California Real Estate License: A Full Guide

California requires 135 education hours and a passing 70% on the real estate exam to become a salesperson. Here are the steps, requirements, and costs.
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California Real Estate License Quick Info

Core California Real Estate Licenses

  1. Real Estate Salesperson: This license allows individuals to engage in real estate transactions under the supervision of a broker. It is the entry-level license for most real estate professionals in California.
  2. Real Estate Broker: This advanced license enables holders to operate their own real estate business and manage other agents. It requires additional experience and education compared to the salesperson license.

Prerequisites for Real Estate Licensing

  • Be at least 18 years old
  • Have a valid US Social Security number
  • Complete 135 hours of approved pre-licensing education
  • Pass the real estate licensing examination
  • Pass a background check
  • Apply for the license through the California Department of Real Estate (DRE)

The California Real Estate Exam

  • 150 questions total
  • A passing score of 70% is required
  • 3 hours to complete

License Fees

  • Fingerprinting (Background check): $43. This fee covers the cost of fingerprinting and the background check process itself.
  • Application Fee: $245. This fee is paid to DRE when submitting your license application.
  • Examination Fee: $60 per attempt. This fee is paid during the exam application.
  • Real Estate School: $125 to $350

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Starting a Real Estate Career in California

California real estate agents dominate the top sales lists in the US, and for good reason. Homes in the state sell for a premium, and from the Hollywood Hills to Presidio Heights, local and foreign billionaires snatch up trophy properties in cash.

Even in the Southern California Valley, a small single-story home sells for over a million dollars, bringing in a sizeable commission check and a low number of deals needed to survive—but the competition is intense.

Earning your real estate license in California is complex but well within reach by following this guide. You already took the first step; by the end, you’ll be ready to make the leap.

California Real Estate Licensing Requirements

The California Department of Real Estate (DRE) is responsible for licensing, registering, and regulating real estate brokers, salespersons, real estate firms, agents specializing in rental locations, time-share salespersons, and developers.

Additionally, DRE forms the regulations that govern professional behavior and standards within the California real estate industry, including the extensive licensing process.

The California real estate licensing process ensures prospective agents are knowledgeable, trustworthy, and have the skills to assist Californians with their most valued investments: Their homes.

Before starting, California has prerequisites all applicants must meet, including:

  • Must be 18 years of age
  • Possess a Social Security number or individual taxpayer ID number (ITIN)
  • Have a background clear of convictions

With the basic requirements met, it’s time to tackle the complicated steps.

Pre-Licensing Education

The first step to a California real estate license is completing 135 hours of education or having proof of accepted college-level courses, such as:

  • Real Estate Principles
  • Real Estate Practice
  • And one approved elective, i.e., Business Law, Real Estate Finance, or Real Estate Appraisal

For most, this means enrolling in an approved real estate school to complete 45 hours of courses in Real Estate Principles, Practice, and Finance. As of January 1st, 2024, a new law requires all salespersons to complete a real estate practice course that includes implicit bias and fair housing laws. Classes typically cost between $125 to $350, with more resources provided at the higher price point.

Members of the California State Bar are exempt from education requirements.

Applying for the California Real Estate Exam

With education complete, applicants must apply for exam approval. The California DRE provides two application paths for a real estate salesperson:

To best illustrate the steps, we’ll continue to focus on the RE 400A path, applying for the exam separately.

Applicants must apply and await approval to schedule the real estate exam. The DRE recommends using the eLicensing online portal to expedite the process.

Have your education certificates or transcripts ready, and be prepared to pay a $60 application fee. Exam approval takes approximately two to four weeks.

The California Real Estate Exam

Your exam application is approved, and the exam day is scheduled. DRE offers five exam centers in the state near:

  • Fresno
  • La Palma (Orange County)
  • Oakland
  • Sacramento
  • San Diego

The 150-question multiple-choice exam is challenging, covering various topics, including real estate principles, finance, practices, and California-specific laws and regulations.

To achieve a passing score of 70%, applicants should study thoroughly, taking practice exams to pulse-check progress. 

California Real Estate Exam details:

  • Number of Questions: 150 multiple-choice questions
  • Passing Scores: A minimum score of 70%
  • Question Types: multiple-choice, testing your understanding of real estate principles, laws, and finance
  • Duration: 3 hours total
  • Cost: $60 – paid during exam application
  • Real Estate Exam Booklet 

Fingerprinting

Understanding real estate ethics and principles is essential in the licensing process. However, it’s equally important to demonstrate that you’ve upheld these standards in life, which requires a criminal background check to confirm.

Applicants must submit fingerprinting through an approved State Department of Justice (DOJ) Live Scan program. The fingerprints are transmitted through the DOJ and FBI, providing a background check to the California DRE for the application.

A copy of the Live Scan Service Request form must be submitted during the application process. 

Addressing Concerns (If Needed)

Only invest your time and resources into licensing if your background supports it. If you’ve been convicted of a crime, consider the combined RE 435 application and await approval before taking the exam.

Applying for a California Real Estate License

As an RE 400A applicant, it’s finally time to apply for a real estate license. A passing exam score unlocks the license application within the eLearning portal, allowing you to complete the process. 

The RE 202 Salesperson Application will be available if a paper application is preferred. 

Be sure to have the following documents and information prepared:

  • Education Credentials: Proudly attach copies of your certificates for the 135-hour pre-licensing course.
  • Fingerprint Service Request Form: Completed during the Live Scan fingerprinting service.
  • Proof of identity: Grab your government-issued ID.
  • License Fee: A salesperson’s license costs $245.

The California DRE provides real-time processing times. At the time of writing, RE 400A and RE 435 applications are about one and a half months behind.

Find a Sponsor Brokerage

It’s been a long process, and you are almost finished. The next step is exciting because it’s time to secure a new business home and find a brokerage.

Agents must have a sponsored broker before practicing real estate.

Before rushing out to the nearest realty firm, it’s vital to consider your future career goals and path.

Choosing 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 for investors. 

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 brokers 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.

Final Thoughts

Starting your real estate career seems daunting with the hours of education and stressful exam. But an exciting and rewarding career awaits on the other side.

A real estate agent is a lifestyle career. It offers unique freedoms and unlimited earning potential—plus, you spend your days touring and viewing fun homes.

But the best part of real estate is helping amazing people along their journey. Real estate agents guide many people through one of the most stressful and emotional times. A good job well done can earn a lifelong friend and client, while an excellent job can earn a coveted spot as an adopted family member.

Starting the research and reading through this guide is a tremendous first step. Keep the moment going and lock in your pre-licensing education. Then tell the world! Real estate is about self-promotion and marketing, and taking your friends and family along the journey is a fantastic way to earn your first referral once you earn your license.

Welcome to the real estate industry! You’re going to love it.

Agent Nook Team
Author: Agent Nook Team

Sometimes, it takes a team. Agent Nook always brings an experienced perspective—or several—into each post. This ensures our readers always have the most up-to-date and relevant information.

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