Before going into the various aspects of how to get a real estate license in California, a couple of points should be cleared. First, what is the state of the California real estate market, and whether it is worth it to join this profession? Second, what are the benefits of getting a real estate license in California and setting up practice in the state as compared to a typical 9-5 job?
The real estate market in California is on a high. Year-on-year as in November 2024 over 2023, home prices were up by 4.5%. Hence, for every deal transacted, the commission payable to real estate agents was significantly higher.
The number of homes sold in California was up 12.4% year over year with 21,224 homes sold in November 2024 as compared to 18,887 for the same period in 2023. Higher inventory means more business which means more earnings for aspiring potential real estate agents.
Now, let us come to the benefits of getting a real estate license in California and becoming a real estate agent.
On top of the list is the flexibility to set your working hours and not get tied down to a typical 9-5 job. This gives you the freedom to spend quality time with friends and family. Next, the earning potential of hard-working real estate agents is almost limitless. Typically, the commission earned by a buyer’s agent or a seller’s agent is typically 6% of the sale price of a house. If a house sells for $500,000, your commission from one deal alone would be $15,000.
Finally, you have a wide range of career options to choose from in this field. You can become a real estate investor, property manager, an agent for buyers or sellers, or both depending on who approaches you to broker a deal.
Click here to learn more about how to get a real estate license in California.
Now that you know of the several benefits that setting up a practice in California brings to the table, let us go through the steps of getting a real estate license in California.
Step 1
To start, you must ensure that you are at least 18 years old and a citizen of the USA. Legally admitted migrants with working rights in the country can also apply for a license. You must also have a high school diploma or an equivalent such as GED.
Step 2
The next step is to complete the 135 hours of pre-licensing education as mandated by the California Department of Real Estate (DRE). This is a body that controls the real estate sector in the state and fixes the curriculum of the real estate pre-licensing course as well as approves or disapproves applications for a real estate license in California.
The 135 hours of pre-licensing coursework is divided into 3 modules of 45 hours each. Two modules are compulsory ones being Principles of Real Estate and Practice of Real Estate. The third module is an elective one and you can choose one from the following subjects.
- Real Estate Finance
- Real Estate Appraisal
- Legal Aspects of Real Estate
- Real Estate Economics
- Real Estate Investments
The main reason why going through this course is given so much importance by the DRE is because it provides the knowledge required to build a successful career as a real estate agent. This is more so as the real estate industry is constantly in a state of flux and you must be aware of the latest and changing laws and regulations governing the industry.
However, a couple of things need to be kept in mind before selecting a pre-licensing course provider.
Select a course provider that is approved by the DRE. This is essential as otherwise; it will not be counted as having completed educational eligibility norms to appear for the licensing exam. To be sure, visit the DRE portal and check the list of approved course providers.
Moreover, you must decide between going through an online course or a classroom-based school. Consider the pros and cons. Online courses offer the flexibility of studying from any location once you have downloaded the study materials onto any Internet-enabled device. You can also study any topic without having to follow classroom schedules.
If you are looking for top-quality DRE-approved study materials, check out the courses from RealEstateU. They are not only very affordable but are also designed by leading professionals in this field.
Step 3
Submit your fingerprint for verification of any past criminal record or conviction. Real estate agents are expected to maintain high standards of moral ethics and honesty and a background check will prove your standing in this regard. For convictions of financial irregularities or embezzlement, you might be denied a real estate license in California. The fee for a fingerprint check is $40.
Step 4
Schedule the licensing exam on the DRE portal by paying a fee of $60. You must visit a physical testing center to take the exam though the test is held online. The physical testing centers in California are Los Angeles, Fresno, Oakland, Sacramento, and San Diego.
The licensing test consists of 175 multiple-choice questions and you must score at least a 75% grade to pass it. The results in pass/fail format will be announced soon after completing the test.
Step 5
Once you have cleared your licensing exam, apply online for a real estate license in California on the DRE portal. The license application fee is $245. Upload proof of having completed the 135 hours of coursework and the fingerprint clearance certificate. A provisional license will be issued with which you cannot start your practice.
Step 6
Find a licensed real estate broker to sponsor you and inform your employment status to DRE. You will now be issued an active license to launch your career.