This post was last modified on January 26, 2024.
Are you considering a career as a California real estate broker? Becoming a licensed broker can open up new opportunities which are not available to an agent with only their salesperson license. To become a broker in the Golden State, we will walk you through the process step by step, from the minimum requirements to the costs involved, and even the differences between a broker and a real estate agent.
What is a Real Estate Broker?
In simple terms, a broker is a professional who has obtained a higher level of real estate licensing, allowing them to oversee and operate their own real estate business. Brokers have more responsibilities and greater authority compared to real estate agents. They can supervise agents, handle transactions, and even open their own brokerage firm.
Minimum Requirements to Apply for the California Broker Exam and License
To obtain a California real estate broker license, you need to meet several minimum requirements:
- Age: To apply for a license, you must be 18 years of age or older.
- Residence: License applicants must provide proof of legal presence in the U.S. If you’re not a California resident, there are specific guidelines for out-of-state applicants.
- Honesty: License applicants must be honest and truthful. Conviction of a crime or failure to disclose any criminal violation or disciplinary action may result in the denial of a license.
- Education and/or Experience: Effective January 1, 2013, broker applicants must meet one of the following criteria:
- Have a minimum of two years full-time salesperson’s experience within the last five years.
- Have two years of unlicensed equivalent experience.
- Hold a four-year degree from an accredited college or university with a major or minor in real estate.
Statutory Courses
In addition to the education and/or experience requirements, broker applicants must successfully complete at least eight statutory-required college-level courses. These courses are divided into two categories:
- Five required courses:
- Real Estate Practice
- Legal Aspects of Real Estate
- Real Estate Finance
- Real Estate Appraisal
- Real Estate Economics or General Accounting *
- Three elective courses (choose at least three from the following):
- Real Estate Principles
- Real Estate Property Management
- Real Estate Office Administration
- Escrows
- Business Law *
- Mortgage Loan Brokering & Lending *
- Advanced Legal Aspects of Real Estate *
- Advanced Real Estate Finance *
- Advanced Real Estate Appraisal *
*courses are not available at Chamberlin Real Estate School.
Note: If you complete both Accounting and Economics, you only need to choose two courses from the second group.
Costs Involved
While pursuing a real estate broker license in California, you will need to factor in the costs associated with the process. Here are the primary expenses to keep in mind:
- Education Costs: These can vary widely from one school to another. Chamberlin Real Estate School offers each course for only $89, with discounts for purchasing multiple courses at the same time.
- Examination Fee: There is a $95 fee required when you apply for the state examination. This fee covers the administrative costs of processing your application and scheduling your test date.
- License Fee: Once you have successfully passed the state examination, you will need to pay a $300 license fee to obtain your real estate broker license. This fee allows you to legally operate as a broker in the state of California.
- Fingerprinting: As part of the application process, you will need to provide one set of classifiable electronic fingerprints. The fingerprinting process incurs a separate fee, which is currently $56 for California residents and out-of-state applicants. This is not required if you are currently licensed by the DRE or were licensed by the DRE in the past two years.
It’s important to budget for these costs and ensure you have the necessary funds to cover them. Remember, investing in your education and licensing is an investment in your future as a real estate broker.
Exam and Licensing Process
Here are the steps for the exam and licensing process to become a real estate broker in California.
- Course Completion: Before you can apply for the state exam, you must successfully complete all eight required courses, including the five mandatory courses and three electives.
- Application Submission: Once you have completed the required courses, you can submit your license application to the California Department of Real Estate (DRE). The application will be reviewed, and if approved, you will receive further instructions regarding the examination process.
- State Examination: The state exam consists of 200 multiple-choice questions, and you must achieve a minimum score of 75% to pass. The exam covers various topics related to real estate practice, legal aspects, finance, appraisal, and more. It’s essential to study and prepare thoroughly to increase your chances of success.
- License Issuance: After passing the state examination, it typically takes approximately 6 to 8 weeks for the DRE to process your application and issue your real estate broker license. Once you receive your license, you are officially recognized as a licensed real estate broker in California.
Continuing Education as a Broker
As a licensed real estate broker in California, you are required to complete continuing education courses to maintain your license. These courses are designed to keep you updated on industry trends, changes in regulations, and best practices in real estate.
The California Department of Real Estate (DRE) mandates that brokers complete 45 hours of continuing education every four years. This requirement includes a 15-hour course on ethics, agency, trust fund handling, fair housing, and risk management, along with other elective courses.
What Can a Broker Do Differently from a Real Estate Agent?
Brokers will have additional responsibilities and privileges compared to real estate agents. Here are some key differences:
- Supervision: Brokers have the authority to oversee and supervise real estate agents. This means you can hire and train agents, provide guidance, and ensure compliance with regulations and ethical standards.
- Independent Operation: Brokers can operate their own real estate brokerage firm, while agents typically work under the supervision of a broker. This allows brokers to establish their brand, develop business strategies, and build a team of agents.
- Transaction Handling: Brokers can handle real estate transactions directly. They can represent clients in buying, selling, leasing, or renting properties. This added responsibility gives brokers more control over the entire transaction process.
- Higher Earning Potential: Brokers often have the potential to earn higher commissions compared to agents. With their own brokerage, brokers can set commission structures and earn a percentage of the transactions facilitated by their agents.
Becoming a broker offers greater autonomy and the opportunity to take your real estate career to the next level. It allows you to have more control over your business and opens doors to new avenues of success.
The Bottom Line
Becoming a real estate broker in California requires dedication, commitment, and fulfilling specific requirements. By meeting the minimum qualifications, completing the necessary coursework, passing the state examination, and obtaining your license, you can further your career in the real estate industry.
Remember, the path to becoming a broker involves investing in your education, both in terms of time and finances. However, the benefits and opportunities that come with being a licensed broker in California make the journey well worth it.
Whether you aspire to run your own brokerage, have more authority in the industry, or increase your earning potential, obtaining a real estate broker license can be a game-changer for your career. So, take the first step by clicking here!
