What Are Standard Real Estate Agent Licensing Options?

There are three options for a real estate agent to receive licensing. Licenses are given by the state in which you want to practice. Here are the options available.

Option 1: Real Estate Salesperson License

The starting point in real estate is the salesperson license. In order to get this license, an individual must be at least 18 years of age, attend a sanctioned class or complete an online course, and pass an examination. Once she obtains the license, the salesperson must list her license with a registered broker before she is legally able to buy or sell real estate.

Option 2: Associate Broker

This license requires completion of an approved course and passing an examination. Associate brokers do not own their companies. They have their licenses under brokers. Associate brokers assist brokers in completing real estate transactions. They usually have more responsibility in running a business or will oversee the work of the salesperson. On average, you must be an active salesperson for 3 of the previous 5 years before obtaining your associate broker license.

Option 3: Broker

Brokers must complete the same course and exam that associate brokers take. The difference is that brokers must have their own company that will hold the license of all real estate agents that work for the broker. The company can be a sole proprietorship, LLC or a corporation. In exchange for carrying the salesperson license, the broker is paid a percentage of the commissions his agents receive.

blog comments powered by Disqus