If you are an aspiring real estate professional in the Golden State, the first step to launch your career is to get a CA real estate license. This is mandated by the California Department of Real Estate (DRE), a body that controls the real estate sector in the state. As per the law, any person wanting to sell, buy, rent, or lease real estate in California on behalf of third parties for a commission must have a real estate license issued by the DRE.
Should You Be A Real Estate Agent In California
Before going into the steps to get a CA real estate license, let’s find out whether it is worth your time and effort. The answer is YES for the following reasons.
Click here for more about getting a CA real estate license.
First, real estate agents in California can decide their schedules and working hours and are not tied to 9 – 6 jobs. Hence, it makes for a perfect work-life balance with the chance to spend quality time with friends and family.
Next, there are several career options once you get a real estate license in the state. Among them are those specializing in commercial or residential real estate and becoming a real estate investor or property manager. There is also the buyer’s or seller’s agent niche that you can choose from.
Finally, there are the high-earning possibilities to consider. On a real estate deal, you get a 3% commission (6% divided equally between buyer’s and seller’s agents) of the sale price. Taking $600,000 as the median price for a California home, the commission comes to $18,000, and that is only one transaction. For dedicated real estate professionals earning six figures is not difficult.
Now, that should convince you to get a CA real estate license and embark on a lucrative and satisfying career. So, let us go through the steps to fulfill your goal.
7 Steps To A Real Estate License In California
There are 7 steps to get a real estate license in California.
Basic requirements
You must fulfill some basic requirements before being eligible to apply for a real estate license.
The basic requirement is to be at least 18 years old and a citizen of the USA. Legally admitted migrants can also apply for a real estate license provided they have the permission to work in the country.
A high school diploma or an equivalent GED is the basic educational requirement to become a real estate agent.
Pre-licensing coursework
The most critical step towards getting your CA real estate license is to go through the 135-hour pre-licensing coursework. This is so important because it provides the required knowledge about the real estate sector that will help you to provide superior and error-free services to your clients in the future.
The coursework consists of 3 modules of 45 hours each. One is the Principles of Real Estate and the other is the Practice of Real Estate. The third module is an elective of your choice to be selected from the following topics.
- Real Estate Finance
- Real Estate Appraisal
- Legal Aspects of Real Estate
- Real Estate Economics
- Real Estate Investments
While choosing a course provider, there are certain aspects to follow.
Compulsorily select a course provider who is approved by the DRE. Only then will your 135 hours of study be counted as having fulfilled the pre-licensing study eligibility norm to appear for the licensing exam.
Next, decide between an online course or a classroom-based physical one. While your choice depends on your preferred learning style, online courses are more flexible and convenient. You can download the lessons onto any Internet-enabled device and study on the go without upsetting your daily routines.
Check out the DRE-approved online courses from RealEstateU which offer high-quality study materials at very affordable prices.
Fingerprint verification
Submit your fingerprints for verification of any criminal records in the past or an act of felony. Since real estate agents handle large amounts of funds in deals, they must have good moral standards and financial integrity which can be evaluated through fingerprint authentication. DRE reserves the right to refuse a CA real estate license in case of an adverse fingerprint clearance report. The fingerprint check fee is $40.
Scheduling a licensing exam
Visit the DRE portal, pay a fee of $60, and schedule a California real estate licensing exam. The test is proctored by a third-party service provider. You must be present physically at a designated exam center to appear for the test even though it is held online.
Take the licensing exam
On the date fixed for the licensing exam, sit for the test at the center fixed by you. You must answer 175 multiple-choice questions and get at least 75% correct to pass the test. The questions cover both the real estate sector in general and the laws specific to California. The results are declared after the test is over at the center in a pass/fail format. This is possible as the licensing exam is held online and tabulation of marks is automatic in the system.
Apply for a real estate license
After you pass the licensing test, visit the DRE portal again and apply for a CA real estate license. The license application fee is $245. Along with the application, upload proof of completing the 135-hour pre-licensing course from an approved provider and the Fingerprint Clearance Certificate. You will now get a provisional and inactive license which will be activated after completing the next step.
Join a brokerage firm
Find a licensed broker in California to sponsor you and inform your employment status to DRE. Your license will now be activated.
You can now start your real estate practice in CA.
