Confused By Real Estate License Reciprocity?
In simple terms, reciprocity is an agreement between two states that allows a real estate licensee to operate in both states with a single license. So, if you’re licensed in Pennsylvania and move to New Jersey, you can continue to work as a real estate agent without having to secure a new license.
What does real estate reciprocity and portability mean for agents? Let’s take a look. Reciprocity is when two states agree to let licensed professionals practice in each other’s states. Portability is when an agent gets a license in one state and then moves to another state that has reciprocity and can continue to practice there. Some states offer full reciprocity, which means an agent can get a license in that state without taking any additional exams. Partial reciprocity means that an agent may need to take some additional exams. There are also states that have no reciprocity, which means an agent would need to get a new license in order to practice there.
What is real estate license reciprocity and portability?
Reciprocity agreements between states makes it possible for real estate agents to get licensed in other states without having to go through the pre-licensing process.
Obtaining a real estate license in a state that allows for reciprocity with another state is something that any licensed real estate agent can do as long as they are operating within a state that has this agreement. Most of the time, the agent taking advantage of this will need to pass the exam for the reciprocal state before being granted the ability to do so.
Reciprocity agreements are broadly categorized into three types:
- Full reciprocity — These are states that allow agents to transfer their real estate license from any state.
- No reciprocity — States that do not allow reciprocity for out-of-state licenses.
- Partial reciprocity — Agents are required to undertake a little exam or education before licensing.
Real estate license portability is a term for state laws that allow out-of-state brokers or agents to operate without getting a new license in a neighboring location. This is only a temporary solution that allows the agent to do business across state lines.
Portability laws have been categorized into:
- Cooperative — The out-of-state agent is allowed to enter another state and carry out the real estate business.
- Physical location —The broker or agent can conduct the business remotely in another state and not in person.
- Turf states — The out-of-state broker or agent is not allowed to conduct real estate business in the state.
Selling Across States
As a real estate agent, you need to be aware that every state has its own unique requirements and laws. You should familiarize yourself with these laws before conducting business in any state.
The process for moving or doing real estate work out-of-state in the United States is fairly straight-forward.
As technology advances, so do the ways businesses can operate. Real estate agents can now take advantage of this by expanding their business into other states without having to start their coursework over. Real estate reciprocity allows agents to operate in other states without the need to start their coursework all over again.
Even though different laws and requirements may apply, real estate agents are still required to pass a test that is offered by the state.
States that offer Full Reciprocity
The list of states that offer reciprocity to licensedCounselors vary slightly. The full list of states that offer reciprocity are: Alabama, Kansas, Virginia, Colorado, Mississippi, Alaska, Washington, Missouri, Georgia, Delaware, Kentucky, and Maine.
You can get a real estate license in another state if that state has full reciprocity with the state you’re currently licensed in. This means you wouldn’t have to retake the general real estate courses, and could instead just focus on the state-specific laws and requirements. If you pass the examination, you would be issued a new real estate license.
The Requirements for Full Reciprocity
- Your current real estate license must be active.
- Any expired license should be renewed before applying for reciprocity.
- Ethical standards and practices must be impeccable. Anyone with any disciplinary action must resolve the issue before submitting an application.
States that Offer Partial Reciprocity
This text is discussing partial reciprocity agreements between states, where some states offer licenses to agents or brokers from other states, while others do not. Each state has its own laws and requirements, so there is no defined pattern through which these states offer reciprocity. For example, in Florida, real estate license reciprocity works through mutual recognition agreements with other states.
This means that:
- Certain states offer license reciprocity to states that share similar laws.
- Some states grant reciprocity to neighboring states.
- Some subscribe to neither but have their own requirements.
- Your existing real estate license should be active before you to apply for the reciprocal license.
- Ethic or work practices should be in good standing. Any issues should be resolved before applying for one.
The following states grant partial reciprocity: Rhode Island, Nebraska, Florida, Illinois, Nebraska, Iowa, Maryland, Nevada, Minnesota, Idaho, New Hampshire, North Carolina, Tennessee, Ohio, Oregon, Louisiana, Massachusetts, Connecticut, Oklahoma, Pennsylvania, South Carolina, Utah, New Mexico, West Virginia, New York, North Dakota, and Wisconsin.
What states have reciprocity with Florida real estate license holders?
According to Florida’s real estate reciprocity agreements, licensed real estate agents from Alabama, Arkansas, Connecticut, Kentucky, Georgia, Illinois, Mississippi, Nebraska, and Rhode Island can all practice in Florida.
States with No Real Estate License Reciprocity
There are twelve states that do not offer license reciprocity for real estate agents. This includes Arizona, Vermont, California, Texas, Indiana, Wyoming, Hawaii, South Dakota, Montana, Michigan, New Jersey, and Kentucky. Therefore, if an agent wants to move out of state, they have to retake the real estate courses. Furthermore, agents and brokers are required to begin their real estate education and licensing process from the beginning.
The process might not be convenient, but it allows you to improve your skills and knowledge.
Can I use my California real estate license in other states?
California does not have an agreement with any other state that would allow a person to practice with a license from California. Therefore, if you want to practice in a state other than California, you would need to get a new license.
Hardest States to get a Real Estate License
Colorado and Texas are the two most difficult states to obtain a real estate license in. Both states require some education and a test to be taken and passed before a license is issued. The number of hours required to complete the necessary education varies from 20 hours to over 200 hours, depending on the state. The classes required can be taken online or in person.
In most states, real estate agents and brokers are licensed differently. Most states require real estate salespeople to work under a broker in order to be granted an active license.
A real estate agent is a salesperson with hands-on experience, more education, and qualifications. They may have different names depending on the state. In Colorado, they are referred to as an associate and will work under the employing broker or independent broker.
Many people believe that Colorado is the hardest state to become a licensed insurance agent due to the number of education hours required. In contrast, most other states have less stringent requirements, with many states only requiring 40 education hours. You may be able to skip pre-licensing education if you have passed the bar exam or if you have graduated from law school.
What are alternatives for agents?
Other options may need to be considered if the above licensing doesn’t work for you.
An example of this would be a virtual brokerage that would allow agents or brokers to work in multiple states without needing to be licensed in any of them. This would enable you to work on deals that span multiple states.
If you are planning to buy or sell real estate in multiple states, it is important to have a real estate agent or broker who is familiar with the laws and regulations in each state. Otherwise, you may run into problems.
Full License Reciprocity States
Full license reciprocity states allow you to get your new real estate license without having to take the general real estate courses again. You can skip the courses you’ve already taken, and focus on learning the state-specific real estate laws. Once you pass the state-specific portion of the real estate exam, you can get your new real estate license.
Assuming your license is active, the second caveat is that you must have been practicing real estate for at least two of the past five years. The third caveat is that your original licensing state must have requirements that are at least as stringent as the state to which you are applying for reciprocity. If you meet all of the above requirements, you are likely eligible for reciprocity. To be eligible for reciprocity, you must have an active real estate license in your current state, you must have been practicing real estate for at least two of the past five years, and your original licensing state must have requirements that are at least as stringent as the state to which you are applying for reciprocity.
Additionally, your current state must certify that you are “in good standing”. If you have any disciplinary actions or questions about your business practices or ethical standards, make sure those issues are resolved before applying for real estate reciprocity.
If the following two conditions are met, you are able to apply for license reciprocity in states where reciprocity is fully allowed.
No matter which state you’re moving from, consider yourself lucky if you’re moving to one of these five full license reciprocity states:
States With No License Reciprocity
Some states do not have a reciprocity agreement with other states, meaning you will have to retake your real estate courses if you move to one of those states.
Although some of the course material may be challenging, you will be able to quickly and easily get through a lot of it. You will also be given a helpful refresher on some of the topics you do not encounter every day in your job.
If you are moving to a state where you cannot use your previous real estate license, don’t worry! This is just a small setback on the way to having a successful real estate business in your new state!
The seventeen states with no license reciprocity are:
- New Jersey
- New Mexico
- South Dakota
States with Partial License Reciprocity
The other US states offer partial license reciprocity, meaning that your new state may offer license reciprocity for real estate agents moving from one state, but not for agents moving from another state.
Each partial license reciprocity state has different requirements, so we need to investigate each one separately.
There is no pattern to which states offer driver’s license reciprocity. Some states offer reciprocity only to neighboring states, some states offer reciprocity only to states with similar driving laws, and some states just seem to dislike another state.
Even if license reciprocity is offered, you’ll still need to meet a few conditions to apply for a reciprocal license. Make sure your current license is active when you apply, and that there’s nothing keeping you from being an agent in good standing.
Having said that, here are the 28 states that offer partial license reciprocity:
Arkansas offers licenses to agents moving from the following states: Alabama, Colorado, Florida, Georgia, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New York, Ohio, Oklahoma, Pennsylvania, South Dakota, Washington, and West Virginia.
If you are an insurance agent moving to Connecticut from Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New York, Ohio, Oklahoma, or Rhode Island, you will be able to get a license in Connecticut without having to take another exam.
If you are an insurance agent moving to Florida from one of the following states – Alabama, Arkansas, Connecticut, Georgia, Illinois, Mississippi, Nebraska, or Rhode Island – you will be able to receive a license to practice in Florida.
Minnesota Agents who are moving from any state to Georgia will have their licenses reciprocated, with the exception of Florida and Minnesota.
If you are an insurance agent moving to Idaho from Wyoming, Oregon, or Montana, you will be able to get a license in Idaho without having to take another licensing exam.
If you are an insurance agent moving to Illinois from one of the following states: Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Nebraska, South Dakota, or Wisconsin, you will be able to receive a license reciprocity.
If you are an insurance agent moving to Indiana from Arkansas, Colorado, Connecticut, Florida, Georgia, Illinois, Iowa, Kentucky, Massachusetts, Mississippi, Missouri, Nebraska, Oklahoma, or Wisconsin, you will be able to get a license in Indiana without having to take another licensing exam.
If you’re an insurance agent moving to Iowa from any of the following states – Alabama, Arkansas, Georgia, Louisiana, Massachusetts, Minnesota, Mississippi, North Carolina, North Dakota, Tennessee, or West Virginia – you’ll be able to get a license to continue practicing in Iowa.
Agents from Alabama, Arkansas, Colorado, Georgia, Mississippi, North Carolina, Oklahoma, New Mexico, Pennsylvania, and Iowa who want to move to Louisiana can do so without having to get a new license.
Agents who are moving to Maryland from Pennsylvania and Oklahoma will be able to transfer their licenses.
If you are an insurance agent moving to Massachusetts from any of the following states – Alabama, Arizona, California, Connecticut, Louisiana, Maine, Missouri, New Hampshire, New York, Ohio, Oregon, Rhode Island, and Washington – you will be eligible for a license reciprocity.
If you are an insurance agent moving to Minnesota from Colorado, Iowa, Nebraska, North Dakota, Oklahoma, South Dakota, or Wisconsin, you will be able to get a license in Minnesota without having to retake the licensing exam.
The states of Alabama, Arkansas, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Washington, West Virginia, and Wyoming offer license reciprocity for agents moving from Nebraska.
If you’re an insurance agent moving to Nevada from any of the following states — Arizona, Delaware, Idaho, Kentucky, Louisiana, Ohio, Texas, Utah, or West Virginia — you’ll be able to get a Nevada license through reciprocity.
New Hampshire offers a licensing reciprocity for agents moving from Massachusetts, Maine, Vermont, Tennessee, and Georgia, which allows them to use their current license from any of those states to apply for a New Hampshire license.
New York offers licenses to agents moving from Arkansas, Colorado, Connecticut, Georgia, Massachusetts, Mississippi, Oklahoma, Pennsylvania, and West Virginia.
If you are an insurance agent moving to North Carolina from any of the following states – Arkansas, Connecticut, Georgia, Iowa, Louisiana, Mississippi, Nebraska, South Carolina, Tennessee, or West Virginia – you will be able to receive a license reciprocity from North Carolina.
An agent relocating from Georgia, Iowa, Minnesota, or Tennessee would only need to complete a North Dakota resident application, including any required documentation, to receive aNorth Dakota license.
If you’re an insurance agent moving to Ohio from Arkansas, Colorado, Connecticut, Mississippi, Nebraska, Oklahoma, West Virginia, or Wyoming, you may be eligible for license reciprocity.
Oklahoma offers reciprocal licensing for agents moving from Alabama, Arkansas, Iowa, Louisiana, Maryland, Nebraska, North Dakota, and South Dakota -Oregon offers reciprocal licensing for agents moving from Alabama, Georgia, Nebraska, and South Dakota