Becoming a real estate agent in California does not require a traditional four-year college degree. While many professionals in the industry hold a degree, the state’s licensing process focuses on specific, mandated coursework and the successful navigation of a comprehensive examination. The path to a California real estate salesperson license is instead paved with targeted education and regulatory hurdles designed to ensure every applicant possesses the necessary foundational knowledge and ethical standards. This structured process begins with completing pre-licensing education and culminates in activating the license under a supervising broker.
Clarifying the College Degree Requirement
The California Department of Real Estate (DRE) establishes educational prerequisites emphasizing specialized instruction rather than a general academic degree. The state does not require a bachelor’s or associate’s degree to qualify for the salesperson examination. Instead, the California Business and Professions Code requires completing 135 hours of college-level instruction. This educational standard ensures that all applicants have a strong grounding in the legal and practical aspects of real estate transactions. These 135 hours are divided across three separate 45-hour courses, which applicants can acquire through DRE-approved real estate schools, community colleges, or universities.
The Three Mandatory Pre-Licensing Courses
The educational requirement is satisfied by successfully completing three distinct 45-hour courses. The first mandatory course is Real Estate Principles, covering foundational knowledge like real estate law, property ownership, and contracts. The second mandatory course, Real Estate Practice, focuses on practical application, including client counseling, marketing, and transaction management. The third course must be selected from a list of approved electives:
Real Estate Finance
Legal Aspects of Real Estate
Real Estate Appraisal
Property Management
These courses must be certified by a DRE-approved provider, and successful completion requires passing a proctored final exam for each course. State regulations require a minimum “seat time” for distance learning, meaning an applicant cannot complete the instruction in less than 54 days.
Meeting Other Eligibility Requirements
Beyond the educational coursework, every applicant must satisfy several non-educational criteria to be eligible for licensure. An individual must be at least 18 years old to be issued a salesperson license and provide a valid Social Security Number or Individual Taxpayer Identification Number. Applicants are required to submit fingerprints through the state’s Live Scan electronic process for a complete background check. The California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) screen all applicants for criminal history. The Department of Real Estate reviews these results to ensure the applicant demonstrates honesty and truthfulness, as conviction of a crime substantially related to a real estate agent’s duties may result in license denial.
Applying for the California Real Estate Exam
After completing the three pre-licensing courses, the applicant must formally apply to the California Department of Real Estate (DRE) for the state examination. The application can be submitted online through the DRE’s eLicensing system or by mail, and must include proof of course completion, such as official certificates. The application requires payment of the combined application and examination fee. Once the DRE processes the application and verifies the educational requirements, the applicant receives an Authorization to Test (ATT), which permits scheduling the examination date.
Passing the State Licensing Examination
The California Real Estate Salesperson Exam consists of 150 multiple-choice questions, and applicants have three hours to complete the test. The content covers seven major areas, including property ownership, financing, laws of agency, and real estate practice. To pass the examination, an applicant must correctly answer a minimum of 70% of the questions, which equates to 105 correct answers. If the applicant fails, there is no limit on the number of times they may retake the exam within a two-year period following the original application date. The DRE provides a breakdown of performance by subject area for unsuccessful candidates to guide their future study efforts.
Activating Your License and Finding a Broker
After passing the state examination, the DRE issues the license, but the newly licensed individual cannot practice real estate independently. California law mandates that a salesperson must be employed and supervised by a licensed California Real Estate Broker to conduct any licensed activities. The new agent must secure a relationship with a brokerage firm to officially activate their license. The process involves the chosen broker formally notifying the DRE by submitting the necessary paperwork to associate the salesperson’s license with the broker’s license. Selecting a brokerage is a business decision, requiring the new agent to weigh the benefits of large franchise firms against smaller, independent brokerages based on the training, support, and commission structure offered.
Maintaining Your California Real Estate License
The California Real Estate Salesperson License is issued for a four-year period. To maintain an active license, the agent must complete 45 hours of approved continuing education (CE) before each renewal deadline. This total must include specific hours dedicated to mandated subjects, such as agency, ethics, trust fund handling, and risk management. For first-time renewals, there are specific courses required, including those focusing on implicit bias and fair housing. Completing the required hours and submitting the renewal application and fee is necessary to continue practicing real estate in the state.