How To Become A Real Estate Agent In Kentucky

There are more perks to being a real estate agent than just helping clients find the homes of their dreams. The job comes with all sorts of other advantages like flexible working hours, an unlimited salary cap, great upward mobility, and the chance to build a strong professional network.

The Federal Bureau of Labor Statistics estimates that between 2020 and 2030 more than 16,900 jobs will be added to the real estate industry. This means a projected 4.1 percent growth in employment in just a decade. So how can you pursue a career in real estate in the State of Kentucky? Well, read on as I answer these questions and more.

How To Get Your Real Estate License in the State of Kentucky

Just like virtually every other profession, there are several key criteria you have to pass before you can become a real estate agent in the state of Kentucky. These criteria were put in place by the Kentucky Real Estate Commission (KREC), the government agency in charge of licensing and regulating real estate agents within the state. In a nutshell, they include:

You must be at least 18 years old
You must have a high school degree or GED
Be a U.S. citizen or lawfully documented resident within the country
Complete 96 hours of real estate pre-licensing classes
Pass the final exams in real estate courses
Complete the national criminal background check
Schedule your exam
Pass the Kentucky Real Estate Exam
Find a brokerage to hire you
Acquire E&O insurance coverage
Enroll in 48 hours of post-licensing education within 2 years

While all these steps may seem pretty simple, there are some important aspects that I would like to highlight to make the process as smooth as possible.

Meet the Minimum Age, Education, and Citizenship Requirements

The first part is easy. Any individual interested in applying for a real estate license within the State of Kentucky must provide proof that they are at least 18 years of age and have a GED or high school diploma. The individual must also be a U.S. citizen or lawfully documented resident within the country.

Complete 96 Hours of Real Estate Pre-Licensing Course

This is probably the most important step in the process. The state mandates that all potential applicants must complete either 6 academic credit hours in real estate from an accredited college or university or go through 96 hours of state-approved real estate courses for pre-licensing. These courses may be taken online or in-person, but they must be administered by a state-approved pre-licensing school.

These courses may seem a bit confusing initially since you are learning an entirely new set of languages and concepts. However, with time and dedication, you’ll easily adapt and find yourself gaining a deeper understanding of the real estate industry. Some important topics to look out for during these courses include:

Property ownership
Land use controls and regulations
Valuation and market analysis
Financing
General principles of agency
Property disclosures
Contracts
Leasing and property management
Transfer of title
The practice of real estate
Real estate calculations
Real estate commission
Requirements for a license
Brokerage activities and requirements
License law requirements for contracts
Property management

Completing the course can take anywhere between 3 weeks to 6 months depending on your schedule. In-person classes cannot be hastened, but individuals taking online courses have the advantage of following a more aggressive study schedule.

Click here for state approved real estate pre-license classes: Real Estate School

Pass Your Final Pre-Licensing Exams

Once you have completed the courses you have to pass your pre-licensing course exam. Once you have passed this you will be presented with a Certificate of Completion for that course.

Most people rush to finish the material and take the final exams. However, it’s best to take your time to ensure that you understand the course material fully and avoid overwhelming yourself with information. Processing your application and performing the background check may take some time, so there’s no need to rush the process unnecessarily.

Complete the National Criminal Background Check

Before processing your application, you will be required to present to the nearest KREC-approved center for your national criminal background check and fingerprinting. This part must be completed before you will be allowed to write your licensing exams and submit your application for your license.

To get your national background check you will need to obtain an FBI report. First, enter the Kentucky Real Estate Commission page on how to obtain your FBI report. They will direct you to the FBI website which will then give you further instructions on how to successfully apply for an FBI report and submit your fingerprints.

The cost of obtaining an FBI report was $18 at the time of writing this report. The average processing time was about a week. Fingerprint cards can either be obtained from your local law enforcement agency (for a few of $10). You can visit the FBI website for other options on how to carry out the fingerprinting process.

Take note that once you receive your FBI report it will only be valid for 90 after the date of issuance. You cannot take the exam or receive your license without a valid FBI report. So by extension, you have only 90 after receiving the report to take your licensing exam and pass it.

Schedule Your Licensing Exam

If you have completed all these steps and met all the criteria set by the KREC, it’s time to apply for your licensing exam. The exams are administered by PSI, a national testing service contracted by KREC.

To schedule your exams, you will be required to create an account on the PSI website, pay an exam fee of $100 which can be paid with a credit or debit card directly through the website and make a reservation. You also will receive a copy of the Kentucky Candidate Information Bulletin for additional information concerning the testing process and the requirements.

The Examination Registration Form is found at the end of this Candidate Information Bulletin. They also provide practice tests, books, references and other materials. For further information, you can contact a customer service representative at 855-746-8176.

To increase the chances of passing your exam the first time I recommend checking out Prep Agent. This study tool gave me and many other agents a huge boost in confidence when taking the real estate exam.

Taking the Exam

The Kentucky real estate exam is split up into two sections, a national and state section. You will have a total of 240 minutes (4 hours) to complete both. The state real estate exam has 50 questions. You will have 90 mins to complete this part of the exam. The national portion of the exam is 80 questions long and you will have 150 minutes to complete it. You must get 70% of the questions correct to pass the exam.

You will be required to come with two forms of ID on the day of the exam. One must be a valid form of government-issued identification (Driver’s License, State ID, Passport) which bears your signature and has your photograph. The second ID must have your signature and preprinted legal name. Some unacceptable forms of photo identification include employment ID cards, student ID cards, and any type of temporary identification.

The exam is not an open book exam and you are only allowed to come in with a non-programmable (non-scientific) calculator. No personal items are allowed within the vicinity. The exam is administered by a computer and you will be provided with pre-examination sample questions to help familiarize yourself with the system.

The good news is that the results of the exam are released immediately. If you passed one section of the exam and failed the other you can retake only the section you failed. If you passed one section of the exam and failed the other (national or state law), you can retake only the section you failed and the section you passed will be valid for up to 4 months.

After 4 months you will have to retake both portions of the exam. Keep in mind you must pay the exam fee at every attempt.

Apply for Your License Online at the KREC Online Licensing Service

To do this you have to first submit your application to become a Sales Agent using KREC’s online portal which can be accessed here. During your application, you will be required to submit certain documents which include certain forms, your license application fee ($60), your real estate course certificates, and any other criteria set by the KREC. You must meet all these criteria and pass your licensing exam within 45 days of applying.

Finding a Broker

After passing the exam the next step is to apply for sponsorship with a licensed broker. This involves completing a sponsorship request which may take anywhere between 1-2 months. There are several important things to keep in mind when choosing a broker. They include factors such as:

Broker reputation
Mentorship culture
Commission splits
Commission caps
On-going monthly fees, and so on.

Acquire Errors and Omissions (E&O) Insurance

Errors and omissions insurance is a type of professional liability insurance that protects real estate agents against claims of inadequate work or negligent actions. All real estate agents planning to operate within Kentucky must have a current E&O policy before receiving an active license.

Complete Your Post Licensing Education

After receiving your license you will be required to complete another 48 hours of KREC-approved post-licensing education within 2 years of obtaining your license.

In Conclusion

Getting your real estate license in Kentucky is quite easy if you follow all the required steps. The entire process can take between 4-5 months and may cost you between $1,300-$1,500. However, with hard work and dedication, you’ll be a licensed Kentucky real estate agent in no time.

How To Get Your Real Estate License YouTube Video: