What you need to do to become a realtor
A real estate license is a credential issued by your state that allows you to represent buyers or sellers in property transactions. You cannot legally earn commission on a real estate sale without one. The path takes roughly three to six months from start to finish, though the timeline depends on how quickly you complete coursework and pass the state exam.
The basic steps are the same everywhere: complete pre-licensing education, pass your state's licensing exam, join a brokerage firm, and then register with your state's real estate commission. The details — how many hours of coursework, what the exam covers, whether you need a sponsoring broker before or after passing — vary by state. Some states require 60 hours of classroom time; others require 120. Some let you take the exam before joining a brokerage; others require a broker's sponsorship first.
Key Takeaways
- You must complete state-mandated pre-licensing coursework (typically 60 to 120 hours), pass your state's licensing exam, and join a real estate brokerage before you can legally sell property.
- Pre-licensing courses cover property law, contracts, ethics, and local real estate practices, and are offered by community colleges, online schools, and real estate training companies.
- Your state's real estate commission administers the licensing exam; you register with them after passing and joining a brokerage, not before.
- Joining a brokerage is mandatory — you cannot hold a license as an independent agent, and your broker handles trust accounts, compliance, and client disputes.
- License renewal typically occurs every one to four years depending on your state, and requires continuing education hours to maintain your credential.
Finding and completing pre-licensing coursework
Your state's real estate commission publishes a list of approved pre-licensing schools. These are not all the same — some are community colleges, some are private real estate training companies, and some are online-only. The content is standardized by state law, but the pace, cost, and format vary widely. A community college course might cost $300 and meet twice a week for eight weeks. An online course might cost $200 and let you finish in two weeks if you work full-time.
Search your state real estate commission's website for "approved schools" or "pre-licensing providers." You will see a list with links. Call or visit a few to compare price, schedule, and whether they offer in-person, online, or hybrid classes. Many schools offer a may provide: if you do not pass the state exam on your first attempt, they will let you retake their course for free or at a discount. Ask about this before you enroll.
The coursework covers property law, contracts, financing, ethics, fair housing law, and local real estate practices. You will learn what disclosures sellers must make, how earnest money works, what a title search is, and how to spot conflicts of interest. Most schools require you to attend a certain number of hours and pass a final exam before they issue you a certificate of completion. You need this certificate to sit for the state licensing exam.
Registering for and passing the state licensing exam
Once you have your certificate of completion, you register for the state exam through your state's real estate commission or through a testing vendor they contract with (often Pearson Vue or PSI). The registration process is online in most states. You will pay an exam fee, which ranges from $50 to $300 depending on your state. The commission website lists the fee and the testing locations near you.
The exam is multiple-choice and typically lasts two to three hours. It covers national real estate principles (contracts, financing, property rights, ethics) and state-specific law (your state's disclosure requirements, licensing rules, trust account handling). Most states require you to score 70 to 75 percent to pass. If you do not pass, you can retake it — usually after waiting a few days and paying another exam fee.
Study materials are included with most pre-licensing courses, and many schools offer practice exams that mirror the real test. If you fail the first time, review the topics you missed and take a practice exam again before retaking the state exam. The state will tell you which content areas you scored lowest on, so you can focus your second attempt.
Joining a real estate brokerage
After you pass the state exam, you must join a brokerage firm before your license becomes active. A brokerage is a company licensed to conduct real estate business; individual agents work under a broker's license. You cannot hold a real estate license on your own. The broker is responsible for trust accounts (where client money sits), compliance with state law, and handling client disputes.
Finding a brokerage means researching firms in your area and explore to work for them. Large national firms like RE/MAX, Keller Williams, and Coldwell Banker have offices in most states. Local independent brokerages also exist. When you explore, the broker will ask about your background, your sales experience (if any), and your goals. They will explain their commission split (how much of each sale you keep versus how much goes to the firm), their fees, and their training programs.
Once a broker agrees to sponsor you, they submit your license process to your state's real estate commission on your behalf. This is the final step. The commission reviews the process, confirms you passed the exam and completed coursework, and issues your license. The whole process from passing the exam to receiving your license usually takes one to three weeks.
Understanding broker agreements and commission splits
When you join a brokerage, you sign a broker agreement that spells out how money flows. Most brokerages take a percentage of each commission you earn — often 50 to 80 percent of the commission, depending on your experience and the firm's model. Some charge flat monthly fees instead of a percentage. Some require you to pay for your own desk space, phone line, or marketing materials.
Read the broker agreement carefully before signing. Ask what happens if you leave the firm, whether there are non-compete clauses, and what training or support the broker provides. Some brokers offer mentorship, marketing support, and lead-generation tools; others expect you to bring your own clients. The commission split and support structure should match your situation — a new agent might accept a lower split in exchange for training, while an experienced agent might negotiate a higher split or lower fees.
Maintaining your license through continuing education
After you receive your license, you must renew it periodically — every one to four years depending on your state. Renewal requires continuing education hours, which cover updates to state law, ethics, fair housing, and other real estate topics. The number of hours required varies by state, typically between 12 and 36 hours per renewal cycle.
Your state real estate commission publishes a list of approved continuing education providers, just as they do for pre-licensing courses. You can take these courses online, in person, or through your brokerage. Most brokerages offer some continuing education in-house or partner with providers to offer discounts. You must complete the hours and submit proof to your state before your license expires, or your license will become inactive and you will need to reactivate it.
Continuing education is usually cheaper than pre-licensing coursework — often $15 to $50 per course. Plan to complete your hours a few months before your renewal date so you have time to submit the paperwork and receive confirmation from the state.
What happens if you fail the exam or need to reactivate your license
If you do not pass the state exam on your first attempt, you can retake it after a waiting period (usually three to seven days, depending on your state). You pay the exam fee again and register through the same testing vendor. Many people pass on the second or third attempt. There is no limit to how many times you can retake it, though each attempt costs money and takes time.
If your license expires because you did not renew on time, you can reactivate it by completing the overdue continuing education hours and paying a reactivation fee. The process is simpler than getting a new license, but you cannot legally work as an agent while your license is expired. If you let it lapse for several years, your state may require you to retake the pre-licensing course and exam instead of just reactivating.
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, have a high school diploma or GED, and complete the pre-licensing coursework. Some states require you to be a resident or have a state ID. Check your state real estate commission's website for the exact requirements.
Can I take the pre-licensing course and exam in a different state than where I want to work?
No. Each state's exam covers state-specific law, and licenses are issued by state. You must take the course and exam in the state where you plan to work. If you move to a different state later, you will need to get licensed in that state, though some states have reciprocity agreements that waive the pre-licensing course if you already hold a license elsewhere.
How much does it cost to get a real estate license?
Pre-licensing coursework typically costs $200 to $500. The state exam fee ranges from $50 to $300. Joining a brokerage usually has no upfront cost, though some charge desk fees or require you to pay for marketing materials. Budget $500 to $1,000 total for the license itself, plus ongoing costs like continuing education and brokerage fees once you start working.
Can I work part-time as a real estate agent while keeping another job?
Yes. Many agents work part-time, especially when starting out. Your broker agreement will specify whether you are full-time or part-time, but part-time agents are common. You will still need to complete continuing education and renew your license on the same schedule as full-time agents.
What if I want to work in a different real estate field, like property management or appraisal?
A real estate sales license does not cover property management or appraisal — those are separate credentials with their own licensing requirements. A property manager's license and an appraiser's license each require different coursework and exams. Your real estate sales license qualifies you to represent buyers and sellers in transactions only.