How to get a California real estate license

As with any pursuit of education that will enhance your career, there are costs involved in getting your license. When it comes to getting a real estate license in California, here’s what you need to budget for:

• Fingerprint processing fee paid to the Live Scan fingerprint service provider = $49
• Prelicensing exam coursework = $119 to $899
• Salesperson examination only, application fee = $60
• Original license fee = $245
• License renewal fee after 4 years = $245
• Other miscellaneous fees = about $240

Estimated total =  Between $938 and $1,239

According to ZipRecruiter, the average annual revenue of a California real estate agent is $84,669 per year (as of this writing).

While ZipRecruiter reports earnings as high as $147,542 and as low as $28,127, the majority of real estate agent salaries currently earn between $83,407 and $92,262 annually in California.

ZipRecruiter scanned a database of millions of active jobs published locally across the country to determine that California is ranked number 5 out of 50 states nationwide for real estate agent salaries. ZipRecruiter also reports that the top five cities/areas where the typical salary for a real estate agent is above average in California are:

• #5 San Leandro, with a $101,440 annual salary
• #4 Bolinas, with a $105,673 annual salary
• #3 Danville, with a $107,008 annual salary
• #2 Richmond, with a $108, 297 annual salary
• #1 San Mateo County, with a $124,257 annual salary

The more time you spend studying for the real estate license exam, the greater your chance of scoring at least 70% the first time around (which is what you’ll need to be eligible for your California real estate license).

When it comes to the time commitment for becoming a licensed real estate agent in California, you’ll need invest 135 hours into taking three real estate courses approved by the California Department of Real Estate (plus time for paperwork).

Do the math, and that’s 2.5 hours of classes every day, for 54 days in a row — if you’re feeling ambitious.

According to the California Department of Real Estate (DRE), there were 56,741 salesperson exams administered during fiscal year 2023. Of those, 20,671 people passed the real estate exam and became licensed salespeople in California.

Based on those statistics, that’s about a 36% pass rate for California real estate exam takers. You’ll need to get a grade of at least 70% to pass the exam.

Before you gather the required California real estate licensing documents, you should:

• Read all licensing instructions carefully (RE 435A or RE 436A).
• List your legal name on the application.
• Include the items listed below in your packet (check off each item as you assemble your packet).
• Mail completed application package and fee.

Required documents for the salesperson applicant:

• RE 435 — Completed and signed by applicant.
• Official transcripts or course completion certificates for Real Estate Principles, Real Estate Practice and/or one other required course. If previously submitted, you may disregard this last item.
• License fee (Refer to RE 206 for current fees) – Cashiers’ check, check, or money order are accepted. If paying by credit card, see RE 909.

* Make two photocopies of the copy provided. After fingerprints are completed, the Live Scan operator will keep the original. You should return the second copy to the California DRE and keep the third copy for your records.

Check out the DRE’s license application checklist for further details.

When the day comes for you to take your real estate licensing exam, the only thing you’ll need to be admitted is a valid form of photo identification. The following are the only forms of photo identification accepted:

• Current state-issued driver’s license or DMV identification card
• U.S. passport or passport issued by a foreign government
• U.S. military identification card

Here are a few of the items that you cannot bring into the exam room:

• Backpack, briefcase, purse and /or wallet (don’t forget to remove your photo ID!)
• Gum, food, and drinks
• Keys, watch
• Study materials, pens
• Smart device, laptop, tablet
• Personal calculator, cell phone

Don’t worry, basic calculators are provided for you to use during the exam. The possession of a cell phone, however, is strictly prohibited, even if you aren’t using it or you’re on break. There will either be individual lockers, a “personal belongings” table, or both available for storing your cell phone, calculator, and other prohibited items during the exam.

Once you have passed the real estate licensing exam, you can apply for a real estate salesperson license online by using the Online Exam/License Application System (OELA). You will need to create an eLicensing account in order to use OELA. Then you can complete and submit the license application (unless you have previously completed the Combined Examination and License application) and pay the applicable fee.

Based on several recent surveys, the average real estate agent commission is between 5% and 5.5% in California, depending on the location within the state. This average reflects the total for both the listing agent and the buyer’s agent, and is typically split between the two 50/50.

According to Zillow, the average value of a home in California is $771,057, and the average home stays on the market for 22 days (as of this writing).

Renewing your license every four years is as simple as:

• Completing continuing education courses
• Entering information into the DRE’s e-licensing system
• Paying a renewal fee

Be aware of your license’s expiration date and take the proper steps to renew your license well before that date. To remind you, the DRE does send a letter to your mailing address around 60 days before the expiration date.

Learn more about California real estate license renewal.

Before you renew your salesperson license for the first time, the DRE states that you’ll have to complete 45-clock hours of DRE-approved continuing education (CE). This must include:

• Four different courses (3 hours each) in ethics, agency, risk management, and trust fund handling
• One course (3 hours) in fair housing with an interactive participatory component. That means during the course, you will role-play as both a consumer and a real estate professional
• One course (2 hours) in implicit bias training
• Consumer protection courses (a minimum of 18 hours)
• One or more courses in consumer service or consumer protection to round out the remaining 45-clock hours.

Learn more about DRE’s continuing education requirements.

While you don’t have to be a state resident to practice real estate in California (residency is not a requirement to become licensed) there are out-of-state requirements for non-residents. California has no reciprocity with any other state to waive any of the requirements for those who want to obtain a license. Requirements include qualifying for the appropriate written examination in California.

If you’re an out-of-state resident applying for the California real estate salesperson examination, be ready to provide proof of completing the “statutory courses in out-of-state institutions.” And by proof, we mean transcripts from an institution accredited by the Western Association of Schools and Colleges or a comparable regional accrediting entity. The DRE will want to see that each course you took is worth 3 semester-units credit or 4 quarter-units credit.

When it comes to your continuing education courses, there are several different California real estate schools and real estate education course providers to choose from. Schools and providers tend to offer various packages at different price points, allowing you to choose from online or printed continuing education materials, online courses, and online exams for CE credits.

For the most part, these California real estate schools let you choose between studying online or having books sent to your office or home. This gives you the flexibility to study where and when it’s convenient for you.

You may renew your California real estate license by completing and submitting the following completed forms at least 90 days before the license’s expiration date:

For more information about renewing your California real estate license, check out our renewal guide, linked below.

If you have an eLicensing account, you can certainly renew your salesperson license online using DRE’s eLicensing online system. The eLicensing system is an expedited, easy, and secure way to renew your license any day of the week, at a time that works best for you.

To renew your real estate license online:

• You must be a California resident who does not hold a restricted license, or
• You must be an out-of-state resident who already has a Consent to Service of Process form on file with the DRE.
• You must be ready to provide all the information detailed in the Salesperson Renewal Application: RE 209.
• All your continuing education requirements must be met before you use eLicensing for your renewal.

Ready to renew online? Once you log on, eLicensing will prompt you to enter all the information necessary for license renewal, including the course number and completion date of continuing education courses if required.

No matter what renewal method you choose, your application must be postmarked, or your eLicensing transaction must be completed before midnight of your license expiration date to continue operating under your existing license. If for some reason you don’t renew your license before the expiration date, keep in mind that you cannot practice real estate in California until your license has been renewed.