The basic path: education, exam, and background check

Getting a real estate license requires three things: completing a state-approved pre-licensing course, passing the state exam, and passing a background check. The timeline is usually two to four months from start to finish, though it depends on how quickly you complete the coursework and schedule your exam. Every state sets its own rules, so the exact requirements shift based on where you want to work.

You do not need a college degree or prior real estate experience. Most people with a high school diploma or GED can start the process when ready. The main barrier is time and money — the course costs between $200 and $500, the exam fee runs $100 to $300, and you will need to join a brokerage before you can legally work, which involves additional fees.

Key Takeaways

  • Pre-licensing coursework is required in every state and covers property law, contracts, ethics, and local regulations; most courses take 40 to 120 hours depending on your state.
  • You must pass your state's written exam, which tests knowledge of real estate law and practice; passing rates vary by state but typically range from 50 to 70 percent on the first attempt.
  • A background check is standard, and most states disqualify you for felonies or certain financial crimes, though misdemeanors are usually reviewed case by case.
  • After passing the exam, you must join a real estate brokerage within a set timeframe (usually 90 to 180 days) to set up your license and begin working.
  • Renewal happens every one to three years depending on your state and requires continuing education hours, which range from 4 to 36 hours per renewal cycle.

Pre-licensing courses: what they cover and how long they take

Every state requires you to complete a pre-licensing course before you sit for the exam. These courses are offered by real estate schools, community colleges, and online providers. The length varies: some states require 40 hours, others 60, 90, or even 120 hours. California requires 135 hours, while Texas requires 270 hours for a broker license but only 4 hours for a salesperson license.

The course covers state-specific real estate law, contract writing, property rights, financing, ethics, and fair housing rules. You will learn how earnest money deposits work, what disclosures sellers must make, how to calculate commissions, and what happens if a deal falls through. Most courses also include a section on your state's real estate commission rules and the code of conduct you must follow as a licensed agent.

You can take these courses in person or online. Online courses are faster if you work full-time — you can move through material at your own pace — but some states require at least part of the course to be taught live or in a classroom. Check your state's real estate commission website to see which providers are approved in your area.

The state exam: what to expect and how to prepare

After finishing your course, you schedule the state exam through a testing company like Pearson VUE or PSI. The exam is multiple choice and usually takes two to three hours. You will answer 80 to 200 questions depending on your state — some test national real estate principles, others focus heavily on state law.

Passing scores vary by state. Most states require 70 to 75 percent correct, though some are stricter. First-time pass rates typically fall between 50 and 70 percent, which means many people fail and retake it. If you do not pass, you can usually retake the exam within 30 days, though some states have waiting periods or limits on how many times you can test in a year.

Preparation usually takes four to eight weeks if you study consistently. Many people use study guides, flashcard apps, or practice exams provided by their pre-licensing course. Some hire a tutor or join a study group. The exam tests both memorization — specific contract terms, disclosure rules, math formulas — and judgment, so practice questions that ask you to explore the rules to real situations.

Background checks and disqualifying factors

After you pass the exam, your state's real estate commission runs a background check. This includes a criminal history search and sometimes a credit check. Most states disqualify you for felonies, especially those involving fraud, theft, or financial crimes. Misdemeanors are usually reviewed individually — a DUI from ten years ago may not disqualify you, but a recent conviction for fraud likely will.

Some states also look at your credit history, particularly if you have unpaid judgments or a recent bankruptcy. The logic is that agents handle client money in escrow accounts, so the commission wants to know you are not in financial distress. If you have a criminal record or credit issues, contact your state's real estate commission before you pay for the course — they can tell you whether you will be disqualified.

The background check takes two to four weeks. During this time, you can study for the exam and arrange your brokerage sponsorship, but you cannot legally work as an agent until the check clears and your license is officially issued.

Joining a brokerage: the requirement you cannot skip

A real estate license is not a standalone credential — you must work under a licensed broker. You cannot hang out your own shingle or work independently. After you pass the exam and clear the background check, you need to find a brokerage that will sponsor you, and you must do this within a set window (usually 90 to 180 days after passing the exam, depending on your state).

Brokerages are the companies that hold client money, manage contracts, and supervise agents. When you join one, you sign an independent contractor agreement that spells out your commission split, desk fees, training requirements, and other terms. Commission splits vary widely — some brokerages take 50 percent of what you earn, others take 20 to 30 percent. Desk fees (monthly charges for office space and support) range from $0 to $500 or more.

You do not need to have a brokerage lined up before you take the exam, but you should start looking once you pass. Many brokerages hire new agents regularly and offer training programs. Ask about their support for new agents, whether they provide leads or require you to generate your own, and what the actual commission split looks like after desk fees and other costs.

Costs: what you will actually spend

The total cost to get licensed ranges from $500 to $1,500 depending on your state and choices. Here is what to budget:

  • Pre-licensing course: $200 to $500. Online courses are usually cheaper than in-person classes.
  • Exam fee: $100 to $300. This is paid to the testing company, not your state.
  • License process and processing: $50 to $300. Your state charges this fee when you submit your exam results.
  • Background check: Usually included in the process fee, but some states charge $25 to $100 separately.
  • Brokerage sponsorship and setup: $0 to $500. Some brokerages charge a one-time sponsorship fee; others do not. You will also pay monthly desk fees once you start working.

After you are licensed, expect ongoing costs: continuing education courses ($100 to $300 per renewal cycle), license renewal fees ($100 to $500 every one to three years), and monthly brokerage desk fees ($0 to $500). These costs add up, so factor them into your decision about whether real estate is the right career for you.

Renewal and continuing education requirements

Your license does not last forever. Renewal periods vary by state — some renew every two years, others every three. When renewal comes due, you must complete a set number of continuing education hours. These range from 4 hours in some states to 36 hours in others, and they cover updated laws, ethics, fair housing, and other topics relevant to real estate practice.

You can take continuing education courses online or in person, and they are usually cheaper than the initial pre-licensing course — often $50 to $150 for the required hours. You must complete them before your license expires, or you will have to retake the full pre-licensing course and exam to get relicensed.

Some states also require a broker's exam if you want to move into management or open your own brokerage. This is a separate credential that takes additional study and testing, but it is not required to work as a salesperson.

Frequently Asked Questions

Can I get a real estate license if I have a criminal record?

It depends on the crime and your state. Felonies involving fraud or theft usually disqualify you permanently. Misdemeanors are reviewed case by case — some states will license you if enough time has passed. Contact your state's real estate commission with details about your record before you pay for the course.

How long does it take from start to finish?

Most people finish in two to four months. The course takes one to four weeks, exam scheduling and passing takes another two to four weeks, the background check takes two to four weeks, and brokerage sponsorship is usually when ready once you pass. If you fail the exam, add another month for retesting.

Do I need a college degree to get a real estate license?

No. A high school diploma or GED is sufficient in every state. Real estate licensing is based on passing the course and exam, not on formal education. Many agents have college degrees, but it is not required.

What happens if I fail the exam?

You can retake it, usually within 30 days. Most states let you test multiple times in a year, though some cap it at four or six attempts. You do not have to retake the course — just study the material you missed and schedule another exam date.

Can I work part-time as a real estate agent?

Yes. You work as an independent contractor under a broker, so you set your own hours. Many agents start part-time while keeping another job, then transition to full-time once they build a client base. Your broker may have minimum activity requirements, so check their contract before you join.