KYKentucky

Real estate exam prep

At a glance

The exam, in numbers.

Questions: 130 multiple-choice (80 national + 50 state)
Time: 240 minutes (4 hours)
Passing score: 75% scaled
Pre-license education: 96 hours, KREC-approved Sales Associate Pre-License course
License type: Sales Associate (entry-level; brokers take a separate exam)
Administered by: PSI Services LLC on behalf of KREC
Format: computer-based testing at PSI centers across Kentucky
Result: issued at the testing center; pass/fail with scaled score
Exam fee: $100 per attempt, paid to PSI at scheduling
Retake wait: none; reschedule with PSI as soon as a slot is available
Score validity: a passed section stays valid for 60 days while you retake the other
Sponsorship: a KREC-licensed broker (Principal Broker) must employ the sales associate before the license issues

Kentucky real estate exam: format, score, what to expect in 2026

Kentucky uses a judicial foreclosure process that runs through a court-appointed officer called the Master Commissioner. When a residential mortgage goes into default and the lender forecloses, Kentucky requires the foreclosure sale to be conducted by the Master Commissioner of the circuit court that has jurisdiction over the property, not by a private trustee, not by an auctioneer, not by the lender's own representative. The Master Commissioner advertises the sale, receives bids, conducts the auction, and reports the sale to the court for confirmation. Kentucky is one of the few US states where this court-officer model survives in active practice; most other states moved to private trustee non-judicial foreclosure or simplified judicial sale processes decades ago. The Kentucky Real Estate Commission (KREC) tests the Master Commissioner process directly on the state portion of the sales associate exam, including the procedural sequence, the redemption rights of the borrower, and the licensee's role in marketing properties acquired through Master Commissioner sales.

The exam is administered by PSI Services LLC on behalf of KREC, which sits within the Kentucky Department of Professional Licensing. The format is 130 multiple-choice questions over 240 minutes, scored as 80 national + 50 state. The passing standard is 75% scaled. The state portion at 50 items is heavier than the typical 40, reflecting the depth of Kentucky-specific content the KREC tests.

This guide walks through the KREC content outline, how to study for the Master Commissioner content, and what exam day looks like at a PSI center.

Written by

Chris Reese

May 9, 2026

§ 01 What's tested

Kentucky runs the exam in two scored sections, with the national portion (80 items) covering general real estate principles and the state portion (50 items) covering Kentucky-specific licensing law and regulations. The state portion is anchored on Kentucky Revised Statutes Chapter 324 (Real Estate Brokers, Sales Associates, and Real Estate Licensing) and the KREC regulations at 201 KAR 11.

National portion (80 scored items)

The national portion follows PSI's standard national real estate outline. Topic areas: real property characteristics, ownership and title, value and appraisal, contracts and agency, real estate practice, disclosures and environmental issues, financing and settlement, and math. Kentucky candidates should know the state operates under a title-theory model with mortgages as the standard instrument, judicial foreclosure runs through the Master Commissioner of the circuit court (not non-judicial trustee), and the Kentucky Seller's Disclosure of Property Condition layers on top of national disclosure content in many scenario questions.

State portion (50 scored items)

The state portion is anchored on KRS Chapter 324 and 201 KAR 11. The major topic areas:

License Law and KREC. KRS Chapter 324, KREC's structure and powers within the Department of Professional Licensing, the Sales Associate / Principal Broker tier structure, license issuance and renewal cycles, continuing education requirements, and the standards for license suspension and revocation.
Agency in Kentucky. Kentucky recognizes single agency, dual agency (with informed written consent), and designated agency. The Consumer Guide to Agency Relationships must be presented to a buyer or seller at the first substantive contact. The exam tests the disclosure timing and the duties owed under each relationship.
Master Commissioner foreclosure process. The procedural sequence from default through Master Commissioner sale, bid submission, court confirmation, and the borrower's statutory right of redemption. Licensees often handle the marketing of Master Commissioner-sold properties, and the exam tests the licensee's role in those transactions.
Kentucky Seller's Disclosure of Property Condition. Required under KRS 324.360 for most residential transfers. Statutory exemptions apply (estate transfers, foreclosures, certain trustee transfers, including Master Commissioner sales, which are exempt). The exam tests when delivery is required and the exemption boundaries.
Trust accounts under KREC supervision. Kentucky's escrow account rules require the Principal Broker to maintain a separate clients' funds account at a Kentucky-chartered or federally chartered insured institution, with specific deposit-timing requirements under 201 KAR 11.
Kentucky fair housing. Federal Fair Housing layered with the Kentucky Civil Rights Act (KRS Chapter 344), which adds protected classes consistent with the federal list and includes specific enforcement mechanisms through the Kentucky Commission on Human Rights.
Kentucky Real Estate Education, Research, and Recovery Fund. Kentucky operates a state-administered fund that compensates consumers harmed by licensee misconduct when the licensee can't pay the judgment. The exam tests the claim mechanics and the licensee consequences.

Standout state-specific content

Two Kentucky content areas almost always confuse candidates who studied from generic national materials:

The Master Commissioner foreclosure process. Most national real estate study materials cover non-judicial trustee foreclosure (the dominant US model) and pass through judicial foreclosure quickly. Kentucky's court-officer process has its own procedural rules, redemption mechanics, and licensee considerations that the exam tests directly.
Kentucky Seller's Disclosure exemptions. The exemption list under KRS 324.360 includes specific Kentucky scenarios (Master Commissioner sales, certain probate transfers) that don't map cleanly to other states' exemption lists. The exam tests scenarios where the exemption either applies or doesn't.

§ 03 How to study

Kentucky's 96-hour pre-license course covers the national and state outlines, but the exam tests applied judgment in scenario questions that pull from KRS Chapter 324, the Master Commissioner process, the Consumer Guide to Agency Relationships, and the trust account compliance requirements simultaneously.

What works in Kentucky is volume on practice questions tied to both the national and state outlines, with extra reps on the Master Commissioner process, the Seller's Disclosure exemptions, and the Recovery Fund mechanics. Most who pass have worked through somewhere in the low thousands of practice questions before sitting.

Passd's Kentucky question bank is organized by both national and state content areas, with per-area accuracy tracked so you know whether your weak spot is the Master Commissioner process, agency disclosure, the Seller's Disclosure exemptions, or finance before booking the exam. Your Passd Score updates as you answer and gives a single read on whether the test is in reach yet. Tier details are on the pricing page.

A few specific things help in Kentucky:

Read the Consumer Guide to Agency Relationships end-to-end. KREC publishes it. The first-substantive-contact timing rule is testable in scenario form.
Trace a Master Commissioner sale through the procedural sequence. Default, complaint, judgment, sale advertising, auction, court confirmation, redemption window, deed delivery. Each step is testable.
Memorize the Seller's Disclosure exemption list. Master Commissioner sales are exempt; other transfer types are not. The exam asks scenario questions that turn on which exemption applies.

§ 04 What to expect on exam day

The Kentucky sales associate exam is administered at PSI testing centers across Kentucky (Louisville, Lexington, Bowling Green, and additional locations). You schedule directly through PSI after KREC has approved your pre-license course completion and authorized you to test.

On exam day:

Arrive at least 30 minutes before your scheduled appointment. Late arrivals can be turned away.
Bring two forms of valid signature identification, one of them government-issued with photo (driver's license, state ID, passport, or military ID). Names must match the KREC application.
Personal items go in a locker. Phones, smart watches, study materials, food, and bound notes stay outside the testing room.
Calculators are permitted with restrictions: silent, battery-operated, non-printing, and without an alphabetic keypad.
The exam is closed-book.

Results print at the testing center after the exam, showing pass or fail with a scaled score. Candidates who pass move into the licensure phase: KREC application, Principal Broker employment confirmation, fingerprinting, and the license fee. Candidates who fail can register for a retake, paying the per-attempt fee.

§ 05 Common mistakes

Kentucky candidates who fail the exam tend to fail in a handful of specific ways:

Studying foreclosure from generic non-judicial trustee materials. Kentucky uses Master Commissioner judicial foreclosure. Generic national content focuses on non-judicial trustee processes and skips judicial sale procedures. The Kentucky-specific Master Commissioner mechanics are testable.
Missing the Master Commissioner sale exemption from Seller's Disclosure. Properties sold via Master Commissioner are exempt from the Kentucky Seller's Disclosure of Property Condition. Candidates who memorize that the form exists without studying the exemption list miss the related scenario questions.
Confusing Sales Associate with Salesperson. Kentucky uses "Sales Associate" as the entry-level title (similar to Florida's Sales Associate, distinct from "Salesperson" used in most states). The exam doesn't typically test this nomenclature directly, but study materials mislabeled with "Salesperson" are increasingly out of step with the KREC framework.
Skimming the Recovery Fund mechanics. Kentucky's Education, Research, and Recovery Fund has specific claim limits and licensee consequences. The exam tests the basics; candidates who skip it lose points.
Underestimating the 50-item state portion. Most candidates study time proportional to a typical 40-item state portion. Kentucky's 50 items at 75% scaled threshold means more breadth in state-specific content and more chances to lose points if topics are skimmed.
Showing up without an unexpired ID or with a name mismatch. PSI turns candidates away for ID problems.

§ 02 Frequently asked questions

How many questions are on the Kentucky real estate sales associate exam?

130 multiple-choice questions: 80 on the national portion and 50 on the Kentucky state portion.

How is the exam scored?

75% scaled. PSI applies the scaling per KREC's published methodology.

How long is the exam?

240 minutes (4 hours) total.

What's a Master Commissioner?

A court-appointed officer of the circuit court who conducts judicial foreclosure sales in Kentucky. When a residential mortgage goes into default and the lender obtains a foreclosure judgment, the Master Commissioner advertises the sale, receives bids at auction, and reports the sale to the court for confirmation. The Master Commissioner is the procedural pivot of Kentucky's foreclosure process, distinct from the private trustee model used in most states.

Where do I take the exam?

At a PSI testing center in Kentucky (Louisville, Lexington, Bowling Green, and additional locations).

What pre-license education do I need before the exam?

96 hours of KREC-approved Sales Associate Pre-License coursework, completed at an approved school before submitting the application.

Why does Kentucky call the entry-level license "Sales Associate"?

The naming convention is set by KRS Chapter 324. Kentucky's Sales Associate is functionally equivalent to other states' Salesperson tier but the statutory title differs. Florida also uses Sales Associate; most other states use Salesperson or Sales Agent.

Can I retake just the section I failed?

PSI allows retakes per KREC's published rules. Confirm the per-section retake mechanics with PSI when scheduling.

How much is the Kentucky exam fee?

$100 per attempt, paid to PSI when you schedule. Each retake is the same amount.

How long must I wait between retakes?

There's no statutory waiting period in Kentucky. You can reschedule with PSI as soon as a slot is available.

How long is my passing score valid?

A passed section stays valid for 60 days. If you pass national but fail state (or vice versa), you have 60 days to pass the failed section before you have to re-test everything.

Ready to see how prepared you are?

The Passd diagnostic is 20 questions across every major topic, and shows your Kentucky-specific Passd Score plus which KREC content areas need work. Free, no credit card.

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