The role of a real estate agent in California involves guiding clients through complex financial and legal transactions, which is why the profession is governed by a highly regulated licensing process. The California Department of Real Estate (DRE) oversees this rigorous path, ensuring all applicants meet high standards of knowledge and ethical fitness before they can represent the public. Obtaining a license requires strict adherence to a series of specific, non-negotiable requirements that begin with establishing the applicant’s fundamental eligibility.
Meeting the Minimum Eligibility Requirements
The initial requirements for any aspiring real estate salesperson are foundational and few, yet they must be met before an application can be considered. An applicant must be at least 18 years of age to be issued a license by the Department of Real Estate (DRE). A requirement for the application is also providing either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for identification purposes.
The DRE also mandates proof of honesty and general fitness, a standard that is assessed as a part of the mandatory background check process. While applicants do not need to be California residents or U.S. citizens, any conviction of a crime may result in the denial of a license if the DRE determines it relates to the applicant’s qualifications.
Completing Mandatory Pre-Licensing Education
After establishing eligibility, the next significant hurdle is the completion of 135 hours of statutory pre-licensing education, which is divided into three separate college-level courses. These courses must be completed at an institution of higher learning or a private real estate school approved by the DRE. Each of the three courses is a minimum of 45 hours in length, forming a comprehensive foundation for a career in real estate.
Two of the courses are specifically mandated: Real Estate Principles and Real Estate Practice. The third course must be an elective chosen from an approved list, which includes subjects like Real Estate Finance, Real Estate Appraisal, or Legal Aspects of Real Estate. The Real Estate Practice course has a contemporary requirement that it must include components on implicit bias and fair housing, including an interactive participatory component where the applicant role-plays as both a consumer and a professional.
Applying for the State Exam and Background Check
Once the 135 hours of education are complete and transcripts are secured, the applicant formally applies to the DRE to take the state examination. This submission includes the application form, evidence of course completion, and the required fees. At this point, the mandatory criminal background check is also initiated through the Live Scan fingerprinting process.
Applicants must submit one set of electronic fingerprints through a participating Live Scan service provider, which transmits the data to the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). The DRE will not issue an original license until a report from both the DOJ and the FBI has been received and screened.
Passing the California Real Estate Salesperson Examination
The examination itself is a computer-based, multiple-choice test administered at DRE testing centers and represents the climax of the initial licensing process. The California Real Estate Salesperson Examination consists of 150 questions and applicants are allotted three hours to complete the test. A score of 70% is required to pass, meaning an applicant must answer at least 105 questions correctly to achieve success.
The exam covers seven categories of real estate knowledge, with significant emphasis placed on the practice of real estate, disclosures, and the laws of agency and fiduciary duties. If an applicant fails the exam, they are notified of their score and the percentage of correct answers in each subject area, which allows them to focus their study efforts for a retake. While there is no limit to the number of times the exam can be taken, applicants must reapply and pay the fee for each attempt.
Activating Your License with a Sponsoring Broker
Passing the state examination results in the issuance of a license certificate, but this alone does not permit an individual to legally practice real estate. A real estate salesperson is legally required to work under the supervision of a licensed California Real Estate Broker. The final step to becoming an active agent is associating the license with a brokerage, a process often referred to as “hanging” the license.
The broker is responsible for supervising the salesperson’s actions and for all transactions conducted under the license. Without this formal association, the license remains in an inactive status, which prohibits the individual from engaging in any activities that require a real estate license, such as listing property or representing clients. The sponsoring broker must formally confirm the association to the DRE before the salesperson can begin work.
Ongoing License Maintenance and Renewal
The real estate license is not permanent and must be renewed every four years to remain active. This renewal process requires the completion of mandatory Continuing Education (CE) to ensure agents remain current on laws and industry changes. Salespersons must complete 45 hours of DRE-approved CE courses during the four-year period.
These 45 hours must include specific statutory topics, such as ethics, agency, trust fund handling, and risk management. It also requires the completion of courses covering fair housing, including an interactive component, and implicit bias training. The DRE strictly enforces the renewal deadline, and failure to complete the required CE hours and submit the renewal application on time will result in penalties or the license lapsing.