Real Estate License Requirements in California: A Step-by-Step Guide
If you're considering a career in real estate in California, it's essential to understand the state's specific licensing requirements. The California Department of Real Estate (DRE) oversees the licensing process, ensuring that all real estate professionals meet the necessary standards to serve clients effectively.
Meet Basic Eligibility Criteria
Before embarking on your real estate journey in California, ensure you meet the following prerequisites:
- Age: You must be at least 18 years old.
- Legal Presence: You must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Honesty: Applicants must be honest and truthful. Conviction of a crime may result in the denial of a license.
Complete Pre-Licensing Education
California requires aspiring real estate salespersons to complete 135 hours of pre-licensing education from a DRE-approved institution. This education is divided into three 45-hour courses
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Real Estate Principles
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Real Estate Practice: As of January 1, 2024, this course must include components on implicit bias and fair housing, including interactive participatory components.
- One Elective Course: Choose from options such as Real Estate Appraisal, Property Management, Real Estate Finance, Legal Aspects of Real Estate, and others.
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One Elective Course: Choose from options such as Real Estate Appraisal, Property Management, Real Estate Finance, Legal Aspects of Real Estate, and others.
Courses must be completed at an accredited institution or a private real estate school approved by the California Real Estate Commissioner. Apply for the State Exam
After completing the required education, you must apply to take the California Real Estate Salesperson Examination. You can submit your application online through the DRE's eLicensing system or by mail. The application must include:
- Completed application form
- Proof of completed education
- Appropriate fees
Once your application is approved, you'll receive instructions on scheduling your exam.
Pass the California Real Estate Salesperson Exam
The exam consists of 150 multiple-choice questions, and you must score at least 70% to pass. The exam covers topics such as property ownership, land use controls, valuation, financing, laws of agency, and contracts.
Complete a Background Check
Applicants must submit fingerprints for a criminal background check through the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). This process is typically completed via Live Scan. It's important to disclose any prior convictions, as failure to do so can result in denial of the license.
Apply for Your Real Estate License
After passing the exam and completing the background check, you can apply for your real estate license. This application can also be submitted online through the DRE's eLicensing system. Once approved, you'll receive your license and can begin practicing as a real estate salesperson under the supervision of a licensed broker.
Join a Licensed Real Estate Broker
In California, real estate salespersons must work under the supervision of a licensed real estate broker. It's essential to find a broker who aligns with your professional goals and can provide guidance as you start your career.
Additional Considerations
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License Renewal: Real estate licenses in California must be renewed every four years. Renewal requires completion of 45 hours of continuing education, including courses on ethics, agency, trust fund handling, fair housing, and risk management.
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Costs: The total cost to obtain a real estate license in California varies but generally includes fees for education, the state exam, fingerprinting, and the license application. It's advisable to budget accordingly.
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Reciprocity: California does not have reciprocity agreements with other states. If you're licensed in another state, you'll still need to meet California's licensing requirements.
Embarking on a real estate career in California involves a structured process designed to equip you with the knowledge and skills necessary for success. By following these steps and staying informed about state requirements, you'll be well on your way to a rewarding career in real estate. Global Real Estate School is here to help guide you.