Ready to become a licensed real estate agent in California? Read this guide to get started.
California boasts some of the most popular and robust real estate markets in the country and continues to be a fertile ground for agents, brokers, and realtors.
Working in California real estate is a lucrative career opportunity for thousands of real estate professionals.
Thanks to the state’s strong job market, stable economy, pleasant climate, and attractive standard of living, the demand for real estate has been steadily growing.
Be it residential or commercial, California provides a diverse mix of properties and investment opportunities to cater to various needs and preferences, from single-family homes to luxurious villas and more.
Due to California’s booming real estate, it is fairly easy for many agents to make a six-figure income annually.
In fact, industry estimates report that a licensed salesperson in CA real estate can make as much as $150K in a year.
If you too are curious to enter the rewarding and exciting world of real estate and want to start a part-time or full-time career as a real estate agent, now is the time.
All you need to get started is a real estate license in California with which you will be able to work with clients anywhere in the state and help them buy or sell properties.
The best part is that you will have no restrictions on how much money you can make as an agent - the more deals you close, the higher your earning potential is.
Imagine living a life of financial freedom where you can define your own work schedule and be your own boss - does this sound like a professional dream come true?
If yes, now is the time to make it a reality by getting your salesperson license in California and embarking on a fulfilling and challenging career journey.
To help you get started, we have put together this in-depth guide which covers all the key aspects of becoming licensed.
From the minimum eligibility requirements to state-specific qualifying rules, you will learn about all the steps you need to complete to earn your salesperson license.
The importance of a real estate license in California
Many aspiring real estate professionals often wonder about the benefits of a California real estate license and whether it is worth putting in the time, money, and effort to get one.
Getting your license might seem like a choice but in reality, it is a crucial necessity without which your career in real estate will be severely restricted and limited.
Unlicensed professionals have no clear path to getting promoted, and moreover, they do not get access to the most high-paying jobs in the first place.
A licensed real estate professional not only has more opportunities to tap into, but they are considered more trustworthy and credible in the industry.
Here’s an example to understand this better - you are more likely to consult a specialized doctor or a certified lawyer for advice whenever you need one, as compared to someone who does not have the same credibility.
In real estate, trust is paramount to ensuring long-lasting relationships, and the foundation of trust is built upon being knowledgeable, trained, and licensed.
Real estate buyers, sellers, and investors are always seeking the best value for their money and want to avoid getting into unlawful transactions or any legal complications.
Thus, they are likely to trust a licensed, certified professional who can guide them in navigating through the various steps of closing a real estate deal.
Unlicensed professionals have no clear path to getting promoted, and moreover, they do not get access to the most high-paying jobs in the first place.
Without a California license, you will have to rely on other licensed agents or brokers to earn your share of commissions.
Whether your goal is to work independently or as part of a brokerage firm or real estate agency in California, getting a real estate license is the first step in building a successful career.
Now that you have learned about the importance and benefits of getting licensed, the next step is to prepare for your licensing journey.
California salesperson licensing requirements
Step 1: Meet the basic eligibility requirements
Like most states, California has established minimum qualifying requirements to become eligible for a salesperson license.
To earn your real estate license in CA, you must meet the basic statutory requirements first and foremost. As per the California Department of Real Estate (DRE), you must:
- Be at least 18 years of age or older
- Be a legal resident of the state of California or a lawfully admitted alien
- Have a high school diploma in education or GED equivalent
- Meet the California DRE standards of honesty, integrity, and truthfulness
If you fulfill the above requirements completely, you can proceed to meet state-specific licensing requirements.
However, if you are not sure if you meet the statutory eligibility requirements, you may take a fitness determination test to be completely sure before investing the time, effort, and money.
Step 2: Complete pre-licensing education
If you are new to the profession, you might be wondering - what exactly is a pre-licensing course and how is it relevant to becoming a licensed real estate agent in California?
Pre-licensing courses are a way to equip applicants with the operating principles and core fundamentals of the real estate industry including the various state and federal laws.
Completing pre-license education helps you become knowledgeable about their duties and responsibilities and understand the industry standards and best practices.
Like most states, the California DRE only allows qualified and educated professionals to work with clients and take part in real estate transactions.
As per the California Department of Real Estate (CDRE), you must complete 135 hours of pre-licensing education.
You will learn about various topics and courses such as - Principles of Real Estate, and Law of Agen.
To complete the California real estate license course, you can join a real estate school, college, or online course and complete the coursework as per your preferred learning medium.
To meet this requirement, it is important to complete pre-licensing education as it will enable you to obtain your salesperson or broker’s license in California.
With a license, you can get access to more job opportunities, and employer sponsorship members-only benefits such as the MLS (Multiple Listings Service) and you will also expand your professional network.
Plus, completing state-approved education will also prepare you to stand out in a competitive industry like real estate.
Many successful agents and brokers have a key element in common - they take their education and training seriously.
Hence, you should consider your pre-licensing education as a stepping stone to a thriving, successful career in the long run.
How to choose a pre-licensing course provider in California
Now that you have learned about the benefits and importance of investing in your education and training, it all comes down to choosing the right education provider to meet your learning needs.
California boasts some of the most trusted, experienced, and renowned real estate education providers in the country.
However, with so many options available, choosing the right California real estate course might be overwhelming for many individuals.
To help you make the right decision, we have discussed a few key aspects that you must keep in consideration before finalizing your education provider.
Learn about content delivery mediums.
Before you start enrolling for a California pre-license course, it is important to do your research and understand the different types of learning and content delivery mediums.
You can opt for in-class learning or online courses to complete your pre-licensing education based on your preferred medium of content delivery.
Many students prefer the flexibility of a virtual, online real estate course as it allows them to learn at their own pace and complete the course credit from anywhere.
However, you might want to explore if you wish to join an in-person, classroom-based learning.
As you have to complete around 135 hours of pre-license education in California, thus, it is critical to choose a course provider that offers the most convenience and flexibility.
Choosing the Right Pre-License Course
The odds of your success in the real estate exam depend majorly on your preparation, which is solely based on your education provider and their teaching expertise.
Put simply, the better you learn, the more you will understand and retain and the higher will be your chances of clearing the salesperson licensing exam in California.
Ideally, you should opt for a course provider that provides up-to-date, comprehensive, and accurate study material so you get an in-depth understanding of the topics.
As a rule of thumb, you must enroll in a state-approved real estate pre-licensing college or course to be assured of the highest standards of learning and education.
Pick the right learning package.
When it comes to pre-licensing courses, not all of them are created equally. In fact, the value proposition differs greatly based on the type of course package and plan you choose.
To pick the right course package, make sure to carefully evaluate the contents of what is offered and explore the additional benefits and value add-ons.
Some of the best pre-licensing schools offer useful benefits along with their courses, such as - on-demand instructor support, live access to recorded lectures, doubt-clearing classes, and simulated exam practice sessions.
Needless to say, different course packages have their unique strengths and costs. Thus, you must compare them carefully and make an informed decision on the basis of your learning needs and budget.
Passing the California licensing exam
Once you are done with your pre-licensing education and have successfully obtained a certificate of completion, you will be eligible to apply for the salesperson licensing exam.
In California, it is mandatory for all applicants to take and pass the licensing exam to earn their respective licenses.
The exam consists of 175 multiple-choice questions covering both state and national-specific portions. You must score at least 75 percent or above to clear the exam.
If you successfully clear the exam, you can submit your electronic fingerprints along with your licensing application to the California DRE for review and approval.
Completing a background check and criminal history check is a mandatory part of the licensing process for all applicants.
Once the DRE in California approves your application, you will receive your license within a few weeks.
Activating your real estate license
Congratulations on getting your salesperson license in California! You are now just one step away from working with clients and making a living as a licensed professional.
However, to do so, you must activate your real estate license by finding employer sponsorship.
The state law requires all newly licensed agents to work under the supervision of a sponsoring broker or brokerage firm.