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Every state requires real estate sales agents to be licensed prior to engaging in the sale of real estate within the state. Licensure is generally earned with the successful completion of an exam. Licensure is granted by the state’s real estate commission or real estate department. It is important to note that the sales agent exam leads to state licensure as a sales agent; the Realtor designation is granted through membership in the National Association of Realtors.
While each state’s exam will vary, they all cover topics such as legal, financial, economic and political aspects of real estate. The California exam, for example, covers the following:
- Property ownership
- Land use controls and regulations
- Laws of agency
- Valuation and market analysis
- Financing
- Transfer of property
- Practice of real estate and mandated disclosures
- Contracts
The South Carolina real estate agent exam is similar, as well, covering:
- Classes of property
- Land characteristics and legal descriptions
- Encumbrances
- Types of ownership
- Physical descriptions of property
- South Carolina real estate laws and real estate commission rules
National testing organizations, such as PSI Exams, offer approved real estate agent licensure exams for most states. Registration and all test information for each state can be found online at psiexams.com.
Exams are available specifically for the state and nationally. Exam lengths vary widely; in Pennsylvania, the one hour exam consists of 30 multiple-choice questions, while in Kentucky, four hours are given for 120 multiple-choice questions. Registration costs vary widely as well; in Kentucky, the exam bears a $100 fee, while Pennsylvania’s exam has a $56 fee.
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