By When you pass your real estate exam, you are one step closer to a career in real estate. Your next major hurdle is getting licensed by your state’s real estate board. This process will include paying fees and passing background checks. Then you’ll need to keep up with continuing education and business expenses.
Whether you are a new or seasoned agent, the amount of work involved in licensing and maintaining an active license can be overwhelming. You also need to pay recurring fees, like desk or brokerage fees paid to your broker, commission splits with salespeople you are working with and the broker’s share of all sales, local real estate association dues, annual fees for the NAR and MLS, and more.
Licensing fees vary by state, but you can usually find the most up-to-date information on your real estate website. Once you are licensed, there may be yearly or bi-annual renewals and a varying number of required CE hours. Continuing education requirements are designed to keep agents up-to-date with changes in real estate laws, trends and practices.
For example, in New York, both salespersons and brokers must complete 22.5 hours of CE each year. This includes mandatory training for implicit bias awareness and cultural competency. There are 10 additional hours of elective courses required as well.
Depending on the type of license you hold and how long you have been a broker or salesperson, some states have different requirements for continuing education. Newer licensees, for example, are required to take more education than older agents. In addition to the required education, a licensee must renew their license at least once every two years by filing the appropriate application, renewal fee and supporting documents with their state’s real estate board.
In some states, a license is considered “inactive” if the completed renewal application and renewal fee are not received by the state by the expiration date printed on the license. An inactive licensee cannot engage in any real estate activities.
A lapsed license can be reinstated by filing the renewal application, paying a reinstatement fee and taking any necessary continuing education required by the state. In most cases, the fee to reinstate a license is double the cost of the original license fee.
To avoid a lapse in your license, check the state’s website to ensure you submit all of the proper paperwork on time. Then, make sure to take your CE courses before the deadline. Remember, you must have your broker of record’s approval to take the 6-hour Broker Responsibility course. If you are unable to meet the educational requirements by your renewal date, you can pay a $200 CE deferral fee or apply to renew on inactive status. If you have questions about Real Estate License Renewal, feel free to reach out to your broker. They are a valuable resource and can help you navigate the process smoothly.
