How to Get a California Real Estate License

Step-By-Step Guide to Become a Real Estate Agent in California

Are you wondering how to become a real estate agent in California? We don’t blame you; the real estate out here is unmatched! However, if you’d like to start holding open houses or calling clients, you’ll need to get your California real estate license. 

Real estate licensing is overseen by the California Department of Real Estate (DRE). This agency makes sure all real estate agents in the state hold active licenses, know what they are doing, and can be trusted to follow the rules and regulations. These are the suit-wearing folks that determine the criteria for becoming a real estate agent in California. So, you’ll want to stay on their good side!

Step 1: Take 135 Hour Pre-Licensing Course

This course is broken down into three parts that are designed to teach you about real estate transactions, state specific laws you must keep in mind, and the basis of real estate math.

The courses are available through several  regionally accredited real estate schools. The good news is you don’t have to go through the pain of sitting in a physical classroom if you don’t want to; there are a ton of online courses that allow you to listen to your lessons on the go, or whenever you have free time. Check out the best real estate schools in California.

To satisfy the 135 hour course requirements, you’ll need to take these classes:

1. Real Estate Principles (mandatory)
2. Real Estate Practice (mandatory)
3. One of the following elective courses: 
   • General Accounting
   • Business Law
   • Common Interest Developments
   • Escrows
   • Legal Aspects of Real Estate
   • Mortgage Loan Brokering & Lending
   • Property Management
   • Real Estate Appraisal
   • Real Estate Economics
   • Real Estate Finance
   • Real Estate Office Administration

It is not required for everyone to take pre-licensing courses. It’s rare, but if you qualify for any of the following, you are not required to do the coursework:

• Members of the California State Bar are exempt from the real estate course requirements. Simply show proof that you can practice law in the state.
• Applicants who can submit evidence of completing the eight statutory college-level courses required for the broker examination can skip this work.

Step 2: Fill Out Your California Realtor Exam/License Application

At this stage, you will have to submit your fingerprints for a background check. This process if for DRE to confirm that your records are accurate. 

Once you have completed your required education, you may apply for your license exam. Beware – you will still have to sign a few forms and there may be a couple of extra fees you’ll have to pay as well. 

To save time and money, you can apply for a combined exam and licensing application 📝. Doing this will ensure you’ll have specifics on the next-steps and what date you’ll need to have them completed. 

Step 3: Pass the California Real Estate Salesperson Exam

This is when you will take the actual exam. By this point, you’ve been reading up on the topics, listening to the course lectures, and studying. You now have the opportunity to show DRE that you genuinely understand the details of how real estate transactions work in the state of California. 

You must score at least a 70% on the exam to pass. However, it’s important to note that your licensing fee lasts for two years – this means you don’t have to take the exam immediately. Once you apply, you’ll have two years to take the exam before your fee expires.

The exam can be challenging, but most exams have a pattern. With just a little bit of studying, and some practice exams under your belt, no doubt you’ll breeze through this. 

On the day of your test, remember to bring a valid photo I.D. and exam admittance form to your testing location.

Step 4: Find a CA Real Estate Broker to Sponsor You

This is the most rewarding step of all; you’ve passed! It’s now time to crack open a cold one, or take your friends out for a nice little celebration – you deserve it.

In the meantime, you should start looking into what brokerage you want to work for. The DRE requires real estate agents to be held to high ethical and professional standards, so you have to find a sponsoring broker. You’ll want to start asking questions and looking into what kind of brokerage will best suit your needs.

Because sponsoring brokers have built up the necessary experience, they will help walk you through the local market, show you how to make your first transaction, and let you in on critical business secrets.

Begin by looking for brokerages you like, whose goals align with yours, and whose work environment matches your energy.  

California real estate license requirements as per DRE

These are just the standard, everyday requirements that DRE sets. They are simple and straightforward, so don’t fret – you’ll fly through this quickly. 

To apply for a California Real Estate License:

1. You must be at least 18 years old
2. You must be a U.S. citizen
3. You must reside in California (there are special procedures for non-California residents to get licensed)
4. You must ensure that your application is accurate and truthful, meaning all information provided must be correct and up to date. If you have a criminal record of any kind or felony, you must reveal it,  no matter how trivial. If you don’t, you may have your license application denied and damage any future opportunities to get a license. 

If you have a criminal record, there are still some circumstances where you can get a real estate license in California.

Step 5: How To Choose a Broker

You can choose any broker, be it a digital brokerage or a brick-and-mortar location, but there are several things to consider when trying to decide which is the right fit for you:

• Training – Since you are just starting your career, you will want to investigate available training opportunities. Some companies put more emphasis on training than others and have a mentor program, or a video library that you can gain access to. Others, however, have more of a sink or swim mentality. It’s best to look into each company’s offerings and decide how much hands-on training you’d like to get from your brokerage. 
• Comp Plan – The entire point of this process is to make money; consider the commission split each brokerage provides to see how much you get to take home. It’s simple, you want to make money. Look into the commission splits each brokerage provides. A 60/40 split is typical as is a 70/30 split, but each company is setup in a differently. Some will give you more in commission, but you may have to pay more in fees – ask questions to see what is included. For example, certain brokerages make you pay to access a CRM, while others include access to those tools in the commission splits.
• Company’s History, Reputation and Work Environment – A good company will have a reputation for being fair and honest to its agents. Look at retention rates and see if there has been a mass exodus before committing to a brokerage. Ask around in your community as well. A good company will also employ agents who make their clients happy.

What is the cost of getting a real estate license in California?

The cost for a real estate agent license in California is $245 annually, with a $60 examination fee in addition to the cost of the preliminary course requirements as listed above.  The pre-licensing courses range wildly in price – from $99 to $500 if you’re taking the course online. When you’re budgeting for the new career, be sure to include the cost of a test prep course – it can significantly improve your chances of passing the state real estate exam.

People looking to become California real estate agents will be need to deal with the following expenses.

• Pre-licensing course: $179-$700
• Exam Fee: $60 per attempt
• Application Fee: $245 for a four-year license
• Fingerprint Fee: $60
• Optional Fees: $150-$500
• Renewal Fee: $245 for an agent, $300 for a broker
• Continuing Education Fees: These vary according to the type of classes you are taking

How long does it take to become a licensed real estate agent in California?

Pre-licensing courses are required by California’s real estate commission to be 135 hours of “credit.”  The preliminary three-semester units should take approximately 135 hours. The exam itself is made up of 150 multiple choice questions given over three hours.

Keep in mind that the length of time is entirely contingent on passing a minimum of 70 percent of the examination itself – so it’d be wise to pay attention to the course content to make sure you’ll pass.

What’s the real estate agent salary in California?

California agents make an annual average salary of $76,750 which breaks down to $36.90 an hour. 

The highest paying cities for real estate agents in California are as follows:

• San Jose: $126,064 per year
• Sacramento: $115,659 per year
• Santa Ana: $109,703 per year
• Los Angeles: $118,621 per year
• Long Beach: $111,794 per year
• Bakersfield: $108,436 per year
• San Diego: $115,740 per year
• Carlsbad: $111,352 per year
• Fresno: $106,982 per year

How Much Do Homes Cost in California?

The median price for homes in California is a whopping $898,980, up 10% in just the past year. Here’s a breakdown on home prices by region:

• San Francisco Bay: $1,340,000
• Southern California: $752,000
• The Central Valley: $445,000
• The Central Coast: $900,000
• The Los Angeles Metro Area: $700,000
• Orange County: $935,000
• Riverside County: $550,000
• San Bernardino County: $485,750
• San Diego County: $743,000
• Ventura County: $751,000
• Inland Empire: $510,000
• Far North: $365,000
• San Francisco: $1,900,000

What are Commission Splits Like in California? 

Like most states, California commission splits generally fall between 5% and 6%. The average commission split is 5.14% which is then broken down between both agents and the brokerage. 

If you are looking for companies to work with that will let you hold on to a good portion of your hard-earned dough, here are a few that are recommended:

• Premier Realty Associations: 0 commissions
• VIP Realty: 0 commissions but they charge a $450 fee on the first 12 sales
• Keller Williams: 70/30
• Coldwell Banker: 50/50, 60/40, 70/30 (capping system)
• Compass: 80/20 (this reflects a drop from 90/10 from the previous year)