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Real Estate License Guide: How to Get a Real Estate License

Written by MasterClass

Last updated: Jun 14, 2021 • 3 min read

If you are looking to break into the real estate industry and work for a brokerage, you will need to obtain a real estate license.

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What Is a Real Estate License?

A real estate license is a certification issued by a state's real estate commission that grants a person permission to conduct real estate transactions. Many careers in the real estate business—from real estate salesperson to managing broker—require real estate licensing.

What Are the Requirements for a Real Estate License?

Real estate license requirements are set by state governments; each state has specific sets of requirements for real estate professionals, from initial licensing to license renewal. While protocols vary by state, there are some common requirements.

  • Minimum age requirement: Most states require you to be at least 18 years of age for licensure.
  • Minimum education requirements: Many states require you to have a high school diploma to apply for a real estate license.
  • Real estate school: Many states require a dedicated real estate education in addition to a high school diploma. This pre-licensing education can include specialized real estate courses. In some states, real estate education courses must be taken in person; in other states, you can take pre-license courses online.
  • License exam: Before you can become a real estate agent, you must pass your state’s real estate licensing exam. Pre-licensing courses will help you prepare for these exams.
  • Formal license application: Once you complete the coursework and state exams, you need to file a formal real estate license application, pay an application fee, and comply with fingerprinting or background checks.
  • Additional exams: A license education does not necessarily end with a real estate agent's certification. Some real estate agents will take additional licensing exams to become a Realtor or real estate broker. These specialized real estate careers come with greater licensing requirements than are required of standard agents. The National Association of Realtors (NAR) administers the Realtor exam, while the state administers broker license exams.

How to Obtain a Real Estate License in 8 Steps

If you are ready to start your journey as a real estate agent, you will need to follow eight key steps to reach your goal.

  1. 1. Research. Start by learning about your state's licensing requirements and application fees. Educational requirements, minimum age requirements, and exam content vary by state, so it’s worth familiarizing yourself with local specifics before moving on to the next step.
  2. 2. Study. Many continuing education schools offer real estate licensing classes. These classes will help you with exam prep and teach you about the practical tasks of a working real estate professional.
  3. 3. Take your exam. The next step in your journey is taking your real estate exam. Each state administers an exam that is specific to its unique real estate laws.
  4. 4. Submit an application. With coursework, studying, and your exam out of the way, you are ready to formally apply to be a real estate agent. Double-check your state real estate commission's website to verify background check requirements, fingerprinting, and application fees.
  5. 5. Consider additional exams. The National Association of Realtors (NAR) offers an additional, more stringent exam to obtain licensing as a Realtor. You can also become a real estate broker—a more specialized version of a real estate agent—by taking a broker license exam.
  6. 6. Seek work. With your real estate license in hand, you are ready to join a real estate brokerage. You can also try working independently, using a multiple listing service (MLS) to stay current on properties in your area. In real-world practice, teaming with an agency is more likely to yield work in a competitive industry.
  7. 7. Look for states with reciprocity. Some states offer reciprocity for real estate licensees. This means that if you get your real estate license in one state, you may be able to broker sales in another state. This can be useful if your goal is to scale up your business.
  8. 8. Keep your license current. Renew your real estate license with time to spare so that you're always legally eligible to take on a new sale. In some states, this means getting continuing education certificates.

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