How Do You Get Your Real Estate License in California: Beginner’s Guide

Real estate is a diverse industry which offers numerous career paths for professionals who want to work in a dynamic, fast-moving field.

A career in real estate can be an incredibly rewarding and fulfilling career experience, especially if you want to work independently and take control of your work-life balance.

If you are in California, you can experience being a part of one of the hottest real estate destinations in the country.

California is home to some of the most popular markets such as San Francisco, Los Angeles, Bakersfield, San Diego among many others.

Working in California real estate can help you achieve a six figure income as the top real estate agents in CA make anywhere between $120K to $150K annually.

On top of a great annual pay, you will also enjoy additional job perks such as a flexible work-life balance and networking opportunities in your career.

Imagine being your own boss and finding your own clients to work with - does this sound like a professional dream come true?

To make the most of the numerous possibilities for growth and prosperity, you need to obtain a California real estate license first.

Since real estate is a regulated industry, you must prove your competence and skills by earning a California salesperson license to join the industry.

At this point, you might be wondering - how do you get a real estate license in CA and start an exciting and rewarding career journey?

Getting a license might sound complicated, especially if you are a beginner, but in reality, it is a straightforward process which requires you to follow a step-by-step process to succeed.

In this article, we will walk you through everything you need to know to become licensed - from basic eligibility criteria to California specific education requirements.

Plus, we will also dive deep into the job profile of a real estate agent and share the ideal skills you need to develop to succeed in this profession.

The California Real Estate Landscape

If you are completely new to the industry, it might seem overwhelming to learn about it, especially because California’s real estate landscape is diverse and ever-evolving.

However, to help you get started,  we have put together the key aspects which will bring you to speed with the opportunities in this space.

Real estate in California has continued to grow and expand over the last few decades, especially as the popularity of the state grew over time.

The Golden Gate state is renowned for its high prices and is one of the most expensive and lucrative real estate markets in the country.

With median home prices reaching a whopping $700K to $800K, California real estate has enjoyed a higher demand and interest from luxury buyers, high net worth individuals and wealthy investors.

Property listings and market data indicates that California is home to around 40 percent of the top 10 hottest real estate markets in the country.

The state offers an interesting mix of ultra luxury real estate markets like Beverly Hills, Malibu, Silicon Valley and Los Angeles along with relatively affordable destinations like Irvine, Palm Springs, Bakersfield and Sacramento.

Despite the strong demand for housing and residential properties, California’s real estate market has a supply shortage. To solve this, the local government continues to expand its efforts to find ways to boost supply of housing.

As more buyers and investors are ready to lap into the state’s attractive benefits and unmatched amenities, the demand is projected to outperform other markets.

Due to its strong economy, growing employment market, world-class tech opportunities and a plethora of natural beauty, California is a hot favorite among migrant workers and retirees.

Adding to the above, there is an abundance of national parks, scenic beaches and natural beauty in California which makes it an attractive tourism and vacation destination.

So, what exactly does this mean for real estate agents and brokers in California?

The bottomline is - California real estate continues to attract homebuyers and investors making it a fertile landscape for aspiring and experienced real estate professionals.

With rising home prices, growing housing inventory and a sustained interest from homebuyers, California’s real estate landscape is a fertile opportunity landscape for aspiring real estate agents. .

If you are ready to give your career a strong start, now is a good time to prepare to enter the California real estate market and start working with clients.

The crucial question that arises now is - how to get a real estate license in CA and start to make the most of the opportunities.

In the coming sections, we are going to give you a detailed step-by-step approach to achieve this goal in a structured way.

However, before we get to that, it is important to understand why getting a license is a must for short-term and long-term success in real estate.

Understanding the need for a real estate license

A real estate license is a mandatory step in starting a career as a skilled and trained professional who can guide clients in buying and selling properties.

According to the California Department of Real Estate (DRE), every aspiring and real estate professional must have a valid, state issued license to legally practice their profession.

Whether you want to work as a part-time or full-time agent, having a CA real estate salesperson license is the essential step in attracting opportunities to earn and grow. .

Being a licensed real estate agent will significantly boost your employability and give you more credibility as compared to someone who does not have a valid license.

Primarily, there are two types of licenses you can apply for in California real estate - first is the salesperson or agent’s license and the other is the broker’s license.

Initially while starting your career, you will need to get a salesperson license first. As you gain experience and progress in your career, you can apply for a broker’s license in CA.

To work with clients anywhere in the state, you must obtain your license first. Failing to do so will result in legal consequences and restrictions on your career.

Thus, if you want to stay compliant and meet the California and federal regulations, you must obtain a license first.

Many aspiring agents often wonder whether there are any practical, real-world benefits of a license or is it merely a mandatory requirement to be ticked off a checklist.

We believe getting a license is the foundation of a prosperous, flourishing career path, let us take a detailed look into why.

The benefits of getting a California real estate license

In addition to being a mandatory requirement to meet the state and federal license guidelines for professionals, here are some additional pros of getting your license.

• Instant boost in credibility: Real estate is all about establishing trust. To come across as a reliable professional, getting your license is a must. Becoming a licensed professional will boost your credibility amongst prospects and clients. .
• Opportunities for growth: Licensed real estate professionals find access to better growth and employability opportunities. With a CA license, it is easier to promote yourself in the job market and tap into employment and business opportunities.
• Access to communities: Only licensed professionals are allowed access to members-only real estate groups and networking events. Membership of communities and state organizations will help you generate opportunities for referral business and attract new clients.
• Networking with peers: If you want to work with the best people and learn from your peers, having a license is a must. As a licensed real estate professional, you will be able to network with industry professionals, trainers and experts who will help you expand your knowledge and skills.
• Boosting your knowledge: The real estate market is competitive and if you want to make your mark and boost your business, it is important to invest in completing your education and training. Getting a license requires completing mandatory pre license education which will prepare you for your professional duties.

Think of it this way - having a California real estate license is like having a badge of honour which will help you gain access to opportunities, win clients and expand your network.

Whether you want to build a profitable side hustle or start a thriving, long-term career, having your license will give you the knowledge, skill and confidence to realize your potential.

If you are convinced about why applying for a license is essential and are already thinking - how can I get my real estate license in California - keep on reading to find out the step-by-step process in the coming sections.

However, it is important to take a step back and understand what a real estate agent does - as this information will help you prepare yourself for the career path you will be pursuing.

The role and responsibility of a real estate agent

Real estate agents are responsible for helping their clients buy, sell or lease real estate in the country.Agents can choose to work in residential as well as commercial real estate.

Whether full-time or part-time, your core job responsibility is to work with their clients and represent their best interests in a real estate deal.

Be it helping your clients find the right properties or negotiating on behalf of them, as a real estate agent in California, you can represent both buyers and sellers in a deal.

As a real estate professional, you will also be responsible for educating their clients about the best practices, solutions and services to meet their needs.

Real estate agents are expected to be well-versed with the state and federal laws and industry guidelines for real estate deals. You must be thorough about the contracts, deeds, property laws, consumer rights, fair trade and ethics.

In addition to the above tasks, you are also required to follow up with prospects, meet clients and understand their requirements better.

If you work for a broker or brokerage firm in California, you might be required to attend networking events and industry meetups to promote your services.

Steps to obtain a California real estate license

If you have made it this far, you are probably already asking how can I get my real estate license in California and start my career journey in an exciting industry?

Like other states, California has its own set of license laws and regulations which you must fulfill to obtain a salesperson or a broker’s license. Let us go through them in detail next.

Step 1: Meet the basic eligibility requirements

Before you start applying for a license, it is important to understand that the state of California requires every applicant to meet the minimum eligibility requirements which are:

• You must be at least 18 years or older
• You must be a legal resident of the state of California
• You must have a high school diploma or GED equivalent

The California Department of Real Estate (DRE) also requires you to meet the minimum standards of honesty, integrity, and good moral conduct.

To apply for a real estate license, you should have a clean background with no history of any criminal activity, felony or convictions.

Step 2: Complete California pre license education

The DRE in California requires every applicant to complete a minimum of 135 hours of pre-license education to become eligible for a real estate salesperson license.

In California, only qualified and skilled professionals are allowed to work with clients and represent them in real estate transactions.

To obtain a license, you must complete pre license education from a state approved real estate college, school or course provider.

Completing pre-licensing education is important to equip yourself with the knowledge of the industry, its principles, laws and operating standards.

Plus, education will also help you become knowledgeable about your duties and responsibilities as a real estate agent. The coursework will also teach you about:

• Principles of Real Estate: This covers the basic principles of working in the real estate industry and its underlying components, processes and policies. You will also learn about the state and federal laws governing real estate professionals.
• Real Estate Practices: This covers the fundamental knowledge of real estate concepts and terminologies such as property management, contracts, escrow, types of property, appraisal, real estate finance among others.

You can also choose from the following elective courses - Real Estate Finance, Property Management, Real Estate Economics, Real Estate Appraisal, Legal Aspects of Real Estate, and Real Estate Office Administration.

Note that students have the freedom to choose their preferred medium of learning i.e. you can decide whether you want to learn in a physical classroom based environment or enroll in an online pre license course.

Generally, many students prefer online real estate pre license courses as they can be completed from anywhere on any device.

You should think of pre-licensing education as the gateway to success and growth in the industry - completing mandatory and elective courses will equip you with the right knowledge and skills.

The cost of completing education in California varies on different factors, however, you can expect to spend between $200 to $700 depending on the course provider, the type of package and your learning medium.

Step 3: Pass the California salesperson license exam

The California DRE requires all applicants to take and clear the salesperson licensing exam to prove their competence and ability to work in the industry.

After completing the mandatory 135 hours of pre licensing education, you can schedule your salesperson license exam at any of the Pearson VUE centers.

You will get a total of 3 hours to complete the test and tackle 150 multiple choice questions covering both state and national specific portions. To pass the test, you must score at least 70 percent or above.

Step 4: Complete your salesperson license application

After completing your education and passing the salesperson license exam, you will be eligible to submit your salesperson license exam to the DRE.

The California DRE requires all applicants to complete mandatory background verification and criminal history check to meet the standards of ethics and good moral conduct.

To complete this step, you must submit an electronic scan of your fingerprints taken at any of the state approved live scan vendors. It will cost you around $49 to get your fingerprint scan.

Once you have submitted your salesperson license application along with the proof of education and electronic fingerprints, you will receive your license in a few weeks.

Lastly, to activate your license, you must find a California licensed broker or brokerage firm who will be willing to sponsor you as an employee.

The California DRE requires all newly licensed agents to work under the supervision of a brokerage and gain real-world, industry experience.

Sponsoring brokers are expected to help newly licensed agents to learn about the industry and navigate the profession under guidance.