State Licensing Laws
Each state in the United States determines its own real estate licensing requirements. If you did a national study, you would find that the steps you must take to become an agent vary quite a bit from state to state. Be sure to get the facts about licensing requirements in your state before you decide to become a real estate agent.
Some states require that you complete a certain number of college credits before you can become a licensed real estate agent. However, in most areas, you can become a licensed salesperson by attending specialized classes and passing an exam that proves you understand the topics that were covered.
The length of class time required before taking your test varies widely, but sixty to seventy-five hours seems to be average for those seeking a salesperson's license. Plan on additional classes for broker licensing.
Some states allow you to become licensed before you have made arrangements to work for a real estate firm. Others require that a broker-in-charge of a firm sponsor you before you can take the exam, or before your license is issued.
Most states have two main types of class requirements: a general real estate knowledge course and a course in real estate law, applicable to the individual state. Some states test these two requirements separately, so that if you pass one test but not the other, you do not have to take both exams again.
Fact
Real estate brokers are allowed to work without supervision, but sales agents must always be supervised by a licensed broker. Some states do not allow you to become a broker until you've had a specific amount of sales experience, while others prefer that you become a broker from the very beginning.
Your Background
License application forms nearly always contain questions about your character. Have you been convicted of any type of crime? Do you have traffic violations related to driving under the influence of drugs or alcohol? don't be tempted to provide false information on your application. If your offense was minor, chances are your application will be approved. However, if the state discovers that you were dishonest, you will very likely lose your license — no matter how many years of experience you obtain before the discovery.
Alert
Dishonest agents have stolen deposit funds and steered clients into questionable transactions and loans, so states are justifiably cautious about allowing someone with a criminal record to work in real estate. States try to ensure that professionals who are entrusted with helping the public are not likely to intentionally cause harm.
Many states no longer rely on the word of the applicant; they require you to submit a police report along with your application. You may have to submit to fingerprinting or a background check. Your state real estate commission can tell you exactly what is required and how to obtain the necessary documents.
Each state has a real estate authority, which governs real estate transactions and administers the state's specific requirements and regulations. They are usually called the Real Estate Commission or Real Estate Division. In addition to getting in touch with your state real estate commission to obtain documents, you may call them for information about education guidelines or rules and regulations that may affect you. Note that the Real Estate Commission or Real Estate Division cannot give you legal advice but can direct you to the resources you need to learn what is required.
Your license application might also ask if you've declared bankruptcy, had a loan that was foreclosed, or been issued a judgment for nonpayment of a debt or back child support, even if a judgment has not been issued. Answer the questions honestly. If you are concerned that your application will be rejected for any reason, call your licensing commission and ask for an explanation of its general guidelines for applicant background requirements.
Finding Your State Licensing agency
All state licensing commissions have Web sites, but some offer more online help than others. The most complete Web sites offer information for current agents, prospective agents, and the general public.
It's easy to find state agency Web sites. Go to one of the major search engines, such as Google located at
Local real estate firms can also provide contact information. See Appendix C for more information about locating your state real estate commission.
Becoming Licensed in Multiple States
Some states offer reciprocal licensing, which means that if you are licensed in state A, you can bypass some of the requirements to be licensed in state B. You might be allowed to skip licensing classes and go straight to the testing phase. In some cases, you can even bypass the test and simply pay a fee to be licensed in the new state. Many states require that you take the state law portion of the class and pass a state law exam. don't assume reciprocity. Check to see how the laws apply.
Commercial real estate agents often deal with clients and sales in many states, so multiple licenses can be a plus. Agents who specialize in residential sales usually focus on their local area, making extra licenses less critical unless they work in towns where sales overlap state lines.
