How To Renew Your Real Estate License In California

If you’re feeling a bit lost in the renewal process or concerned about meeting all the necessary requirements, you’ve come to the right place. This guide is designed to navigate you through every step with ease, ensuring you remain a trusted, legal real estate professional in California.

Why Renew Your Real Estate License in California?

Beyond the legal necessity, renewing your license reaffirms your commitment to your career in real estate. It’s your ticket to continue practicing, growing, and succeeding in one of the most dynamic markets in the world. The renewal process also ensures you’re up to date with the latest laws, technologies, and best practices in real estate.

For those new to the industry or looking to get started, understanding the broader landscape of the real estate profession is crucial. Dive into the ‘8 Things Every New Real Estate Agent Should Know‘ to set yourself up for success.

Step-by-Step Guide to Renewing Your License:

1. Understand the Timeline and Requirements:

  • Timeline: Begin the renewal process at least six months before your license expires. This buffer period allows ample time for completing continuing education courses and addressing any unforeseen delays.
  • Requirements: You must complete 45 hours of continuing education from a California Department of Real Estate (DRE) approved provider. These hours include:
    • 18 hours of consumer protection courses
    • 12 hours of DRE-mandated subjects (Ethics, Agency, Trust Fund Handling, Fair Housing, Risk Management)
    • 15 hours of elective courses relevant to your practice

2. Meet the New Continuing Education Requirements:

Effective January 1, 2023, the DRE introduced two new mandatory courses:

  • Implicit Bias Training (2 hours): This course covers the unconscious biases we carry and how they can affect our professional interactions and decisions.
  • Interactive Fair Housing Course (3 hours): A deep dive into fair housing laws and practices, emphasizing interaction and practical application.
  • For first-time license renewals, the process includes specific criteria that differ slightly from subsequent renewals. To ensure you’re fully prepared, particularly if this is your first renewal, it’s beneficial to familiarize yourself with comprehensive resources tailored for first-time renewals. For an in-depth guide covering all you need to know about the first-time renewal process for salespersons and brokers, visit Chamberlin’s First Time License Renewal page.

Tip: Choose courses that offer real-world examples and interactive elements to enhance your learning experience.

3. Choose the Right Courses:

  • Selecting the right education provider is crucial. Chamberlin Real Estate School, for instance, offers all required courses online, tailored to fit the busy schedules of real estate professionals. Our courses are designed not just to tick a box but to genuinely enhance your skills and knowledge.
  • Example: Our Implicit Bias Training includes interactive scenarios that real estate professionals might encounter, providing practical strategies to address and overcome biases.

4. Complete Your Continuing Education:

  • Plan Your Study Schedule: Allocate specific times each week for your studies to ensure you complete your courses without rushing.
  • Track Your Progress: Keep a record of completed courses and hours, ensuring you meet all the requirements well before your renewal deadline.
  • Balancing studies with work is a challenge for many. For strategies on maintaining this balance, explore ‘Maintaining Work-Life Balance As A Busy California Real Estate Agent.’

5. Submit Your Renewal Application:

  • Online Application: The fastest and easiest way to renew your license is through the DRE’s eLicensing online system. Create an account or log in to submit your renewal application: DRE eLicensing System.
  • Documentation: Have digital copies of your course completion certificates ready to upload if required.
  • Fees: The renewal fee can be paid online during the application process. Ensure you have the necessary payment method ready. For details, see ‘How Much Does It Cost To Renew Your Real Estate License In California.’

6. Keep Records:

  • Maintain a personal file of your course completion certificates and any communication with the DRE regarding your renewal. This will be invaluable if there are any discrepancies or if you’re selected for a DRE audit. These certificates serve as proof of your compliance with the educational requirements. For detailed guidance on what these certificates should include and how to ensure they meet the California Department of Real Estate (DRE)’s standards, refer to our Continuing Education Course Completion Certificate page.

Frequently Asked Questions:

  • What happens if I miss the renewal deadline?
    You may enter a grace period where you can still renew with late fees. However, you cannot legally practice until your renewal is processed.
  • Can I renew without completing my CE requirements?
    No, completion of all continuing education requirements is mandatory for renewal. Plan your education well in advance to avoid this issue.

California Real Estate Licensing Trends: October 2023

How Many Brokers & Salespersons Are Licensed in California?

According to the CA Department of Real Estate (DRE), here are the total number of Brokers and Salespersons licensed in October 2023 compared to September 2023. The numbers also show the total amount of licensees from 1 year ago and 2 years ago.

  • Brokers:
    • This Month: 127,187
    • Last Month: 127,322
    • 12 Months Ago: 128,604
    • 24 Months Ago: 133,598
  • Salespersons (Agents):
    • This Month: 310,024
    • Last Month: 309,887
    • 12 Months Ago: 301,843
    • 24 Months Ago: 305,685

Breaking Down the Trends

A Growing Salespersons’ Community

You might notice there was a decrease of roughly 3,800 Salesperson licensed 2 years ago compared to the total number licensed only a year ago. One would think the number of agents would continue to become lower considering the real estate market was dealing with a large increase in interest rates. The opposite actually occurred, and the number of licensed agents increased up to 310,024 in October of 2023. That was an increase of almost 9,000 licensed individuals in one year.

Brokers: The Backbone of the Industry

Although there is a slight dip in the number of brokers compared to the previous years, their substantial presence in the industry signifies the overall strength of the market. Becoming a broker opens up avenues for higher responsibilities and rewards. If you aim for a position of leadership, pursuing a broker’s license is a great step to take.

California Salesperson Licenses Issued vs Exams Administered

  • New Salesperson Licence Issued (Agent)
    • This Month: 2,154
    • Last Month: 2,724
    • 12 Months Ago: 2,991
  • Salesperson (Agent) Exams Administered
    • This Month: 4,583
    • Last Month: 4.677
    • 12 Months Ago: 4,716

What Is The Passing Rate of The California Real Estate Exam?

As you can see, over half of the people who took the state exam did not pass and get their license in October. Only 47% of test takers were issued a California real estate license that month. The September numbers were much better with 58% of the passing students obtaining a license. One year ago in October 2022, about 63% of people passed the exam and were licensed. From what we have seen, the average number of people each year who pass is 50% or less.

California Broker Licenses Issued vs Exams Administered

Here are the October and September number of Broker examinations taken and Broker licenses issued:

  • New Broker Licenses Issued
    • This Month: 320
    • Last Month: 329
    • 12 Months Ago: 395
  • Broker Exams Administered
    • This Month: 2,187
    • Last Month: 2,255
    • 12 Months Ago: 2,991

Why do so many brokers fail the state exam? In October, 2,187 people took the Broker exam, and only 320 passed. That means only 14.6% of the people who took the exam passed and received a broker license. September was not any better with 14.5% of examinees passing and getting licensed. The Broker exam is more difficult than the Salesperson exam. It contains 50 more questions and you must pass with a 75% or higher score. These statistics show if you do become a broker you will be certifiably more knowledgeable than your peers. This is a unique selling point when obtaining new clients.

How Chamberlin Makes a Difference

The process to get your real estate license or broker license is confusing. Which courses do you need to take? Why does the DRE require Brokers to take so many classes? We help people with all these questions and provide DRE-accredited coursework so you can qualify to take the state exams. Our success is also attributed to our exam preparation and crash course which helps both Brokers and potential new agents prepare. Other characteristics include:

  • Expert Guidance: Learn from the industry veterans who bring real-world insights to your learning experience.
  • Flexible Learning: Our online courses give you the liberty to learn at your own pace, fitting perfectly into your busy schedule.
  • Success Stories: Join the league of our successful alumni who have carved a niche for themselves in the real estate sector.

Feel free to reach out to us, and we’ll be happy to guide you at every step.

Source: https://www.dre.ca.gov/stats/2023-2024.html

What Courses Do I Need to Take to Get My Real Estate License?

To qualify for a real estate license, you’ll typically need to complete specific courses that cover essential topics related to the real estate industry. We’ll explore the courses you’ll need to take to get your real estate license and provide you with valuable information to help you make an informed decision.

Real Estate Principles

The first required course you’ll need to complete is Real Estate Principles. This comprehensive course serves as an excellent introduction to the California real estate business, making it ideal for new licensees. It covers a wide range of topics, including real property ownership, financing, landlord and tenant relationships, appraising, land use, and more. Here’s a breakdown of the course contents:

  • The Business of Real Estate
  • Real Property Ownership
  • Transferring Real Estate
  • Encumbrances
  • Agency Contracts
  • Financing Real Estate
  • Government-Sponsored and Other Financing
  • Escrow and Title Insurance
  • Taxation
  • Landlord and Tenant
  • Appraising
  • Residential Design and Construction
  • Land Use
  • Math

Completing the Real Estate Principles course will provide you with a solid foundation of knowledge and set you up for success in your real estate career.

Real Estate Practice

The second required course is Real Estate Practice. This course offers practical information and insights specifically designed for real estate salespersons and brokers. It covers important aspects of the industry, including prospecting methods, listing presentations, buyer representation, real estate financing, escrow, taxation, and property management. Here’s a breakdown of the course contents:

  • Getting Started in Real Estate
  • Ethics and Fair Housing
  • Mandatory Disclosures
  • Prospecting
  • Listing Presentations
  • Servicing the Listing
  • Advertising
  • The Buyer and the Property Showing
  • Obtaining the Purchase Offer
  • From Offer to Closing
  • Real Estate Financing
  • Escrow and Title Insurance
  • Taxation
  • Property Management and Leasing

By completing the Real Estate Practice course, you’ll gain valuable insights and practical skills necessary to navigate the real estate industry successfully.

Elective Courses

In addition to the two required courses mentioned above, you’ll also need to complete one elective course from a provided list. Here are the elective course options:

  • Legal Aspects of Real Estate Online (Recommended)
  • Real Estate Finance Online
  • Real Estate Appraisal Online
  • Real Estate Economics
  • Real Estate Office Administration Online
  • Property Management Online
  • Escrows Online

It’s important to choose an elective course that aligns with your interests and career goals. While all the options are valuable, the Legal Aspects of Real Estate Online course comes highly recommended due to its relevance to the real estate industry.

Course Details

To give you a better understanding of each elective course, let’s take a closer look at their descriptions:

California Real Estate Principles:

This course serves as a comprehensive introduction to the California real estate business. It covers various areas of professional specialization and provides a deep understanding of real property ownership and the intricacies of the field.

California Real Estate Practice:

Designed for real estate salespersons and brokers, this course offers practical information on prospecting, listing presentations, buyer representation, financing, escrow, taxation, and more. It equips you with the knowledge and skills necessary for a successful career in real estate.

California Real Estate Finance:

This course provides a clear introduction to real estate finance in California. It covers topics such as the nature and cycle of real estate finance, different sources of real estate financing, federal and state financial regulations, loan underwriting, investment financing strategies, and more. It aims to help you understand how real estate loans are made and keep you updated on the latest changes in tax laws and lending guidelines.

California Real Estate Law:

This course introduces you to the vast body of law that governs real estate transactions in California. It covers topics such as the law of agency, duties and responsibilities of licensees, real estate contracts, property ownership, land use controls, escrows and title insurance, landlord/tenant law, and more. By completing this course, you’ll be able to recognize situations that require legal counsel and have a better understanding of your rights and obligations under the law.

California Real Estate Economics:

This course explores economic theories related to the real estate industry, with a focus on factors that influence changes in real estate value. It presents complex economic concepts in a practical manner, making it accessible to students with little or no background in formal economics. Topics covered include economic systems, supply and demand, the real estate market, financing and taxation, real estate investment, appraisal analysis, and more.

Property Management:

This course equips you with the knowledge and skills necessary for successful property management. It covers a wide range of management techniques applicable to different types of properties, such as apartments, office buildings, retail spaces, and industrial properties. You’ll learn about owner relations, marketing management, lease negotiations, tenant relations, maintenance and construction management, reports and insurance, and various other aspects of property management. The course also addresses important industry issues, including electronic technology, fair housing, ADA legislation, building security, and life safety.

Real Estate Office Administration:

Surviving and thriving in the real estate brokerage business requires effective management. This course provides guidance on setting up and running a successful brokerage. It covers topics such as analyzing the business climate, market analysis, business planning, organizational structure, financial management, marketing and advertising, staff recruitment and development, risk management, leadership skills, and effective communication. Whether you’re a new or experienced broker, this course offers valuable insights and strategies to help you manage your real estate business effectively.

California Real Estate Appraisal:

This course focuses on the appraisal industry and its impact on real estate transactions. It covers the importance and purposes of appraisals, principles controlling real estate value, economic analysis, site evaluation, construction methods and materials, various approaches to appraisal (cost, sales comparison, and income), reconciliation and final value estimation, writing appraisal reports, computerization of the appraisal process, and considerations for different types of single-family residences. It also provides information on license and examination requirements, lender appraisal guidelines, and common errors and omissions.

California Real Estate Escrow and Title:

This course provides a comprehensive study of escrow and title insurance principles, from historical practices to modern-day practices in transferring property title. It covers topics such as property rights, escrow elements, title insurance basics, contracts, regional variations and practices in California, escrow accounting, lending and the escrow process, protecting the consumer, specialty escrow transactions, advanced title insurance underwriting, default and foreclosure, and the role of the title insurer. By completing this course, you’ll gain a deep understanding of escrow and title processes in real estate transactions.

Recommended Elective Course

While all the courses have their own merits, the Legal Aspects of Real Estate Online course is highly recommended. This course dives deep into the legal framework surrounding real estate transactions. It helps you understand the legal responsibilities of licensees, the regulation of licensees, real estate contracts, property ownership, recording, property security devices, land use controls, escrows and title insurance, landlord/tenant law, and more. By completing this course, you’ll be better equipped to identify situations where legal counsel is necessary and ensure compliance with legal requirements throughout your real estate career.

Remember, the elective course you choose should align with your interests and career goals. Consider the areas of real estate that you find most intriguing or the aspects that you believe will be most beneficial to your future clients. Take the time to research and understand the content covered in each course to make an informed decision.

Course Delivery: Online Convenience

All the mentioned courses are available in an online format, allowing you to study at your own pace and convenience. Online courses provide flexibility, enabling you to balance your education with other commitments you may have. You can access the course materials from anywhere with an internet connection and learn at a time that suits your schedule. This flexibility is especially beneficial if you’re currently working or have other responsibilities.

Additionally, online courses often incorporate interactive elements such as quizzes and videos to enhance your learning experience. You’ll have the opportunity to engage with the material and test your understanding. Take advantage of these interactive features to deepen your knowledge and make the most out of your online learning experience.

The Bottom Line

To obtain your real estate license, you’ll need to complete the required courses of Real Estate Principles and Real Estate Practice. Additionally, you’ll choose one elective course from a list that includes options like Legal Aspects of Real Estate, Real Estate Finance, Real Estate Appraisal, and more. Each course covers essential topics relevant to the real estate industry, providing you with the knowledge and skills necessary for a successful career.

Consider your interests and career goals when selecting your elective course. If you’re unsure, the Legal Aspects of Real Estate Online course comes highly recommended due to its relevance and importance in the real estate profession.

Remember that all the courses mentioned are available in an online format, offering flexibility and convenience. Online learning allows you to study at your own pace while still accessing comprehensive and interactive course materials.

Chamberlin Real Estate School has helped students just like you to embark on a rewarding career as a licensed real estate agent, for over 70 years. We look forward to meeting you, and assisting you in achieving your goals!