What it takes to become a licensed real estate agent in NY
Working in NY Real Estate - A Professional Dream
New York is one of the most popular and alluring real estate markets in the country and rightly so as it is home to magnificent views, a growing economy, and a global culture.
The state is renowned for its sprawling skyscrapers, historic buildings, beautiful skyline views, and attractive natural parks.
NY housing and commercial real estate markets continue to enjoy the attention and interest of buyers and investors who are willing to spend to own or rent properties.
Luxury real estate is performing even better in NY as the demand for high-end, premium, and exclusive properties worth more than tens of millions of dollars is on a growth trajectory.
New York’s flourishing real estate market is a perfect landscape of opportunities for aspiring as well as experienced agents, brokers and realtors.
Working in NY real estate is a professional dream come true for thousands and rightly so as it is a career that offers a mix of a six-figure salary, work-life flexibility, and independence.
Did you know that the top 10 percent of real estate professionals in NY generally make anywhere around $180K to $200K without having to work in a nine-to-five work environment.
Imagine being financially free and independent while helping people achieve their home ownership goals - does this sound like a professional dream come true?
If you too dream of building a thriving, successful career in NY real estate, now is the time to enter the market and plan the next steps of your professional journey.
The best part is that you do not need to spend years getting a college education. All you need is a real estate license in New York and you’ll be set to work with clients anywhere in the state.
Getting a license is a crucial and essential step in achieving your professional goals, whether you want to work as a part-time or full-time agent in NY.
If getting a license sounds overwhelming to you, we are here to help you get answers to all your queries and doubts.
In this article, we will cover all the key aspects of starting a career in NY real estate by getting your license.
The need for a real estate license in NY
Real estate is a regulated industry that is governed by a pre-established set of state and federal laws and rules.
Like most states, New York also requires applicants to obtain a state license to become eligible to work in the real estate industry.
Without a real estate license, you will not be able to legally work with clients or take part in a real estate deal or transaction.
As per the New York State Department of State (NYSDOS) licensing regulations, real estate agents, brokers, appraisers, and realtors are required to obtain a license to do the following:
- List or update a real estate property for the act of sale or purchase
- Represent clients and consumers in a real estate deal or transaction
- Assist clients and individuals in locating, reviewing, or finalizing a property
- Prepare, approve, or submit any transaction or property-related documents
- Negotiate the price, value, sale, or purchase of any type of real estate
- Earn commission and income generated from a real estate deal or transaction
This means having a NY real estate license is a must if you want to be compliant with the state and federal laws and meet the regulatory guidelines for professionals.
Without a New York real estate license, your career prospects will be highly restricted and limited and you will have to rely on a licensed agent or broker to earn commissions.
Having a license is like having a key to unlocking growth opportunities in a dynamic and rewarding industry like NY real estate.
Most importantly, clients prefer working with licensed professionals to ensure they get the best services, guidance, and assistance for buying and selling real estate in NY.
Now that we have discussed why getting a license is well worth the effort and investment, let us walk you through the steps on how you can get your license.
However, it is important to understand that you can apply for two different types of licenses to work in NY real estate.
First is the NY salesperson license which will allow you to join the industry as a beginner and work 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 you need to complete for getting a NY salesperson license and start your career.
Steps to Becoming a Real Estate Agent in New York City
Step 1: Meet minimum eligibility requirements
Real estate is a dynamic, ever-evolving industry that requires the best of knowledge, skills, and sincerity from professionals.
Did you know that NY is home to more than 100,000 real estate professionals?
If you want to stand out from the competition, you need to invest in obtaining your license and meeting the state guidelines.
However, before you start applying for a license, it is important to ensure that you meet the minimum criteria for working as a real estate agent.
The NYSDOS has enlisted the minimum eligibility requirements for a career in real estate and these are as listed below:
- You must be at least 18 years of age or older
- You must be a legal citizen of the United States or a lawfully residing alien
- You must own a valid NY driver’s license
- You must have a clean background with no history of a felony or criminal activity
Every applicant must fulfill the above statutory requirements to prove their eligibility for working in the real estate industry.
If you meet the basic eligibility requirements, you can proceed to the next step which requires completing a New York real estate course for getting your salesperson license.
Step 2: Completing pre-licensing education
To build a successful career in any profession, acquiring a minimum level of knowledge, skills and training is a must.
Even in real estate you must complete qualifying education to become eligible for working in the industry and helping clients buy and sell properties.
Without completing the required education and training, you will not obtain a sales associate license and your career will not take off.
The New York State Department of State (NYSDOS) requires all individuals to complete 75 hours of state-approved course credits as part of their pre-licensing education.
The 77 hours of pre-licensing education is divided into mandatory and elective courses which you are required to complete within 1 year of submitting your licensing application.
The New York real estate license course can be completed in-person from a real estate college or you can enroll in an online real estate pre licensing course provider.
Note that it is mandatory that you enroll in a state approved education provider to ensure you are learning from the most updated curriculum.
According to the NYSDOS guidelines, every real estate school or pre-license education course provider must meet the education standards.
This means accredited and approved education providers work with the state guidelines to tailor their course curriculum and adapt their teaching methodology.
You can find a list of all state-approved course providers on the NYSDOS website before deciding the one most suitable for your learning needs.
Many students often wonder about the importance of completing mandatory training and education for a license.
The fact is that completing 77 hours of coursework will give you the core knowledge of the fundamentals of real estate and its key principles and concepts.
These courses are formulated to equip you with an understanding of what it takes to work in the industry, including its various laws, regulations, and best practices for professionals.
Listed below are the mandatory courses that you must complete as part of your preparation for a career in NY real estate:
- Principles of Real Estate 1
- Principles of Real Estate 2
- Real Estate Law of Agency
- Law of Contracts
- Real Estate Finance
- Promulgated Contract Forms
During these courses, you will learn about the significance of the various state and federal laws and the code of ethics in the industry.
You will also learn about how residential and commercial properties are defined and regulated, what is a client-agent relationship and the different parties involved in an agency.
Additionally, these courses will also expose you to the importance of finance in real estate, mortgage, fair lending, loans, interest rates and other financial products and services.
The curriculum will also cover topics such as contracts and their different types, the process of preparing contracts, and the rules and regulations of contract management.
Needless to say, pre-licensing education is one of the most crucial aspects of embarking on a successful professional journey in NY real estate.
If you are ready to plan your education, it is important to find the right education provider to meet your needs and help you get the best value for your money.
Luckily, New York has no shortage of world-class real estate schools and online course providers, however, before you decide on one, keep the following aspects in consideration.
- Check the type of content delivery mediums offered for learning
- Go through the school’s alumni reviews and students’ feedback
- Ensure the education provider is state-approved and accredited
- Explore advanced learning features and value-added benefits for students
Once you are confident about the authenticity, accreditation and experience of an education provider, only then you should pay the pre licensing education fee.
Step 3: Pass the licensing exam
Whether you decide to join a classroom-based course or sign up for a New York real estate license course online, the next step is to pass the NY salesperson licensing test.
Passing the licensing test is a crucial step for becoming a licensed real estate agent in NY and to do so, you must score at least 75% in the final test.
If you pass the NY licensing test, you can apply for a salesperson license by submitting an application to the NYSDOS for review and approval.
Note that you will be required to submit supporting documents such as an electronic scan of your fingerprints for a criminal background verification check.
Clearing a federal background check is a mandatory requirement to obtain a real estate license in NY. You will also be asked to pay a onetime licensing fee of $65.
Step 4: Find employer sponsorship
The NYSDOS requires all newly licensed agents to find and join a licensed brokerage firm in New York and gain industry experience.
To activate your license, you must find a licensed brokerage firm or broker who can sponsor you as an employer.