Starting Your Real Estate Career in North Carolina

Real estate is an exciting business that offers the freedom of self-employment with limitless earnings potential. It also comes with educational hurdles. 

The time between now and your first home showing is spent learning the legalities and ethics of helping North Carolinians buy and sell their most significant financial investment—Home. 

North Carolina offers a diverse and dynamic real estate market, from the bustling streets of Charlotte to the serene landscapes of the Outer Banks. Here’s your comprehensive guide to launching your real estate career in the State.

Licensing Requirements

You have big plans, but the North Carolina Real Estate Commission requires agents to complete a licensing process before launching that big open house and negotiating a sale. 

The licensing journey ensures you’re well-equipped to navigate the Tar-Heel real estate market.

Licensing Prerequisites

• Must be at least 18 years old.
• A US citizen or legally authorized to work in the US.
• Have a valid US Social Security number.
• Pass a background check demonstrating good character.
• Complete a North Carolina Broker Pre-licensing Course or its equivalent.

Background Check

When applying for a North Carolina real estate license, your first step is ordering a criminal record report from CriminalRecordCheck.com (CRC). 

Applicants must complete a background check at least six months before applying. 

For long-time residents of North Carolina, the cost of this background check is typically around $50. However, the fees can be higher if you’ve lived in multiple states or countries due to the more extensive search required.

The primary purpose of the background check is to verify the good character of prospective real estate agents in North Carolina. Character issues that can impact applications include:

• Criminal convictions, including serious traffic offenses like DUI.
• Disciplinary actions in any professional licensure.
• Financial matters such as liens or significant unpaid judgments.

Handling Character Issues

Applicants with character issues will undergo a more detailed evaluation process by the North Carolina Real Estate Commission, including:

• Reviewing the nature and severity of any offenses or issues
• Considering the time elapsed since these events
• Evaluating steps taken by the applicant toward rehabilitation or resolution

When an applicant’s character concerns arise, the application process may require a formal hearing or further inquiries, including providing extensive documentation.

If you have concerns about character issues, be honest and open in the application to allow a fair evaluation by the Commission.

Pre-Licensing Education

Applicants can begin pre-licensing education with a clear background check.

The North Carolina Real Estate Commission (NCREC) offers several paths for meeting education requirements, catering to a diverse range of applicants, from beginners to those with prior real estate education or experience. 

1. North Carolina Broker Pre-licensing Course
   1. Requirement: Completing the North Carolina Broker Pre-licensing Course, including at least 75 instructional hours and an end-of-course examination.
   2. Applicability: This course is mandatory for both resident and nonresident applicants and must be successfully completed within three years prior to the license application.
   3. Documentation: Course completions are reported electronically by Commission-certified Education Providers directly to the NCREC​​.
2. Equivalent Real Estate Education in Another State
   1. Requirement: Applicants can qualify for a waiver based on the completion of pre-licensing education in another state. The education must include at least 75 hours of instruction, be parallel to North Carolina’s syllabus, and be completed within one year prior to the North Carolina license application while the applicant was a resident of that State.
   2. Documentation: A course completion certificate or transcript showing successful completion per Rule 58A .0304 is required.
3. Substantial Real Estate Education
   1. Requirement: A waiver based on substantial real estate education other than pre-licensing courses. This includes a bachelor’s degree or higher degree in real estate, real estate brokerage, real estate finance, real estate development, or a law degree from an accredited institution.
   2. Documentation: A transcript showing the successful completion of a degree meeting the requirements of Commission Rule 58A .0304​​.
4. Current Licensure in Another State
   1. Requirement: A current real estate salesperson or broker licensee in another state may qualify an applicant for North Carolina licensure. Applicants choosing this option may bypass the entire examination or just take the State section.
   2. Documentation: Official Certification of Licensure from the licensing agency in the current State of licensure. This certification must be recent (issued within the last six months) and detail the applicant’s license history and any disciplinary actions.
   3. Note: Under this option, those who bypass the State section of the examination are not eligible for any waiver of post-licensing education as per Rule 58A .1905​​.

Applicants in a rush can complete the 75 hours of education in as quickly as ten days, opening the window for application processing.

Application Process

Having completed the 75-hour North Carolina Broker Pre-licensing Course and background check, you’re now ready to embark on the next crucial step: the application process for your North Carolina real estate license. 

This meticulous process requires careful attention to detail to ensure all necessary documentation is correctly submitted. Thankfully, applicants can complete the steps online.

Required Documents for the Application

To be prepared, gather the following mandatory documents or information to complete the application:

1. Proof of Age and Legal Presence: You must be at least 18 years old and a US citizen or lawfully admitted alien.
2. Social Security Number: A valid SSN is required for the application.
3. Completion Certificate of the Pre-licensing Course: This is automatically reported to the Commission by certified Education Providers if you’ve completed the course in North Carolina.
4. Background Check: This includes fingerprinting and a criminal record check.
5. Application Fee: A $100 fee is associated with the application, payable at the time of submission.
6. Proof of Equivalent Real Estate Education/Experience (if applicable): If you’re applying based on real estate education or experience equivalent to the North Carolina requirements, you’ll need to provide relevant documentation, such as transcripts or licensure certification from another state.
7. Additional Documentation for Special Cases: Additional documents may be required depending on your circumstances, such as applying based on licensure in another state.

The application process for a North Carolina real estate license is comprehensive and designed to ensure that all candidates meet the State’s high standards for real estate professionals. 

Once the application is processed and approved, it’s time for the big exam.

The Real Estate Exam: What to expect

The Real Estate Commission processed the application, and the wait is over; a Notice of Exam Eligibility has arrived. Applicants have 180 days to schedule the exam with PSI Services, the testing provider approved by the North Carolina Real Estate Commission.

Asheville, Charlotte, Fayetteville, Greenville, Raleigh, Wilmington, and Winston-Salem offer testing centers.

Exam Details

• Sections: The exam consists of a National section and a State section​​.
• Number of Questions: The National section has 80 scored questions, and the State section has 40​​.
• Passing Scores: To pass, you must correctly answer 57 of the 80 questions in the National section and 29 of the 40 in the State section​​.
• Question Types: The exam features multiple-choice questions covering real estate principles and North Carolina-specific laws.
• Duration: Applicants have 2.5 hours to complete the National section and 1.5 hours for the State.
• Cost: $56 paid to PSI.

Exam results are reported to the North Carolina Real Estate Commission by PSI. Applicants who fail the exam can reschedule during a 180-day eligibility period.

Charting Your Post-Licensing Real Estate Path

Congratulations! You passed the real estate exam with flying colors and are ready to leap into the North Carolina real estate market—but it’s still unlawful to practice real estate.

Within ten calendar days, an ‘inactive status’ provisional license will arrive at the address on the application form.

A License Activation Affiliation form (REC 2.08) completed by the broker-in-charge and filed with the Real Estate Commission activates the license. 

Take this time to determine your career path and finalize which company will sponsor your license.

Deciding Your Specialty

Real estate is a field with diverse possibilities. Reflect on whether your passion lies in helping families find their dream homes, assisting businesses in securing the perfect commercial space, or managing properties. Each specialty has its own set of demands and skills:

• Residential Real Estate: Focus on individual or family dwellings, selling single-family homes, condominiums, and townhouses.
• Commercial Real Estate: Specialize in business properties, including leasing and selling office spaces, retail locations, and more.
• Property Management: Manage the leasing of residential, commercial, or industrial properties for investors.

Real estate agents have the added decision of becoming a REALTOR®. Agents are not REALTORS® until joining the National Association of REALTORS®, a membership most prevalent in the residential industry that provides access to the Multiple Listing Service (MLS)® and benefits like discounted healthcare and legal support.

Finding the Right Brokerage Fit

Choosing a brokerage can significantly influence your career direction and growth. New agents should interview several realty firms and speak with local agents for market intel. 

Take advantage of platforms like Agent Nook to delve into the cultures and strengths of different brokerages. Finding a brokerage that complements your chosen specialty and supports your career goals and development will provide a better path to success.

Networking for Success

A robust professional network can catapult your career forward. Engage with peers, seek out mentors, and participate in discussions. Forming these connections can lead to referrals, partnerships, and insightful advice.

Joining a real estate team can provide instant mentorship and partnerships, helping new agents get up to speed quicker with a lead flow and helping to keep you financially supported as you begin your career.

Provisional Brokers Post-Licensing Education

A real estate agent’s education is never-ending, especially early in your career. Provisional brokers must complete 90 instructional hours of post-licensing education in the following courses:

• Post 301: Broker Relationships and Responsibilities.
• Post 302: Contracts and Closing.
• Post 303: NC Law, Rules, and Legal Concepts. 

Going forward, continuing education of eight hours per year is required.

Final Thoughts

The steps to becoming a real estate agent are extensive and can seem overwhelming. But with the hard work behind you, an exciting career in real estate where each day is different from the last awaits.

Take the first step today. Then, start networking, including telling all your friends and family you’re joining the exciting world of real estate.

Welcome to the industry! We’re excited to see you succeed.