What Does the Real Estate Pre-Licensing Education Consist of?

The process to become a real estate agent can be confusing. It isn’t a career that requires a college education, but having one certainly helps. It also isn’t a career where you can start doing business immediately. Becoming a real estate agent requires a license that is regulated by the state in which you plan to sell, buy, lease, or manage real estate.

Each state differs on certain aspects of the real estate licensing process, including how much education is required, what topics are included in the required pre-licensing education, the fees involved, and the type of examination. There are also different rules regarding the application process for a real estate license following the pre-licensing education. In this guide, we discuss the general real estate pre-licensing education requirements so you can see what it takes to become a real estate agent.

What is Covered in Real Estate Pre-licensing Education?

Wondering what is covered in real estate pre-licensing education? Ultimately, it depends on your specific state, but to give you an idea, we have outlined Colorado’s real estate licensing education as an example.

In Colorado, you need to complete 168 hours of real estate education or hold a degree in real estate from an accredited college or university. Each of the courses listed below is college-level and has reading assignments in textbooks, assignments in workbooks, quizzes, practice exams, and final examinations.

• Real Estate Law and Practice (48 hours): Intro to real estate course that covers key terms and concepts and reviews the federal laws practiced in a majority of states and on a national level.
  

• Colorado Contracts and Regulations (48 hours): Covers Colorado Real Estate Commission-approved contracts and helps students understand Colorado real estate regulations.
  

• Trust Accounts and Recordkeeping (8 hours): Instructs students on the proper recordkeeping required by the Real Estate Commission to maintain and account for funds belonging to others.
  

• Current Legal Issues (8 hours): Helps students develop or enhance their knowledge of current real estate related statutes and regulations and important legal issues, developments, and practices.

• Real Estate Closings (24 hours): Teaches students how to close a real estate transaction, from the contract to after the closing, plus accounting for all funds received and disbursed. This course also includes a comprehensive overview of legal documents prepared by brokers.

• Practical Applications (32 hours): Provides a course of study for new real estate brokers in the application of laws, rules, and standard practices. This course also provides a working knowledge of the practical applications of entering the real estate industry.

Thinking about starting a real estate career? Download the Launching Your Real Estate Career eBook

Download

How Do You Complete Real Estate Pre-licensing Education?

The real estate pre-licensing curriculum can be completed in a variety of ways, from live classroom locations around the state to textbook home-study and online real estate licensing course options. To help you through this level of the real estate curriculum, schools add value to the courses with tools like study guides, study groups, instructor office hours, drill and practice questions, and exam prep courses.

How Long Does it Take to Get a Real Estate License?

On average, it takes 2-6 months to complete the education requirements and become a licensed real estate agent. You might be able to earn your license in eight weeks or less depending on your educational background (for example, if you already have a college degree in real estate and don’t need to take pre-licensing classes) and how quickly you can pass your state's real estate licensing exam.

The Real Estate Licensing Exam

The real estate licensing exam varies by state, but generally consists of a state-specific section and a national (general) section. The exam is almost always computer-based and monitored by a proctor at a testing center. In Colorado, the exam consists of 74 state-specific questions and 80 national questions for a total of 154 questions. To pass your real estate licensing exam, most states require a minimum overall score of at least 70%. To pass the real estate licensing exam in Colorado, for example, you must correctly answer 60 of the national questions and 53 of the state questions. You will receive your results immediately after completing the exam.

How Hard is the Real Estate Licensing Exam?

Most prospective real estate agents find the real estate licensing exam challenging. However, pass rates for the real estate licensing exam vary by state. For example, Colorado's exam pass rate for first-time test-takers was a little over 65% in Q3 of 2023. Whereas in Texas, the exam pass rate is approximately 58% as of November 2023. The reason the real estate licensing exam is so difficult is to weed out examinees who are not serious about becoming a real estate agent and to ensure only qualified agents enter the field. However, for students who are organized and have spent adequate time preparing, it will not be as difficult.

How to Pass the Real Estate Exam >>