Two license levels, one business
Every state licenses real estate work at two levels. The first is the salesperson license. Some states call it a sales agent license and Florida calls it a sales associate license. The second is the broker license. An agent can list homes, show property and negotiate deals, but always on behalf of a broker. In Texas, for example, a sales agent is sponsored by a broker, and a referral fee earned by an agent has to be paid to the sponsoring broker, never straight to the agent.
The broker license is the one that lets you own or run a brokerage. In Texas, any business entity doing brokerage must name a designated broker. All of its transactions go through that person, and that person answers for the entity and for every agent it sponsors. New York also lets a licensed broker keep working under another broker's firm as an associate broker, which many senior agents do.
What supervision actually means
Holding a broker license means you answer for other people's work. Texas rule 535.2 sets a minimum standard. The first three times a sales agent handles a given type of brokerage activity, the broker must make sure an experienced, competent license holder coaches the agent through it. The broker must also make sure sponsored agents follow the commission's advertising rules.
New York sets out supervision in its license law. An associate broker who is appointed office manager takes on the same duty to supervise salespersons and associate brokers as a licensed broker. The appointee must have been active as an associate broker for at least two of the four years before the appointment. In practice, a broker reviews contracts, handles escrow and trust money, settles disputes and carries the regulatory risk for the whole office.
Extra education and experience
The broker license costs real time. Texas requires 270 hours of qualifying courses plus 630 hours of related education, for 900 hours in total. That total includes a six-hour Broker Responsibility Course. Texas applicants also need four years of active licensed experience in the 60 months before applying, worth at least 720 experience points. Texas doubled that points minimum from 360 for 2026 and now caps bachelor's degree credit at 300 hours.
Other states ask for less. California wants eight college-level courses and two years of full-time licensed salesperson experience within the last five years. Florida requires 24 months of experience in the past five years, a 72-hour pre-licensing course, a passing exam score of 75 and a 60-hour post-licensing course before the first renewal. New York requires 152 classroom hours and two years of full-time experience under a broker.
How the Realtor title differs
Realtor is a trademark, and no state issues it. The National Association of REALTORS® owns it, and only NAR members may call themselves Realtors. NAR says the mark signals a member's commitment to its Code of Ethics. An agent can be a Realtor, a broker can be a Realtor, and plenty of licensed people of either kind are neither.
NAR's rules say a non-member may never put the term next to their name, even if they work for a firm whose principals are Realtors. So the title tells you about trade association membership and ethics obligations. It does not tell you whether someone holds a salesperson or a broker license. Check the state license lookup to find that out.
Pay
USD a year, before tax. BLS OEWS May 2025, moved to 2026 with the Employment Cost Index. BLS counts employees only, and most agents and brokers are self-employed on commission, so these figures leave most of them out. Refer to the Brokerage & Office Leadership salary guide for figures from live adverts.
What you need
- Salesperson license firstMost broker applicants already hold a salesperson license, because the experience requirement is measured in licensed time spent working under a broker.
- Licensed experienceThe minimum is 2 years in California, New York and Florida (24 months) and 4 years in Texas, and it must generally fall within the past five years.
- Broker-level educationThe hours vary widely by state: 72 in Florida, 152 in New York, eight college-level courses in California and 900 hours in Texas.
- Experience documentationYour sponsoring or responsible broker usually has to certify your transactions. Examples are Texas Supplement A and California form RE 226.
- Broker examEvery state requires a separate broker examination. Florida's passing score is 75.
- Age and characterThe minimum age is 18 in Texas, California and Florida and 20 in New York, and every state reviews honesty and criminal history.
State by state
| Texas | Texas requires 900 hours of education (270 qualifying plus 630 related, including the Broker Responsibility Course) and four years of active licensed experience in the past 60 months totaling 720 points. A bachelor's degree counts for up to 300 hours. |
|---|---|
| California | California requires eight college-level real estate courses and two years of full-time licensed salesperson experience in the last five years or the equivalent. A four-year degree with a real estate major or minor can replace the experience. |
| Florida | Florida requires an active sales associate license, 24 months of experience in the past five years, a 72-hour pre-licensing course and a passing exam score of 75. A 60-hour post-licensing course is due before the first renewal. |
| New York | New York requires applicants to be 20 or older and to complete 152 hours of approved courses. They also need two years of full-time salesperson experience under a broker, which equals 3,500 points, or three years of equivalent experience. |
How to get there
- Months 0 to 6Earn a salesperson licenseFinish your state's pre-license course, pass the exam and sign on with a sponsoring broker.
- Years 1 to 4Build licensed experienceClose sales and leases and keep a transaction list. Your broker will need to certify it later.
- Years 2 to 4Complete broker educationTake the broker-level coursework. In Texas, the Real Estate Brokerage course must be within two years of applying.
- Years 2 to 5Pass the broker examApply with experience records, transcripts and fingerprints, then sit the state broker exam.
- Year 3 onwardSupervise or open a firmWork as an associate or delegated supervisor, or become the designated broker of your own brokerage.
Questions people ask
Can a real estate agent work independently without a broker?
No. A salesperson license only lets you work under a sponsoring broker. In Texas, for example, even a referral fee you earn has to be paid to your sponsoring broker.
Is a Realtor the same as a broker?
No. Realtor is a trademark of the National Association of REALTORS® that only its members may use. Agents and brokers can both be Realtors if they join, and the title says nothing about which license someone holds.
How long does it take to go from agent to broker?
It takes at least two years of licensed experience in California, Florida and New York, and four years in Texas. You also need broker-level coursework and a passing score on the broker exam.
Do brokers earn more than agents?
In the BLS data, the median for employed real estate brokers is $75,500, against $54,500 for employed sales agents. Those figures cover employees only, so most self-employed agents and brokers are not counted.
What is an associate broker?
An associate broker holds a full broker license but works under another broker's firm instead of running their own. New York uses the title, and an associate broker appointed office manager there takes on a broker's duty to supervise.
What changed for Texas broker applicants in 2026?
The minimum experience requirement doubled from 360 to 720 points. A bachelor's degree now counts for at most 300 education hours, down from up to 630, and extra experience points can stand in for up to 300 of those hours.
Sources
- Texas Real Estate Commission: Become an Individual Real Estate Broker
- Texas Real Estate Commission: What's Changed for Texas Brokers in 2026
- Texas Real Estate Commission: TREC Rules, Chapter 535
- California Department of Real Estate: Requirements to Apply for a Broker License
- California Department of Real Estate: Experience Requirements for the Broker Examination
- Florida DBPR Division of Real Estate: Real Estate Broker Requirements
- New York Department of State: Real Estate Broker Application
- New York Department of State: Real Estate License Law (March 2026)
- National Association of REALTORS®: Trademark Rules
- National Association of REALTORS®: Trademark Use with Member's Name
