How to get a real estate license

Getting your real estate license is the first step toward becoming a real estate agent and building a career helping clients buy, sell, and rent property. While each state has its own real estate licensing requirements, the basic process is similar: complete pre-licensing education, pass a real estate exam, apply for your license, then work under a brokerage.

In this guide, we’ll walk through:

• What a real estate license is and who needs one
• Basic real estate license requirements (education, exam, background checks, and more)
• How long it takes to get a real estate license
• Typical costs for getting and maintaining a license
• Why real estate agents and Realtors® need business insurance 

What is a real estate license?

A real estate license is a state-issued authorization that allows you to legally represent buyers and sellers in real estate transactions. With an active license, you can:

• List and market properties for sale or rent
• Represent buyers during homebuying or investment property transactions
• Negotiate offers and contracts on behalf of clients
• Earn commissions on closed real estate deals

Real estate license requirements are set by each state, but they typically include:

• Minimum age (usually 18 or 19)
• Completing state-approved pre-licensing education
• Passing a background check and real estate licensing exam
• Applying and paying licensing fees

After completing a certain number of pre-license course hours, passing an exam, and applying for your license, you will receive a license certificate which can be used to apply to brokerages.  

Once you’re licensed and working with clients, you’re running a business, and that means you’ll want to consider real estate agent insurance to protect yourself from claims related to your professional services. 

4 Steps to getting a real estate license 

1. Take a real estate license course

Depending on which state you live in, you’re required to have a certain number of hours toward a pre-licensing course. Sixty to ninety hours is generally the amount of time you can expect to spend on a course.

These requirements could vary if you have a real estate license from another state. Check to see if the state in which you currently reside has a reciprocity agreement with the state in which your license was issued. You may be able to get a new license with fewer course hours or even without having to take another licensing exam.

Lastly, make sure that you choose an accredited school and be ready to pay, on average, $325 for the course.

Here’s a basic real estate prelicensing checklist:

• Confirm your state’s education hour requirements
• Choose a stateapproved, accredited real estate school
• Decide on online vs. inperson courses
• Budget for course fees, textbooks, and exam prep materials 

2. Take the real estate license exam

Visit your state’s real estate commission website for detailed information on exam schedules, scoring, and fees. Every exam, no matter where you reside, includes two sections that you must pass: one on national real estate principles, practices, and laws, and one on those that are specific to your state. 

If you pass, you must file your exam scores along with an application and a fee. Once you obtain your license certificate in the mail, you are legally allowed to work as a real estate agent. 

While the exact exam format varies by state, you can generally expect:

• Multiple choice questions on national real estate principles and practices
• States-pecific questions on local real estate laws, regulations, and licensing rules
• A passing score around 70–75%, depending on your state

Tips to pass the real estate exam on your first try:

• Use an exam prep course or practice tests from your real estate school
• Focus heavily on vocabulary and math formulas used in real estate
• Review your state’s license law and agency relationships
• Schedule your exam soon after finishing your classes, while the material is fresh

Many states allow you to retake the real estate exam if you don’t pass on the first try, but you may need to pay another exam fee and wait a set period of time.

3. Apply to brokerages 

With your real estate license in hand, you can now begin applying to brokerages. A brokerage is licensed by the state to legally oversee the transactions of their agents. In most states, newly licensed agents must work under a brokerage. Check requirements for your state to determine how long you’re required to work under a broker.

When working for a brokerage, you can expect to be paid a commission based off of the sale price of a property.

When you’re comparing brokerages, consider:

• Commission split and fee structure
• Training, mentoring, and newagent support
• Leads and marketing support
• Company culture and brand recognition in your market

As you start hosting open houses, showing properties, and advising clients, you’re taking on more responsibility and potential risk. This is when many new agents start looking into errors and omissions (E&O) insurance and general liability insurance to protect themselves and their business.  

4. Renew based on state requirements

In order to renew your license, you must follow state-regulated requirements to keep it active. In New York, for example, agents who are seeking to renew their license must have completed 22.5 hours of continuing education courses, among other things, for the renewal to be approved. 

Check out the National Association of Realtors® (NAR) website for specific information based on your state. 

A note on agent versus Realtor®

Once you become a licensed real estate agent, you have the option of applying to become a Realtor®. Most people use these terms interchangeably, but there is actually a big difference. Realtors® are members of the NAR and adhere to a strict code of conduct. 

Being able to call yourself a Realtor® adds an extra layer of credibility that can help you get more clients.

How long does it take to get a real estate license?

The time it takes to get a real estate license depends on your state and how quickly you complete your education and exam. For most people, the process takes:

• 2–6 months from starting your pre-licensing course to receiving your license

Here’s what typically affects your timeline:

• State-required pre-licensing hours
• Course format (self-paced online vs. scheduled in-person classes)
• Exam scheduling availability
• How quickly your state processes license applications and background checks 

Real estate agent insurance

With your real estate career underway, don’t forget to make sure that your business is protected. Real estate insurance will protect you from a variety of unsavory situations. Here are four examples of why real estate agents get sued.

1. Buyer’s remorse 

After closing a sale on a lakefront property, the new homeowner claims they were unaware that the property doesn’t include the lake frontage. The homeowner brings a claim against you, alleging they overpaid for the home as you misrepresented the true boundaries of the property. Even though this is a groundless claim and a symptom of buyer’s remorse, the buyer sues you and puts your business at risk.

A professional liability insurance policy protects agents in this type of situation.

2. Wrongful discrimination

Clients may claim that you did not show them certain homes because of their race, religion, or gender, even if you’ve done nothing of the sort. Whether true or not, these claims could result in lawsuits that put your business at risk and tarnish your reputation.

Claims of discrimination are a common risk that real estate agents face. Having the right professional liability coverage will protect you if a client makes a claim of wrongful discrimination against you.

3. Property damage

You are showing a client a home that contains a lot of expensive antiques. During the showing, you knock over an expensive vase which breaks. A general liability policy could cover the cost to replace the vase.

4. Bodily injury 

A potential home buyer that you are meeting with trips and falls over a rug on your office floor and gets injured. Since the injuries were sustained in your office, you could be held liable for the costs of your client’s recovery. General liability insurance could protect you from someone else’s claims of bodily injury and associated medical costs. 

Learn more about insurance to protect your real estate business.

Frequently asked questions

How much does it cost to get a real estate license?

Depending on your state and school, total costs typically range from $200 to $1,000, including pre-licensing education, exam fees, application fees, fingerprinting/background checks, and membership dues once you join a local real estate board.

Do I need a college degree to become a real estate agent?

In most states you do not need a college degree. You just need to meet the minimum age requirement, complete state-approved pre-licensing courses, and pass the real estate exam.

Can I get a real estate license online?

Many states allow you to complete your pre-licensing coursework online, but you’ll still need to take your licensing exam in person at an approved testing center (or via a secure online proctor, where available).

Can I work parttime as a real estate agent?

Yes, many agents start parttime while they build their client base. Just remember you’ll still need to meet all licensing, brokerage, and continuing education requirements whether you work fulltime or parttime.

Do real estate agents need insurance?

While not always legally required, professional liability (E&O) and general liability insurance are strongly recommended. They can help protect you if a client accuses you of making a mistake, misrepresenting a property, or causing property damage or bodily injury.