About Real Estate Licenses

By law, you will have to obtain a real estate license for the state in which plan to do business before you can begin selling real estate. Every state has specific statutes governing the issuance and renewal of real estate licenses to prospective salespersons.
You will have to complete a prescribed course of study and take an exam, which you will need to pass, in order to get your real estate license.

Significance

A real estate license is issued to all sales agents or brokers in order to authorize them to participate in the business of representing clients in real estate sales transactions. The licenses are issued at the state level after the individual has completed coursework and passed a state-approved exam. After a license has been issued, the agent or broker must periodically complete a certain number and type of continuing education courses to renew the license.

Real estate licenses are governed by state statute. Violation of the conditions of the licensing is considered an infraction of law and can cost the offender her license. Agents and brokers are, therefore, expected to uphold the law in conducting real estate business.

Types

There are two major types of real estate for which licenses can be issued:

1. Residential Real Estate
2. Commercial Real Estate

Additionally, there are six possible license types per state.

1. Appraiser
2. Broker
3. Broker/Salesperson
4. Property Inspector
5. Property Manager
6. Salesperson

Available license types, required pre-licensing coursework, exam information, and license issuance conditions are state-specific. It is incumbent upon you, as the prospective licensee or renewal applicant, to be intimately familiar with the type of license you need and the requirements you must meet before your state will issue that license.

Identification

A real estate agent or salesperson must hold his license with a real estate broker. In fact, it is a condition of licensing.

The real estate broker is the mediating entity between buyers and sellers of real estate. Brokers are typically responsible for the administrative, managerial, and marketing aspects of the real estate transaction. Agents are accountable to the broker to handle transactions in a manner consistent with the requirements of the brokerage, and, in accordance with state law.

Buyer's agents represent the interests of the buyer in a given transaction, while seller's agents represent the seller. Although negotiating is involved in the process of transacting real estate business, neither agents or brokers should ever compromise the client's interests in order to make a sale. Any commissions earned for services rendered can be forfeited if violations of law occur.

Geography

It is possible for you to hold a real estate license in multiple states concurrently. Most states have some type of reciprocation agreement in place that provides for the licensing of a real estate professional in a state, other than the one in which you are currently licensed. The benefit of this kind of agreement is that you can obtain a license and do business in other states without having to repeat the entire process each time. Most certainly, you should expect there to be qualification and conditions but, by and large, getting through the reciprocal licensing process should not be as intensive as going through the initial licensing process.for renewing a real estate license, usually on an annual basis.

Potential

Several years after you received your real estate sales license, and after getting significant experience under your belt, you may opt to become licensed as a real estate broker. You will have to fulfill the educational and experience requirements necessary in order to complete this aspect of the licensing process. You also want to have avoided violating any terms and conditions of your salesperson licensing. If there have been any breaches, you will severely jeopardize, and possibly eliminate, any chance you have of becoming a broker.

Having your broker's license will enable you to open your own brokerage and provide the services a brokerage provides, or you can continue to work for another broker. You will make this decision based on your career goals, the level of responsibility you want to handle, and the degree of liability you want to assume. As a salesperson, you are only responsible for governing your actions, as a broker you will be held accountable for any salespersons that represent your brokerage.

Considerations

Real estate licensing courses are offered in traditional settings, such as colleges, community colleges and other educational settings. Courses are also offered online. Choose the setting that is most suitable to you based on how you work best and your level of self-motivation. Online courses are great if you are self-motivated, but may not be the best for you if you really need a level of accountability to an instructor in order to succeed.

Whether you are in the pre-licensing stage or the continuing education stage of your career, do some homework on the real estate licensing course you take. Your state should have a list of approved traditional and online schools that will help you make a well-informed decision. Beyond this, it will be a matter of personal preference as far as cost, course duration, and scheduling. The pre-licensing curriculum is the stepping stone to obtaining your license. Select and master a good pre-licensing course, and you will increase your chances for successfully navigating your state's real estate licensing process.

Resources

• Master the Real Estate License Examinations
• How to Prepare for the Real Estate Licensing Exams: Salesperson, Broker, Appraiser
• USA Real Estate Salesperson License Plate