities require a licensed broker or managing broker, or a qualifying exempt person.

Licensing authority: Department of Financial and Professional Regulation · Application information

Renewal of real estate auction certification
No examination is required for this applicant pathway.
Application
Submit renewal application and required fee, maintain the underlying valid auctioneer licence and comply with the permitted auction activity boundary.
Certificate Held
Current real estate auction certification; it expires December 31 of even-numbered years. A certificate expired for more than two years follows new-certificate requirements.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Broker

Licence for real estate brokers.

Licensing authority: Department of Financial and Professional Regulation‐Division of Real Estate · Application information

Licensure by examination — Illinois attorney
Application
Submit the completed application and required fee; no licensed activities before sponsorship is registered.
Character
Good moral character; disclose required personal-history information.
Education
Currently admitted to practice law by the Supreme Court of Illinois and in active standing; statutory high-school and 75-hour education requirements are waived under 225 ILCS 454/5-27(b).
Education Validity
Approved pre-license education is valid for two years after completion.
Minimum Age
18 years
Reciprocity Closure
225 ILCS 454/5-60.1 prohibits new reciprocity applications on and after January 1, 2026; existing reciprocity licences may be renewed.
Repeat Failures
After four consecutive failures, repeat the required pre-license education and file a new examination application.
Score Validity
Apply and meet all licensing requirements within one year after passing.
Restore after completing a disciplinary term
No examination is required for this applicant pathway.
Discipline
Successfully complete the term of suspension, revocation or probation.
Discretion
Submit a petition; restoration is subject to written Board recommendation and public-interest determination following any required investigation/hearing.
Requirements
Meet applicable restoration and education requirements in rule 1450.145; a licence lapsed more than five years must follow the separately stated new-applicant route.

Official no-examination sources

Effective from 2026-09-22.

Licensure by endorsement
Illinois Real Estate Broker Examination State Portion
Application
Completed application, proof of state-law examination passage and required fee.
Course Assessments
For the less-than-two-years endorsement pathway, each of the three mandatory 15-hour post-license courses requires passage of its provider-administered 50-question final examination under 225 ILCS 454/5-50(b). These provider-specific course examinations are applicant education conditions.
Education
Complete the Department-approved 30-hour broker pre-license endorsement course.
Experience
At least two years of active practice immediately before applying; the additional 45-hour post-license education obligation for applicants with less experience does not apply.
Jurisdiction Consent
Agree to Illinois law and Department jurisdiction; submit the required Secretary-as-agent designation.
Licence Held
Active equivalent licence in another United States jurisdiction, in good standing; supply official certification and disciplinary history from each licensing authority.
Sponsorship
Provide registered sponsorship for active status; without sponsorship the approved licence is inactive.
Licensure by endorsement
Illinois Real Estate Broker Examination State Portion
Application
Completed application, proof of state-law examination passage and required fee.
Course Assessments
For the less-than-two-years endorsement pathway, each of the three mandatory 15-hour post-license courses requires passage of its provider-administered 50-question final examination under 225 ILCS 454/5-50(b). These provider-specific course examinations are applicant education conditions.
Education
Complete the Department-approved 30-hour broker pre-license endorsement course.
Experience
Less than two years of active practice immediately before applying; complete 45 hours of post-license education by the first renewal under 68 Ill. Adm. Code 1450.460(b).
Jurisdiction Consent
Agree to Illinois law and Department jurisdiction; submit the required Secretary-as-agent designation.
Licence Held
Active equivalent licence in another United States jurisdiction, in good standing; supply official certification and disciplinary history from each licensing authority.
Sponsorship
Provide registered sponsorship for active status; without sponsorship the approved licence is inactive.
Licensure by examination
Application
Submit the completed application and required fee; no licensed activities before sponsorship is registered.
Character
Good moral character; disclose required personal-history information.
Education
High school diploma or equivalent verified under oath; 75 approved hours, including 15 hours of situational and case studies.
Education Validity
Approved pre-license education is valid for two years after completion.
Minimum Age
18 years
Reciprocity Closure
225 ILCS 454/5-60.1 prohibits new reciprocity applications on and after January 1, 2026; existing reciprocity licences may be renewed.
Repeat Failures
After four consecutive failures, repeat the required pre-license education and file a new examination application.
Score Validity
Apply and meet all licensing requirements within one year after passing.
Renew, reinstate or restore following qualifying military service or Department employment
No examination is required for this applicant pathway.
Deadline
Supply satisfactory evidence of qualifying service and honorable termination within two years after the service ends.
Service
Licence expired while in qualifying active military service, supervised pre-induction training/education, Coordinator service or Department employment.
Sponsorship
Register sponsorship or permitted self-sponsorship before active practice.
Waiver
No lapsed renewal fees, CE for the qualifying period or examination required under rule 1450.140(j).

Official no-examination sources

Effective from 2026-09-22.

Reactivate a current inactive licence through sponsorship
No examination is required for this applicant pathway.
Licence Held
A current inactive licence; expiry cases follow the applicable renewal or restoration pathway.
Practice
No licensed activities until valid sponsorship is registered.
Sponsorship
Establish registered sponsorship with a new sponsoring broker (or permitted managing-broker self-sponsorship), submit sponsorship confirmation and required fee.

Official no-examination sources

Effective from 2026-09-22.

New applicant relicensure after more than five years of expiration
Application
Submit the completed application and required fee; no licensed activities before sponsorship is registered.
Character
Good moral character; disclose required personal-history information.
Education
High school diploma or equivalent verified under oath; 75 approved hours, including 15 hours of situational and case studies.
Education Validity
Approved pre-license education is valid for two years after completion.
Expiration
Expired for more than five years; statute 5-50(c) and rule 1450.145(e) require new-applicant licensing requirements.
Minimum Age
18 years
Reciprocity Closure
225 ILCS 454/5-60.1 prohibits new reciprocity applications on and after January 1, 2026; existing reciprocity licences may be renewed.
Repeat Failures
After four consecutive failures, repeat the required pre-license education and file a new examination application.
Score Validity
Apply and meet all licensing requirements within one year after passing.
Renewal or late renewal within two years of expiration
No examination is required for this applicant pathway.
Application
Renewal application, required fees and sponsor information for active status; renewals are April 30 of even years for brokers, April 30 of odd years for managing brokers and July 31 of even years for leasing agents.
Broker First Renewal
This route applies after required post-license examinations have been completed, or where the applicant is exempt; the unresolved broker first-renewal route is separately retained.
Current Licence
Current licence or licence expired for less than two years.
Disciplinary Balances
Pay outstanding fines/fees or remain current on an approved payment plan.
Education
12 approved CE hours (6 core including 2 fair housing, and 6 elective). Education-provider course assessments, where chosen or required, are course-completion conditions; no new licensing examination is imposed by 225 ILCS 454/5-50(a),(c) and rule 1450.140(i).
Legacy Reciprocity
Existing reciprocity licences granted before January 1, 2026 remain renewable.

Official no-examination sources

Effective from 2026-09-22.

Restore a licence expired more than two but less than five years
No examination is required for this applicant pathway.
Application
Signed restoration application, required fees, acceptable evidence of fitness and sponsorship for active practice.
Broker Post Licence
For brokers this route excludes a lapsed period in which outstanding first-renewal post-license final examinations must be completed; that secondary route is separately noted.
Education
12 approved CE hours (6 core including 2 fair housing, and 6 elective) for the lapsed terms under rule 1450.145; statute 5-50(c) specifies the most recent term. The Department restoration form requests each lapsed renewal.
Expiration
Licence expired for more than two but less than five years.

Official no-examination sources

Effective from 2026-09-22.

Transfer an active managing broker licence to a broker licence
No examination is required for this applicant pathway.
Application
Signed transfer application and required fee.
Education
Broker continuing education requirements apply after transfer.
Effect
Statute permanently and irrevocably places the managing-broker licence inactive; implementation rule says it is cancelled. Prior discipline carries into the broker record; obtaining managing-broker status again requires new-applicant requirements.
Licence Held
Active managing-broker licence eligible for renewal.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Broker — Military Portability

Time-limited military portability licence issued under 20 ILCS 5/5-717, separate from full licensure by examination or endorsement.

Licensing authority: division of real estate of the department of financial and professional regulation · Application information

Initial military portability licensure
No examination is required for this applicant pathway.
Application
Completed portability application, required nonrefundable fee, applicable criminal-history review and qualification requirements of 20 ILCS 2105/2105-135; Department jurisdiction and professional standards apply.
Duration
From issuance through the next renewal period. IDFPR states the license is valid only while the service member remains on active duty and stationed in Illinois.
General Licence
Upon losing portability eligibility or expiration without renewal, meet full examination or endorsement requirements to continue practice.
Military Status
Service member or spouse of a service member with official orders relocating to Illinois; supply orders and accepted proof of service.
Prior Licence
Active licence in good standing in the same profession and same or similar scope, for at least two years immediately before relocation; official verification from every licensing authority and no encumbering disciplinary order.

Official no-examination sources

Effective from 2026-09-22.

Renew military portability licensure
No examination is required for this applicant pathway.
Application
Completed portability application, required nonrefundable fee, applicable criminal-history review and qualification requirements of 20 ILCS 2105/2105-135; Department jurisdiction and professional standards apply.
Duration
From issuance through the next renewal period. IDFPR states the license is valid only while the service member remains on active duty and stationed in Illinois.
General Licence
Upon losing portability eligibility or expiration without renewal, meet full examination or endorsement requirements to continue practice.
Military Status
Service member or spouse of a service member with official orders relocating to Illinois; supply orders and accepted proof of service.
Prior Licence
Active licence in good standing in the same profession and same or similar scope, for at least two years immediately before relocation; official verification from every licensing authority and no encumbering disciplinary order.
Renewal
Military orders must continue or be extended for Illinois duty, or new Illinois orders issued; comply with professional renewal and CE requirements. IDFPR requests verification of continuing active-duty stationing within 30 days after renewal.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Corporation

Entity brokerage practice licence, distinct from the individual participants' licences.

Licensing authority: Illinois Department of Financial and Professional Regulation, Division of Real Estate · Application information

Initial entity brokerage licensure
No examination is required for this applicant pathway.
Application
Submit signed application, fee, FEIN, audit consent, designated managing-broker name/licence number, ownership records and principal Illinois physical or virtual business address.
Deadline
Complete requirements within one year of application.
Entity Form
corporation
Organization
Submit applicable formation/authority documents and assumed-name filings.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.

Official no-examination sources

Effective from 2026-09-22.

Entity brokerage licence renewal
No examination is required for this applicant pathway.
Entity Status
Maintain active status, good standing, and authority to transact business in Illinois.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.
Renewal
Entity licences expire October 31 of even-numbered years; submit renewal, required fee, audit consent and notice of business-information changes.

Official no-examination sources

Effective from 2026-09-22.

Residential Leasing Agent — Military Portability

Professional portability licensure for eligible out-of-state real estate residential leasing agents who are service members or spouses of service members under official military orders to relocate to Illinois.

Licensing authority: division of real estate of the department of financial and professional regulation · Application information

Initial military portability licensure
No examination is required for this applicant pathway.
Application
Completed portability application, required nonrefundable fee, applicable criminal-history review and qualification requirements of 20 ILCS 2105/2105-135; Department jurisdiction and professional standards apply.
Duration
From issuance through the next renewal period. IDFPR states the license is valid only while the service member remains on active duty and stationed in Illinois.
General Licence
Upon losing portability eligibility or expiration without renewal, meet full examination or endorsement requirements to continue practice.
Military Status
Service member or spouse of a service member with official orders relocating to Illinois; supply orders and accepted proof of service.
Prior Licence
Active licence in good standing in the same profession and same or similar scope, for at least two years immediately before relocation; official verification from every licensing authority and no encumbering disciplinary order.

Official no-examination sources

Effective from 2026-09-22.

Renew military portability licensure
No examination is required for this applicant pathway.
Application
Completed portability application, required nonrefundable fee, applicable criminal-history review and qualification requirements of 20 ILCS 2105/2105-135; Department jurisdiction and professional standards apply.
Duration
From issuance through the next renewal period. IDFPR states the license is valid only while the service member remains on active duty and stationed in Illinois.
General Licence
Upon losing portability eligibility or expiration without renewal, meet full examination or endorsement requirements to continue practice.
Military Status
Service member or spouse of a service member with official orders relocating to Illinois; supply orders and accepted proof of service.
Prior Licence
Active licence in good standing in the same profession and same or similar scope, for at least two years immediately before relocation; official verification from every licensing authority and no encumbering disciplinary order.
Renewal
Military orders must continue or be extended for Illinois duty, or new Illinois orders issued; comply with professional renewal and CE requirements. IDFPR requests verification of continuing active-duty stationing within 30 days after renewal.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Limited Partnership

Entity brokerage practice licence, distinct from the individual participants' licences.

Licensing authority: Illinois Department of Financial and Professional Regulation, Division of Real Estate · Application information

Initial entity brokerage licensure
No examination is required for this applicant pathway.
Application
Submit signed application, fee, FEIN, audit consent, designated managing-broker name/licence number, ownership records and principal Illinois physical or virtual business address.
Deadline
Complete requirements within one year of application.
Entity Form
limited partnership
Organization
Submit applicable formation/authority documents and assumed-name filings.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.

Official no-examination sources

Effective from 2026-09-22.

Entity brokerage licence renewal
No examination is required for this applicant pathway.
Entity Status
Maintain active status, good standing, and authority to transact business in Illinois.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.
Renewal
Entity licences expire October 31 of even-numbered years; submit renewal, required fee, audit consent and notice of business-information changes.

Official no-examination sources

Effective from 2026-09-22.

Limited Liability Company

Entity brokerage practice licence, distinct from the individual participants' licences.

Licensing authority: Department of Financial and Professional Regulation · Application information

Initial entity brokerage licensure
No examination is required for this applicant pathway.
Application
Submit signed application, fee, FEIN, audit consent, designated managing-broker name/licence number, ownership records and principal Illinois physical or virtual business address.
Deadline
Complete requirements within one year of application.
Entity Form
limited liability company
Organization
Submit applicable formation/authority documents and assumed-name filings.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.

Official no-examination sources

Effective from 2026-09-22.

Entity brokerage licence renewal
No examination is required for this applicant pathway.
Entity Status
Maintain active status, good standing, and authority to transact business in Illinois.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.
Renewal
Entity licences expire October 31 of even-numbered years; submit renewal, required fee, audit consent and notice of business-information changes.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Limited Liability Partnership

Entity brokerage practice licence, distinct from the individual participants' licences.

Licensing authority: Illinois Department of Financial and Professional Regulation, Division of Real Estate · Application information

Initial entity brokerage licensure
No examination is required for this applicant pathway.
Application
Submit signed application, fee, FEIN, audit consent, designated managing-broker name/licence number, ownership records and principal Illinois physical or virtual business address.
Deadline
Complete requirements within one year of application.
Entity Form
limited liability partnership
Organization
Submit applicable formation/authority documents and assumed-name filings.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.

Official no-examination sources

Effective from 2026-09-22.

Entity brokerage licence renewal
No examination is required for this applicant pathway.
Entity Status
Maintain active status, good standing, and authority to transact business in Illinois.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.
Renewal
Entity licences expire October 31 of even-numbered years; submit renewal, required fee, audit consent and notice of business-information changes.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Managing Broker — Military Portability

Time-limited military portability licence issued under 20 ILCS 5/5-717, separate from full licensure by examination or endorsement.

Licensing authority: division of real estate of the department of financial and professional regulation · Application information

Initial military portability licensure
No examination is required for this applicant pathway.
Application
Completed portability application, required nonrefundable fee, applicable criminal-history review and qualification requirements of 20 ILCS 2105/2105-135; Department jurisdiction and professional standards apply.
Duration
From issuance through the next renewal period. IDFPR states the license is valid only while the service member remains on active duty and stationed in Illinois.
General Licence
Upon losing portability eligibility or expiration without renewal, meet full examination or endorsement requirements to continue practice.
Military Status
Service member or spouse of a service member with official orders relocating to Illinois; supply orders and accepted proof of service.
Prior Licence
Active licence in good standing in the same profession and same or similar scope, for at least two years immediately before relocation; official verification from every licensing authority and no encumbering disciplinary order.

Official no-examination sources

Effective from 2026-09-22.

Renew military portability licensure
No examination is required for this applicant pathway.
Application
Completed portability application, required nonrefundable fee, applicable criminal-history review and qualification requirements of 20 ILCS 2105/2105-135; Department jurisdiction and professional standards apply.
Duration
From issuance through the next renewal period. IDFPR states the license is valid only while the service member remains on active duty and stationed in Illinois.
General Licence
Upon losing portability eligibility or expiration without renewal, meet full examination or endorsement requirements to continue practice.
Military Status
Service member or spouse of a service member with official orders relocating to Illinois; supply orders and accepted proof of service.
Prior Licence
Active licence in good standing in the same profession and same or similar scope, for at least two years immediately before relocation; official verification from every licensing authority and no encumbering disciplinary order.
Renewal
Military orders must continue or be extended for Illinois duty, or new Illinois orders issued; comply with professional renewal and CE requirements. IDFPR requests verification of continuing active-duty stationing within 30 days after renewal.

Official no-examination sources

Effective from 2026-09-22.

Real Estate Partnership

Entity brokerage practice licence, distinct from the individual participants' licences.

Licensing authority: Illinois Department of Financial and Professional Regulation, Division of Real Estate · Application information

Initial entity brokerage licensure
No examination is required for this applicant pathway.
Application
Submit signed application, fee, FEIN, audit consent, designated managing-broker name/licence number, ownership records and principal Illinois physical or virtual business address.
Deadline
Complete requirements within one year of application.
Entity Form
partnership
Organization
Submit applicable formation/authority documents and assumed-name filings.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.

Official no-examination sources

Effective from 2026-09-22.

Entity brokerage licence renewal
No examination is required for this applicant pathway.
Entity Status
Maintain active status, good standing, and authority to transact business in Illinois.
Participants
Active practice participants must hold the required individual Illinois licence; unlicensed/nonparticipating owners or officers file affidavits. Currently barred participants cannot obtain entity licensure.
Renewal
Entity licences expire October 31 of even-numbered years; submit renewal, required fee, audit consent and notice of business-information changes.

Official no-examination sources

Effective from 2026-09-22.

Illinois Real Estate Broker Examination State Portion

Provider
PSI Services LLC
Format
Computer-administered written examination
Exam questions
40 scored items
Time limit
90 minutes
Passing score
75%
Examination outline
  • I. Licensing Requirements (10%)
    • A. Activities requiring a license
    • B. License exemptions
    • C. Types of licenses
    • C. Types of licenses — 1. Broker
    • C. Types of licenses — 2. Managing Broker
    • C. Types of licenses — 3. Residential Leasing Agent
    • C. Types of licenses — 4. Instructor (pre-license and continuing education)
    • D. Eligibility for licensing, including sponsorship
    • E. Examination
    • F. License renewal
    • G. Post-licensing and continuing education
    • H. Change in address, name, or business information for a licensee
  • II. Illinois Real Estate License Act (40%)
    • A. Agency relationships
    • A. Agency relationships — 1. Stigmatized property issues
    • A. Agency relationships — 2. Material facts
    • B. Advertising
    • C. Sponsored licensee/sponsoring broker relationship
    • D. Brokerage agreements
    • D. Brokerage agreements — 1. Non-exclusive
    • D. Brokerage agreements — 2. Exclusive
    • D. Brokerage agreements — 2. Exclusive — a. Minimum services
    • E. Compensation requirements
    • E. Compensation requirements — 1. Contractual obligation
    • F. Interference with contracts or agreements
    • G. Licensed/Unlicensed assistants
    • H. Teams
    • H. Teams — 1. Team names
    • H. Teams — 2. Supervision
    • I. Handling of monies
    • I. Handling of monies — 1. Special accounts
    • I. Handling of monies — 2. Security deposits
    • J. Handling of documents
    • K. Disciplinary provisions
    • K. Disciplinary provisions — 1. Unprofessional conduct
    • L. Comparative market analysis (CMA)/Broker price opinion (BPO) requirements
    • M. Purchase contracts and lease agreements
    • M. Purchase contracts and lease agreements — 1. Chicago Bar Association et al vs Quinlan and Tyson inc.
    • N. Purpose of License Law
  • III. Additional Illinois Laws and Regulations Affecting Real Estate Practice (25%)
    • A. Ownership interests
    • A. Ownership interests — 1. Trusts
    • A. Ownership interests — 2. Homestead
    • A. Ownership interests — 3. Government powers
    • A. Ownership interests — 4. Co-ownership
    • A. Ownership interests — 5. Condominiums
    • A. Ownership interests — 6. Cooperatives
    • B. Performing activities exceeding the scope of real estate licensing
    • B. Performing activities exceeding the scope of real estate licensing — 1. Law
    • B. Performing activities exceeding the scope of real estate licensing — 2. Securities
    • B. Performing activities exceeding the scope of real estate licensing — 3. Illinois Business Broker Act
    • C. Transfer taxes
    • D. Transfer of title
    • D. Transfer of title — 1. Involuntary vs voluntary transfer
    • E. Legal description/Plat Act
    • F. Real estate taxes and exemptions
    • G. Illinois Human Rights Act
    • G. Illinois Human Rights Act — 1. Fair Housing advertising rules
    • H. Illinois Assistance Animal Integrity Act
    • I. Illinois Landlord Tenant Act
    • J. Commercial Broker Lien Act
    • K. Radon Resistant Construction Act
  • IV. Disclosures (25%)
    • A. Agency
    • A. Agency — 1. Designated agencies
    • A. Agency — 1. Designated agencies — a. Seller/landlord
    • A. Agency — 1. Designated agencies — b. Buyer/tenant
    • A. Agency — 1. Designated agencies — c. Dual
    • A. Agency — 2. Notice of no agency relationship
    • A. Agency — 3. Prohibition against transactional broker and facilitator
    • A. Agency — 4. Contemporaneous offers
    • B. Licensee status direct/indirect interest
    • C. Compensation sources
    • D. Property disclosure
    • D. Property disclosure — 1. Residential Real Property Disclosure Act
    • D. Property disclosure — 2. Material defects
    • E. Environmental and other disclosures
    • E. Environmental and other disclosures — 1. Radon
    • E. Environmental and other disclosures — 2. Lead based paint
    • E. Environmental and other disclosures — 3. Mine subsidence
    • E. Environmental and other disclosures — 4. Underground storage tanks
    • E. Environmental and other disclosures — 5. Flooding (landlords)
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