Becoming a real estate agent can be a lucrative and fulfilling career choice — but you must first fulfill your real estate license requirements.
Getting a real estate agent license is a mixture of education and certification, and the specific requirements vary by state. Business insurance is often a requirement before you can launch your career.
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Your state may distinguish between a real estate broker, who may own a real estate agency and a real estate salesperson or agent. When researching real estate license requirements, look at the details for the real estate broker license only if that is your intention. Often, salespersons or agents are required to have a license before taking the step towards becoming a broker.
Obtaining a real estate license isn’t just about getting the right education and paying a fee. Some states require that you meet other criteria as well.
For example, in Ohio, you must be honest, truthful and free of felony convictions. In addition, Ohio mandates that you be sponsored by a broker while getting your real estate license. So, before becoming a real estate agent, reviewing the stipulations in your region is smart.
You must take courses in different subject areas relevant to your work as a real estate agent. The state licensing body sets these course requirements.
Using Ohio again as an example, the requirements are 120 hours of coursework, including 40 hours of Real Estate Principles; 40 hours of Ohio Real Estate Law; 20 hours of Real Estate Appraisal and 20 hours of Real Estate Finance.
You may take your coursework online or in person, but only some educational programs will qualify as real estate license courses. Most states have rules about the institutions and courses that count towards pre-licensing requirements.
Once you have completed your course, you’ll have to sit for — and pass — a state licensing exam. There will be a fee to sit this exam.
The exam generally consists of multiple-choice questions covering federal real estate law, general real estate principles and state law.
Not everyone will pass the licensing exam the first time. Usually, you can rewrite the exam within a specific time frame — for example, two years — before retaking the pre-licensing course.
Many states require error and omissions (E&O) insurance to obtain a real estate license. This coverage helps protect real estate agents if they are accused of making a professional mistake (whether they did or not) that causes financial harm to a client.
E&O is also a common requirement if you need or want to be associated with a brokerage firm and is often bundled with general liability insurance.
Once you have completed your course and passed your exam, you apply for your real estate license. Contact the state licensing board, fill out a license application and pay the appropriate fee.
In addition to verifying your education, the board may also ensure you meet other requirements, such as being of good character, having no felony convictions and possessing a high school diploma. Check your licensing authority for local requirements.
Once you have your real estate license, you must renew it — typically every year. In addition to paying fees, you may have to complete continuing education requirements. That means you never really leave school — even if you have been practicing with a residential or commercial real estate license for some time. You need to stay up-to-date with courses relevant to your industry.
The requirements for an Alabama real estate license are:
Alabama has no real estate professional insurance requirements, but many brokerages will require errors and omissions insurance.
You can get a reciprocal real estate license as long as you fulfill the following requirements:
The requirements for getting your real estate license in Alaska are:
To be a real estate agent in Alaska, you are required to get errors and omissions insurance.
You must provide documentation from another state to gain a reciprocal real estate license in Alaska. Additionally, you must pass an Alaskan real estate exam.
Here are the Arizona real estate license requirements:
In Arizona, you are not required to get errors and omissions insurance.
According to the Arizona Department of Real Estate, you can use your existing real estate license to get a reciprocal one in Arizona. Here are the requirements:
In Arkansas, you need to do the following to obtain an Arkansas real estate license:
Arkansas does not require errors and omissions coverage, but your employing brokerage may require it.
Arkansas has reciprocity agreements with fifteen states — your Arkansas real estate license transfers to other states (and vice versa).
In California, you are required to have the following to gain a real estate license:
No insurance requirements exist for real estate agents in California, but organizations and brokerage firms you work for may require it.
California does not have reciprocity agreements with any other states. You must complete an out-of-state application.
In Colorado, these are the requirements for becoming a real estate agent:
Errors and omissions insurance is required in Colorado.
You can get a Colorado real estate license with limited requirements if you already have an active license from a different state.
You need to fulfill the following requirements to obtain a real estate license:
E&O insurance is not required in Connecticut.
Connecticut has reciprocity agreements with 12 other states.
Delaware real estate license requirements are as follows:
Delaware does not require its real estate agents to have insurance.
Delaware has limited requirements for out-of-state license holders. You just have to submit your application and test scores.
Here are the license requirements for getting your Florida real estate license:
In Florida, you are not required to carry errors and omissions insurance, but other agencies you interact with may require it.
Florida has reciprocity with the following states: Alabama, Arkansas, Connecticut, Georgia, Illinois, Kentucky, Mississippi, Nebraska, Rhode Island and West Virginia.
In Georgia, the license requirements for real estate agents are as follows:
Georgia doesn’t have a professional liability insurance requirement, but considering coverage is still a good idea.
Georgia offers reciprocity with all states.
Here are the requirements to be a real estate agent in Hawaii:
You are not required to have professional real estate insurance in Hawaii.
You may apply for a Hawaiian real estate license if you already hold another state’s existing real estate license.
To get a real estate license in Idaho, you need to:
Idaho requires errors and omission insurance.
Idaho has no reciprocity agreements.
Here are the requirements for getting your Illinois real estate license:
There are no requirements for insurance for real estate agents in Illinois. However, you can manage risk with E&O and commercial liability insurance.
Illinois has reciprocity with Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Nebraska and Wisconsin.
Here are the requirements for the Indiana real estate license:
Indiana does not require insurance, but brokerages often require errors and omissions insurance.
You can submit your out-of-state license to see if you can receive reciprocity. If approved, you only have to take the Indiana exam portion.
In Iowa, you must satisfy the following requirements:
Iowa requires errors and omission insurance.
Iowa has a real estate license reciprocity with Arkansas, Georgia, Louisiana, Minnesota, Mississippi and North Dakota.
The Kansas real estate license requirements are:
Kansas does not require errors and omissions insurance, but your brokerage may have its own insurance requirements.
Kansas does not have a reciprocity agreement with other states.
In Kentucky, the requirements for real estate agent include:
To hold a Kentucky real estate license, you must have errors and omission insurance.
Kentucky has a reciprocity agreement with Florida, Ohio, Tennessee, West Virginia and Illinois.
The Louisiana real estate license requirements include:
Louisiana requires real estate agents to obtain errors and omission insurance.
Louisiana has reciprocity with Alabama, Arkansas, Colorado, Georgia, Iowa, Mississippi, New Mexico, Oklahoma and Pennsylvania.
The requirements for a real estate license in Maine are as follows:
There are no insurance requirements for real estate professionals in Maine, but brokerages may require you to get errors and omissions insurance.
You can earn reciprocity by passing a portion of the exam related to Maine law.
In Maryland, you can become a real estate agent by doing the following:
Maryland does not require errors and omission insurance for realtors, but other authorities, such as employers and brokers, may require it.
Maryland has reciprocity agreements with Pennsylvania and Oklahoma.
Massachusetts has the following requirements for real estate licenses:
You are not required to have E&O insurance.
The following states have reciprocity agreements in Massachusetts: Connecticut, Rhode Island, West Virginia, Nebraska, Tennessee, Mississippi, Colorado, Georgia, Pennsylvania, New Mexico and Oklahoma.
You’re required to do the following to become a Michigan real estate agent:
The state of Michigan has no insurance requirements for real estate agents, but because you are required to be part of a brokerage, your employer may require it.
Michigan does not have reciprocity with other states.
In Minnesota, you can qualify for a real estate salesperson license if you:
Minnesota does not require errors and omissions coverage, but most brokerages will require this with associated real estate agents.
Minnesota reciprocates with Colorado, Iowa, Nebraska, North Dakota, South Dakota and Oklahoma. If you are moving from a different state, you must complete 13 hours of coursework and pass an exam.
To get a Mississippi real estate license, you’ll need to:
Errors and omission insurance is required to practice real estate in Mississippi.
According to Mississippi law, you can get a real estate license in Mississippi if you have held a license for a year or more in another state.
In Missouri, you must do the following to obtain a real estate license:
Missouri real estate agents do not have insurance requirements.
If you hold a real estate license from another state, you can take the Missouri portion of the coursework and exam to qualify for a license.
Here are the requirements for getting your real estate license in Montana:
You must show evidence of professional liability and errors and omission insurance in Montana.
If you have a license from a different state, you must pass the Montana portion of the real estate exam.
The Nebraska requirements for a real estate license include:
Nebraska requires E&O coverage for realtors.
According to the Nebraska Real Estate License Act, as long as your real estate license from another state is in good standing, you can qualify for a Nebraska real estate license.
Here are the Nevada real estate license requirements:
Nevada has no insurance requirements for real estate agents, but other organizations you work with may require it.
The following states qualify for a reciprocal license in Nevada: Arizona, Colorado, Delaware, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Oklahoma, South Carolina, Texas, Utah, Washington and West Virginia.
The New Hampshire real estate license requirements include the following:
You are not required to show proof of insurance to become a real estate agent in New Hampshire.
Must complete an application and pass the New Hampshire portion of the exam.
In New Jersey, you need the following to get a real estate license:
You are not required to have E&O coverage in New Jersey, but your employer/ brokerage will require it.
New Jersey does not have any reciprocity agreements with other states.
Here are the qualifications for becoming a New Mexico real estate agent:
New Mexico requires real estate agents to obtain errors and omission coverage.
New Mexico has reciprocity agreements with Massachusetts, Louisiana and Georgia.
In New York, you fulfill the following requirements to become a real estate agent:
New York does not have a specific insurance policy for real estate agents. However, your sponsoring brokerage may have a requirement.
New York does not have reciprocity with other states, but you may submit a written waiver request for consideration.
In North Carolina, you can do the following to satisfy your real estate license requirements:
The commission determines whether the applicant possesses the requisite “character” for licensure.
Insurance is not required, but you may need coverage for employment with a broker.
The requirements for getting a North Carolina real estate license are simplified if you already have one from another state. North Carolina provides license holders with several options. One includes passing the North Carolina portion of the exam.
The North Dakota real estate licensing requirements are as follows:
You must submit proof of errors and omissions insurance if you have an active license in North Dakota.
North Dakota has reciprocity agreements with Minnesota, Iowa and Georgia.
In Ohio, you need to fulfill the following requirements before becoming a licensed real estate agent:
Ohio does not require insurance, but your sponsoring broker will likely require insurance for errors and omissions.
Ohio has shortened requirements if you already hold a license from another state. You can view the application for out-of-state applicants here.
Here are the Oklahoma real estate license requirements:
Oklahoma does not require errors and omissions insurance, but organizations you associate with, like brokers and banks, do.
Oklahoma has reciprocity agreements with Alabama, Arkansas, Iowa, Louisiana, Maryland, Nebraska, North Dakota and South Dakota.
The Oregon real estate license requirements are as follows:
Oregon does not require insurance for real estate agents, but because you are required to work with a broker, they may require coverage.
Oregon has reciprocity agreements with Alabama, Georgia, Nebraska and South Dakota.
Here are the Pennsylvania real estate license requirements:
Errors and omission coverage is not required for a real estate agent in Pennsylvania, but many licensed brokers will require insurance.
If you have an active license from another state, you must pass the Pennsylvania portion of the real estate exam.
Here are the requirements for becoming a real estate agent in Rhode Island:
Rhode Island requires errors and omissions insurance with a minimum coverage of $100,000.
Rhode Island has reciprocity agreements with Connecticut, Massachusetts and Florida.
The requirements to become a real estate agent in South Carolina are as follows:
You are not required to have insurance coverage. However, you are required to be associated with a brokerage. Many brokers will require errors and omissions insurance.
South Carolina reciprocates with Georgia and North Carolina.
Here are the requirements for a real estate license in South Dakota:
All active license holders in South Dakota must have insurance for errors and omissions.
If your real estate license is in good standing, you can complete an application for a South Dakota license.
Here’s what is required to be a real estate agent in Tennessee:
Tennessee requires errors and omissions insurance coverage for real estate agents.
You must pass the Tennessee portion of the real estate exam and submit proof of license from your other state.
Here are the requirements for becoming a Texas real estate agent:
You do not have to get insurance coverage for your real estate license. However, most sponsoring brokers will require at least errors and omissions insurance.
Texas does not have reciprocity with any state.
Here are the Utah real estate license requirements:
Utah does not require E&O insurance, but your employing broker may require it.
Utah has reciprocity agreements with Georgia, Mississippi and Alberta, Canada.
The requirements to become a Vermont real estate agent include:
Errors and omissions coverage is not required in Vermont. But being affiliated with a broker is, and many offices require this coverage.
All applicants must take the state exam.
In Virginia, you must satisfy the following requirements to become a real estate salesperson:
You’re not required to have insurance coverage, but you may need E&O insurance if you work for a broker.
If you have an active license from another state, you must complete pre-license education and pass the Virginia portion of the exam.
Here are the requirements for becoming a real estate agent in Washington:
You’re not required to have errors and omission insurance in Washington, but your associate broker may require it.
Washington does not offer reciprocity. However, you can take the state portion of the exam if you have an active license from another state.
In West Virginia, you need to do the following to become a real estate agent:
There are no insurance requirements for West Virginia real estate agents, but sponsoring brokers often require E&O insurance.
West Virginia does not have reciprocity agreements with other states.
Here are the requirements for a Wisconsin real estate license:
You do not need E&O coverage, but many brokers will require real estate agents to hold this policy.
Wisconsin has reciprocity agreements with Illinois and Indiana.
Wyoming requires its real estate agent applicants to do the following:
Wyoming real estate agents must have and show proof of errors and omissions insurance.
Wyoming does not offer reciprocity with other states.
NEXT offers real estate agent insurance for those getting their real estate license — including errors and omissions insurance. We make it easy to file common real estate claims and offer added protection as you grow your small business.
Using your mobile device or computer, you start a free quote, compare insurance options, purchase coverage and get an instant certificate of insurance. It takes about 10 minutes.
This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.
Jessica spent over a decade working in education before moving into content marketing. She has worked on content marketing campaigns in the edtech, real estate, and personal finance sectors. She has a passion for working with companies that take the time to educate their customers. When she’s not working, she’s probably outside with her two kids.
