How to Get a Real Estate License in California (CA)

Whether you want to be an agent or a broker, you’ll need a real estate license to buy or sell real estate in California. You’ll also need to be at least 18 years old, complete some real estate coursework, pass an exam (or two, depending on the license), and undergo a criminal background check.

Which license is right for you? The difference between a real estate agent and a real estate broker is largely a matter of experience and education. An agent or salesperson must work under a licensed broker, while a broker can work independently and hire agents. The licensing requirements include additional coursework and a minimum of two years of experience as an agent.

Key Takeaways

• You can earn a license to practice as a real estate agent or a real estate broker. An agent must work under a broker while a broker can work independently.
• Not surprisingly, the nation’s most populous state has its own real estate regulations.
• Both licenses require completion of coursework and a final exam and undergoing a background check.

Big Industry Change

The standard 6% commission paid by home sellers in the U.S. is disappearing under a pending settlement by the National Association of Realtors of a long-standing court case. Home sellers should see lower commissions based on the March 2024 settlement agreement. The plaintiffs argued that the practice of splitting commissions between the seller’s broker and the buyer’s agent was illegal collusion. New rules should be in place by mid-July 2024.

California Real Estate License Requirements

There are two types of licenses in California. A California real estate agent is authorized to sell real estate but must work under a licensed broker. A broker can own the company and hire other agents.

Requirements for a real estate sales agent include:

• Must be at least 18 years old
• Must complete 135 hours of real estate coursework (a total of three courses) at an accredited university or a private real estate school approved by the California Real Estate Commissioner
• Must pass a final exam
• Must be truthful and pass a background check

Requirements for a real estate broker include:

• Must be at least 18 years old
• Must have worked for at least two years as an agent within the last five years OR have a four-year college degree with a major or minor in real estate, OR equivalent experience as an unlicensed professional
• Must complete 360 hours of real estate coursework (a total of eight courses) at an accredited university or private real estate school approved by the California Real Estate Commissioner
• Must pass a final exam
• Must be truthful and pass a background check

How Much Does It Cost to Get a Real Estate License in California?

Becoming a real estate professional in California requires time and money. When all is said and done, an aspiring agent will spend about $515 to get a license. A broker can expect to pay about $880. License renewals cost an additional $245–$360 annually.

How these costs break down:

• Pre-licensing exam coursework can run anywhere from $99 to $375.
• Exam fees for an agent run $60, while a broker exam costs $95.
• License fees for an agent cost $245, while a broker license costs $300.
• Both licenses require fingerprints, which cost $49.
• Other miscellaneous fees can run upward of $240.

California Real Estate License Exam

Once you receive notification that you’ve qualified to take your exam, you’ll either receive an Examination Schedule Notice or approval to self-schedule.

Exams are offered in five cities in California: Fresno, Los Angeles, Oakland, Sacramento, and San Diego.

The agent (or salesperson) exam is three hours long and consists of 150 multiple-choice questions.

The broker exam is four hours long and consists of 200 multiple-choice questions.

For either exam, you must score 70% or higher to pass. If you don’t pass the first time, then you will be able to reapply to take the exam again (with additional fees).

California Real Estate License Application

Once you pass the exam, you will need to fill out an application with the California Department of Real Estate for your license.

You also can apply for the exam and license at the same time, to avoid having to fill out another application after the exam.

Note that the state will conduct a background check with fingerprint processing before approving your license.

You must disclose any and all criminal convictions on your application. Depending on the crime, a conviction may or may not be disqualifying. But failure to disclose a conviction, even for a minor offense, is grounds for immediate denial of your application.

California Real Estate License Renewal

California real estate licenses are good for four years, and the state will notify you within 60 days of your renewal.

Renewal fees will run $245 annually for an agent, while a broker license renewal will cost $300 annually.

Does California Require Post-Licensing Education?

California real estate agents and brokers who are renewing their licenses or filing for a late renewal must complete 45 hours of approved continuing education coursework.

Special Considerations

If you are an attorney who is a member in good standing of the California State Bar, you are exempt from some of the requirements to become a licensed real estate agent or real estate broker.

You are granted permission to sit for the exam immediately. Your eligibility to practice law in California can be used in place of the college classes required of other applicants. However, you still must take and pass the relevant exam to become a real estate agent or broker.

Attorneys are not exempt from the two years of real estate experience required of broker applicants. That experience does not necessarily have to be in sales—other types of experience, such as practicing real estate law, might be deemed acceptable. Decisions are made on a case-by-case basis.

And speaking of real estate law, California has statutes and regulations that all real estate professionals should be aware of. The California Department of Real Estate has a guide to laws governing real estate in the state, including what may have changed year over year. More details can be found in the state’s publication, 2024 Real Estate Law.

Can I Apply Online for a California Real Estate License?

Applications for a California real estate license can be submitted online through eLicensing or can be mailed in.

The review process takes about six weeks, after which you’ll be able to schedule your exam. And you can do that online via California’s eLicensing system.

Is My Out-of-State Real Estate License Good in California?

No. California does not have reciprocity agreements with any other states, so if you don’t live in California and you want to buy or sell real estate in the state, you must meet the same requirements as anyone else—with a few additional caveats.

While it’s not a requirement to be a state resident to obtain a California real estate license, brokers must maintain a California business address if conducting business in the state (or file for an exemption).

Agents who conduct real estate business in the state must be licensed with a California broker.

How Long Does It Take to Get a Real Estate License in California?

From start to finish, it takes about six months for an agent to become licensed.

For a broker, the road is longer due to the additional educational requirements and the minimum of two years of experience as an agent.

The Bottom Line

The process for getting a real estate license in California includes coursework and an examination. You’ll also have to get fingerprinted and pass a background check.

You can get a license either as a real estate agent or a real estate broker. An agent is a salesperson working for a company owned by a broker. A broker can operate independently and can hire agents.

Read the original article on Investopedia.