How to become a licensed real estate agent in California
California is home to thousands of real estate professionals, yet, the demand for skilled agents and brokers continues to grow.
As a highly rewarding and fulfilling profession, a career in CA real estate offers a high-paying job with the flexibility to define your work-life balance.
Did you know that the top real estate agents in California can make as much as $150K in annual earnings while enjoying professional autonomy to work for themselves?
Even the average pay for real estate agents is around $90K which can help you achieve your financial goals.
California’s real estate landscape is diverse and brimming with opportunities for agents who want to work with clients and help them buy and sell properties.
Be it residential or commercial real estate, the demand continues to soar, thanks to a growing economy, strong job market, pleasant climate and an attractive standard of living.
If you are exploring the possibilities of working as a part-time real estate agent or making a full-time career, now is a good time to start preparing.
Working in real estate can be a lucrative and fulfilling career experience - not only can you make good money, but you will also get the satisfaction of helping people.
Plus, you will get the benefit of adapting your work to your own goals and motivations - the more deals you close, the more money you will make in commissions.
The best part is that you need not spend years to complete any advanced education or training - all it takes is a few months of dedicated, sincere effort to become a professional.
The California law requires every individual to obtain a state approved salesperson license to work with clients and earn commissions.
If you want to become successful in this profession, you must first get your California real estate license and then progress your way up from there.
Getting a license might seem like a complex process, but if you follow a step-by-step approach, it is straightforward.
To help you achieve your goal, we have put together this in-depth article which covers all the key steps you need to complete to earn your salesperson license.
Why do you need a real estate license?
The role of a real estate agent is diverse and requires you to juggle multiple tasks and responsibilities as part of the job profile.
Like other professions, real estate is a regulated industry governed by state and federal laws for individuals and firms working in the industry.
As per the California Department of Real Estate (DRE), you must fulfill the basic eligibility requirements to obtain a professional license.
You might be wondering what exactly is the need of a license and why do you need one - the answer is, a license is the only way to become a true professional and grow your career.
Most brokers and brokerage firms prefer hiring licensed individuals to maintain regulatory compliance.
Without a state approved license, you will have no clear path to finding jobs or getting promoted, this means your employability will be severely limited.
Most importantly, only licensed individuals can legally work with clients and earn commissions by participating in a real estate deal.
Another important reason why you need a real estate license in CA is to gain credibility and become trustworthy.
Clients prefer working with licensed professionals to navigate the journey of buying and selling real estate.
Becoming licensed will help you tap into client opportunities and significantly boost your perceived value and expertise.
To summarize, with a salesperson license, you can maintain regulatory and legal compliance, find well=paying jobs and grow your network and clientele easily.
Now that we have outlined why getting a license is crucial, let us walk you through the steps to getting licensed.
However, before we get to that, let us take a step back and give you an overview of the duties of a real estate agent.
What does a real estate agent do
As a real estate agent in California, you will be expected to perform multiple tasks and duties as part of your job profile.
However, at the core of the job, real estate agents are required to work with clients and help them make sound decisions based on guidance and advice.
Let’s take a look at some of the tasks and activities you will perform as a real estate agent:
- Following up with prospects via email, text, or in-person meetings
- Meeting with clients and interacting with them to answer their queries
- Working with buyers to help them find a suitable property for their needs
- Working with sellers to help them sell their property for a fair valuation
- Educating clients about real estate laws and industry regulations
- Organizing property tours and site visits to attract potential clients
- Providing in-depth, accurate information to clients regarding the value, features, fixtures, and amenities of a property
- Preparing contracts, agreements, and paperwork on behalf of buyers
- Negotiating on behalf of clients to find the best value for their money
- Liaising with industry professionals such as loan officers, brokers, and home inspectors, and appraisers to facilitate a real estate transaction
- Promoting and advertising with listings, ads, and classifieds
- Maintaining updated records and documentation of real estate deals and transactions
- Attending networking events and industry seminars to find opportunities
- Advertising your services and expertise via online and offline channels
Clearly, there is never a dull moment in the day in the life of a real estate agent, especially in an exciting and popular market like California.
Next, let us dive deep into the step-by-step process of applying for a salesperson license and completing all the mandatory requirements.
Basic eligibility requirements for salesperson license
Like many states, California also has a set of licensing requirements and guidelines which must be fulfilled to obtain a license.
To obtain your CA real estate license, you must prove your eligibility by meeting the minimum statutory requirements for the role.
The DRE in California requires every individual to fulfill the following statutory requirements:
- You must be at least 18 years of age or older
- You must be a legal resident of the state of California or a lawfully admitted alien
- You must have a high school diploma or GED equivalent in education
- You must not have a clean background with no history of felony or unlawful activity
Note that if you have a history of felony or any unlawful, illegal, or criminal activity, it is important to report them to the DRE in California to avoid getting your application rejected.
Education requirements for a California salesperson license
To work in a competitive and dynamic industry like real estate, you will need more than a license - you must acquire the knowledge and training of the industry laws and principles.
This is why completing education is critical to becoming successful - it helps you meet the licensing requirements and prepares you for the role of a real estate professional.
Like most states, California requires individuals to complete a minimum level of qualifying education.
In California, the Department of Real Estate (DRE) requires you to complete the mandatory 135 hours of pre-licensing education and training.
The purpose of pre license education is to provide students with an understanding of the state and federal guidelines, regulations, consumer rights and other fundamental topics.
Your California real estate course will be divided into mandatory and elective courses.
Mandatory courses include - Real Estate Principles (45 hours) and Real Estate Practice (45 hours). Additionally, you can choose from the following elective courses:
- Real Estate Finance
- Real Estate Appraisal
- General Accounting
- Business Law
- Property Management
- Legal principles of real estate
You can choose to complete your education offline or online, depending on your preference and learning needs.
However, it is important that you choose a DRE-approved and accredited education provider for your education.
Most students prefer the flexibility and convenience of online real estate pre license courses as they can be completed from anywhere.
Another practical advantage of joining an online course is that you gain access to the lectures and tutorials on-demand.
After completing 135 hours of pre-license course credits, you can apply for the California salesperson licensing exam.
Passing the California Real Estate Licensing Exam
The California DRE requires passing the salesperson licensing exam as a mandatory step to obtain a license.
Whether you are applying for a salesperson or a broker’s license, the exam is a test which will assess your knowledge, competence and preparation.
To schedule the exam, you can visit the DRE website and take the test at a Pearson VUE center in any of the following locations:
- Oakland
- San Diego
- Los Angeles
- Fresno
- Sacramento
The salesperson licensing exam is a closed-book, multiple choice questions test which consists of 175 questions and you will get 3 hours to complete them.
To pass the California salesperson exam, you must score at least 75 percent or above to pass the test.
Currently, the pass rate is around 60 percent i.e. only 6 out of 10 students are able to pass the test on their first attempt.
To improve your odds of success, it is recommended that you make use of mock tests and sample test questions.
Many educators provide students with exam prep study materials and resources to help them get a feel of what to expect in the test and prepare better.
If you are unable to pass the exam on your first attempt, you can reschedule it by paying the $60 exam fee.
Clear Background Verification
So you have completed your education and also passed the salesperson licensing exam in California - now it is time to complete background verification.
In California, students must clear the federal criminal history and background verification check to meet the standards of honesty, integrity, and good moral standing.
To complete your verification, you need to get a fingerprint scan at any of the state approved live scan providers and submit to the DRE for review.
Along with the fingerprint scan, you must submit your salesperson license application along with a proof of completion of pre license education and additional documents.
After your documents and fingerprints are verified and approved, you will receive your CA real estate license within a few weeks.
Get Employer Sponsorship
The California law requires every licensed salesperson to work under the guidance of a senior, more experienced broker.
To activate your license, you need to find a sponsoring broker or a brokerage firm to work with and submit the sponsorship details to the California DRE.
Beyond a mandatory requirement, working with a sponsoring broker can be valuable to your career growth.
Sponsoring brokers can help you understand the industry better and get practical, real-world experience of working with clients.