How To Become A Real Estate Agent In California
Are you interested in starting a real estate career in the State of California? Let’s look at the steps required to become a real estate agent within the State of California, some of the costs involved, and how long the entire process will take. Keep on reading!
How To Get Your Real Estate License in the State of California
As we mentioned before, there are several critical criteria you have to pass before you can become a real estate agent in the State of California. These criteria were put in place by the California Department of Real Estate (DRE), the government agency in charge of licensing and regulating real estate agents within the state. In a nutshell, they include:
- You must be at least 18 years old
- You must have a high school diploma or its equivalent
- You must either be a California resident or apply for an out-of-state license
- Complete 135 hours of California Real Estate pre-licensing classes
- Pass the final exams in your pre-licensing real estate courses
- Submit to a criminal background check
- Schedule your Real Estate Sales Associate Examination
- Pass the California Real Estate Sales Associate Examination
- Find a broker to sponsor you
- Complete your license application
While all these may seem pretty straightforward, there are some crucial aspects that I would like to highlight to make the process as smooth as possible.
Meet the Minimum Age, Education, Residency, and Citizenship Requirements
The first part is quite straightforward and applies to most states. Any individual interested in applying for a real estate license within California must provide proof that they are at least 18 years of age and have a GED, high school diploma, or its equivalent.
The individual must also be a U.S. citizen with a valid Social Security Number or a lawfully documented resident. You must also be a resident of California or apply for an out-of-state license. Certain felonies may also prevent you from applying for a real estate license in the State of California.
Complete 135 Hours of Real Estate Pre-Licensing Courses
The next step is to complete 135 hours of California DRE-approved real estate pre-licensing courses. This course covers the fundamental theories and practical concepts you will need to know as a practicing real estate agent in California.
This includes
- Real Estate Principles (45 hours)
- Real Estate Practice (45 hours)
Any one of the following 45-hour classes:
- Real Estate Appraisal
- Property Management
- Real Estate Finance
- Real Estate Economics
- Legal Aspects of Real Estate
- Real Estate Office Administration
- General Accounting
- Business Law, Escrows
- Mortgage Loan Brokering and Lending
- Computer Applications in Real Estate
- Common Interest Developments
Depending on your preference, these courses can be taken as physical classes supported by online resources or as online classes. The duration of a solely online pre-licensing program depends on your schedule and how quickly you can grasp the material. Still, you must complete the program within one year of registration.
Experienced real estate professionals will anchor these classes at DRE-approved centers. The tuition for these classes may be between $100-$400. These courses may seem a bit confusing initially since you are learning an entirely new set of languages and concepts. However, with time and dedication, you’ll quickly adapt and gain a deeper understanding of the California real estate industry.
Sign up for California Real Estate Pre-license Classes here: California Real Estate School
Pass the Final Exams in Real Estate Courses
Once you have completed the courses, you have to pass the final examination with at least a score of 70%. Once you have passed this, you will be presented with a Certificate of Completion for that course. When applying for your license, you must submit a copy of this certificate to be eligible.
Most people rush to finish the material and take the final exams. However, this is not the best way to approach the course. Take your time to fully understand the course material and avoid overwhelming yourself with information.
You are allowed two attempts to pass each course. If you fail the exam, you may sit for it again once within a year of registering for the course. If you fail again, you will be required to retake the entire course before being eligible to retake the course final exam.
Complete the National Criminal Background Check
This involves providing the DRE with a set of classifiable fingerprints acceptable to the State Department of Justice (DOJ). This is done by filing a Live Scan Service Request on the California DRE website with your eLicensing account. This can be done after applying for the examination or after passing the test. The service generally costs $49 and is non-refundable.
To get an eLicensing account, simply login to the California DRE website and create an account. You will be required to fill in details like your social security number and date of birth.
Schedule Your Exam
Once you have passed your pre-licensing exams and have received your Certificate of Completion, your next task is scheduling your California Real Estate Licensure Exams through the Salesperson Examination Application form.
The California Department of Real Estate handles the exams. There are five approved testing centers within the state; Sacramento, Oakland, Fresno, La Palma (Orange County), and San Diego. All centers offer electronic testing.
Once you process your application and pay the examination fee of $60, they will send you an Examination Authorization Form which entitles you to take the exam only one time. You can also obtain more information about the process by reading the Reference Book – A Real Estate Guide, published by the California DRE.
There are also dozens of study material and updated preparatory questions that candidates can easily download or purchase from various sources online. These study tools as well which include interactive quizzes and short video content covering key areas which usually appear in the exam.
What ID Do You Need To Bring To The Test Center
You are expected to present to the examination venue with certain items and identification materials. The identification materials are usually a valid form of photo identification, a valid form of photo I.D. issued within the past five years.
The only acceptable forms of photo identification include a current state-issued driver’s license or DMV identification card, a U.S. passport or a passport issued by a foreign government, and a U.S. Military identification card.
You are also allowed to bring along a basic (non-scientific) calculator. Take a look at other vital details you should know when coming for the exam.
Pass the California Real Estate Licensing Exam
The California State salesperson exam is divided into two sections of multiple-choice questions, a national section and a state section. The total number of questions is 150 questions (with a state and national section) to be answered in 3 hours. A passing score of 70% is required in both sections.
Your score will be displayed immediately after completing the exams, and an official score report with your score and any other diagnostic information will be provided to you. The exam report will also be reported to the California Department of Real Estate.
You must pass both portions of the exam before moving on to the next steps with your license. If you passed one section of the exam and failed the other, you can retake only the section you failed. However, you must pass the section you failed within three months or have to rewrite both sections of the exam.
Check out this helpful study tool to help pass your exam: Prep Agent
Find A California Brokerage To Sponsor You
Before licensing, the last step is to apply for sponsorship with a licensed broker. This involves completing a sponsorship request which may take several months. There are several essential things to keep in mind when choosing a broker. They include factors such as:
- Broker reputation
- Mentorship culture
- Commission splits
- Commission caps
- On-going monthly fees, and so on
Related: How to Pick a Brokerage as a New Real Estate Agent
Apply for a California Real Estate License
After completing all your courses, passing your licensing exams, and is fully certified by the national background check, it’s finally time to apply for your license. Log into your eLicensing account on the California DRE website and download the Salesperson License Application (RE 202).
You can mail your application to the California Department of Real Estate at
Department of Real Estate
P.O. Box 137002
Sacramento, CA 95813-7002
You will be notified by email when your application has been approved.
This service costs about $245. You will be informed of the required documentation, but note that your Sales Agent Course Completion Certificate, official Sales Agent Exam Score Report, and Proof of Sponsorship by a certified California State broker must be a part of the application. You can check the status of your license application at the California DRE online services portal.
In Conclusion
Getting your real estate license in California is relatively easy if you follow all the required steps. The entire process can take about 4-6 months and may cost you between $300-$1000, depending on the chosen pre-licensing center. However, with hard work and dedication, you’ll be a licensed California real estate agent in no time.