Kentucky Real Estate Exam Topics: Complete Breakdown

Kentucky's PSI sales associate exam tests 80 national questions and 40 state-specific questions. Here's a complete breakdown of every topic area so you can allocate your study time effectively.

Exam Format

| Section | Questions | Passing Score | |---------|-----------|---------------| | National | 80 | 70% (56 correct) | | State | 40 | 70% (28 correct) | | Total | 120 | Both sections independently |

Time limit: 4 hours. Administered by PSI.

National Content Areas

The national portion follows the standard ARELLO/AMP real estate content outline:

• Property ownership — types of ownership (joint tenancy, tenancy in common, etc.), legal descriptions, real vs. personal property
• Land use controls — zoning, deed restrictions, environmental regulations, eminent domain
• Valuation and market analysis — cost, income, and sales comparison approaches; CMA
• Financing — mortgage types, LTV, federal lending laws (RESPA, TILA, ECOA)
• Transfer of title — deed types and requirements, title insurance, closing procedures
• Agency — relationships, fiduciary duties, disclosure requirements
• Contracts — formation, contingencies, default, and remedies
• Leasing — lease types, landlord/tenant rights, property management basics

Kentucky State Content Areas

Kentucky Real Estate Commission (KREC) - 8 members (more than most states — know this) - Powers: licensing, discipline, rule-making - Governed by Kentucky Revised Statutes Chapter 324

License Requirements - Entry-level: Sales Associate (not "salesperson") - Prelicense: 96 hours - License renewal: every 2 years (odd years) - CE: 6 hours per year (12 hours per 2-year cycle)

Agency Law in Kentucky - Seller's agency (listing agreement), buyer's agency (buyer agency agreement) - Dual agency requires written informed consent - Designated agency available - Agency disclosure required at first substantive contact

Kentucky Seller's Disclosure of Property Condition - Required for most residential property sales - Form name is specific: "Seller's Disclosure of Property Condition" - Sellers must disclose known material defects - Timing: before or at purchase agreement

Contracts and Closings - Purchase agreements, contingencies, earnest money - Kentucky Consumer Protection Act implications - Deed of trust used as primary security instrument

Foreclosure in Kentucky - Both judicial AND non-judicial foreclosure are available - This dual-track system is uniquely Kentucky and frequently tested - Lenders choose the foreclosure method based on the security instrument

Kentucky Homestead Exemption - Protects a portion of a primary residence's equity from creditor claims - Frequently tested in conjunction with foreclosure questions

Fair Housing in Kentucky - Federal seven classes apply - Kentucky law generally mirrors federal fair housing - Local cities (Louisville, Lexington) may add additional protections - Enforcement through Kentucky Commission on Human Rights

Finance and Title - Deed of trust state - NOT a community property state (common law separate property) - Both judicial and non-judicial foreclosure tracks

High-Frequency State Topics

Focus extra prep time on:

1. Sales Associate terminology (not salesperson)
2. KREC: 8 members — most tested specific fact
3. KRS Chapter 324 — governing statute
4. 96-hour prelicense requirement
5. Both judicial and non-judicial foreclosure available
6. Seller's Disclosure of Property Condition — know the exact form name
7. CE: 6 hours/year, 12 hours/2-year cycle

Practice with Kentucky-specific questions at [CARealestate.com/states/kentucky](https://carealestate.com/states/kentucky).