Real Estate License in U.S: Benefits, Requirement

Last Updated on 9 months by Anoob P T

In this post, we are going to look at Real Estate License in U.S: Benefits, Requirements, Cost & Renewal.

Real Estate is one of the most lucrative career options in the world.

A real estate licence can help you in many ways apart from just being “qualified on paper”.

In fact, 10% of the richest people in the world deal with real estate and it is the third highest contributor of billionaires in the world.

To enter the billionaires club as a real estate professional, you will need to deal in millions of square feet worth property–which is not practical if you are just starting out.

An average licensed real estate sales agent in the United states can earn anywhere between $41,000 to $53,000 but the potential for growth is huge.

How long does it take to get real estate liscence

Before you start, you might be wondering how long does it take to get real estate liscence? To keep the answer short- it can take anywhere between 4-6 months.

In this article, we will look at how to get a real estate license in U.S with benefits, various requirements, cost of getting and renewing a real estate license.

The authorizations issued by the different state governments, i.e., the real estate licenses, endow the real estate brokers and agents with the responsibility and legal ability to be a representative of a home seller/buyer in the process of selling/buying the real estate to the prospective buyers and tenants.

However, it is compulsory for the representatives, (the brokers and agents) are licensed before they engage themselves in conducting real estate transactions, particularly in the United States and other countries.

This is a niche where your versatility comes into play and dictates your movements. While working in real estate, the most important thing to be kept in mind is that you will be working on new things almost every day.

The reason for that is you will be working with a range of diverse clients and homes. 

Real Estate License in U.S: Benefits, Requirements, Cost & Renewal

Why Is Real Estate License Required?

If you do not have a real estate license, you will not be able to deal in various profitable exercises related to real estate. This is the foremost reason why a real estate license is required.

Either as an agent, broker or another person involved in real estate, if you wish to engage yourself in the real estate transactions, a real estate license is a must in the state in which you will work. To obtain this license, you have to be aware of and pass through a number of rules, regulations and examinations that differ from state to state.

Why different states have different real estate license requirements?

States do this in order to provide a sense of security to its consumers and to protect them. The real estate licenses that the states offer is usually of two types – salesperson and a broker.

However, both the provisional brokers and the salesperson, work under the ambit of a ‘designated broker.’ Therefore, the former of the two types, i.e., the real estate salesperson licensees wish to complete the necessary route, inclusive of the coursework and the exams, to become brokers eventually.

Being a broker offers better career & networking opportunities and a more flexible approach to work which means you can find time to work on your other passions as well.

However, some states like North Carolina have exceptions. There is just a single basic type of license, i.e, ‘broker only’ licensing system, with various ‘status levels.’ Also, there is no such thing as a “national” estate license.

5 Benefits of Becoming a Real Estate License Agent

Networking Opportunities

The network that you form, by being a licensed real estate agent, with other professionals can open many networking opportunities for you. This flexibility will allow you to work with experienced agents and related professionals, simultaneously teaching you a lot in the process.

Being a part of a network of licensed real estate agents will be helpful for your own individual growth because you shall be introduced to various reliable lenders, competent appraisers and other people for your investments.

Unlimited Income Opportunity

In a profession like real estate, you are your own boss and the sky is the limit-literally. This means that there is no end point or cap on the amount of profit you can make out of this career.

The stronger your business skills and time management quality, the better your chances are to make the most of it. It has also been estimated that real estate professionals make 25% more income that all other workers.

Flexibility of Schedule

The career of a real estate agent provides you the power to choose your own flexible schedule. In most cases, you can arrange your day according to your needs, and work to your full potential on other side projects as well.

Earning Commissions

Being a real estate agent will also allow you to save commissions on your personal deals. A hypothesis is that if you are able to close about six investment deals a year, while acting as the realtor, it directly infers that you are saving and making over $10,000.

Knowledge & Education

As you delve deeper into the business and start knowing its nuances, you develop your knowledge of it. This increases your chances of being more successful. The education shall help you structure the contracts in a better way, and provide you with a different outlook.

Real Estate License Requirements in the United States

The requirements for a real estate license in the United States are:

State Requirements:

Each state has its own requirements and you will have to meet these in order to become licensed. The specific requirements pertain to:

Also, do note that you need not apply for a fresh real estate license if you wish to work in a new state. It is because some states do have “reciprocal licensing agreements”. These agreements enable you to use your license of one in another.

For this, you do not have to take that state’s real estate license examination and as far as qualification requirements are concerned, they can be easily found on the real estate regulatory agency’s website of that particular state.

Real Estate Classes

This basically means that you have to complete a pre-licensing course and pass within a certain number of hours. This makes you eligible to be able to take the real estate license exam. During your education course, you will be given textbooks, workbooks and there shall be online material to help you in your studies as well.

There are many ways that shall help you fulfill the educational requirements to get your real estate license:

Educational Requirements for real estate license

Real estate license examinations are mostly conducted online.

It is divided in two parts; a national section and a state-related section. The former shall review your knowledge related to real estate practices and principles and the latter about how much you know of the state’s real estate law.

You need to pass both the exams separately and in case you do not, you can take a retest for that particular section. The test is based on a multiple-choice format and each state has its own passing marks.

The time of the test and the number of times you can take the exam depends upon the rules of the individual state. After you pass the exam, submit the application form with the required documents and fees. Once it is approved, the state will mail your real estate license certificate to your address. Now, your name will be searchable under the section of ‘Licensees’ of its website.

The general requirements in order to operate as a real estate license agent in Florida include :

Steps to Get A Real Estate License

Take a Pre-License Test

As with any career, if you decide to choose real estate as your career, you have to invest time and some finances to help you succeed.

A real estate pre-license course will help you understand various nuances of the real estate industry without learing the hard way. You will also get an idea regarding the resources needed to budget before you start with your work.

Pass State Licensing Exam

Depending on the state you want to work in, this exam shall be of 1.5-3.5 hours and the exam fee shall range from $15 to $60. You have to make sure that in your application, you attach the certificate of completion from your school and a copy of your exam score.

Filing of Real Estate Licence Application

After you have passed the real estate examination, you can proceed to the next step. That is, you need to submit your test results along with the application and fees.

You must be at least 18 years old to have the license and be authorized to work in the United States. Once submitted, the application will be reviewed and it shall take about two months to process it. After that, you will get your real estate license.

Real Estate License Cost

Becoming a licensed real estate agent requires dedication and commitment. However, the real estate license can cost you anywhere from $300 to $1,000 depending on where you take your education course.

Besides that, the submission of the application and its fees, fingerprinting and the process of background check shall cost you between $100-$200. Hence, you should keep your budget around $500-$1,200 in total.

How long does it take to get a real-estate license?

The licensing requirements of the real estate of your state will decide about the duration of your license. You have to devote at least 60-90 hours of formal education in order to study and then sit for a licensing exam. The duration to issue your real estate license can take anywhere from 3-6 months.

What to do after getting your real estate license?

Once you get your license, it does not mean that you are now a broker and can engage in the selling or buying of houses. You need to do a few things after you get your license:

Finding a Real Estate Brokerage

The brokerage is essentially an agency or an office where real estate agents work. After you get your license issued, you then need to work with a broker for the first two-three years as an agent.

Basically, you need to choose among the three brokerage types – National Franchises, Boutique-Style Brokerages, Virtual Brokerages. It would be helpful to find a broker before you graduate from your training course.

Join NAR (National Association of Realtors)

If you want to fast track your real estate career, you should join NAR. You can then also participate in the MLS (Multiple Listing Services) that shall enable you to see other realtor’s listings. MLS is important because it will increase your access to earning potential. So, even if you are a real estate agent and not a member of NAR, you are at a loss.

Renewing License

You have to continuously keep on checking the state’s requirements and when your license expire (which is, every two-four years). Added to this, also keep yourself updated the renewal requirements of the state’s licensing office to learn about the same.

Many states will require you to complete a certain number of course hours for the renewal of your license. This is done to keep you updated regarding the evolving national and state markets and market regulations.

Steps to Get a Real Estate License in Florida

1. You have to first successfully complete 63 hours of approved pre-licensing course and pass the final examination.
2. You will then have to submit your fingerprints to the DBPR (Department of Business and Professional Regulation).
3. The next step is to finally complete your application for licensure.
4. After the application is approved, you must take and pass the Florida licensing exam, administered by Pearson VUE. 

Can a felon get a real estate license

It actually depends on the state from where you are applying.

In state like Florida, an applicant who has committed a felony of the first degree, a capital felony, a felony involving money laundering, a felony of embezzlement, or a felony directly related to the financial services business is permanently barred from reak estate licensure.

In the state of New York, according to Article 12-A, if you’ve been found guilty of a felony in New York or any other state it’s an automatic disqualification for getting a real estate license.

Also note, being found guilty of any type of sex offense (many of which are felonies) is also an immediate disqualifier.

States Where Felons can Get Real Estate license

Here are some states where felons can also get real estate license in the United States.

States	Allows Felony on Real Estate License	Supplemental Form
Alabama	Yes	Application for Determination of License Eligibility form
Alaska	Yes, 7 years after the sentence was completed	Document with the State of Alaska
Arkansas	Yes	Waiver required in most cases
California	Yes	Approval process required
Colorado	Yes	Can challenge discrepancies or inaccuracies in record
Connecticut	Yes	Documented on application
Delaware	Yes, 5 years after conviction	Documented on application
Florida	Yes	Documented on application
Georgia	Yes, 2 years after the sentence was completed	Background check consent form required for all applicants
Hawaii	Yes	Complete a Request for Preliminary Decision form
Idaho	Yes, 5 years after conviction as long as the sentence is complete	Suitability Review documentation to show character and circumstances
Illinois	Yes	Documented on application
Indiana	Yes	May need to appear in person before Review Board
Iowa	Yes, 5 years after the sentence was completed	Self-disclose and background check
Kansas	Yes	Letters of recommendation, completion of sentence or program, resume, and character statement
Kentucky	Yes	Documented on application
Louisiana	Yes	Letter of detail included with the application
Maine	Yes	Documented on application
Maryland	Yes	Approval required from the Department of Labor
Massachusetts	Yes, 10 years after conviction (for some crimes)	Review and approval from state Real Estate Board
Michigan	Yes	Submit statement as a Supporting Document
Minnesota	Yes	Submit statement, Charging Document, and Sentencing Order with application
Mississippi	Yes, 5 years after conviction	Appeal to Mississippi Real Estate Commission
Missouri	Yes	Review by Missouri Division of Professional Registration: Real Estate Commission
Montana	Yes	Documented on application
Nebraska	Yes	Required to appear in person before Nebraska Real Estate Commission
Nevada	Yes	Documented on application
New Hampshire	Yes	Complete Real Estate Commission Arrest & Conviction Form
New Jersey	Yes, 5 years after conviction (for some crimes)	Documented on application and disclosed in answers to screening questions
New Mexico	Yes, 3 years after conviction	Documented on application
New York	Yes, 3-5 years after conviction (depending on the seriousness of crime)	Apply for a Certificate of Good Conduct (2+ felonies) or Certificate of Relief from Disabilities (1 felony)
North Carolina	Yes	Apply for a Certificate of Relief
North Dakota	Yes	Documented on application
Ohio	Yes	Documented on application
Oklahoma	Yes, 5-20 years after conviction (depending on the seriousness of crime)	Documented on application
Oregon	Yes	Review by Oregon Real Estate Agency
Pennsylvania	Yes	Documented on application
Rhode Island	Yes	Full explanation attached to the application
South Carolina	Yes	May be required to appear before South Carolina Real Estate Commission for Application Hearing
South Dakota	Yes	Felonies of “moral turpitude” will be denied by South Dakota Real Estate Commission
Tennessee	Yes	Must complete an Application for Decision Regarding Prior Criminal Convictions. Some convictions require an in-person appearance before Commission
Texas	Yes	Complete a Fitness Determination Form
Utah	Yes, 5 years after the sentence was completed	Document on application
Vermont	Yes	Document on application
Virginia	Yes	Disclose during the application process
Washington	Yes	Review by Washington Department of Labor
West Virginia	Yes	Must complete Background Check application
Wisconsin	Yes	Complete Convictions and Pending Charges Form
Wyoming	Yes	Document on application

Frequently Asked Questions about Real Estate License

Can a foreigner be a real estate agent in USA?

Yes, as of January 2022, a foreigner can become a real estate agent in USA.

How long does it take to become a real estate agent?

About 4 to 6 months

Can a non US citizen be a real estate agent in Florida?

Yes, a non US citizen can become a real estate agent in Florida.

Do real estate agents need green card?

You should be a legal permenant resident

Is real estate a good job to get into?

Yes, real estate is a good job but the job will involve some travel.

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