Learn How To Get a New York Real Estate License And Start Your Career From Scratch
New York is home to some of the wealthiest, renowned and successful real estate professionals in the country.
The real estate landscape of NY is dynamic, diverse and growing steadily since the last few decades. It is truly a global icon in real estate which is second to none.
A thriving metropolis with world-renowned attractions, amenities and quality of living, New York’s real estate market is witnessing sustained demand and strong confidence.
Be it the mesmerizing iconic skyline or the quaint, charming towns, New York is a melting point of culture, business, finance, entertainment and a global lifestyle.
NYC’s real estate market has seen double digits growth since last year and with a median price of around $600K, it continues to be a fertile opportunity ground.
In addition to the residential real estate boom, the luxury market in NY has also grown significantly since the last few years.
The Empire State is popular for attracting the interest and investments of the ultra rich, high net worth, premium buyers who want to settle for nothing but the best.
Home to the highest number of richest people in the country, New York continues to be the financial and business capital for the wealthiest of buyers and real estate investors.
For real estate agents and brokers, NYC offers an exciting market brimming with opportunities to work with some of the wealthiest, discerning consumers and clients.
NY’s high-growth, unique and dynamic proposition has created rewarding opportunities for agents who want to tap into high value real estate deals and earn commissions.
As the demand for housing, commercial and luxury real estate in NY soars, the future looks promising and rewarding for agents and brokers.
This means if you are interested in starting a part-time profitable income stream or becoming a full-time real estate agent, now is a good time to start preparing for it.
Imagine earning a six figure income while working in one of the world’s most popular real estate markets - does this sound like a professional dream come true?
If yes, you can make this dream a reality by applying for a NY salesperson license and starting your career.
To achieve this goal, you need to obtain a license from the New York State Department of State (NYSDOS) and meet the state specific qualifying requirements.
As per the NY state law, it is mandatory to obtain a valid license to work with clients and earn commissions through real estate deals.
If you are wondering how do I get a real estate license in NY and start a career, this in-depth guide will answer all your questions.
After reading this article, you will get complete clarity on what are the steps you need to complete to become a licensed real estate agent in New York.
To begin with, let us walk you through the basics of what a real estate agent does and why you must obtain a license to be successful in this profession.
Why do you need a real estate license in NY
New York real estate is a highly regulated industry which is governed by a pre-established set of state laws and federal rules.
Like most states, New York also requires aspiring real estate professionals to obtain a state license to become eligible for working with clients.
To protect the rights of consumers and withhold the highest standards of professionalism, only licensed individuals are legally allowed to earn commissions through real estate deals.
Without a state approved real estate license, you will not be able to legally work with clients or take part in a real estate transaction.
As per the New York State Department of State (NYSDOS) licensing laws and regulations, you must obtain a valid license to engage in the following activities:
- List or update a property for sale or purchase in the state of NY
- Represent the interests of clients and consumers in a real estate deal
- Prepare, approve or submit any transaction or property related documents
- Assist clients in searching, shortlisting, reviewing and finalizing properties
- Negotiate the price, value, sale or purchase of any type of real estate
- Liaison with real estate brokers, property appraisers and home inspectors
Real estate license in New York is a mandatory requirement if you want to be compliant with the state and federal laws and be on the right side of the law.
Without a state approved license, your earning and growth prospects will be highly restricted and limited as you will have to rely on a licensed agent or broker to earn commissions.
You should think of a license like a professional badge of honor and the key to unlocking opportunities for growth and profitability.
Most importantly, even consumers and clients prefer working with licensed agents to ensure they get the best services and assistance for buying and selling properties.
Now that we have discussed why getting a license is crucial to success in your career, it is important to learn about the different types of licenses.
In NY, you can apply for two different types of licenses to work with clients and earn commissions on deals.
First is the NY salesperson license which will allow you to join the industry as a beginner and get employed with a senior broker or brokerage firm.
Second is the NY broker’s license which you can apply for after gaining a few years of industry experience and completing additional education requirements.
To start with, let us outline the steps on how to obtain real estate license in NY and start your career in the right way.
Eligibility Requirements for a NY salesperson license
According to the New York State Department of State (NYSDOS), all aspiring real estate professionals must qualify for the job by meeting the eligibility requirements listed below.
- Be at least 18 years of age or older
- Be a legally residing citizen of the United States or a lawfully permitted alien
- Own a valid NYC driver’s license or any other non-driver ID proof
- Have no history of felony or any unlawful activity
To prove that you are a good fit for a career in real estate, you must meet the above listed statutory requirements.
Education Requirements for Salesperson license in NY
Since you will be starting your career as a real estate agent working under the supervision of a senior broker or brokerage firm, you must apply for the New York salesperson license first.
As per the NYSDOS, all applicants must complete mandatory training, also known as, pre-licensing education to become eligible for applying for a salesperson license.
To obtain your NY salesperson license, you are required to complete 77 hours of state approved pre licensing coursework during which you will learn about the fundamentals of the industry along with the principles, processes and guiding standards for agents.
Listed below are some of the courses you will complete during your pre license education:
- Principles of Real Estate
- Real Estate License Laws
- Law of Agency
- Real Estate Finance
- Contracts and Leases
Completing pre-licensing education will equip you with the required knowledge, skills and training of the working of real estate industry, various state and federal laws, consumer rights, and your job duties and responsibilities.
The various mandatory courses will also teach you about the fundamental knowledge of real estate finance, mortgage, fair lending, loans, interest rates and other services.
You will also learn about real estate contracts, deeds and how to draft real estate contracts, and the underlying rules and regulations of contract management.
Completing pre license education is one of the most crucial and essential aspects of embarking on a successful professional journey in real estate.
Students have the freedom to choose between a physical, classroom based environment or enroll in an online pre license course to complete their education.
Irrespecitve of your preferred learning medium, you must choose a state approved education provider for your pre license coursework. This will ensure that you are learning from an accurate, up-to-date curriculum and course material.
Many students prefer learning in an online, self-paced format as it allows more flexibility and freedom to define your own schedule and learn at your own desired pace.
Since real estate is a dynamic, ever-evolving industry with changing laws, emerging trends and constantly updating guidelines for professionals, it is important to invest in education.
To stay on top of the latest trends and developments, you need to cultivate a learning mindset and continue to grow your knowledge and skills.
Completing 77 hours of NY pre license coursework will equip you with the knowledge you need to stay updated and relevant with the most recent and relevant topics, laws and rules.
Examination requirements for NY salesperson license
After completing pre license education and training, how do i get my real estate license in NY and start to work with clients.
The next step in your lciense journey is to take the NY salesperson licensing exam and pass it to prove your competence and training.
You can submit your application to the NYSDOS website online and schedule your exam as per your preferred day and date.
The NY real estate license exam for salespersons onsists of 75 multiple choice questions based on state and federal topics and courses.
Passing the final exam is mandatory and you will have to tackle all the questions in 90 minutes. To pass the exam, you must score at least 75 percent or above.
Many beginners often wonder about the difficulty of the real estate license test and whether it is possible to pass the test on the first attempt or not.
The answer depends on your level of knowledge and preparation and to boost your odds of success, you can take help of exam prep resources and study materials.
By practicing with simulated exams, sample questions and mock tests, you will become familiar with the exam format and the type of questions you can expect to tackle in the test.
Another tip is to create a study schedule to prepare for the test as it will help you manage your time to tackle the total number of questions in a limited time period.
After you successfully pass the real estate license exam in NY, you will be eligible to submit your salesperson license application.
Clear background verification check
After passing the NY salesperson license test, the next question which might arise in your mind is how to get a real estate license NYC quickly?
To become a licensed professional in NY, you need to clear mandatory background verification and federal criminal history check.
As per the NYSDOS, only individuals with no record of criminal history, felony and a good moral conduct are allowed to apply for a real estate license.
To complete this step, you will be required to submit an electronic scan of your fingerprints to the NYSDOS for background verification.
Clearing a federal background check is a mandatory requirement to obtain a real estate license in the state of New York.
Find employer sponsorship
If you successfully complete all the steps listed above, you will receive your NY salesperson license within a few weeks.
However, to start working with clients and earn commissions through real estate deals, you need to activate your licens.e
The state of NY requires all newly licensed agents to work under the guidance and supervision of a state licensed brokerage firm and gain industry experience.
To activate your license, you need to submit your employer sponsorship details to the NYSDOS for review and approval.
Costs to obtain a NY real estate license
While thinking about how to get my real estate license in NY, you might have also thought about how much money will it cost to become a licensed real estate agent.
Getting a license requires investment of time and efforts, but most importantly, it requires you to cover the various costs associated with the process.
Since there are numerous steps associated with the journey to obtain a license, you must be prepared to invest the money in completing them.
To help you plan your budget and understand the costs involved, let us walk you through the major expenses involved in your licensing journey.
Cost of completing NY pre license education
When it comes to the cost, in-person, classroom based learning is generally more expensive as compared to an online pre licensing course.
Different education providers and schools offer specific training and learning packages with a unique set of features, benefits and tailored programs for students.
Many real estate courses and colleges also offer advanced courses for students who want to boost their preparation and gain access to exam prep resources such as mock tests, guided doubt clearing sessions and training material.
You can choose the desired learning package on the basis of how much support they provide and the type of curriculum you will need to prepare for passing the licensing exam.
Pre-licensing education costs in New York are generally in the range of $100 to $700 depending on the course package you opt for, your medium of learning and the reputation and pass rate of your education provider.
Cost to take the NY salesperson license exam
In order to obtain your NY salesperson license, you need to take and pass the NY salesperson licensing exam.
To do so, you will need to pay a one-time examination fee of $15 for each attempt and if you
are unable to pass the exam on your first attempt, you can take the test again by paying $15
Cost to complete Federal background verification
To become a licensed real estate agent in NY, you must clear the state and federal background verification and criminal history check.
As per the NY license requirements and guidelines, it is mandatory to meet the minimum standards of honesty, integrity and truthfulness to obtain a state license.
To complete this step by submitting your electronic fingerprints to the Department of Criminal Justice Services will cost you a one-time fee of $75.
Applicants will also be required to pay an additional Fingerprint vendor fee of around $14 to a live scan vendor.
Cost for License renewal
Keeping your NY real estate salesperson license active and valid is a mandatory requirement for licensed agents and brokers.
To ensure you are compliant with the state and federal license laws and guidelines, you must renew your license after every two years from the date of issuance.
Generally, it will cost you anywhere between $100 to $250 to complete additional continuing education in NY.
You will be required to pay a license renewal fee of $65 for every renewal within your due date.