1.2 California License Requirements

Salesperson License Requirements

Four gates stand between an applicant and a California salesperson license: age, education, examination, and an honesty/background review.

Age. The applicant must be at least 18 years old. There is no upper age limit and no higher minimum for brokers.

Education. Complete 135 hours of college-level real estate courses, each at least 45 hours:

Approved electives include Legal Aspects of Real Estate, Real Estate Finance, Real Estate Appraisal, Property Management, Real Estate Economics, Escrows, Mortgage Loan Brokering and Lending, Common Interest Developments, and Office Administration. Courses must come from a DRE-approved private school or an accredited college; each ends with a proctored final exam.

Examination. The salesperson state exam is delivered on computer at a DRE exam site:

Background check. All applicants submit Live Scan electronic fingerprints. The DRE reviews criminal history for crimes of fraud, dishonesty, moral turpitude, or crimes substantially related to the duties of a licensee. A record does not automatically disqualify; the DRE weighs the nature of the crime, time elapsed, and rehabilitation.

Broker License Requirements

A broker license demands more experience and education than a salesperson license, because a broker may operate independently and supervise others.

Experience. Generally two years of full-time licensed salesperson experience within the preceding five years, or equivalent experience the DRE accepts. A four-year college degree with a major or minor in real estate can substitute for the experience requirement; certain attorney experience also qualifies.

Education. Complete 360 hours of statutory courses spanning eight required subjects: Real Estate Practice, Legal Aspects of Real Estate, Real Estate Finance, Real Estate Appraisal, Real Estate Economics or General Accounting, plus additional courses such as Property Management, Escrows, Business Law, Common Interest Developments, or Mortgage Loan Brokering.

Broker examination:

Correction to common myth: The broker exam is 4 hours, not 5, and the broker original license fee is $450, not $350. Many old prep materials list these wrong.

Application Process (step by step)

1. Complete the required education at a DRE-approved school.
2. Submit the exam application (RE 400A salesperson, RE 400B broker) with proof of education.
3. Pay the exam fee ($100 salesperson, $150 broker).
4. Submit Live Scan fingerprints.
5. Receive exam eligibility (typically several weeks; the eligibility window lasts 2 years).
6. Schedule and pass the exam at a DRE site. There is no mandatory waiting period to retake a failed exam, but you re-pay the fee.
7. Pay the license fee and, for a salesperson, affiliate with an employing broker before practicing.

Worked example

An applicant passes the salesperson exam but does not yet have a broker. The license is issued but inactive until the salesperson files the broker affiliation. Practicing before affiliation is unlicensed activity.

Conditional Licenses, Retakes, and Honesty Disclosures

A few exam-favorite wrinkles sit on top of the basic requirements.

Conditional (interim) salesperson license. California lets a candidate apply for the exam and the license together using a combined application, and a salesperson may receive a conditional license valid for limited duration if they have completed only the Real Estate Principles course (plus the other two courses pending), provided the remaining courses are finished within the conditional period. If the courses are not completed in time, the conditional license is automatically suspended. This is why "you can start the process after one course" can be a correct-sounding answer that still requires finishing all 135 hours.

Retake policy. There is no fixed waiting period to retake a failed state exam, but each attempt requires a new exam fee and a new scheduling request, and the original 2-year eligibility window still governs. After the eligibility expires, the applicant re-files.

Honesty and prior conduct. The application asks about criminal convictions and prior professional discipline. Failing to disclose a conviction is itself grounds for denial, even when the underlying conviction might not have disqualified the applicant. The DRE weighs three factors:

1. The nature and seriousness of the crime, and its relationship to real estate duties
2. The time that has passed and the applicant's conduct since
3. Evidence of rehabilitation, restitution, and current trustworthiness

Fee comparison at a glance

Exam trap: Money paid to the DRE is nonrefundable under B&P Code Section 10207. An applicant who fails the exam does not get the exam fee back, and an applicant who withdraws does not recover paid fees.