How do you become a real estate broker?

What changes when you become a broker

An agent can't work alone. In Texas, a sales agent can only do brokerage work while associated with a sponsoring broker, and that broker is answerable for what the agent does. Commissions have to go through the sponsoring broker, and a sales agent can't hold an escrow account. A broker license removes those limits. You can hold client money, sign agreements in your own name and supervise agents.

Every state follows the same basic order. First you get your salesperson license and work under a broker. Next you build the required years and, in some states, a record of deals. Then you take broker-level courses, pass the broker exam and apply. What varies from state to state is the number of years, the course hours and how strictly experience is documented.

How four large states compare

California wants two years of full-time licensed salesperson experience within the last five years. Equivalent experience also counts, and a four-year degree with a real estate major or minor replaces the experience requirement. You also need eight college-level courses, each at least 45 hours if taken through a DRE-approved school. Texas is the hardest of the four. It requires four years of active license time in the last five years, 720 experience points, 270 hours of qualifying courses and 630 hours of related education.

Florida asks for 24 months of experience within the five years before licensure, a 72-hour broker pre-licensing course and a score of at least 75 on the state exam. A 60-hour post-licensing course is due before the first license expires. New York sets the minimum age at 20. You need two years as a licensed salesperson, three years in the general real estate field, or a mix of both, plus 152 hours of approved education.

Associate broker or your own brokerage

Once licensed, you have two options. Many brokers stay at their firm as an associate broker. You keep the higher license but still work under a sponsoring broker, often with a better split and some team-leading duties. In Texas, an associated broker shouldn't advertise as just a "broker." Titles such as "associate broker" or "broker associate" are used so clients know who runs the firm. In New York, an associate broker needs a sponsoring broker even to renew.

Opening your own firm brings more paperwork. In Texas, a company that does brokerage needs its own license and a designated broker who is an officer or manager in good standing. It must also show it is qualified to do business in the state. In New York, your business name needs approval from the Division of Licensing Services before you apply. After approval, you file it with the county clerk or the Division of Corporations.

What it costs and what it pays

State fees are modest. California charges $150 for the broker exam, $450 for the license and $49 for fingerprints. New York charges $185 for the initial broker application and $15 for the written exam. Course tuition, association dues, insurance and office costs for a new firm come on top of that and vary widely.

BLS puts the national median for employed real estate brokers at about $75,500. Most brokers are self-employed, though, and BLS counts employees only, so these figures leave out most owners. Owner income depends on agent count, splits and deal volume more than on the license itself.

Pay

USD a year, before tax. Ranges run from the 25th to the 75th percentile of the BLS OEWS May 2025 real estate brokers series, moved to 2026 with the Employment Cost Index. Medians are $75,500 (US), $83,000 (CA), $65,400 (TX) and $68,100 (FL). BLS counts employees only, so most self-employed brokers and brokerage owners are not included. Refer to the Brokerage & Office Leadership salary guide for figures from live adverts.

What you need

• Salesperson license firstAlmost every route starts with a salesperson or sales associate license and active work under a broker. California also accepts equivalent experience, such as escrow, lending or appraisal work.
• Recent experienceThe experience must be recent. California, Texas and Florida all count only experience within the last five years.
• Broker educationHours range from 72 in Florida and 152 in New York to eight college-level courses in California and 900 total hours in Texas.
• Broker examYou must pass a separate state broker exam. Florida requires a score of at least 75, and New York's exam is multiple choice with 2.5 hours allowed.
• Background checkStates check your criminal history and honesty, and fingerprints are part of the application. California's fingerprint processing fee is $49.
• Minimum ageCalifornia and Texas set the minimum age at 18. New York sets it at 20.

State by state

How to get there

1. Year 0Get your salesperson licenseFinish your state's pre-license course, pass the exam and join a sponsoring broker.
2. Years 1-4Build qualifying experienceClose deals and keep records. Texas scores experience in points and New York sets point minimums.
3. Years 2-4Complete broker educationTake the broker courses your state requires. Texas's Real Estate Brokerage course must be finished within two years of applying.
4. Years 2-5Pass the broker exam and applySubmit your experience forms, transcripts, fingerprints and fees, then sit the state exam.
5. After licensingChoose your roleStay on as an associate broker under a sponsor, or license a company and serve as its designated broker.

Sources

1. California DRE: Requirements to apply for a real estate broker license
2. California DRE: Becoming a real estate broker (July 2026 update)
3. California DRE: Fees
4. TREC: Become an individual real estate broker
5. TREC: Applying for a Texas broker license step by step
6. TREC: Business entity broker license
7. Florida DBPR: Real estate broker requirements for licensure
8. New York Department of State: Become a real estate broker
9. New York Department of State: Real estate broker FAQ