To become a real estate agent, you complete your state’s pre-licensing education, pass the licensing exam, clear a fingerprint-based background check, affiliate with a sponsoring broker, and file a license application with your state’s real estate commission. Every state follows that same sequence. What changes from one state to the next is the number of course hours, the fees, and the timelines. Plan on 40 to 180 hours of coursework and a few hundred to over a thousand dollars in upfront costs before you can earn your first commission.
Who Qualifies
Most states set the minimum age at 18. A handful require 19, or 21 for a broker-level license. You generally need a high school diploma or GED, and some states ask for proof of legal authorization to work in the United States. No college degree is required. The pre-licensing course fills the educational gap.
Complete Pre-Licensing Education
Before you can sit for the exam, your state’s real estate commission requires a set number of approved classroom or online hours. Requirements run from as few as 40 hours in some states to as many as 180 in others, with roughly 90 hours being a common middle ground. Coursework covers property law, real estate finance, contracts, agency relationships, and fair housing.
Take the course through a provider your state commission has approved. The commission’s website lists them. When you finish, you’ll receive a certificate of completion or an official transcript. Keep both a digital and physical copy. You’ll need it to register for the exam and again when you file your license application.
Pass the Licensing Exam
The exam has two scored sections: a national portion covering general real estate principles and a state portion covering your state’s laws and regulations. You must pass both. Most states require a score of 70 to 75 percent on each.
A third-party testing company, commonly Pearson VUE or PSI Services, runs the exam at proctored testing centers. Register through the testing company’s portal, pick a date and location, and pay the exam fee, which generally falls between $50 and $100 per attempt. Some states require the commission to confirm your eligibility before you can schedule. Bring valid government-issued photo ID on test day. You’ll typically see your score on screen immediately after finishing. If you don’t pass, most states let you retake after a short waiting period, and you pay the fee again each time.
Clear the Background Check
Every state requires a criminal background check. You’ll submit fingerprints, either electronically at a live-scan location or by ink-and-card mailed to the FBI, so your records can be searched through federal and state databases. The FBI charges $18 for an Identity History Summary Check, and the fingerprinting service adds its own fee, so expect roughly $40 to $80 in total.1Federal Bureau of Investigation. Identity History Summary Checks Frequently Asked Questions
Disclose any criminal convictions, pending charges, or prior disciplinary actions on your application. Failing to disclose something that later surfaces in the background check can result in denial for dishonesty, even if the underlying offense wouldn’t have been disqualifying on its own. A criminal record does not automatically bar you from licensure in most states. Commissions typically weigh the nature of the offense, how long ago it occurred, and evidence of rehabilitation.
Find a Sponsoring Broker
A newly licensed agent cannot practice independently. You have to affiliate with a licensed broker who supervises your work and takes legal responsibility for your professional conduct. This applies in every state.
Brokerages differ in the training they offer, the technology they provide, and how they split commissions. New agents commonly start at 50/50 or 60/40 in the broker’s favor, moving toward 70/30 or 80/20 as experience and production grow. Some firms charge a flat monthly desk fee for office space and technology instead of, or in addition to, a commission split. Research several firms, ask about mentorship, and get the full fee structure before you sign. Once you agree, you’ll need the broker’s license number and their signature or electronic authorization for your application.
Submit Your License Application
With your education certificate, exam results, background clearance, and broker sponsorship in hand, file the application with your state’s real estate commission or department. Most states use an online portal. A few still take paper applications by mail. The package typically includes the completed form, proof you passed the exam, background clearance, and your sponsoring broker’s authorization.
Application fees generally fall between $80 and $400. Processing times differ too. Some states issue licenses within a few business days through automated systems. Others take several weeks during peak periods. Once approved, you get a license with a unique number and expiration date. Most states require the license to be kept on file at your broker’s office and require your license number to appear on all advertising.
Budget Realistically for Startup Costs
State fees are only part of what you’ll spend before and shortly after you begin practicing:
- Pre-licensing tuition: typically a few hundred dollars, varying by provider and format.
- Exam fee: $50 to $100 per attempt, plus retakes if you don’t pass the first time.
- Background check and fingerprinting: roughly $40 to $80, including the FBI’s $18 processing fee.1Federal Bureau of Investigation. Identity History Summary Checks Frequently Asked Questions
- License application fee: generally $80 to $400.
- Errors and omissions insurance: required by about a dozen states and by many brokerages regardless of state law. Annual premiums for an individual policy run from a few hundred dollars to over $2,000.
- MLS access: annual fees commonly $500 to $1,000 or more, often billed quarterly.
- REALTOR® dues: optional but required by many brokerages. National dues for 2026 are $156 per member, plus a $45 special assessment. Local and state association dues are additional.
- Brokerage fees: monthly desk or technology fees of $50 to $150 or more at some firms, even in months when you close nothing.
First-year costs beyond the license itself can easily reach several thousand dollars. Because most agents earn no income until they close a deal, and that can take weeks or months, keep savings on hand to cover these expenses and your living costs during the ramp-up.
How You Get Paid and What You Owe in Taxes
Real estate agents are almost always independent contractors, not employees. Federal law treats a licensed agent whose pay is tied to sales output rather than hours worked, and who operates under a written contract stating they will not be treated as an employee, as a “statutory nonemployee” for tax purposes.2Office of the Law Revision Counsel. 26 USC 3508 Treatment of Real Estate Agents and Direct Sellers
No taxes are withheld from your commission checks. You pay your own federal and state income tax, plus self-employment tax covering Social Security and Medicare. Most agents make quarterly estimated payments to avoid penalties at year-end. Your brokerage issues you a 1099-NEC instead of a W-2. Your income comes from commissions split with your sponsoring broker according to the agreement you signed when you joined. Some brokerages offer a 100-percent commission model where you keep everything but pay higher flat monthly fees.
Keep the License Active
A significant number of states require post-licensing education within your first one to two years on top of the initial coursework. It’s a one-time requirement, separate from ongoing continuing education, and it’s designed to build on what you learn once you’re working with real clients. Miss the deadline and your license can become void, forcing you to start over. Check with your commission the moment your license is issued so you know your deadline and the required courses.
Licenses aren’t permanent. Most states renew every two to three years, and each renewal requires a set number of continuing education hours. Requirements range from about 6 hours per year in some states to over 40 hours per renewal cycle in others. Topics typically include law updates, ethics, fair housing, and agency practices. If your license lapses, you cannot legally practice or earn commissions. Depending on how long it’s been expired, your state may allow late renewal with extra fees and coursework, or require you to retake the exam and reapply from scratch.
Practicing in Another State
Your license is only valid in the state that issued it. To practice elsewhere you generally need a separate license there, though many states offer reciprocity that streamlines the process. Full reciprocity means the second state accepts your existing license outright. Partial reciprocity, which is more common, exempts you from the national portion of the exam but still requires the state portion and state-focused coursework. If you live near a border or plan to relocate, check both commission websites. Out-of-state applications typically require a license history certification from your current state, a background check, and an application fee. Some states also require you to keep an active license in your home state as a condition of the non-resident license.