Reciprocity & Portability
Real estate is an extremely flexible career. No matter where you’re located, there’s always a need for real estate agents. If you decide to move from one state to another or want to practice in another state, you can bring your career with you as long as you bring your real estate licensing up to the regulations of that state. But what does that mean? Are you going to have to retake the real estate licensing exam? Say it isn’t so!
Don’t worry. In most cases, you won’t. In this article, we’re going to talk about what you’ll need to do to make your transition from one state to another as easy and pain-free as possible so you can keep practicing as an agent. First, let’s talk about real estate license reciprocity.
What is real estate license reciprocity?
Need to move? The first thing you should do is look at the real estate license reciprocity guidelines between the state you’re living in now and the state to which you’re considering moving.
Real estate license reciprocity is an agreement between states that allows the holder of a real estate license in one state to fast-track the process of getting a license in another state. In many cases, this means an agent can bypass the pre-licensing courses and go straight to taking the real estate exam. This method is a way of acknowledging the legitimacy of other states’ education and licensing process.
What is real estate license portability?
Not making a permanent move? The ability to sell real estate from state to state in a short-term manner is governed by real estate license portability laws. There are three primary classifications: cooperative, physical location, and turf.
Cooperative states that have real estate portability agreements allow a licensed real estate agent from one state to enter another state, conduct business, and receive commissions. There’s just one stipulation. The visiting agent must co-broker the transaction with an agent licensed in the state the sale takes place.
States with a physical location real estate license portability law allow real estate agents to represent their clients in out-of-state purchases or sales as long as they do so remotely. Out-of-state real estate agents are not permitted to be in the state where business is being conducted.
Turf states with turf laws do not allow agents licensed in another state to conduct business in that state. You will need to refer your client to an agent licensed in that state. You are not allowed to be part of the transaction at all.
Want to know what the real estate license reciprocity guidelines are for each state? Click a state below to learn more about their specific reciprocity guidelines.
Real estate license reciprocity details for your state
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