Your license comes from your state, and your first big decision after it is where to hang it. This lesson covers who issues the license, what it means to work under a broker, how REALTOR® membership and MLS access work, and the questions to ask a brokerage about its rules, paperwork, and money before you sign anything.
Every fact links to its source. Checked Oct 3, 2026
Who issues your license
All states require real estate brokers and sales agents to be licensed. (Source: BLS)
The minimum requirements for a license vary by state. (Source: BLS)
The U.S. Bureau of Labor Statistics tells future agents to verify the requirements with the real estate licensing commission of the state where they want to work. (Source: BLS)
A license typically does not transfer from one state to another. Some states have reciprocity agreements that make it easier for an agent licensed in one state to get a license in another state. (Source: BLS)
In most states, agents must complete continuing education courses to renew their license. (Source: BLS)
For a broker's license, states typically require a set number of years of experience as a licensed sales agent and more formal training. (Source: BLS)
ARELLO is the Association of Real Estate License Law Officials. Its mission is to support jurisdictions in the administration and enforcement of their real estate license laws. (Source: ARELLO)
ARELLO publishes contact information for real estate regulatory agencies, listed by jurisdiction. Active member jurisdictions update their information each year. (Source: ARELLO)
ARELLO's Licensee Verification Database helps consumers and regulators verify a real estate license. Jurisdictions can report active, inactive, and expired licenses of individuals, not of companies. (Source: ARELLO)
Working under a broker
The U.S. Bureau of Labor Statistics says brokers are licensed to manage their own real estate businesses, and sales agents must work with a real estate broker. (Source: BLS)
Brokers and sales agents earn most of their income from commissions on sales. Commissions often are divided among the buying agent, the selling agent, the brokers, and the firms. (Source: BLS)
In an MLS owned by a REALTOR® association, brokers or salespersons who are not principals are not MLS participants. They use the MLS through the principal they are affiliated with. (Source: NAR)
The principals of a firm must join a REALTOR® association before any non-principal of that firm can join. Principals are sole proprietors, partners, corporate officers or majority shareholders, and branch office managers who act for a principal. (Source: NAR)
If a principal who qualifies for REALTOR® membership decides not to join, no one affiliated with that firm can be a REALTOR® member of the association. (Source: NAR)
Each REALTOR® firm appoints one principal as its "designated REALTOR®". If an agent affiliated with the firm chooses not to be a REALTOR®, the association charges the designated REALTOR® a non-member assessment for that agent. (Source: NAR)
NAR also charges brokers its national dues for each non-member salesperson in their office. (Source: NAR)
An optional rule in NAR's model MLS rules says agents must not induce clients of their current firm to cancel exclusive agreements with that firm, before or after they leave it. The rule lets firms make agreements with their agents about who keeps exclusive agreements. (Source: NAR)
Joining a REALTOR® association and getting MLS access
When you join your local REALTOR® association, you also become a member of the state association and of NAR. (Source: NAR)
Membership is your own choice. NAR's membership criteria say an association cannot require salespersons affiliated with a REALTOR® to be members. (Source: NAR)
An association may require that you hold a valid license, work with a firm in that state or a state next to it, be affiliated with a REALTOR® as an employee or independent contractor, agree to follow the Code of Ethics, complete the association's orientation course, and have your application acknowledged by a REALTOR® principal. (Source: NAR)
New members must complete a Code of Ethics orientation of not less than 2 hours and 30 minutes of instructional time. (Source: NAR)
REALTORS® must complete Fair Housing / Anti-Bias Training of not less than 2 hours when they become members, and every 3 years after that. The current cycle began January 1, 2025, and its deadline is December 31, 2027. (Source: NAR)
The current Code of Ethics training cycle runs from January 1, 2025, to December 31, 2027. A member who does not complete the training in a cycle is suspended for January and February after the deadline, and the membership is terminated starting March 1. (Source: NAR)
NAR national dues are $156 per member for 2027. Your primary local association bills them, and they are due January 1. A new member's national dues are prorated by month in the year the member joins. The $45 special assessment for 2027 is not prorated. (Source: NAR)
To be an MLS participant in a REALTOR® association-owned MLS, a person must be a REALTOR® principal, partner, corporate officer, or branch office manager who holds a current real estate broker's license. The MLS may choose to also let brokers who are not REALTORS® participate. (Source: NAR)
NAR's MLS handbook updates, announced on November 17, 2025, reinforce that non-member access to the MLS is a matter of local discretion. (Source: NAR)
An MLS may require each licensee who gets access to complete an orientation of no more than 8 classroom hours on the MLS rules and on entering and finding MLS information, within 30 days after access starts. (Source: NAR)
Questions to ask a brokerage
What is the commission split, and does it change after you reach a set amount (a cap)?
Which fees do you pay each month, and which fees do you pay on each transaction (desk fee, technology fee, transaction fee, franchise fee)?
Who pays your local, state, and national association dues and your MLS fees, and does the brokerage require you to be a REALTOR®?
When and how are you paid after a closing?
Does the brokerage carry errors and omissions (E&O) insurance that covers you, and who pays the premium and the deductible if a claim is made?
Who reviews your contracts and other transaction documents before you send them, and how fast do they review them?
Which forms must you use for buyer agreements, listing agreements, and purchase contracts, and who signs them for the brokerage?
Who decides what compensation you can agree to with a buyer or a seller?
What must be in each transaction file, which system stores it, and who checks it?
Is there a transaction coordinator, what does the coordinator do, and who pays for that service?
Who is your managing broker, and how do you reach that person when you have a question on a transaction?
How and by when must you turn in earnest money or other funds that the brokerage holds?
What training does the brokerage give on its forms, the MLS rules, and its compliance steps?
What does the independent contractor agreement say about your listings, your pending transactions, and your pay if you leave?
Not in this lesson
The exact steps, education hours, exam, fees, and renewal rules for a license: your state guide.
How broker sponsorship works and how to move your license to a new broker: your state guide.
What your independent contractor agreement with a brokerage means for you: an attorney.
Your local association dues and MLS fees: your local association and your MLS.
Taxes on your income, and the rules for calls, texts, and marketing email: the lesson "The admin side of your business", and a tax adviser for your own return.
Reddy University
Try it with Reddy
Reddy handles the paperwork side of real estate: deadlines, documents, drafts, and reminders. Ask it something like:
“Compare these two brokerage offers for me: the split, the cap, and the fees on each deal.”
“Turn these brokerage questions into a checklist I can use in my interviews.”
