Getting Your Real Estate License
To enter the real estate market one needs to obtain a license before selecting a position at a brokerage firm or functioning as an independent contractor.
A real estate license must be obtained by any person wanting to act as an agent for others in real estate transactions in their chosen state of work. The protection of customers through real estate licensing requires states to maintain individual sets of laws and examination systems.
Types of Real Estate Licenses
To practice real estate a person must acquire either the salesperson (or sales) license or the broker license in most U.S. states. All real estate salespeople together with provisional brokers (or associate brokers in specific areas) need to operate under a single designated broker during their work. North Carolina operates under a licensing system where only brokers exist as the basic license category with different recognized levels.
Real estate salesperson licensees commonly choose to advance their knowledge and take certification tests toward becoming brokers because it typically provides broader professional possibilities.
Obtaining a real estate license requires checking your state requirements since you cannot get a nationwide real estate license. This guide shows the necessary steps to access state-specific requirements along with program types for real estate training and real estate test preparation methods.
State Requirements
Any state you live in among California, Florida, New York, Texas among others will require specific standards to obtain your license. The website of your state's real estate regulatory office contains the necessary information. Users can access the site by searching "(your state) real estate regulatory office" through an online search engine. Find links to each state regulatory office through the website of Association of Real Estate License Law Officials (Arello).
Each State Has Separate Regulations For
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Age requirements
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Application procedure and costs
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Background checks and fingerprinting
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Continuing education
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Completion of an ethics course
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Education requirements (such as a high school diploma)
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Examination eligibility
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Examinations
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Pre-licensing classes
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Process for getting the next level of license
Reporting of any criminal history (such as misdemeanor and felony convictions; in most places, if you have a felony record or have pled no contest to a felony, you won't be able to receive a real estate license.)
Some states have reciprocal licensing arrangements with other states, meaning you may receive your license in one state and use it in another without taking that state's license test. Nevada, for example, has reciprocity with Arizona, Colorado, Delaware, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Oklahoma, South Carolina, Texas, Utah, Washington, and West Virginia.
As with standard licensing criteria, each state has its method for gaining licensure by reciprocity. Qualification standards may be found on each state's real estate regulatory agency's website.
Real Estate Classes
Real estate pre-licensing requirements in every state necessitate completing an approved course with specific minimum hours before you can plan for the real estate license examination. The educational resources consist of textbooks, workbooks and digital materials which enrich each course lesson for study purposes. All state requirements must be considered when selecting a real estate course because no state recognizes a national license or curriculum.
In most states, there are numerous methods that you can meet the schooling requirements, including:
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Online pre-licensing courses: All coursework is performed over the Internet. Search "online real estate classes" to see choices; not all online colleges offer classes in every state.
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Brick-and-mortar real estate "schools": In-person classes offered by real estate experts. Search "(your state) real estate school" to locate nearby schools.
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Community colleges: Many community colleges provide real estate classes that complete their state's pre-licensing requirements. Contact your local community college for information.
You may save money choosing one sort of class program over another; nevertheless, it is crucial to pick the technique that will work best for your learning style and schedule. For example, if you are an independent learner, an online class may work well. If you learn better from a live instructor and if you prefer to be able to ask questions, a brick-and-mortar or community college setting may be more suited. Choose your course carefully as the quality of the teachers and materials may directly effect how well prepared you are to take the test.
In addition to the compulsory pre-licensing seminars, there are many real estate test prep items available to assist prepare you to pass the exam. These may be made accessible to you wherever you elect to take your pre-licensing program, or you may check online (search for "your state real estate exam prep"). Many exam preps offer both practice examinations and recommendations for taking the test, both of which can be beneficial. Again, since there is no national license, make sure to invest in an exam study package made particularly for your state.
License Examinations
Real estate examinations are often performed on a computer and consist of two parts: a national piece covering real estate concepts and practices and a state-specific half that assesses your knowledge of your state's real estate legislation. Each component is assessed independently, and you must get a passing mark (decided by each state) on both portions to pass the test. If you fail one component of the test, you normally need simply retake that section. The tests are multiple-choice type; each state chooses the amount of questions and the time permitted for the exam.
Most, but not all, states employ outside testing organizations to deliver their real estate licensing tests, with testing provided on weekdays and Saturdays to suit diverse schedules. Once you have finished your pre-licensing course, you should get instructions on scheduling, enrolling, and paying for your exam. You may find out more information by visiting the testing provider's website. A few of the main suppliers are:
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Applied Measurement Professionals (AMP) Assessment Systems Incorporated (Person VUE) Psychological Services Incorporated (PSI)
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Whether it is conducted by the state or through an outside entity, your state's testing facility will have its restrictions governing the testing procedure, including particular guidelines for the sorts of calculators that may be used and how you identify will be confirmed at the exam. It is vital to examine the criteria completely, so there are no surprises on test day.
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Once your application is granted, the state will deliver your real estate license certificate (and presumably a pocket card) to the address indicated on the application form, and your name will be searchable via the "Licensees" part of its Web site. Keep in mind that it is prohibited to participate in real estate business before the state's real estate agency grants your license (i.e., don't start working until you have the license in your hand).
Read Also: 7 Steps to a Hot Commercial Real Estate Deal
Real Estate License Application
Following your exam completion with passing results you acquire half a year to submit your real estate license application. The license application demands your exam outcomes and payment of the fee and a submission of your course grades. The process of obtaining your real estate license requires approval of background checks for licensing eligibility.
Your home state's real estate commission office is where you will submit your application. Make sure to verify your state's standards for real estate agents. In certain areas, you may have to join a real estate brokerage business before you can apply and earn your license.
Realtor License vs. Real Estate Agent License
The National Association of Realtors officially has not created or issued any type of realtor licensing program. A realtor represents a real estate agent who belongs to the National Association of Realtors and possesses the trademark designation of "realtor." When you call yourself a "realtor" it suggests you possess a real estate license together with NAR membership. A statement about holding a realtor license most probably means the person holds a real estate license as an abbreviation.
Real estate brokers obtain additional distinctions and certificates in addition to their licenses. A real estate broker can receive additional certifications including senior real estate specialist and certified foreign property specialist together with short-sale and foreclosure specialist certification.
How Long Does It Take to Get a Real Estate License?
The process of becoming a real estate agent requires completing 75 hours of real estate courses with the addition of test-taking before earning your real estate agent license. The process for obtaining a license requires two to five months when measured by real estate agents.
Is a Real Estate License Expensive?
The total price to obtain a real estate license can exceed $1,000 according to jurisdictional regulations. Your overall expenditure for a real estate license comprises academic fees together with examination fees as well as costs for obtaining the license.
What States Have the Hardest Real Estate Exams?
According to UpNest, in 2021, Colorado and Texas are the states where it is the toughest to receive a real estate license. The number of hours of necessary study may make it more difficult in some states than others to acquire your license, and the pass percentage on the exam may differ. Most of the actual tests contain comparable content.
The Bottom Line
Entering real estate requires significant financial and time investments which might enable real estate agents to start fulfilling careers with growth potential inside the real estate industry. All real estate salespersons along with provisional brokers must work under supervision of a licensed broker.