This post was last modified on August 24, 2024.
If you’re considering a career in real estate in California, you’ll need to obtain a California real estate license. This license allows you to legally sell and broker real estate transactions in the state of California. Here are the quick steps:
- Meet the eligibility requirements
- Complete the required pre-licensing education
- Apply for and pass the California Salesperson examination
- Complete the California real estate license application
We’ll guide you through the steps to obtain a California real estate license, covering the necessary actions, activities that require a license, potential challenges, and available resources to assist you.
Step 1: Meet the Eligibility Requirements
Before you can apply for a California real estate license, you need to meet several eligibility requirements. These requirements include:
- Be at least 18 years old
- Be a resident of California or follow the Out-of-State application process.
- Complete three college-level courses in real estate, consisting of:
- Real Estate Principles
- Real Estate Practice
- One elective course
Alternatively, you may have a degree in real estate from an accredited institution. Members of the California State Bar are statutorily exempt from the pre-license requirement.
Step 2: Complete the Required Pre-Licensing Education
To qualify for the California real estate license exam, you must complete 135 hours of pre-licensing education. This education is divided into three courses: Real Estate Principles (45 hours), Real Estate Practice (45 hours), and one additional course from a list of approved courses (45 hours). You can complete these courses entirely online through an approved provider, like Chamberlin Real Estate School. The DRE website has a portal to verify approved educators.
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Step 3: Pass the California Real Estate Exam
Once you have completed your pre-licensing education, you must pass the California Real Estate Salesperson Exam. The exam will test your real estate knowledge and will require some focused study time. Familiarizing yourself with vocabulary terms and grasping key concepts will improve your chances of answering most questions correctly. The examination covers general real estate principles and practices, with California-specific questions about state laws and regulations. You must pass the test with a score of at least 70%. Utilizing real estate exam prep quizzes and attending a real estate crash course will help your confidence before your test date.
Step 4: Apply for Your California Real Estate Salesperson License
Once you pass the exam, you can apply for your California Real Estate Salesperson License. Submit an application to the California Department of Real Estate (DRE) and pay the application fee. You’ll need to provide details about your pre-license education, exam results, and criminal history. Applying online through the DRE eLicensing portal is the simplest method.
Step 5: Find a Brokerage to Work For
To practice real estate legally in California, you must work under a licensed real estate broker. You can join a brokerage as an independent contractor or employee. Research various brokerages to find one that aligns with your career goals and values. Some brokerages offer extensive guidance and leads but may take a higher commission percentage compared to more hands-off brokerages.
What Activities Require a Real Estate License in California?
A real estate license is necessary for several activities related to real estate transactions in California, including
- Selling or leasing real estate properties: Anyone involved in selling or leasing properties in California must hold a valid real estate license.
- Listing properties for sale or lease: Listing properties for sale or lease on behalf of the owner or agent requires a real estate license, such as for an account manager at a property management company.
- Negotiating real estate transactions: Negotiating or offering to negotiate the purchase, sale, or lease of properties requires a real estate license.
- Providing advice or opinions on real estate transactions: Providing advice, opinions, or recommendations on real estate transactions for compensation requires a real estate license.
- Property management services: Managing properties, including collecting rent, arranging repairs and maintenance, and supervising tenants, requires a real estate license.
Potential Roadblocks to Getting Your License
While obtaining a real estate license in California can be straightforward, several obstacles may arise, including:
- Failing the California Real Estate Salesperson Exam: The state exam can be challenging, and if you don’t pass with at least 70%, you’ll need to retake it.
- Criminal History: A criminal record may lead to the denial of your license application. It’s crucial to disclose any criminal history honestly on your application.
- Lack of Pre-Licensing Education: Without completing the necessary pre-licensing education, you won’t qualify for the California Real Estate Salesperson Exam.
- Finding a Brokerage: Not all brokerages are the same, and finding one that matches your career goals and values may take time. The good news is they will all be interested in hiring you once you have your license!
Resources to Help You Get & Keep Your License
You are not in this alone! Switching careers or taking classes on the side while working may seem like a lot. The key is to take your time and complete each step as it comes. There are several resources available to help you along the way which include:
- California Department of Real Estate (DRE): The DRE is the regulatory agency that oversees the real estate industry in California. Their website provides information about the licensing process, educational requirements, and exam details.
- Approved Education Providers, like Chamberlin Real Estate School: Our experienced instructors are available to answer any questions you may have about getting a license, and our online courses are designed to prepare you to take and pass the state exam on the first try. Once you’ve obtained your license, we also offer required real estate license continuing education to help you stay up-to-date with the latest industry trends and regulations.
- Exam Prep Courses: Our 1-Day California Real Estate Exam Crash Course is designed to help you ace your state exam. Led by an expert licensed instructor, this webinar includes key terminology, exam-taking hints, memorization aids, and a hot questions handout to ensure you’re fully prepared for the big day.
- Professional Associations: Joining a professional association, such as the California Association of Realtors or the National Association of Realtors, can provide you with valuable networking opportunities and resources.
Where To Find Out More About Real Estate Licenses
The California Department of Real Estate (DRE) is the state agency responsible for regulating and enforcing real estate laws and regulations in California. The DRE oversees the licensing of real estate professionals, including salespersons, brokers, and appraisers. They also investigate complaints and take disciplinary action against licensees who violate real estate laws or engage in unethical conduct. In addition to their regulatory role, the DRE provides consumer resources, such as a database of licensees, publications on buying and selling real estate, and information on filing a complaint. The DRE is committed to promoting a fair and competitive real estate market in California and protecting consumers from fraudulent and deceptive practices.
Now You Are Ready!
Obtaining a California real estate license involves meeting the requirements, completing your education, passing the exam, and submitting a license application. While the process may seem confusing at first, remember that Chamberlin is always available by phone to help with any questions. Take action, remain persistent, and you can obtain your California real estate license and build a successful career in real estate!
