COMMISSION IMPLEMENTS NEW LICENSE EXAMINATION PROGRAM

One year ago, the Real Estate Commission undertook the ambitious task of developing and implementing a new real estate license examination program whereby all examination services (except actual administration of examinations to candidates) would be performed "in-house" by the Commission staff. The Commission had previously contracted with a private testing firm for license examination services.

Application Processor Gloria Williams computer-schedules examinees as computer consultant, Dr. Peter Simis, observes.

After months of intense preparation, the new examination program was successfully implemented in January with 1,409 candidates (a four-year record) being examined at exam centers in Asheville, Charlotte, Greenville, Raleigh, Wilmington and Winston-Salem.

Presented below is a summary of some of the developmental and administrative aspects of this new and unique examination program, as well as the expected benefits of the program.

The first step in developing the new license examinations was to determine those subjects on which applicants for real estate licenses should be examined. The Real Estate Commission was especially insistent that the examinations be "job-related";

that is, that the subject matter of the examinations be directly related to the activities performed by practicing real estate brokers and salesmen. To accomplish this, detailed examination

"specifications" were developed with the assistance of a special committee of experienced real estate practitioners and educators. These specifications consisted of a detailed list of examination topics (and the number of questions to be asked on each topic) with each topic being assigned a "competency level" representing the knowledge and skill level which beginning (entry-level) salesmen and brokers should possess.

The next step was to develop a "bank" of questions. Proposed questions were written by real estate educators and practitioners according to the exam specifications and detailed question-writing guidelines developed by the Commission and a testing expert. The proposed questions were then subjected to two initial reviews:

first by the Commission staff, and then by another select committee of real estate educator-practitioners. All approved questions were then entered into a micro-computer housed in the Commission office with each question being computer-coded both by topic and by approved use (salesman exam only, broker exam only, salesman or broker exam).

"Prototype" examinations were then generated by the computer for use in a study to determine appropriate passing scores for the examinations. This study was performed by still another committee of real estate practitioners under the supervision of a testing and measurement expert. After carefully considering the committee's recommendations and reviewing the prototype examinations, the Commission adopted passing scores of 75% for both the salesman and broker examinations.

Drafts for the first examinations were then prepared and again reviewed and edited by the Commission staff and a testing consultant. Examinations for each monthly examination will be produced in a similar manner, with each month's examination being unique yet comparable in both scope and difficulty.

To acquaint license applicants with the new examination and other aspects of obtaining a real estate license, a comprehensive booklet entitled Real Estate Licensing in North Carolina was developed by the Commission staff and is furnished to all persons interested in obtaining North Carolina real estate licenses.

The administrative functions associated with the new examinations will be performed totally "in-house" (in the Commission Office), which is believed to be unique for any occupational/ professional licensing agency of comparable size in the country. Using the Commission's in-house computer, applicants are scheduled for examination and examination tickets are printed and distributed weekly. The computer then generates various rosters for use by the Commission staff and exam supervisors.

To enhance examination security, examination booklets are produced in the Commission Office using a highspeed copier/ duplicator which assembles the booklets, inserts covers and staples them. The examination booklets, answer sheets, candidate rosters and other materials are then shipped by special courier to the exam center supervisors in the six cities previously listed.

The examinations are administered on the prescribed Saturday by the exam center supervisors, who are experienced test administrators under contract with the Commission. Immediately after the examination, all materials are picked up by special courier and delivered to the Commission the following Monday. The answer sheets are then scored by electronic scanner in the Commission Office and a statistical analysis performed on each examination question. Scores are then finalized and posted by computer to each applicant's file and computer-generated score reports are then sent to all scheduled applicants.

Passing candidates receive a "PASS" grade and failing candidates receive a numerical grade (the number of questions answered correctly) by major topic and overall. Failing candidates are also afforded an opportunity to review their examination in the Commission Office if they request an appointment within 30 days following the examination.

In addition, each school conducting a pre-licensing course(s) receives a monthly computer-generated report detailing the examination performance of their students compared to all candidates for that month.

Some of the benefits of the new examination program are:

• Examinations will be developed exclusively for North Carolina so that they will contain only questions appropriate for North Carolina real estate practice.

• North Carolina real estate practitioners and educators were actively involved in the development process to ensure that the examinations are "job-related."

• Candidates will receive in advance of their examination more specific information as to the content of the examination so that they can better prepare for it.

• Examination program is more closely coordinated with the prelicensing education program so that applicants should be better prepared for the examination.

• Schools will receive better analytical data concerning the performance of their students on the licensing examination so that they can identify and correct any deficiencies in their courses.

• Failing candidates will receive with their score reports more detailed information as to their areas of weakness on their examination so that they can better prepare for future examinations.

• Failing candidates will be allowed to review their examinations so that 1hey can identify precisely their areas of weakness in order to better prepare for future examinations.

• The "waiting time" between application filing and examination will be reduced, as well as the time between examination and score reporting, so that successful applicants will be able to receive their licenses sooner.

• The Commission should realize substantial financial savings, thus being able to defer for the immediate future any increases in fees to candidates.

The Commission is confident that the new license examinations will represent a fair and accurate measurement of applicants' knowledge of essential real estate principles and practices