How to Become a Real Estate Agent in Kentucky

Real estate offers a dynamic career path in Kentucky, whether you see yourself helping first-time buyers in Louisville, marketing properties in Lexington, or working with clients in smaller towns across the Bluegrass State. Licensed agents play an important role in guiding people through one of the biggest financial decisions of their lives while also enjoying the flexibility and earning potential the industry provides. 

In Kentucky, the real estate profession is regulated by the Kentucky Real Estate Commission (KREC). Before you can begin working with clients, you must meet the state’s licensing requirements. This involves completing education, passing an exam, and applying for approval through the KREC.

Here is a brief overview of what you’ll need to do to earn your Kentucky real estate license:

• Be at least 18 years old
• Complete prelicensing education
• Submit a criminal background check
• Pass the Kentucky salesperson licensing exam
• Apply for your license
• Affiliate with a sponsoring broker

Table of Contents

• Steps to Become a Real Estate Agent in Kentucky
• Continuing Education and License Renewal in Kentucky
• Reciprocity for Kentucky Real Estate Agents

Steps to Become a Real Estate Agent in Kentucky

The process to become a licensed real estate agent in Kentucky is straightforward, but it does involve several important requirements. From completing your education to passing the licensing exam and finding a sponsoring broker. Each step ensures you’re prepared to begin your career. Learn more:

Step 1: Meet the Basic Eligibility Requirements

To qualify for a Kentucky real estate license, you must:

• Be at least 18 years old
• Hold a high school diploma or GED

Step 2: Complete Prelicensing Education

Kentucky requires you to complete education before sitting for the licensing exam. You have two options:

• Finish 96 hours of prelicensing education through a KREC-approved provider
• Earn 6 credit hours in real estate courses from an accredited college or university

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

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Step 3: Undergo a Criminal Background Check

Before scheduling your licensing exam, you must request an FBI/National Criminal History Check. This background check is valid for 90 days. If the background check is not completed before your exam, your results may be voided.

Step 4: Pass the Kentucky Salesperson Licensing Exam

Once your prelicensing education and background check are complete, you can register for the licensing exam with PSI. The test is divided into two parts:

• National portion covering general real estate principles
• Kentucky law portion focused on state-specific regulations

If you pass one section but not the other, you’ll have four months to retake the part you did not pass. After that window, both sections must be retaken. 

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Step 5: Submit Your Real Estate Salesperson License Application

After passing both sections of the exam, you must submit your application within 60 days. You can apply online through the KREC or by mail. Applications must include:

• Certificate of course completion
• Proof of high school diploma, GED, or transcripts
• Proof of errors and omissions (E&O) insurance
• Any other required documentation

Step 6: Affiliate with a Sponsoring Broker

A license alone does not allow you to practice real estate in Kentucky. You must activate your license by affiliating with a licensed brokerage. Once you are sponsored, you can begin representing clients and officially start your career as a real estate agent. 

Continuing Education and License Renewal in Kentucky

Keeping your real estate license active in Kentucky means staying current with annual education and timely renewal. Whether you’re approaching your first renewal or subsequent ones, here’s what you need to know:

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First-Time Renewal

Newly licensed salespersons in Kentucky must complete a 48-hour post-licensing education requirement within the first two years of licensure. During this initial period, you are exempt from the standard continuing education (CE) requirement. 

Subsequent Renewals

Once your post-licensing education is complete, you’ll follow the ongoing CE cycle:

• You must complete 6 hours of CE every calendar year, with 3 hours in real estate law and 3 hours of elective courses
• Every four years, you must take the 6-hour Kentucky Core Course, which counts toward both the annual law and elective requirements in the year it’s taken
• CE hours are due by December 31 each year, and your license must be renewed every two years by March 31 of even-numbered years

Renewal Process and Penalties

You can renew your license online through KREC’s eServices portal or by submitting a paper renewal form. Active agents must also maintain E&O insurance to complete renewal. If you miss the March 31 deadline, your license may be canceled and subject to late fees, including a penalty of around $200. 

Reciprocity for Kentucky Real Estate Agents

If you’re already a licensed salesperson in another state, Kentucky may offer a streamlined path to licensure through reciprocity agreements. Currently, Kentucky maintains official reciprocal arrangements with Florida, Tennessee, Illinois, and holds a Memorandum of Understanding (MOU) with Ohio. These agreements aim to simplify the licensing process for experienced agents in these states.

Who Qualifies for Reciprocity? 

To be eligible under these agreements, you must have held an active salesperson license in the reciprocal state for at least one year immediately before applying for Kentucky licensure. 

What to Expect with Reciprocity

Instead of completing the full prelicensing curriculum, Kentucky requires reciprocity applicants to:

1. Complete a 40-hour Kentucky Reciprocity License Law Course approved by the KREC
2. Pass the course’s final exam (typically requiring a 75% or higher score)
3. Submit fingerprints for a national criminal background check
4. Obtain and submit a letter of good standing or license history from your current state’s real estate commission
5. Pass only the Kentucky-specific portion of the state licensing exam–you’re exempt from the national portion
6. Affiliate with a Kentucky-licensed brokerage before your license becomes active
7. Complete the license application, including payment, insurance verification, education documentation, and any required forms