Commercial Real Estate News / Marketing / How to Become a Commercial Real Estate Agent in California

How to Become a Commercial Real Estate Agent in California

Published: 07-09-23 Category: Marketing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

The setting sun behind a coastal California shore.

Like most states, California has some basic eligibility requirements to become a commercial real estate agent:

You must be at least 18 years old;
You must be a legal California resident; and
You must demonstrate honesty and integrity.

Here, we'll guide you through what you need to do to get your commercial real estate license, become a commercial real estate agent in California, and get ahead in your future career.

Steps to Become a California Commercial Real Estate Agent

The entire process to become a commercial real estate agent in California takes about a year, from start to finish.

#1 – Complete Coursework

California law requires real estate agents to complete at least 135 hours of real estate education at a program that is accredited by the California Department of Real Estate (DRE). Required courses include:

45 hours of Real Estate Principles;
45 hours of Real Estate Practice.

And one course from the list below:

Real Estate Appraisal;
Property Management;
Real Estate Economics;
Real Estate Finance;
Legal Aspects of Real Estate;
General Accounting;
Business Law;
Mortgage Brokering and Lending;
Common Interest Developments;
Computer Applications in Real Estate; or
Escrows.

After completing the coursework, you must pass the final course exam with at least a 70%. Students can fail the exam twice before having to retake the course.

#2 – Complete License Application

Next, you need to complete a paper or online application for a real estate license. The application process will verify your education and exam results.

As part of the application process, you must submit a fingerprinting and criminal background check. After completing and verifying your application, you can schedule a licensing exam date.

Note that you can still get your real estate license in California even if you have a criminal record. The DRE will consider the nature of the crime and the applicant's recent behavior before making a decision.

#3 – Pass State License Exam

How to Become a Commercial Real Estate Agent in California

After the DRE verifies and processes your application, you can schedule a date to take the state real estate licensing exam. The California real estate license exam includes 7 sections that cover real estate practice, finance, law, and regulations for a total of 150 questions.

You have three hours and 15 minutes to complete the exam and need to answer at least 105 questions correctly to pass. When you arrive at your examination location, you'll have to present a valid photo ID. The test is electronically administered, so you'll get your results as soon as you finish.

#4 – Find a Broker Sponsor

Like most other states, real estate agents cannot work independently and must instead work with a broker. So, before you can start working as an agent, you'll need to find a broker sponsor.

Agents have several options to find sponsoring brokers, including online job sites and professional networks like LinkedIn. Joining a professional association, such as the National Association of Realtors (NAR) can also help you find a broker sponsor to work with.

When searching for a sponsor brokerage, consider the following questions:

What kind of commercial real estate do they specialize in (i.e., office space, industrial, multifamily, etc.)?
What kind of promotional opportunities will they offer?
What is the commission structure like?
Will they assist with your continuing education?
What kind of fees do they charge?

You won't be able to legally work as an agent until you find a broker sponsor, so you should try to find a willing sponsor before you start the license application process.

California Real Estate License Renewal

California real estate agents must renew their licenses once every four years. Continuing education requirements include 45 hours of the following.

Five, three-hour courses in:
- Agency;
- Trust Funds;
- Fair Housing;
- Ethics; and
- Risk Management.
Two hours of implicit bias training; and
18 hours of consumer protection courses.

The renewal fee is $245 for agents and you can start renewing your license within 90 days of its expiration. After expiration, you have two years to renew your license before you'll have to take the exam again. Late renewal has a $367 fee.

How Do You Get a California Real Estate Broker License?

California real estate agents need to work with a broker if they want to buy and sell real estate. If you want to work independently, you'll need to get your brokerage license.

In order to get your real estate broker license in California, you need to have at least two years of experience working in a qualifying real estate position or have a 4-year degree from an accredited university. You will need to submit proof of this experience when applying for your broker license.

Brokers also need to complete eight specific real estate courses from an approved institution:

Real Estate Practice;
Real Estate Finance;
Real Estate Appraisal;
Real Estate Economics/Accounting; and
Three electives.

After submitting an application and the required fees, you will need to pass the real estate broker license exam. The brokerage exam, like the real estate agent license exam, consists of sections on property law, finance, regulations, and professional ethics. You must answer at least 75% of the questions correctly to pass.

How Much Does It Cost to Become a California Real Estate Agent?

The basic costs to become a California commercial real estate agent include tuition fees, licensing fees, and exam fees.

Tuition: $100 to $700;
License fee: $245;
Exam fee: $60;
Total: $405 to $1,005.

The main variable cost is tuition, which depends on the specific program or package you choose.

California Commercial Real Estate Agent Job Outlook

Projections from the California Employment Development Department indicate that the job market for California real estate agents will grow 7.6% between 2018 and 2028—higher than the job's national growth rate of 5.6%.

These stats make California one of the best states to work as a commercial real estate agent.

How Much Do California Real Estate Agents Make?

According to data from ZipRecruiter, the average annual salary for commercial real estate agents in California is $115,753, which comes out to approximately $56 an hour.

California real estate agents make about 15% more than the national average ($100,487), and the top 3% of commercial real estate agents make an average of $172,589.

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