How Do You Get Your Real Estate License In California

Obtaining a real estate license in California and launching a career in this field is a rewarding endeavor by any standards. Both financially and lifestyle-wise, it is a win-win situation for real estate agents in the state. However, before getting into how to get your real estate license in CA, let us explore whether getting a real estate license is worth the time and money spent on it.

The California Real Estate Market

There is a strong correlation between the state of the real estate market in California and your decision to know how to get my real estate license in CA. A booming real estate market means more business and higher incomes. So, how is the California real estate market performing now?

Let us study the critical market projections for real estate in California in 2025.

Wages and home prices will remain in tandem, and hence, there is no change in affordability for new home buyers. Further, the sale of homes is expected to touch 304,000 units in 2025. This is a boon for homebuyers who have more options to choose from and negotiate prices to their advantage.

What is most important is that mortgage rates are predicted to decline by 0.7%, from 6.6% in 2024 to 5.9% in 2025. This will push up sales as buyers who have long put off their dreams of getting a home will now jump into the fray. This again will be a bonanza for real estate agents as their business soars to unprecedented heights.

Data from the California Association of Realtors (C.A.R.) indicate that apart from a rise in home sales due to the above factors, median home prices are set to increase by 4.6% compared to 2024. Higher home prices mean more commission for real estate agents when they close a deal. It is because the earnings of real estate agents are commission-based and not a regular salary. This is how it works. 

Real estate agents earn 6% of the sale price of a property, which is divided equally between the seller’s and the buyer’s agents. Now, take the current median home price in California, which stands at $909,000, a 4.6% rise over 2024. For a deal closed at this level, each agent will earn $27,270. This is only one transaction, and only four in a year will take agents past the magic six-figure mark.

It is thus proven that it pays to know how to get your real estate license in CA and launch a career in this profession.

Average Earnings Of A Real Estate Agent In California

Let us now evaluate the level of earnings of a real estate agent in California. This will help you understand whether you should go through the process of how to get your real estate license in California.

While the average income of real estate agents varies between cities in the state, the average income works out to $92,280 for newly-inducted agents. However, with a few years’ experience and by dint of hard work and dedication, crossing the $200,000 mark is a distinct possibility.

Here are the top five cities in California by earnings of real estate agents.

Santa Ana, CA: $138,778, Sacramento, CA: $137,101, Irvine, CA: $121,398, Riverside, CA: $119,801, and Beverly Hills, CA: $112,322.

Now that you have gone through the positives of becoming a real estate agent, it is time to take the plunge into how to get your real estate license in CA.

How To Get A CA Real Estate License

The road to a real estate license in California has two parts. You must first meet certain basic requirements before you can progress toward how to get your real estate license in California. Once the norms are fulfilled, you can start working towards getting a license. For this post, we will go through all the steps at a time without demarcating the two parts.

The rules and regulations for the real estate industry in California are decided by the Department of Real Estate (DRE). It is the controlling body for issuing and renewing real estate licenses in CA, as well as setting the pre-licensing course curriculum. DRE mandates that any person in California dealing in real estate for third parties against commission must have a real estate license to do so.   

Meeting Basic Eligibility Norms

There are three points to meet before going on to how to get a CA real estate license.

1. On the date of applying for a real estate license, you must be at least 18 years old. That does not stop you from fulfilling other steps to a license, such as going through the pre-licensing course before that.
2. Your educational qualification must be at least a high school diploma. Any at-par qualification like a GED will also be accepted by DRE.
3. You must be a citizen of the USA with a Social Security number. However, legally admitted migrants in the USA who have been granted working rights can also work toward obtaining a real estate license in California.

Once these preliminary norms are met, you can start towards your goal of knowing how to get a CA real estate license.

Completing the pre-licensing coursework

Course content

Going through the 135 hours of pre-licensing coursework is the most critical step in how to get your real estate license in California.

The course content is divided into two sections. One is the national section that deals with all the topics that are related to the real estate industry and common to all the states in the USA. The other is the state-specific part that covers the rules and regulations valid in California only.

The coursework is designed to give you a thorough understanding of the various laws of real estate so that you can provide optimized services to your clients in the future. It is a safety net for you, too. Real estate rules are constantly changing and are very complex. Only with a thorough grip on the topics can you ensure error-free services to avoid getting entangled in any financial or legal complications.

The 135-hour pre-licensing coursework consists of 3 modules of 45 hours each.

1. Practice of Real Estate (45 hours)
2. Principles of Real Estate (45 hours)
3. One Elective Subject per your specialization (45 hours)

However, you cannot choose any topic for the elective topic at random; your choice must be limited to the following only:  

• Real Estate Finance
• Real Estate Appraisal
• Legal Aspects of Real Estate
• Real Estate Economics
• Real Estate Investments

Select a top course provider.

Selecting a top-of-the-line course is a critical stage in how do you get your real estate license in CA. A high-quality course offers packages that help you to prepare thoroughly for the licensing exam and pass it on the first try.

Follow these tips before putting your money in a pre-licensing course.

Choose the right package: Pre-licensing courses in California are available in various packages. The cheapest are basic, no-frills study materials where you can study at your own pace without instructions. Then come the advanced packages at a higher cost with mock tests and study materials. For online courses, you get e-textbooks and online instructions.

Mock tests are a big help as they have questions that replicate the format and structure of the actual licensing test. By working on practice questions, you can not only know how well-prepared you are for the licensing test but can also face the exam with a greater degree of confidence.

Among the top DRE-approved online pre-licensing course providers in California is RealEstateU. Their courses are designed by real estate professionals with many years of experience as instructors. Additionally, the study materials are very affordably priced, with their basic course available at $99 only.

Online or classroom-based studies: To be in your comfort zone while preparing for the licensing test, it is essential that you select a course that matches your preferred learning style. It might either be visiting physical schools or an online course. However, if you compare the two, online courses have an edge. Let us now evaluate the two in detail.

Online study materials can be downloaded onto any Internet-enabled device and can be accessed from any location and at any time. On the other hand, you must visit real estate schools physically to attend classes. This will not only cost you substantially but will mean spending time commuting, which can otherwise be spent more fruitfully on studies.

Finally, online courses are cheaper than physical courses. That is a big takeaway from the online vs. classroom-based pre-licensing courses debate.

Approved courses: Always select a course provider that is approved by the DRE. This is mandated by this state agency. Going through an unapproved course as part of how to get your real estate license in CA will make you ineligible to appear for the licensing exam. Visit the DRE portal, check the approved list of course providers before investing in one of them.

Going through background verification

Before you are awarded a real estate license in California, you must submit your fingerprints for background verification and provide information about whether you have any past criminal records. Aspiring real estate agents must inform DRE of any criminal act, even if the conviction has been expunged, dismissed, or pardoned.

After your fingerprints are scanned for review, DRE will receive a report in this regard from the Department of Justice. 

The reason for this background check is to evaluate the moral standards and financial integrity of aspiring real estate agents. This is necessary to protect the client’s interest, as large sums of money are involved in all real estate deals. In case of an adverse fingerprint report from the DOJ, it is the discretion of the DRE to award you a license or not.

The time has now come to focus on the licensing exam.

Scheduling a licensing exam

Open an e-licensing account and apply to appear for the licensing test. Upload supporting documents, such as completing the pre-licensing course and fingerprint clearance certificate. After your application is approved, select a test center and exam date on the DRE website.

Test centers to physically appear for the licensing exam are located in Fresno, San Diego, Los Angeles Vicinity, Oakland, and Sacramento. Take a printout of the exam notice to the test center.

Appearing for and passing the licensing exam 

On the date selected by you, go to the preferred exam center and appear for the licensing exam. The test has questions in a multiple-choice format with 150 questions to be completed in 3 hours. The questions cover both the national and the state-specific sections, and you must score at least 70% to pass the exam.

The result of the exam is declared in a pass/fail format soon after the test is completed at the center itself. This is possible as the exam is held online. A confirmatory e-mail is sent by DRE within a couple of weeks of the licensing exam.

Apply for a real estate license in California

After passing the real estate licensing exam, apply for a license on the DRE portal. Submit documents with proof of completing pre-licensing coursework and passing the exam. You will now be issued a provisional real estate agent license in California.

At this stage, you cannot launch your career as the license is inactive one.

Find a licensed broker for sponsorship

As per California law, newly licensed agents cannot start practicing on their own and must find a licensed broker in the state for sponsorship. The reason is to pick up the ropes and learn firsthand about the intricacies of the real estate industry under expert guidance. Brokers provide the required infrastructure to set up a business as well as referrals to get the income ball rolling. 

Once you inform DRE about your employment status, the inactive license will be activated, though it will be in the name of the brokerage firm.

This completes the process of how do you get your real estate license in California.