What Real Estate Careers Require a License?

Many real estate careers require a real estate license, including agents, brokers, property managers, and other roles that involve negotiating or facilitating real estate transactions on behalf of others.

Licensing requirements vary by state, and some careers use separate licensing paths. Familiarity with professional requirements can prevent you from wasting time or money on unnecessary licensing and empower you to choose the fastest path into the industry.

In this article, we're going to review real estate license basics and explore which careers require a real estate license, which don't, and how to get online real estate pre-licensing so you can get started.

What Is a Real Estate License?

A real estate license is a state-issued credential that allows someone to represent others in real estate transactions in exchange for compensation.

It's important to understand that:

• Real estate licenses are regulated by state real estate commissions.
• The initial level of real estate license requires working under a more experienced broker.
• Specific licensing requirements and procedures vary by state.
• Separate licensing paths often exist for real estate appraisers and home inspectors.
• Property managers often share a licensing path with real estate sales professionals, but sometimes they have a specialized path or separate license.

We'll dive into further detail below.

Quick Answer: Which Real Estate Jobs Require a License?

Common real estate jobs that typically require a real estate license include:

• Residential real estate agent
• Commercial real estate agent
• Broker or managing broker
• Foreclosure specialist
• Corporate real estate manager
• Property manager

Common jobs that may not require a real estate license include:

• Real estate wholesaler
• Home inspector
• Real estate appraiser
• Real estate consultant or advisor

These are general guidelines only – state laws and job duties are a bigger determining factor than job titles in whether a real estate license is necessary for a particular role.

Real Estate Careers That Typically Require a Real Estate License

What real estate careers require a real estate license?

If someone is paid to negotiate or facilitate real estate transactions on behalf of others, they probably need a real estate license. That includes agents, brokers, property managers, and more.

Residential Real Estate Agent

Residential real estate agents represent and complete transactions on behalf of the buyers and sellers of residential real estate, including houses, duplex units, or condominiums. Residential agents typically represent either the buyer or the seller, putting the client's best interests above all others.

Real estate licensing is required to market properties, negotiate transactions, and earn commissions. Becoming a residential real estate agent is the quickest of all licensed real estate jobs – you just need to earn your "agent" or "salesperson" license, find a supervising broker, and get to work!

Common specialties include buyer's agent, listing agent, luxury real estate, relocation specialist, and working with real estate investors.

It's worth noting that some real estate agents use "REALTOR®" in their title, which doesn't indicate specialty or licensing level. It simply indicates that they're a member of the National Association of REALTORS® or NAR®. All REALTORS® are licensed real estate professionals, but not all licensed professionals are REALTORS®.

Commercial Real Estate Agent

Commercial real estate agents facilitate real estate transactions that involve income-producing properties. They're expected to have a higher level of knowledge in business and finance. The transactions in commercial real estate are bigger, and the sales cycles are longer.

Real estate licensing is required for commercial real estate for the same reasons as residential – it involves facilitating real estate transactions on behalf of others for compensation. However, commercial real estate clients typically expect their brokers to have a bachelor's degree in business, finance, or real estate, so the license isn't the primary barrier to entry.

Commercial real estate brokers often specialize in a particular type of income-producing property, such as offices, industrial facilities, retail properties, multifamily homes, hospitality spaces, or "land," which is shorthand for undeveloped or agricultural land as well as sites slated for redevelopment.

Broker, Managing Broker, or Broker-Owner

In most states, "broker" is one licensing level up from agent or salesperson, although it's worth noting that a few states (like Washington) label their entry-level license as "broker."

Once you earn this higher-level real estate license, you gain the authority to own a real estate firm (or "brokerage"), hire agents to work under you, and handle commissions and escrow accounts directly.

There are a few different roles that brokers can take on, including:

• Designated Brokers are legally responsible for the transactions of all real estate agents and associate brokers underneath them. All agents must work under the license and supervision of a broker. The title doesn't indicate ownership of the firm or daily responsibilities, only legal liability.
• Managing Brokers take a hands-on responsibility in the daily operation of the brokerage. They actively manage real estate agents and associate brokers. Managing Brokers might have the legal responsibility for their team, or they might just work for the designated broker who does.
• Broker-Owners are designated brokers who also own the business.

Broker-Owners can play all three roles if the business is small and they choose to be hands-on. Large brokerages might have employees who only serve in the Designated Broker or Managing Broker role.

In all cases, brokers can choose to actively take a sales role or stick to executive and managerial tasks alone. That choice may impact their income.

Property Manager

Property Managers manage the financial return an income-producing property generates on behalf of a property owner. They might collect rent, arrange maintenance, and handle evictions, among other things. Residential property managers handle residential rentals, while commercial property managers might focus on office buildings or shopping centers.

Do property managers need a real estate license? In most states, yes – often a broker-level license is required, though the answer also depends on the scope of their duties. Activities like negotiating leases and collecting rent often trigger real estate licensing requirements.

A few states, including Montana, Oregon, and South Carolina, have a separate licensing path for property management that is distinct from the sales role.

Corporate Real Estate Manager

Corporate real estate managers oversee a company's portfolio of owned or leased properties. While property managers have an operational focus, corporate real estate managers' goals are more strategic and focused on aligning the use of real estate with the business's broader goals. Corporate real estate managers handle strategic portfolio planning, asset optimization, acquisitions, and disposals, in addition to facilities management.

Licensing requirements for corporate real estate managers vary by employer and role, but they typically hold a real estate license. Licensing is necessary for key transactional responsibilities, including leasing, negotiating contracts, and collecting rent.

Foreclosure Specialist

Foreclosure specialists are licensed agents or brokers who focus on distressed properties and those in foreclosure. The role can be similar to that of any agent, either working with sellers to find a buyer or with investors interested in purchasing distressed real estate. However, they may also play a third role: helping a homeowner reclaim their foreclosed home. In any case, foreclosure specialists need an enhanced knowledge of banking rules, foreclosure and bankruptcy processes, mortgage servicing, and more.

Due to their involvement with real estate transactions on behalf of others, foreclosure specialists typically need a real estate license. They may also benefit from additional training and certifications specific to foreclosures.

Real Estate Careers with Separate Licensing Paths

Some real estate-related careers don't require a real estate license. Instead, they have their own licensing or certification path.

Real Estate Appraiser

Real estate appraisers provide an objective estimate of a property's value by assessing its condition and amenities and performing a comparable sales analysis to nail down a fair market value. This number is used as the basis for securing mortgages and assessing property taxes.

Real estate appraisers have a separate licensing path from real estate agents and brokers. The initial required education hours are roughly the same as many states' real estate licensing programs (75-83 hours), but this only qualifies you to be an appraisal trainee. The biggest hurdle is finding a certified supervisor willing to oversee at least 1,000 hours of work experience. After the trainee requirements (including more education) are met, you can take the exam to become a licensed residential appraiser.

There are three licensing levels for appraisal: Licensed Residential, Certified Residential, and Certified General. Your licensing level determines what kinds of buildings you can appraise. To appraise commercial real estate or residential buildings with five or more units, you must be a Certified General Appraiser.

Home Inspector

While appraisals assess a home's condition for fair market value, home inspections do so to identify potential repairs and health or safety issues.

Most states require home inspectors to follow a specific licensing path before they're allowed to practice. Similar to a real estate license, home inspection licensing typically involves 80-120 hours of pre-license education and passing the National Home Inspector Examination. In many cases, candidates must also gain field experience under a certified professional before becoming fully licensed.

There are 15 states that don't issue or require a home inspector's license. In states without a licensing program, specific jurisdictions may require home inspectors to complete a specific certification program.

Even when your jurisdiction has no professional requirements for home inspectors, you can improve your credibility and reputation by completing a reputable certification program from the American Society of Home Inspectors (ASHI) or the International Association of Certified Home Inspectors (InterNACHI). Becoming certified also helps you adhere to professional standards, thereby reducing your liability.

Real Estate Careers That May Not Require a License

Can you work in real estate without a license? There are a few real estate careers that may not require a license of any kind, but legality and licensing requirements depend on state law and how the role is performed.

Real Estate Wholesaler

A real estate wholesaler purchases distressed properties, evaluates their renovation needs and after-repair value (ARV), and finds a willing buyer; they act purely as a middleman. In some cases, wholesalers never close directly on the property at all, but enter into an assignment of contract agreement with a buyer. Either way, they earn a percentage of the sale for evaluating the renovation needs and finding a buyer.

A license is often not required for real estate wholesalers, but it depends on what activities you perform.

If you wish to work as a real estate wholesaler without a license, you need to ensure you act as a principal who holds a valid contract with the seller. Avoid marketing properties you don't have under contract or brokering deals as a third party.

However, if you're not opposed to getting a real estate license, holding one can be beneficial to your career as a wholesaler. You won't need to worry whether your activities ride the line between broker and principal, and holding a license can also improve your credibility with potential buyers and sellers.

Real Estate Consultant, Advisor, or Counselor

Real estate consultants, sometimes called counselors or advisors, provide objective guidance on real estate decisions. Their clients are usually investors or commercial interests who need an experienced opinion to make the best investment. In exchange, they pay a consulting fee.

This role doesn't require a real estate license if you're not directly involved with negotiating or closing sales. It's worth noting that consultants often come from brokerage, property management, or finance backgrounds, so they've often held a real estate license in the past.

How to Choose the Right Real Estate Career Path

As you've seen by now, there are many different career paths in real estate, each with its own quirks. It's worth sitting down and considering which career would suit you best and play to your strengths.

To choose the right real estate career, you should consider your:

• Interest in Sales: You need a certain cluster of attributes to succeed in sales, and it's not for everyone. Luckily, there are many roles to play in real estate that involve more analytical thinking. Sales might be the first role you think of in real estate, but it doesn't have to be yours!
• Comfort With Negotiation and Competition: Being a real estate agent or broker can involve processes people experience as adversarial, including negotiation with other parties and competition with other agents. Does this excite you or exhaust you?
• Income Preference: Real estate sales professionals work entirely on commission; the sky's the limit, but there's no guaranteed income. Meanwhile, some real estate jobs pay a regular salary, which you might prefer. Then there are fee-based jobs like appraisal where you can profit from your hustle but where the effort per project is more manageable than closing a purchase. What would suit you best?
• Schedule Preference: Real estate sales is often touted for its "flexible" schedule, but the reality is somewhat more complicated. Thankfully, there are some 9-to-5 alternatives in the industry. You need to consider the value of autonomy versus a regular schedule, as well as your ability to juggle tasks and set boundaries.
• Residential vs Commercial: Would you rather work with individual clients or companies? Are you interested in business and finance? Commercial real estate pays better but requires more polish, higher stakes, and fewer, larger deals.

Do a lot of reading about different career options, and talk to people who hold your dream job, when possible.

How to Get a Real Estate License

The licensing process is different in each state, but the general process you'll likely follow includes:

1. Meeting Eligibility Requirements: Typically, you need to be 18, hold a high school diploma or GED, and be able to pass a fingerprint-based background check.
2. Completing Pre-License Education: Each state sets pre-license education requirements to prepare you for both your career and the licensing exam.
3. Passing the Licensing Exam: You'll need to pass the state and national portions of an exam on real estate principles and regulations. Tests are typically given on a computer at a third-party testing center.
4. Applying for Your License: Filing an application with the real estate board is typically either the first or final step in the licensing process. It's important to follow your state's procedures.
5. Choosing a Broker: To earn an active license, you need a sponsoring broker who will supervise you and handle certain aspects of your transactions. You can't practice real estate without securing a sponsoring broker.

Most people can earn a real estate license within 6 months if they put in the effort.

FAQs About Real Estate Licensing

Below are some commonly asked questions regarding which roles require a real estate license.

Can a Real Estate Assistant Perform Their Duties Without a License?

Yes, a real estate assistant can work without a license, but only if their duties are strictly administrative.

Unlicensed assistants are typically limited to tasks like scheduling appointments, managing paperwork, coordinating marketing materials, and handling client communications that don't involve negotiation.

However, if an assistant begins performing activities like discussing pricing, showing properties, or negotiating terms, they will likely need a real estate license. These activities are considered licensed functions in most states.

Because the line between administrative and transactional work can be thin, many assistants eventually choose to get licensed to expand their responsibilities and earning potential.

Do I Need a License To Earn Referral Fees or "Finder's Fees" for Real Estate Leads?

In most cases, yes. You need a real estate license to legally earn referral fees.

Referral fees are typically paid between licensed real estate professionals for sending a client who results in a closed transaction. Accepting compensation for referring buyers or sellers without a license can violate state real estate laws.

There are limited exceptions, but they vary by state and are often narrowly defined. For example, simply introducing someone without expectation of compensation may be allowed, but advertising or consistently generating paid referrals without a license can create legal risk.

If you're interested in earning referral income, obtaining a real estate license is usually the safest and most scalable path.

Is a License Required if I Am Only Buying and Selling My Own Personal Properties?

No, you generally do not need a real estate license to buy or sell your own property.

When you act as a principal in a transaction, meaning you are the buyer or seller, you are not representing another party, so licensing requirements typically do not apply.

However, there are a few important considerations:

• If you begin buying and selling properties frequently for profit, some states may scrutinize your activities more closely.
• You cannot represent others in transactions or earn commissions without a license.
• Disclosure rules still apply, especially if you have professional knowledge or experience in real estate.

Many real estate investors eventually get licensed to access additional tools, earn commissions, and operate with greater flexibility.

Can I Hold a Real Estate License in Multiple States at Once?

Yes, you can hold real estate licenses in multiple states, but you must meet each state's requirements individually.

Some states offer reciprocity agreements, which allow licensed agents from one state to obtain a license in another with reduced requirements. However, reciprocity is not universal, and you may still need to:

• Complete additional education
• Pass a state-specific exam
• Submit a separate application and fees

If you plan to work across state lines, it's important to research each state's real estate commission rules to ensure compliance.

Does a Real Estate Auctioneer Require a Real Estate License To Sell Property?

In many states, yes, a real estate auctioneer must hold a real estate license to sell real property.

Auctioneers who sell real estate are often required to either:

• Hold a real estate license themselves, or
• Work in partnership with a licensed real estate broker

Some states also require a separate auctioneer license in addition to a real estate license.

Because auction laws vary significantly by state, it's important to verify both auctioneer and real estate licensing requirements before conducting real estate auctions.

Get Your Real Estate License Online With AgentCampus

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