A real estate license authorizes you to represent buyers or sellers in property transactions as a real estate agent or salesperson. Each state's real estate commission regulates licensing.
10 steps across 1 sections
1. Steps Process
- Verify eligibility — Must be at least 18-19 (varies by state), have a high school diploma or GED, and pass a background check. Some states disqualify certain criminal convictions.
- Complete pre-licensing education — Enroll in a state-approved course. Hours vary significantly: Florida requires 63 hours, California requires 135 hours, Texas requires 180 hours. Available in-pers...
- Pass the pre-licensing course exam — Most courses include a final exam. This is separate from the state licensing exam.
- Submit fingerprints and background check — Most states require fingerprinting for state and federal background checks. Schedule through your state's designated provider. Cost is typically $50-$100.
- Register for the state licensing exam — Apply through your state's real estate commission or the testing provider (typically PSI or Pearson VUE). The exam has two parts: a national portion (coverin...
- Pass the state licensing exam — Both national and state portions must be passed. The exam is typically 100-150 multiple-choice questions. Pass rates vary but are typically 50-70% on the first attempt.
- Find a sponsoring broker — You must work under a licensed broker to practice real estate. Research brokerages based on training programs, commission splits, mentorship, technology, and culture. Maj...
- Submit your license application — Provide your education certificate, exam scores, background check results, broker sponsorship, and application fee to your state real estate commission.
- Receive your license — Processing takes 5-14 business days. Once issued, you can legally practice real estate under your broker.
- Complete post-licensing education — Many states require additional education within the first 1-2 years. Continuing education is required for renewal.
Common Mistakes
- Choosing education based solely on price
- Not studying for the state exam
- Choosing the wrong broker
- Not budgeting for startup costs
- Expecting immediate income
Pro Tips
- Many online schools offer exam prep packages with practice tests that closely...
- Interview multiple brokerages before choosing
- Consider joining the National Association of Realtors (NAR) to use the "Realt...
- Building a sphere of influence (friends, family, past colleagues) is the most...
- Real estate income is 100% commission-based