What Is Reciprocal Real Estate Licenses In Florida

By Ciprian Morariu Published: January 8, 2024

Having a real estate license is a great way to advance in your career and attract more opportunities for growth and income. 

With a license, you get access to all the perks and benefits that license holders enjoy in a particular state. But when you decide to practice in another state will your licensed status be able to move along with you?

These are some common questions posed by real estate agents, brokers, realtors, and appraisers whenever they have to move to a different state due to work or simply expand their horizons to newer real estate markets.   

After all, obtaining a state license takes considerable education, investment, and effort - and so it is crucial to know whether migrating to a different state would make your existing license void or null.  

Thankfully, there exists a provision in the real estate law called license reciprocity which has been formulated to solve this specific concern. 

The real estate industry has three types of license reciprocity to contend with. These are: 

  • Cooperative State: In this classification, real estate professionals can practice both in their home state and another state of choice.  
  • Physical Location State: where real estate professionals can assist in a sale, purchase, or lease remotely but are not allowed to be physically present during a transaction in a new state as a migrant.
  • Turf State:  where out-of-state agents and brokers are not allowed to conduct business or perform any tasks, either in-person or remotely. This means your roles and responsibilities are limited to your home state only. 

With almost 200K real estate professionals in Florida, getting a reciprocal real estate license can give you an edge over others.

Well, if you go by the housing market trends, there’s a lot of potential waiting to be tapped into outside Florida as well. 

Now, let us get down to what is reciprocity and how does Florida real estate license reciprocity work.

Real Estate Licenses In Florida

Understanding the Concept of Reciprocity of Real Estate License

By textbook terms, reciprocity can be defined as the act of giving and receiving in equal measures. 

Reciprocity permits a real estate professional to work in several states with a license issued from any one of them. The rules about reciprocity are not uniform among states. 

Each state has its definition of reciprocity in real estate, based on which it has its own set of rules and regulations to obtain a reciprocal real estate license. In some states you must take a test to get a reciprocal license while in others you will get a one without sitting for an exam.  

It is also important to know that real estate reciprocity can be of three types, namely: 

  • Full Reciprocity: This type of reciprocity allows a real estate agent or broker to meet the minimum education and work experience requirements to the migrating state. 
  • Partial Reciprocity: This type of reciprocity agreement allows the transferring of license from one state to another after meeting a certain set of criteria and guidelines. 
  • Mutual Reciprocity: In this type of license reciprocity, real estate agents can work in two states that have a reciprocity agreement between themselves only. Under this type, real estate professionals are not required to fulfill any additional educational or local requirements.

In this post, you will learn all that you need to know about how to get a reciprocal real estate license in Florida. 

What Are the Advantages of Reciprocal Licensing

Based on reciprocity agreements, real estate agents, brokers, and realtors are free to work in any other state apart from where they obtained their license. 

Real estate agents or brokers in Florida can have a reciprocity license and easily extend their place of work to other cities. 

This gives you new opportunities and clientele to work with while directly increasing your earning and growth potential. 

Given below are some of the advantages of a reciprocal license:

  1. Expanded Network: If you are a sales agent or a broker, a reciprocal real estate license will help you expand your network considerably. This means you can attract new clients in different markets and tap them into opportunities for higher income. 
  2. Increase Expertise: As you work outside your home state, you will be able to grow your reputation and add to your experience. A reciprocal real estate license will allow you to close more deals, and become more proficient at your role. A reciprocal license is like a badge of honor that you can proudly display. 
  3. Boost Reputation: Your real estate career can reach greater heights when you work with a diverse clientele across demographics. Having exposure to newer clients will help you boost your reputation and set you apart from other professionals in the industry. 
  4. More Opportunities: Serving more, different markets across demographics will translate into more opportunities for revenue growth. Having a reciprocal license broadens your working scope, and gives you the flexibility to tap into seasonal trends in different markets.

Now that you know the benefits and advantages of real estate license reciprocity, let’s look at the steps required to get one. 

An Insight into Real Estate Licensing in Florida

Educational Requirements in Florida

The main question now is how to get a reciprocal real estate license in Florida. The first criterion is that you must complete all the formalities for a license in that state. 

First complete the 63 hours of pre-licensing coursework as mandated by the Florida Real Estate Commission (FREC). Only then will you be eligible to apply for a license.

This course imparts knowledge about all that is required to know to have a successful career in the industry.    

Once you complete the pre-licensing coursework, schedule an exam with FREC. A license will be awarded after you pass this test and complete a few other formalities. 

Florida Real Estate Licenses

Exam and Application Process

To pass the Florida state licensing exam, you must score at least 75% on the test. 

Before you schedule and appear for your final exam, you must first submit your real estate license application. 

For all relevant details of applying for a license, visit the website of the Florida Department of Business and Professional Regulation (DBPR). If you want, you can visit the offices of the DBPR and hand over the application in person.Along with the application, you must pay a fee of $84 towards processing of the same. .

After you application for a real estate license is approved, a confirmation e-mail with ‘Authorization to Test’ will be sent to you, after which you can sit for the real estate license exam. 

Based on your preferred day and date, you can schedule your licensing exam. This can be done either inperson at a state-approved exam center or completed online. 

Obtaining a Reciprocal Real Estate License in Florida

Eligibility Criteria for Reciprocity

First, ensure that you have an active real estate license before applying for a Florida real estate reciprocal license. 

Further, you will be required to complete a mandatory exam to test your knowledge of Florida laws and regulations. This exam consists of 40 questions and you must score at least 30 or higher to pass. 

There is another important criterion for eligibility for reciprocity - as an applicant, you must also procure and provide a certificate of your license history with the Florida Department of Business and Professional Regulation (DBPR).

Another important criterion for eligibility is that as an applicant for a reciprocity license, you should not be a resident of Florida. 

However, for real estate professionals who have at least two years of work experience in either of the mutually reciprocal states, then your experience can be counted towards applying for the Florida reciprocal license.  

Application Process

Your application will require completion and submission of multiple items, including the following: 

  • Proof of high school diploma or equivalent
  • A valid identity proof and social security number
  • Proof of age
  • Proof of existing appraiser from the issuing state
  • Valid background check and fingerprints
  • Proof of completion of pre-licensing education from a Florida-approved course or education provider. 
  • Any relevant work experience documents.

Exploring Reciprocity Agreements

List of States with Reciprocity with Florida

It is essential to know what states have reciprocity with Florida real estate licenses. This will help you to plan out where you want to work in the USA.Here’s a quick list for your reference: 

  • Alabama
  • Arkansas
  • Connecticut
  • Georgia
  • Illinois
  • Mississippi
  • Nebraska
  • Rhode Island
  • West Virginia 

Some popular states like New York, Texas, and North Carolina do not have a real estate license reciprocity with Florida. 

Understanding State-Specific Requirements

It is critical to know that every state has its own set of real estate laws and regulations, thus, the specific rules and guidelines for real estate reciprocity can vary. 

The agreements may differ from statetostate and hence it is recommended that you must consult with the state’s local regulatory authorities and real estate regulatory body. 

Be sure to keep abreast of the latest guidelines and reciprocity rules of the state where you plan to work and practice in.