Licensure Requirements

BROKER ASSOCIATE

A broker associate is anyone who is qualified to be issued a

license as a broker, but who operates as a sales associate in

the employ of another broker. They are also called associate

brokers.

A broker associate can be an individual, a

professional corporation, or a limited liability company.

Broker associates must also work under a broker like a sales

associate. Because of this, a broker associate cannot be

registered or licensed as a general partner, member,

manager, officer, or director of a brokerage firm.

CONFUSING WORD PAIRS

BROKER: a real estate sales associate is anyone who holds a real estate license and values, auctions, sells, exchanges, buys, or rents real estate for compensation. REALTOR: a licensed real estate professional who is a member of the National Association of Realtors.

The public often uses the terms real estate agent, broker and realtor interchangeably.

LICENSURE REQUIREMENTS

There are some basic licensure requirements which must be met before the applicant

can take the state licensing exam.

AGE

All licensees must be at least eighteen (18) years old.

EDUCATION

All applicants must possess the minimum of a high school diploma or a GED equivalent.

They must also complete and pass the state approved pre-license course for either the sales

associate or the broker license.

Some states allow exemptions to this educational requirement if the applicant is already

licensed with the state bar association, have taken college courses which are equivalent to the

state approved pre-license course, or hold a four-year degree in real estate.

EXPERIENCE

Applicants for the sales associate license do not have to have any real estate experience.

For a sales associate to advance to a broker’s license, however, she must have at least twenty-

four (24) months of real estate experience within a five (5) year period. She must also have

been licensed as a sales associate and worked with a broker or governmental agency for at least

two (2) years out of the previous five (5).

MUTUAL RECOGNITION

If a sales agent is licensed but wants to work in another state, she may be able to apply

the education and experience acquired in the other state towards obtaining an equivalent

license in the new state. This is called mutual recognition. The state will require, however, that

the licensee pass their state exam.

NATIONALITY

All applicants for a real estate license must have a United States Social Security number,

but they do not have to be a United States citizen.

CHARACTER

The applicant must be honest, truthful, trustworthy, of good character, and have a good

reputation for fair dealing.

COMPETENCE

The applicant must also be competent and qualified to manage real estate transactions

and be able to conduct negotiations with anyone whom the applicant has a relationship of trust

and confidence.

GETTING LICENSED

Once you have completed the educational requirements, there are a few more steps

you will need to take before you can become a licensed real estate agent.

REGISTRATION AND APPLICATION

After you complete your pre-licensure course and pass the course’s final exam,

you will be required to submit an application to obtain a real estate salesperson license

with the state. The state will require that you meet all the application requirements.

STATE EXAMINATION

After your state application is approved, you will need to take and pass the state

licensing exam. This is the scariest part of the licensing processed, but don’t worry,

we’re going to help you pass the exam on the first try.

ACTIVATE THE LICENSE

Once you have passed the state exam, the next step is to activate your license.

Most states will have you do this online. Your real estate license will not be valid until it

has been activated – like when you receive a new credit card in the mail.

INACTIVE STATUS

Now, once you get licensed, you will need to maintain an active status. There are two

levels of an inactive license.

An INVOLUNTARILY INACTIVE LICENSE classification occurs if the license is not

renewed at the end of the license period. Usually, this happens when an agent

fails to complete their continuing education on time. If too much time passes

before you renew your license, you could lose your license altogether and then

must go through all the pre-licensure education again.

A VOLUNTARILY INACTIVE LICENSE is a status given to licensees who are not

actively practicing real estate and are not affiliated with a broker. A real estate

salesperson cannot perform a real estate transaction unless they are working

under the guidance of a broker.

If you want to get your license, but you do not plan on working in the real estate

business for a while, you can place your license in the voluntarily inactive status. This

must be registered with the state. If you keep up with your continuing education and

renewal fees, you will not have to repeat your pre-licensure education when you

reactivate your license.

CONTINUING EDUCATION

Each state will require that their licensees receive continuing education. Some

states require a certain number of classroom hours each year, and others will require a

cumulative total during the licensure period. You will also have to pay a renewal fee.

REASONS A LICENSE COULD BE DENIED

Just because an individual takes the state-approved classes and passes the final exam,

which is not an absolute guarantee that she can obtain a real estate license. There are some

reasons why a license could be denied:

· Absenteeism: If the applicant was absent from class more than ten (10) percent of the

time then she could be denied.

· Prior License Denied, Revoked or Suspended: If the applicant has been denied

registration of a license for real estate or any related profession or the license was

revoked or suspended, an applicant may be denied until she meets the state

requirements.

· Guilty of Wrong Conduct: If an unlicensed applicant has engaged in and was found guilty

of wrong conduct, a license may be denied.

· Practicing Without a License: If an unlicensed

applicant has performed actions or duties of a

licensed real estate agent within the past year,

the applicant may be denied a license because

she illegally worked in the real estate profession.

· Under Investigation: If an applicant is under

DID YOU KNOW?

Many real estate wholesalers are unlicensed. Their business is based on the premise that they are selling a contract and not real estate.

Many states are cracking down and prosecuting unlicensed wholesalers for practicing real estate without a license.

investigation in any state or foreign country, the application will be denied until the

investigation is complete, and any disciplinary proceedings have been terminated.