What you need to do to become a licensed realtor
A real estate license is not issued by your state's motor vehicle department — it comes from your state's real estate commission or department of professional regulation. The path is simpler than you might expect: pass a written exam, complete required coursework, and register with your state. Most people finish the entire process in four to eight weeks, though the timeline depends on how quickly you complete the classroom hours and schedule your exam.
The license itself does not make you a realtor. That term has a specific meaning: you become a realtor only when you join the National Association of Realtors (NAR) as a member. Many people use "realtor" and "real estate agent" interchangeably, but technically a real estate agent is anyone with a state license, while a realtor is a licensed agent who has joined NAR and agreed to follow its code of ethics. Most working agents do join NAR, but it is not required by law.
Key Takeaways
- Your state's real estate commission issues the license, not a federal body, and requirements vary by state — some require 60 hours of classroom time, others require 120 or more.
- You must pass a state-written exam that covers real estate law, contracts, and ethics specific to your state, and most states allow you to take it when ready after finishing coursework.
- Joining the National Association of Realtors is optional but standard — most agents do it to access the Multiple Listing Service (MLS) and to build credibility with buyers and sellers.
- After you pass the exam and register with your state, you must work under a sponsoring broker, not independently — the broker holds the license and you work as an agent under that license.
Step 1: Complete your state's required pre-exam coursework
Before you can sit for the exam, you must complete a set number of classroom hours in real estate fundamentals. This requirement varies by state. Some states require 60 hours, others 90, and some require 120 or more. You cannot skip this step — the exam proctors will ask for proof of completion before you sit down to test.
You can take these courses online, in person, or through a mix of both. Many real estate schools offer them in evening and weekend formats specifically for people working other jobs. The courses cover state real estate law, contract law, ethics, property management, and fair housing rules. Expect to pay between $200 and $500 for the full coursework, depending on your state and the school you choose.
After you finish the coursework, the school will issue you a certificate of completion. Keep this document — you will need to show it when you register for the exam. Some states allow you to register for the exam before you finish the coursework, but you cannot sit for the test until you have the certificate in hand.
Step 2: Register for and pass your state's licensing exam
Your state's real estate commission administers the licensing exam, though a third-party testing company usually handles the logistics. You will register through that testing company's website, pay an exam fee (typically $50 to $150), and choose a test date and location. Most states offer exam dates multiple times per month at testing centers in major cities.
The exam itself is computer-based and usually takes two to three hours. It covers state-specific real estate law, contract interpretation, ethics, fair housing, and property rights. You will also answer questions about federal laws like the Fair Housing Act and the Real Estate Settlement Procedures Act (RESPA). Most states require you to score at least 70 percent to pass, though some set the bar higher.
If you do not pass on your first attempt, you can retake the exam. Most states allow you to retake it within a few weeks, though you may have to pay the exam fee again. Many people pass on the second or third try, especially if they use study guides or take a prep course before retesting.
Step 3: Register with your state and find a sponsoring broker
Once you pass the exam, you submit your passing score and other paperwork to your state's real estate commission to receive your license. This step usually takes one to two weeks. You will need to provide proof of your exam passage, your coursework certificate, and sometimes a background check or fingerprints.
Here is the critical part: you cannot hold a real estate license independently. You must work under a sponsoring broker — a licensed real estate firm that holds the brokerage license and supervises your work. The broker is responsible for your conduct and compliance with state law. You will be an agent under that broker's license, not a licensee in your own right.
You should line up a broker before you sit for the exam, or when ready after you pass. Many brokers will hire you contingent on passing the test. When you register with the state, you will name your sponsoring broker on the registration form. If you change brokers later, you must notify the state and update your registration.
Step 4: Join the National Association of Realtors (optional but standard)
Joining NAR is not legally required, but it is the standard next step for most agents. NAR membership costs around $200 to $300 per year, plus local and state association dues, which vary widely. In total, expect to pay $500 to $1,500 annually in NAR and local dues, depending on your area.
The main reason agents join is access to the Multiple Listing Service (MLS) — the database where homes for sale are listed. Most MLSs require NAR membership or membership in a local real estate board affiliated with NAR. Without MLS access, you cannot see most of the homes on the market, which makes it nearly impossible to work as an agent in most areas.
NAR membership also gives you access to training resources, legal templates, and a code of ethics that many buyers and sellers expect agents to follow. Some brokers require their agents to join NAR; others do not. Ask your broker what is expected before you join.
What happens after you are licensed
Once you have your license and a sponsoring broker, you can start working with buyers and sellers. Your broker will provide you with contracts, compliance training, and oversight. You will typically split commissions with your broker — the split varies, but many brokers take 50 percent of your commissions as a new agent, with the percentage shifting in your favor as you gain experience and production.
You must renew your license periodically — most states require renewal every one to two years. Renewal usually involves paying a fee and completing a set number of continuing education hours. Your broker will track these requirements and remind you when renewal is due.
If you change brokers, you do not need a new license — your existing license straightforward transfers to the new broker's sponsorship. You will notify your state of the change, but the process is straightforward.
Costs and timeline summary
| Step | Typical Cost | Typical Timeline |
|---|---|---|
| Pre-exam coursework | $200–$500 | 2–4 weeks |
| Exam registration and testing | $50–$150 | 1–2 weeks after coursework |
| State registration and license issuance | $100–$300 | 1–2 weeks after passing exam |
| NAR membership (first year) | $500–$1,500 | Ongoing |
| Total time from start to licensed | $350–$950 | 4–8 weeks |
Frequently Asked Questions
Do I need a college degree to get a real estate license?
No. Most states require only that you be at least 18 years old, a high school graduate or equivalent, and a resident of the state (or willing to designate a resident agent). A college degree is not required, though some brokers prefer it.
Can I get a real estate license in multiple states?
Yes, but you must get a separate license in each state. Each state has its own exam and requirements. Some states have reciprocity agreements that waive certain requirements if you already hold a license in another state, but you still must pass that state's exam and register with its commission.
What if I fail the licensing exam?
You can retake it. Most states allow you to retake the exam within a few weeks of your first attempt, though you may have to pay the exam fee again. There is no limit on the number of attempts in most states, though some require you to retake the coursework after a certain number of failures.
Do I have to join a brokerage when ready after I get my license?
Yes. Your license is only valid when you are actively sponsored by a broker. If you leave a brokerage and do not when ready join another one, your license becomes inactive. You can reactivate it by joining a new broker, but you cannot work independently or hold an inactive license indefinitely.
What is the difference between a real estate agent and a realtor?
A real estate agent is anyone with a state license. A realtor is a licensed agent who has joined the National Association of Realtors and agreed to follow its code of ethics. Most agents are realtors, but not all — some choose not to join NAR.