How hard is the Kentucky real estate exam?

The Kentucky real estate exam is considered challenging with approximately a 60% first-time pass rate. It requires a 75% passing score on both the national (80 questions) and state (40 questions) portions, which is higher than many states that only require 70%. The comprehensive 96-hour education requirement helps prepare candidates, but thorough additional study is recommended.

How long does it take to get a Kentucky real estate license?

From start to finish, expect 3-5 months. This includes completing the 96-hour pre-license education (4-8 weeks depending on pace), FBI background check processing (up to 4 weeks), exam preparation (2-4 weeks), and license application processing. You must submit your application within 60 days of passing the exam.

What is the Kentucky real estate exam pass rate?

The Kentucky real estate exam has approximately a 62-69% first-time pass rate for the national portion and 57-62% for the state portion. The overall first-time pass rate is around 60%, making it one of the more challenging state exams due to the 75% passing score requirement.

How much does a Kentucky real estate license cost?

Total cost is approximately $700-$1,000 including: pre-license courses ($400-$600), exam fee ($100), FBI background check ($40-50), and license application fee. Additional costs may include study materials, post-license education, and professional association memberships.

Why does Kentucky require 96 hours of pre-license education?

Kentucky's 96-hour requirement ensures new agents have comprehensive knowledge before entering the field. The curriculum covers 60 hours of general real estate principles and 36 hours of Kentucky-specific license law, preparing agents for both the exam and real-world practice. This thorough preparation helps protect consumers and maintain professional standards.

Can I retake the Kentucky real estate exam if I fail?

Yes, you can retake the Kentucky real estate exam with no limit on attempts. You must wait 24 hours between attempts and pay the $100 exam fee each time. If you pass one portion but fail the other, you must retake the failed portion within 4 months, or you'll need to retake both portions.

FREE Kentucky Real Estate Exam Guide 2026 | KREC License Prep & Practice Test

Kentucky Real Estate License Overview

Kentucky offers diverse real estate opportunities, from the growing Louisville and Lexington markets to unique horse country properties and bourbon trail tourism. The Kentucky Real Estate Commission (KREC) oversees all licensing requirements and maintains high standards for real estate professionals.

With 96 hours of required pre-license education, Kentucky has one of the higher education requirements in the nation. However, this thorough preparation helps ensure new agents are well-equipped for success. The first-time pass rate is approximately 57-62% for the state portion and 62-69% for the national portion.

Kentucky Real Estate Exam Quick Facts

Feature	Details
Exam Administrator	PSI for KREC
Total Questions	120 (80 national + 40 state)
Time Limit	240 minutes (150 min national, 90 min state)
Passing Score	75% on each portion
Exam Fee	$100
Results	Immediate (pass/fail on screen)
Retake Wait	24 hours

Requirements Before Taking the Exam

Basic Eligibility Requirements

Requirement	Details
Age	18 years or older
Education	High school diploma or GED
Pre-License Education	96 hours of KREC-approved coursework
Background Check	FBI fingerprint background check required
Citizenship	Not required (legal presence required)

Pre-License Course Structure (96 Hours)

Kentucky's 96-hour requirement is divided into two main components:

Course Component	Hours	Content
Modern Real Estate Practices	60 hours	General real estate principles, contracts, financing
Kentucky License Law	36 hours	State-specific laws, KREC rules, ethics

Note: No more than 48 of the 96 hours may be taken in appraisal courses.

Course Content Breakdown

Modern Real Estate Practices (60 Hours):

Home Ownership Concepts
Agency and Brokerage
Listing and Buyer Representation Agreements
Real Estate Liens and Financing
Lease Arrangements
Appraisal Fundamentals
Land Use and Environmental Issues
Law of Contracts
ANSI Measurement Standards

Kentucky License Law (36 Hours):

KREC Rules and Regulations
Ethics and Professional Conduct
Disciplinary Actions and Complaints
Disclosure Requirements
RESPA Compliance
Agency Relationships and Duties
Fair Housing Laws

Application Process

Complete 96-hour pre-license education from KREC-approved school
Pass school-administered final exam
Initiate FBI criminal background check process
Register for exam with PSI
Pass both portions of the state licensing exam
Submit application to KREC within 60 days of passing
Find a sponsoring broker
Receive active license

Kentucky Exam Format

The Kentucky real estate exam consists of two separately-timed portions, each requiring a 75% passing score.

Content Breakdown

Section	Questions	Time	Passing Score
National Portion	80 + up to 10 pretest	150 minutes	60/80 (75%)
State Portion	40 + up to 10 pretest	90 minutes	30/40 (75%)
Total	120 scored	240 minutes	75% each section

National Portion Topics (80 Questions)

Topic	Percentage	~Questions
Property Ownership	10%	8
Land Use Controls	8%	6
Valuation and Market Analysis	10%	8
Financing	12%	10
Laws of Agency	13%	10
Mandated Disclosures	8%	6
Contracts	15%	12
Transfer of Title	8%	6
Practice of Real Estate	10%	8
Real Estate Calculations	6%	5

State Portion Topics (40 Questions)

Topic	Key Content
KREC License Requirements	Education, application, fees, renewal
Brokerage Activities	Broker supervision, office requirements
License Law Requirements	Contract requirements, prohibited practices
Disclosures and Agency	Seller disclosure, agency consent forms
Property Management	Landlord-tenant, trust accounts

Kentucky-Specific Topics to Master

Agency Relationships in Kentucky

Kentucky recognizes several types of agency relationships:

Agency Type	Description	Disclosure Required
Seller's Agent	Represents seller exclusively	Yes - KREC Form 401S
Buyer's Agent	Represents buyer exclusively	Yes - KREC Form 401B
Limited Dual Agent	Represents both parties with consent	Yes - Both forms
Designated Agent	Broker designates separate agents	Yes
Transaction Broker	Facilitates without representation	Yes

Required KREC Forms

Form Number	Form Name	Purpose
KREC 400	Guide to Agency Relationships	Explains agency types to consumers
KREC 401B	Agency Consent Agreement - Buyer	Establishes buyer agency
KREC 401S	Agency Consent Agreement - Seller	Establishes seller agency
KREC 402	Seller's Disclosure of Property Condition	Property condition disclosure
KREC 403	Seller-Initiated Listing Form	Listing agreement initiation
KREC 404	Condominium Seller's Certificate	Condo-specific disclosures

Seller's Disclosure Requirements

Kentucky Revised Statutes § 324.360 requires sellers to complete the Seller's Disclosure of Property Condition form for:

Single-family residential dwellings
Duplexes, triplexes, and fourplexes
Condominiums
Townhouses

The disclosure covers 12 categories including structural, mechanical, and environmental conditions.

Kentucky Real Estate Recovery Fund

Feature	Details
Purpose	Compensate victims of licensee fraud, misrepresentation, or deceit
Administration	Real Estate Education, Research and Recovery Fund
Eligibility	Must have valid judgment against licensee
Process	Apply to KREC with court judgment

KREC Commission Structure

Feature	Requirement
Total Members	7 commissioners
Residency	At least 6 must be 10-year Kentucky residents
Experience	At least 6 must have 10 years as active licensees
Appointments	Made by the Governor

License Reciprocity

Kentucky has reciprocity agreements with all states. Licensed agents from other states may obtain a Kentucky license by:

Submitting application and fee
Passing the Kentucky state portion exam
Completing background check
Finding a sponsoring broker

Trust Account Requirements

Requirement	Kentucky Rule
Deposit Timeline	Promptly upon receipt
Account Type	Federally insured institution in Kentucky
Interest	As specified in contract
Record Retention	5 years

Address Change Notification

Licensees must notify KREC of address changes within 10 days in writing.

Kentucky Real Estate Exam Pass Rate

The Kentucky real estate exam is considered challenging with the following approximate pass rates:

Portion	First-Time Pass Rate
National	62-69%
State	57-62%
Overall	~60%

Factor	Impact
Higher passing score	75% (vs 70% in many states)
Two-part exam	Must pass both sections separately
Extensive education	96 hours ensures thorough preparation
State-specific complexity	Kentucky agency laws and forms

Study Strategy

Recommended Study Timeline

Approach	Study Hours	Timeline
Intensive	40-60 hours	2-3 weeks
Standard	60-80 hours	4-5 weeks
Part-time	80-100 hours	6-8 weeks

Study time is in addition to the 96-hour pre-license education.

Study Priority by Weight

National Content (67% of exam)
- Contracts and agency (28% combined)
- Financing and valuation (22% combined)
- Property ownership and transfer
- Real estate calculations
Kentucky State Content (33% of exam)
- Agency relationships and KREC forms
- Seller disclosure requirements
- KREC rules and disciplinary authority
- Trust account management

Key Math Formulas to Master

Commission Calculations:

$\text{Commission} = \text{Sales Price} \times \text{Rate}$

$\text{Agent Share} = \text{Commission} \times \text{Split \%}$

Prorations:

$\text{Daily Rate} = \frac{\text{Annual Amount}}{365}$

$\text{Proration} = \text{Daily Rate} \times \text{Days}$

Loan Calculations:

$\text{LTV} = \frac{\text{Loan Amount}}{\text{Property Value}} \times 100$

$\text{Monthly Payment} = \text{Principal} \times \text{Factor}$

Capitalization Rate:

$\text{Cap Rate} = \frac{\text{Net Operating Income}}{\text{Property Value}}$

$\text{Value} = \frac{\text{NOI}}{\text{Cap Rate}}$

Common Mistakes to Avoid

1. Underestimating the 75% Passing Score

Kentucky requires 75%, which is higher than many states. Aim for 80%+ in practice to ensure a passing margin.

2. Neglecting Kentucky Agency Forms

Know all KREC forms by number and purpose. Agency disclosure questions are heavily tested.

3. Rushing the State Portion

With 90 minutes for 40 questions, you have over 2 minutes per question. Use all available time.

4. Ignoring Seller Disclosure Requirements

Know which properties require disclosure and what the 12 categories cover.

5. Skipping Math Practice

Real estate calculations appear on both portions. Practice daily until formulas become automatic.

Exam Day Tips

Before the Exam

Get adequate rest the night before
Eat a balanced meal
Arrive 30 minutes early
Bring two forms of ID (one government-issued with photo)

During the Exam

Read every question completely
Watch for negative phrasing ("EXCEPT," "NOT," "LEAST")
Show math work on provided materials
Flag difficult questions and return later
Review all answers before submitting

What to Bring

Two forms of ID (one with photo and signature)
Confirmation from PSI
Nothing else (personal items stored securely)

Testing Locations

PSI testing centers are located in:

Kentucky: Bowling Green, Lexington, Louisville, Maysville, Paducah, Somerset
Nearby States: Cincinnati, Cleveland, Columbus (OH); Knoxville, Nashville (TN)

After Passing the Exam

Immediate Steps

Receive results on screen at testing center
Obtain score reports (must submit within 60 days)
Complete application with all required documents
Submit to KREC in Louisville
Find a sponsoring broker
Receive active license

Required Application Documents

Completed application and fee
Original Kentucky exam score report(s)
96-hour education completion certificate
High school diploma or GED copy
FBI criminal background report or proof of submission

Post-License Education Requirements

Requirement	Details
Hours Required	48 hours
Completion Timeline	Within 2 years of initial license activation
Purpose	Transition from pre-license to practical knowledge

Continuing Education Requirements

Requirement	Details
CE Hours	6 hours per year
Core Requirements	KREC-mandated topics
Deadline	Annual by license anniversary

License Fees

Fee Type	Amount
Initial Application	Varies
Exam Fee	$100
License Fee	Check KREC current rates
Background Check	Approximately $40-50

Kentucky Real Estate Career Outlook

Salary Expectations

Experience Level	Annual Income
First Year	$30,000-$50,000
2-5 Years	$50,000-$80,000
5+ Years	$80,000-$130,000+
Top Producers	$175,000+

Top Kentucky Markets (2026)

Market	Characteristics
Louisville	Largest market, diverse housing, healthcare and logistics industries
Lexington	University town, horse farms, growing tech sector
Northern Kentucky	Cincinnati suburbs, corporate growth, affordability
Bowling Green	Automotive industry, Western Kentucky University
Owensboro	Affordable market, industrial growth
Horse Country (Central KY)	Unique equestrian properties, luxury market
Bourbon Trail Region	Tourism growth, unique properties

Unique Kentucky Markets

Horse Farms: Specialized market requiring specific knowledge
Bourbon Tourism: Growing vacation/rental market
Lake Properties: Kentucky Lake, Lake Cumberland recreational properties
Historic Properties: Louisville's Old Louisville, Lexington historic districts

Resources

Kentucky Real Estate Commission (KREC) - Official licensing information
PSI Exams - Exam scheduling and information
Kentucky REALTORS - Industry resources and forms
OpenExamPrep - Free practice questions and study materials

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