A career in California real estate attracts many, and this guide provides a direct path to achieving that goal. It outlines the necessary steps to become a licensed professional in the state.
Meet the Basic Eligibility Requirements
Before investing time or money into a real estate career, prospective agents must meet foundational prerequisites set by the California Department of Real Estate (DRE). The first requirement is that an individual must be at least 18 years of age. Proof of age, such as a birth certificate or state-issued identification, will be necessary.
The DRE also has a residency requirement, though out-of-state applicants can still obtain a license by meeting specific additional criteria. A central pillar of the eligibility standards is the “honesty and truthfulness” provision. This means any past criminal convictions must be disclosed on the application, as they can be grounds for denial of a license.
Complete the Required Pre-Licensing Education
The journey to becoming a licensed agent involves a significant educational commitment. The California Department of Real Estate (DRE) mandates the completion of 135 hours of college-level pre-licensing courses.
This 135-hour requirement is broken down into three separate 45-hour courses. Two of these courses are mandatory for all applicants: Real Estate Principles and Real Estate Practice. These core classes cover the fundamentals of property law, contracts, and the day-to-day operations of a real estate business.
For the third course, applicants can choose an elective from a DRE-approved list. Popular elective options include Real Estate Finance, which explores mortgages and lending; Legal Aspects of Real Estate, which delves deeper into property law; and Real Estate Appraisal, which covers property valuation. These specialized courses allow individuals to tailor their initial education to their interests.
Prospective agents can complete these courses through various providers, including community colleges and private real estate schools that offer online or in-person formats. The cost for this education can vary significantly depending on the institution and format chosen. This flexibility allows students to find a program that fits their budget and learning style.
Pass the California Real Estate Salesperson Exam
After successfully completing the 135 hours of required education, the next major milestone is passing the California Real Estate Salesperson Exam. This examination is administered by the state and is designed to test the knowledge acquired during the pre-licensing coursework. An application must be submitted to the DRE to be eligible to sit for the exam.
The exam consists of 150 multiple-choice questions that must be completed within a three-hour time limit. To pass, an applicant must achieve a score of 70% or higher. The exam is conducted in person at approved testing centers throughout the state.
The questions on the exam cover a wide range of topics that are fundamental to the real estate profession. These subjects include:
- Property ownership and land use controls
- Laws of agency
- Valuation and market analysis
- Financing
- Contracts
Many aspiring agents utilize study guides and practice exams to prepare.
Apply for Your Real Estate License
Passing the state exam is a significant achievement, but it is not the final step in becoming a licensed agent. With a passing score in hand, you are then eligible to submit the official license application to the California Department of Real Estate (DRE). This can be done online through the DRE’s eLicensing system, which is where you will also find the necessary application forms.
A mandatory part of the application process is the submission of fingerprints for a background check. This is done through a Live Scan service, which has an associated fee. The DRE offers different application packages; some allow you to apply for both the exam and the license at the same time, while others are for those who apply for the license after passing the exam.
Once the application, fees, and proof of fingerprinting are submitted, the DRE will begin its processing. It is important to have realistic expectations for the timeline, as it can take several weeks for the department to review all the materials and officially issue the license.
Find a Sponsoring Broker
Upon receiving a real estate salesperson license from the DRE, you cannot immediately start working independently. In California, a salesperson’s license must be associated with a licensed real estate broker. This is a legal requirement to conduct any real estate business in the state.
The sponsoring broker takes on the responsibility of supervising the salesperson’s activities to ensure they are in compliance with state laws and regulations. There is a wide variety of brokerages to choose from, ranging from large, nationally recognized franchises to smaller, independent boutique firms. Each type of brokerage offers a different culture, level of support, and training opportunities.
When considering a brokerage, it is wise to inquire about their training programs, mentorship opportunities, and the overall company culture. Additionally, the financial arrangement, known as the commission split, which dictates how commissions on sales are divided between the agent and the brokerage, is a significant factor to consider.
Join a Real Estate Association
To officially use the title “Realtor,” a licensed agent must join the National Association of Realtors (NAR). This membership is what distinguishes a Realtor from a real estate agent and signifies a commitment to a higher standard of professional practice. Joining NAR involves a three-tiered membership structure that includes the national, state, and local levels.
In California, this means joining NAR, the California Association of Realtors (CAR), and a local real estate association or board. Membership in a local association is particularly important as it typically grants access to the Multiple Listing Service (MLS). The MLS is a comprehensive database of properties for sale and is an indispensable tool for a real estate professional’s business.
Becoming a Realtor also means pledging to adhere to the NAR’s strict Code of Ethics, which outlines a Realtor’s duties to clients, the public, and other Realtors. Membership at all three levels requires the payment of annual dues.