Introduction
Becoming a real estate broker in California is a major milestone for any licensed real estate agent looking to expand their career. As a broker, you gain more independence—you can manage your own brokerage, supervise agents, and earn higher commissions.
In this guide, we’ll walk you through everything you need to know about how to become a real estate broker in California , including:
- Broker license requirements
- Required education and experience
- Exam preparation
- Application process
- Tips for starting your own brokerage
Let’s get started!
What Is a Real Estate Broker?
A real estate broker is a licensed professional who has completed additional education and passed a more advanced licensing exam than a salesperson (agent). Brokers can:
- Work independently or open their own brokerage
- Hire and supervise real estate agents
- Negotiate and sign contracts
- Manage escrow and closing transactions
There are two types of brokers in California:
- Broker Associate : Works under another broker but has full broker rights.
- Designated/Managing Broker : Owns or manages a brokerage and is responsible for compliance and supervision.
Requirements to Become a Broker in California
Before applying for a broker license, you must meet specific eligibility requirements set by the California Department of Real Estate (DRE) .
To qualify, you must:
- Be at least 18 years old
- Have a high school diploma or equivalent
- Have at least 2 years of active real estate salesperson (agent) experience within the last 5 years
- Complete 8 college-level courses (totaling 54 semester units or 81 quarter units) approved by the DRE
Required Courses Include:
- Real Estate Principles (3 semester units)
- Real Estate Practice (3 semester units)
- Legal Aspects of Real Estate (3 semester units)
- Real Estate Finance (3 semester units)
- Real Estate Appraisal (3 semester units)
- Property Management (3 semester units)
- Real Estate Economics or Investment (3 semester units)
- Elective Course (3 semester units)
Step-by-Step Guide: How to Become a Real Estate Broker in California
Step 1: Meet the Experience Requirement
You must have at least 2 years of active experience as a licensed real estate salesperson within the past 5 years.
Tip : Keep copies of your employment records or association memberships as proof.
Step 2: Complete the Required Education
Enroll in and complete all eight DRE-approved college-level courses . You can take them online or in person at:
- Community colleges
- Real estate schools (e.g., Kaplan, Real Estate Express, Coldwell Banker Affiliated Brokers Academy)
- Universities offering real estate programs
Note : Many institutions offer bundled broker pre-licensing packages.
Step 3: Submit Your Application
Once your coursework is complete, submit the following to the California DRE :
- Application for Real Estate Broker License (RE 201)
- Proof of education (transcripts or course completion certificates)
- Fingerprint clearance (via Live Scan)
- Application fee ($305 as of 2025)
Step 4: Pass the California Real Estate Broker Exam
After your application is approved, schedule and pass the California Real Estate Broker Exam .
Exam Details:
- Format: Multiple choice
- Number of Questions: 150
- Time Limit: 3 hours
- Passing Score: 75%
- Topics Covered: Agency relationships, financing, contracts, property management, legal issues, ethics, and economics
Tip : Use official DRE study guides, practice exams, and prep courses to prepare.
Step 5: Get E&O Insurance (Optional but Recommended)
While not required by the DRE, most title companies and lenders prefer working with brokers who carry Errors and Omissions (E&O) insurance .
Step 6: Choose a Brokerage (or Start Your Own)
If you’re not opening your own brokerage, you can join an existing one as a Broker Associate .
If you want to start your own brokerage:
- File a Fictitious Business Name Statement (DBA)
- Obtain a Federal Tax ID (EIN)
- Open a broker trust account
- Register your business with the Secretary of State (if incorporated)
- Comply with local zoning laws if renting office space
Top Schools for Real Estate Broker Licensing in California
Here are some top-rated schools offering DRE-approved broker pre-licensing courses:
| Kaplan Real Estate Education | Online & In-Person | Online + Classroom |
| Real Estate Express | Fully Online | Online |
| Realty ONE Group University | Online & CA Locations | Online + In-Person |
| Los Angeles City College (LACC) | Los Angeles | In-Person |
| UC Berkeley Extension | Online & Bay Area | Online + In-Person |
Cost to Become a Real Estate Broker in California
The total cost varies depending on where you take your courses and whether you start your own brokerage.
| Pre-Licensing Courses | $900 – $2,500 |
| DRE Application Fee | $305 |
| Live Scan Fingerprinting | $50 – $75 |
| Broker Exam Fee | Included in application |
| E&O Insurance (Optional) | $500 – $1,500/year |
| Starting a Brokerage (Optional) | $500 – $2,000+ |
Tips for Success as a California Real Estate Broker
- Build a strong team of agents and support staff
- Invest in marketing and lead generation tools
- Stay compliant with DRE regulations and continuing education
- Network with other professionals (title companies, lenders, attorneys)
- Offer training and mentorship to new agents
Continuing Education for Brokers
To maintain your license, you must complete 45 hours of continuing education every 4 years , including:
- 27 hours in core subjects (ethics, contracts, agency law)
- 18 hours in elective topics
Career Opportunities After Becoming a Broker
As a licensed broker, you can explore various roles and paths:
- Independent broker owner
- Managing broker for a real estate firm
- Real estate investor or developer
- Real estate trainer or mentor
- Commercial real estate broker
Conclusion
Becoming a real estate broker in California is a rewarding career move that opens doors to greater independence, leadership opportunities, and income potential. With the right education, experience, and mindset, you can successfully transition from agent to broker—and even build your own brokerage.
Whether you’re looking to grow your influence in the industry or start your own business, the steps outlined in this guide will help you achieve your goals.
Frequently Asked Questions (FAQs)
Q: How long does it take to become a real estate broker in California?
A: Typically 6–12 months, depending on how quickly you complete the required courses and pass the exam.
Q: Do I need to be a licensed agent before becoming a broker?
A: Yes, you must have at least 2 years of active real estate salesperson experience within the last 5 years.
Q: Can I take the broker exam without experience?
A: No, experience as a licensed agent is required before applying for the broker license.
Join The Discussion