Your Guide To Working in California As a Licensed Real Estate Agent
Are you a California resident who wants to work in a dynamic, fast-growing industry where opportunities for earnings are abundant?
If yes, a career in real estate might just be the ideal fit for you, especially if you are seeking financial independence and a stable work-life balance.
Did you know that real estate agents in California can earn as much as $120K in a year while working on their own schedule and finding their own clients.
Imagine having the financial means to achieve your goals and live the life of your dreams - a career in CA real estate can help you unlock the path to professional success.
What if we told you that you can achieve your professional goals and become a licensed real estate agent in California within a few months?
Does it sound too good to be true? As per the California Department of Real Estate license requirements, you do not need to spend years in college or obtain any advanced education.
As long as you meet the minimum qualifying criteria and fulfill the California pre-license education requirements, you can obtain a salesperson license and start working.
California’s real estate landscape is brimming with opportunities for real estate agents and brokers who want to be a part of the growth story.
Home to some of the world’s best corporations, businesses, and industries, California continues to be among the hottest and most sought-after real estate markets in the U.S.
San Francisco, Los Angeles, Bakersfield, Las Vegas, and Beverly Hills are premier markets that attract a swarm of high-net-worth individuals and wealthy real estate investors.
In the last few years, housing prices in California have soared to reach a staggering $750K for a single-family home.
As a real estate agent helping clients buy and sell properties in CA, you can earn between 5 to 6 percent commission on every deal you close.
As the demand for residential and commercial real estate continues to grow, so does the need for skilled real estate agents.
If you are keen to pursue the path of working part-time or full-time as a real estate agent in CA, now is a great time to start preparing for it.
As a beginner, you might wonder how to get a CA real estate license and start a career from scratch, and to help you, we have put together this comprehensive article.
Keep on reading till the end as we walk you through all the key aspects of working in CA real estate - from eligibility and education requirements to career tips and advice.
Who is a real estate agent, and what do they do
Real estate agents are licensed professionals who work with buyers and sellers and help their clients navigate through the stages of a real estate deal.
In exchange for their services, real estate agents earn commission based on the total deal value of the final transaction amount.
Like other states, California also requires real estate agents to educate clients about the various state and federal laws, regulations, and consumer rights.
In California, real estate agents can work with a brokerage firm, a senior broker, or even start their own real estate agency.
However, you must obtain and earn a valid California salesperson license to legally work with clients and earn commissions through real estate deals.
A day in the life of a real estate agent is never dull and is a mix of various administrative, operational, marketing, pre-sales, and customer service-oriented tasks.
Real estate agents are expected to respond to searches for potential opportunities, identify and qualify prospects, respond to queries, and answer any questions from potential clients.
As a real estate agent, you will be responsible for drafting contracts, deeds, and formulating agreements between sellers and buyers.
You will also be in charge of arranging site visits, property tours, location scouting, and working with real estate appraisers, underwriters, and property inspectors.
Real estate agents in CA are required to attend networking events, promotional seminars, and create marketing materials to promote their services and attract clients.
If you are already wondering how do you get your real estate license in CA, keep on reading to find out more.
Meet the basic eligibility requirements
California real estate is governed by a set of state and federal laws and regulations for professionals and firms working in the industry.
As per the California DRE, you must meet the minimum set of qualifying requirements to apply for a salesperson or broker’s license in the state. These are:
- Age: You must be at least 18 years old
- Residency: You must be a legal resident of California or a lawfully residing alien
- Education: You must have a high school diploma or GED equivalent in education
This is the first step in embarking on the journey to obtain your license and a mandatory one to ensure that you qualify for a license in the first place.
Completing pre-license education in California
Pre-licensing courses are educational programs formulated in accordance with the state and federal rules, regulations, and guidelines for real estate professionals.
As per the Department of Real Estate (DRE) in California, you are required to complete 135 hours of a state-approved California real estate license course to qualify for a license.
The purpose of pre-license education courses is to provide you with the fundamental education and knowledge to work as a professional and assist clients.
Pre-license education will equip you with the knowledge of how the real estate industry works, what your duties are as an agent, the rights of consumers, ethics, and various state and federal laws and regulations.
During the 135 hours of education, you will learn from a structured, pre-established curriculum for learning. Here are some common topics and courses you will cover:
- Principles of Real Estate
- California Real Estate Laws and Regulations
- Fair Housing and Ethics
- Laws of Agency
- Promulgate Contract Forms
- Practice of Real Estate
You have the freedom to choose your preferred learning medium - you can choose to join a classroom-based real estate college or school, or enroll in an online pre-license course.
Irrespective of your medium of choice, you must choose a state-approved or accredited education provider only to ensure you learn from an accurate and up-to-date curriculum.
Importance of continuing education in real estate
Many beginners and aspiring professionals believe that the only value of completing pre-license education is to complete a mandatory license requirement.
Completing pre-license education is not merely a mandatory requirement, but an essential stepping stone in the journey to giving your real estate career a solid start. Here’s why:
Ensure compliance:
Completing pre-license education and training is a mandatory legal and regulatory requirement to become eligible to work in the industry.
Without education, you will not qualify for a salesperson or a broker’s license in CA, which will jeopardize your career prospects.
As real estate is a constantly evolving, dynamic industry, it continues to update its laws, regulations, and operational standards to reflect the new trends and needs.
To ensure professional competence and compliance, the California DRE requires aspiring agents to familiarize themselves with the latest guidelines and regulations.
Completing pre-license courses is a way to become compliant with the state and federal laws and prove your competence to work as a licensed professional.
Stay competitive:
California’s booming real estate is a highly competitive industry, and there’s always someone looking to grab a share of their competitor’s proverbial pie.
If you want to stay ahead of the curve and stand out from a crowd of professionals, investing in education and knowledge is the best way to gain a competitive edge.
The specialized courses and topics will help you understand the fundamentals, enhance your skills, and grow your knowledge.
By pursuing pre-license education, agents can take advantage of in-depth learning resources and prepare better for the California real estate license test.
Completing pre-licensure education gives you the opportunity to train and upskill yourself and gain valuable insights about your profession and industry.
Grow your network:
Real estate is a network-driven industry that thrives on multiple skills, roles, departments, and professionals.
When you go out and join a real estate college, school, or course to complete your pre-license courses, you will come across other professionals from your state and meet fellow aspirants and peers.
It will give you a great opportunity to connect and network with them and add them to your professional circle.
Completing online pre-license courses will also help you connect with expert trainers, instructors, and teachers who can be of value in your learning journey..
Become more credible:
By completing pre-license education, you will become eligible to apply for a license, which in turn, will boost your professional credibility.
Committing to the process of completing 135 hours of course credits shows that you are serious about your career and want to become a knowledgeable professional.
Real estate agents are expected to be skilled and trained in multiple domains, especially legal, financial, and regulatory aspects.
Since clients entrust agents with their time, money, and decision-making, they want to work with trusted, credible professionals only.
By completing pre-license courses, you will demonstrate the urge to become a trained licensed professional who is willing to be of value to your clients.
Specialized courses and in-depth knowledge will help you add credibility, and the more credible you are, the easier it will be for you to generate business.
Investing in education always pays well because it offers numerous benefits and advantages in your journey to becoming a real estate agent in California.
Let us learn about the next set of steps and license requirements in detail.
Passing the California real estate license test
After successfully completing salesperson pre-license education in CA, you will be ready to apply for the state real estate license test.
The salesperson license exam in CA consists of 150 multiple-choice questions, and you will get 3 hours to complete the test.
To pass the exam, you must score at least 75 percent or above and it is a mandatory requirement for every aspiring real estate agent.
If you are worried about your exam preparation, you should practice using a California real estate sample test, which will help you understand the exam format and questions better.
Clearing the federal background verification check
As per the California DRE license regulations, you need to clear a federal background and criminal verification check to work with clients and represent them in real estate transactions.
To complete this step, you must obtain clearance from the DRE by submitting an electronic scan of your fingerprints taken at a state-approved live-scan vendor in California.
Once you have successfully completed the background verification process, you can submit your salesperson license application to the DRE for review and approval.