Kansas Broker-Only Topics
Area VI is worth 4 of the 40 broker items and does not appear on the salesperson exam at all. Its five printed subtopics are exemptions from licensure; qualifications, exams and denial of license; handling of trust funds and trust accounts; broker supervision of primary and branch offices; and commercial real estate and sharing commissions with a licensee of another jurisdiction.
Exemptions, qualifications and denial
K.S.A. 58-3037 exempts an owner dealing with the owner's own property, a person acting under a power of attorney without compensation, an attorney performing professional duties, a receiver, trustee in bankruptcy, administrator, executor or guardian acting under court order or a will or trust, a government officer or employee on official duties, a nonprofit multiple listing service or broker referral organization, regulated public utilities in their own business, an employee owning 5% or more of the entity that owns the property, a builder selling new homes it constructed, and the lease of real estate for agricultural purposes. A broker applicant must be 18 with a high school diploma, must have been licensed and actively engaged in K.S.A. 58-3035(f) activities for at least two years during the three years immediately preceding the application, and must pass both exam portions; fingerprints and a criminal history record check are required (K.S.A. 58-3039). K.S.A. 58-3043 lists what the Commission weighs in granting or renewing, K.S.A. 58-3041 lets it issue a restricted or conditioned license instead of refusing, and K.S.A. 58-3044 gives written notice and a hearing on denial.
Trust funds and trust accounts
K.S.A. 58-3061 requires each broker to maintain a separate trust account, designated as such, at an insured Kansas depository or, with written permission, one in an adjoining state, and to deposit in it all down payments, earnest money deposits, advance listing fees and other trust funds unless every interested party agrees otherwise in writing. The Commission must be told which institution holds the account, on a consent-to-audit form, and must be given full access. No payment leaves the account except an earned commission payable to the broker or a distribution on behalf of a beneficiary, and after acceptance the earnest money may be disbursed only on the written authorization of buyer and seller, on a court order, or when the transaction closes. Four brokers are exempt from the duty under subsection (f): one on deactivated status, one acting as an associate broker, one who is not the supervising broker of an office of the entity, and one whose activities in the Commission's opinion do not require holding trust funds. K.A.R. 86-3-18 requires deposit slips, statements, voided checks, a check register, a ledger per transaction and a ledger for any broker's funds, with monthly reconciliation.
Supervising primary and branch offices; commercial cooperation
The supervising broker is responsible for the primary office and its licensees, and is by definition someone other than a branch broker; the branch broker supervises a branch office and its licensees (K.S.A. 58-3035(p) and (d), 58-3060(b)). The supervising broker of the primary office is responsible for ensuring the branch broker files the statement required when a licensee's license is deactivated for a violation (K.S.A. 58-3047(d)). When a supervising or branch broker's license expires or is suspended, deactivated or revoked, affiliated licenses go inactive within five days unless another broker takes over (K.S.A. 58-3080), advertising must come down within five calendar days (58-3085), clients must be told the firm cannot perform (58-3083), and the broker may not personally finalize pending closings (58-3084). K.S.A. 58-3077 lets a supervising or branch broker cooperate with and share commissions with a foreign licensee on commercial real estate, defined as property whose present use is other than one to four residential units or agricultural, provided it is not improved with a single family residence and the parties sign a broker cooperation agreement; a copy goes to the Commission within five business days.
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State-specific details
State exam facts
- State regulator
- Kansas Real Estate Commission (KREC)
- Exam vendor
- Pearson VUE
- Passing score
- Scaled score of 70
- Scored questions
- 120
- Time limit
- 240 minutes
Who regulates real estate brokers in Kansas?
The Kansas Real Estate Commission (KREC) licenses brokers and salespersons. KREC contracts with Pearson VUE to deliver the licensing exams.
What experience do I need before the Kansas broker exam?
Broker applicants must have at least two years of active experience as a licensee (documented on a Broker Transaction Log) and complete the approved Kansas 'Broker Fundamentals' course within one year before passing both exam portions.
How is the Kansas broker exam structured?
The Kansas broker exam has 120 questions (80 general + 40 state), delivered by Pearson VUE over 4 hours, and requires a scaled score of 70 or higher to pass.
Sources: https://krec.ks.gov, https://www.pearsonvue.com/us/en/ks/realestate.html
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