Between the size of the state and having some of the most expensive housing costs in the country, there is great potential for California real estate agents. This line of work offers a lot of freedom and flexibility, and the potential for very lucrative income.
This is a great job for meeting interesting people and expanding your network since referrals are the backbone of any successful real estate career. The requirements for getting a license in California are fairly straightforward; you can get started as soon as you are ready!
Getting Your Real Estate License in California
Securing a real estate license in California comes with its own procedures and criteria. Here’s what you need to know about getting your real estate license in California.
Foundational Criteria For Gaining a Real Estate License
Aspiring real estate agents in California must meet the following criteria:
- Meet basic eligibility requirements such as age and proof of social security or tax ID number
- Complete pre-licensing education
- Pass the course exam
- Pass the state real estate licensing exam
- Select a sponsoring broker
- Complete licensing application
Age and Fundamental Academic Criteria
California law requires real estate agents to be at least 18 years of age, and have a social security number (SSN) or individual taxpayer identification number (ITIN). No specific degrees in any particular field of study are required to become a real estate agent, but you must complete three college-level courses designated by the California Department of Real Estate (CRE).1
These courses are available at higher learning institutions as well as private real estate schools. If taking the courses at the former, be sure the school is accredited by an agency recognized by the U.S. Department of Education, such as the Western Association of Schools and Colleges.
Taking the courses at a private real estate school is usually a cheaper option, and takes less time. Be sure the school’s courses are approved by the Real Estate Commissioner or they will not count towards licensing.
It is also a good idea to check if there are any complaints or pending actions against the school.
Essential Education Hours for Licensing
Educational requirements include 135 hours of education split over 3 different courses of 45 hours each. Two of the classes are required by everyone while the third is an elective with a variety of topics classes from which to choose.
If taking correspondence courses, a single course cannot be completed in less than 2.5 weeks, and two courses cannot be completed in less than 5 weeks. If taking classes at a college, the course must be 3 semester units or 4 quarter units.
Members of the California State Bar are not required to complete the coursework and must submit evidence of proof to practice law in California, such as a photocopy (both sides) of a California State Bar Membership card.
Applicants who have already completed course requirements for the broker examination, and provide evidence of such, are also eligible to take the salesperson exam without completing any additional courses.
Continuing education courses are not an acceptable substitute for the college-level courses required by the CRE.
A foreign credentials evaluation service approved by the Department of Real Estate must be used for courses completed in foreign schools.
If you have already completed any of the required courses, official transcripts are generally the only thing required to prove you have done so. If you have taken any equivalent courses you wish to count towards the education requirement, you must submit official course or catalog descriptions of the classes for evaluation of equivalency.
- Real Estate Principles
This course covers the core knowledge, terminology, and concepts required of a real estate agent. Topics covered include closing a sale, listing a property, fair housing, financing, real estate law, escrow procedures, contracts and ethics, real estate development, taxation, investment analysis, brokerage, appraisal, and management.
- Real Estate Practice
This course focuses on the actual business of being an agent, the necessary skills, and how to best serve your clients. Some things you will learn include counseling buyers, how to price a property, advertising, and working with sellers.
As of January 1, 2024, all Real Estate Practice courses must include components on fair housing and implicit bias. The fair housing portion of the course must include a role play component where the applicant role plays as both the real estate agent and the consumer.
- Elective Course
The options for the third, elective course include:
- Computer Applications in Real Estate
- Business Law
- General Accounting
- Escrows
- Common Interest Developments
- Legal Aspects of Real Estate
- Property Management
- Real Estate Appraisal
- Mortgage Loan Brokering and Lending
- Real Estate Office Administration
- Real Estate Finance
- Real Estate Economics
Expenses for Pre-Licensing Education in Real Estate School
The fee for required coursework varies depending on where you take the courses and typically ranges from $125 to $700. Courses at a college will be more expensive than those at a private school or correspondence course.
Some providers may offer payment plans through companies such as Klarna and Affirm.
Required Real Estate Background Verification
All applicants must submit a request for electronic fingerprints by an approved live scan service provider in California.2 The prints are sent electronically to the U.S. Department of Justice and the Federal Bureau of Investigations.
The CRE cannot approve a license until they have received a report from these agencies. This step can be completed either before or after passing their licensing exam.
The fee is non-refundable if you do not pass the test. The fingerprints cost $49 plus the service provider fee.
A state the size of California has hundreds upon hundreds of Live Scan service providers throughout the state, so finding one close by should not be an issue.3 State of California Department of Justice, 2023) A variety of locations offer this service from notaries to the DMV to UPS to AAA.
References
1State of California DRE. (2023). Our Mission. California Department of Real Estate Homepage. Retrieved October 26, 2023, from <https://www.dre.ca.gov/>
2State of California Department of Real Estate. (2023). Live Scan Service Request (Applicant/Petitioner). Live Scan Service Request (Applicant/Petitioner) RE 237 (Rev. 7/20). Retrieved October 26, 2023, from <https://dre.ca.gov/files/pdf/forms/re237.pdf>
3State of California Department of Justice. (2023). Live Scan Locations. State of California Department of Justice. Retrieved October 26, 2023, from <https://oag.ca.gov/fingerprints/locations>