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Business Administration -- Frequently Asked Questions
 
   
 
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Frequently Asked Questions about gaining your Real Estate License:


(Click on the question to reveal the answer.  Click again to close the answer window.)
arrow How do I obtain a California Real Estate Sales license?
To obtain a real estate sales license, you must:
  1. Complete 3 college level classes:
    • Real Estate Principles ( BUSR 50 )
    • Real Estate Practice ( BUSR 52 )
    • A third advanced real estate class (any other " BUSR " class) or either of the following:
      • Accounting ( BUSA 7 - Principles of Financial Accounting or BUSA 11 ) - Fundamentals of Accounting,
      • Business Law ( BUSL 18 ) - Business Law, or
      • Macro Economics ( BUSC 1A ) - Principles of Economics - Macroeconomics
      • Real Estate Law ( PLGL 40 ) - Landlord Tenant Law
  2. Pass the State Sales Examination consisting of 150 multiple choice questions (passing score is 105 questions or 70%).
  3. Submit to a criminal background check.
  4. Complete an application to the Department of Real Estate (DRE) and pay the appropriate fees.
arrow I took Business Law several years ago; will that qualify for my third class?
Yes, the Department of Real Estate (DRE) will typically honor any classes taken previously from accredited colleges.
arrow I took a home study course in Real Estate Principles but did not pass the State Exam; do I have to take Real Estate Principles again?
Yes.  Although the Real Estate Commissioner licenses private schools to offer real estate classes through home study and on-line, the quality of the education provided is unverifiable.  Many of these courses only require only 18 days to complete the course and an open book, multiple choice exams.  Mt. SAC will typically honor Real Estate Principles from an accredited college or university.  If the student has passed the State Real Estate Exam and has been issued a real estate license, Mt. SAC will typically accept this as having met the Real Estate Principles requirement.   The chief concern is whether the student will be able to understand the material in the advanced real estate courses.   Successful completion of Real Estate Principles from an accredited college/university satisfies this concern.
arrow I have purchased and sold many properties in my life and feel I have the knowledge to take an advance real estate course without taking Real Estate Principles, can I challenge this requirement?
The determination as to whether or not the Real Estate Principles requirement is to be waived is made by the Real Estate Coordinator (Prof. Edwin Estes).  In making this determination, the Coordinator will typically have the student take a 100 question comprehensive Real Estate Principles final examination.  The resulting score will be used to determine if the student has the requisite knowledge to take advanced real estate classes.
arrow Can I take all three required classes in the same semester?
BUSR 50 - Real Estate Principles is a prerequisite for all real estate (BUSR) classes.  However, it is a co-requisite for BUSR 52 - Real Estate Practice, so you could take Principles and Practice at the same time, but you could not take any other real estate class until you completed Real Estate Principles with a grade of C or better.  You could take Accounting, Business Law, Macro Economics or Landlord Tenant Law as a third class and fulfill your education requirements in one semester.
arrow What are the fees to take the exam and obtain a license?
Due to the state's budget situation, exam and license fees are subject to change.  For the most current information, please go to the Department of Real Estate (DRE) website: (http://www.dre.ca.gov)
arrow I understand that some real estate companies also do loans, how does that work?
A real estate broker or salesperson working for a broker may also make loans secured by real estate.  Typically the agent will "broker the loan" by putting a lender (a bank or other financial institution) together with the borrower and collect a commission for doing so.  This is more fully explained in
BUSR 53 - Real Estate Finance and BUSR 62 - Mortgage Loan Brokering and Lending.
arrow Once I get my real estate license, can I open a real estate office?
To operate a real estate office, you must have a real estate broker's license.  Sales licensees may do anything a real estate broker can do, provided they are employed by a real estate broker.
arrow How do I obtain my real estate broker's license?
  1. Complete 8 college level classes:
    • BUSR 52 - Real Estate Practice
    • BUSR 53 - Real Estate Finance
    • BUSR 81 - Real Estate Appraisal
    • BUSR 51 - Legal Aspects of Real Estate
    • BUSC 1A - Principles of Economics - Macroeconomics or BUSA 7 - Principles of Financial Accounting or BUSA 11 ) - Fundamentals of Accounting
    • Plus 3 additional advanced real estate classes (any BUSR classes will qualify)
  2. Have 2 years experience as a real estate salesperson or possess a real estate related 4-year college degree.
  3. Pass the real estate broker's exam (200 multiple choice questions with a 75% score).
  4. Submit to a criminal background check.
  5. Complete an application to the Department of Real Estate (DRE) and pay the appropriate fees.

Note: There is no class or experience requirement for members of the State Bar, they only need to take the exam, submit to a background check complete an application and pay the appropriate fees.
arrow How do I prove to the Department of Real Estate that I completed the required classes?
Your Mt. SAC official transcript showing a "C" or better will be accepted by the Department of Real Estate.
arrow How long is the real estate license good for?
Both the real estate sales and broker's licenses are good for 4 years.
arrow Do I need to take the state exam to renew my license?
To renew a license, the student must take 45 hours of continuing education classes that are typically offered at a local association of REALTORS office (we do not offer such classes at Mt. SAC) and pay a license renewal fee.  The student does not have to retake the license exam unless their license expires (failure to renew).
arrow A few years ago, I was arrested for a minor crime; will that affect my ability to obtain a real estate license?
Under our legal system, persons are considered innocent until proven guilty; therefore an arrest will not affect your ability to obtain a license.  However, a criminal conviction (which includes a plea of guilty in lieu of a trial) may affect a person's ability to obtain a license.  Real estate license applicants are required to disclose any conviction (except for minor traffic infractions) to the Real Estate Commissioner (this includes out of state convictions).  Failure to do so is considered fraud in obtaining a license and will typically result in a lifetime ban on obtaining a license.  Of particular concern to the Commissioner are crimes involving honesty and moral turpitude.  So a minor shoplifting conviction may be viewed more seriously than vehicular manslaughter.  Students concerned about past intercessions should contact the Real Estate Program Coordinator for a confidential counseling session.
arrow What does a real estate agent make a year?
Most agents are paid on commission and that commission is divided between the agent and their broker.   Commissions are negotiable between the principal (typically the seller) and the agent.  Each broker will set their own commission split between themselves and the agent based on the number of transactions done by the agent.   While there is not "typical" income for real estate agents, incomes in the 6-digits is not unusual for agents who commit themselves to the business.
arrow A friend of my parents said I would make a good escrow officer, how do I do that?
Typically escrows are handled by banks, title insurance companies and independent escrow companies licensed by the department of corporations.  In addition, attorneys and real estate brokers may handle escrows under certain situations.

While there is not specific licensing requirement of an employee working for a company doing escrows (the company itself is licensed or regulated), most companies will require a minimum amount of education and experience to be an escrow officer.   It is recommended that a student complete BUSR 50 - Real Estate Principles as well as BUSR 76 prior to applying for a position in an escrow company or division.  To graduate from being an escrow assistant to an escrow officer, students should also complete BUSR 77 .   The decision on whether or not someone is employed as an escrow assistant or as an escrow officer is made by the employer.   Typically, to become a senior escrow officer, you must have five years experience as an escrow officer
arrow What about becoming an appraiser; how do I do that?
Appraisers are regulated by the Office of Real Estate Appraisers (OREA) .  Specific information can be obtained from their website: (http://www.orea.ca.gov)

Appraisal candidates must complete 150 hours of education to be eligible for the Trainee Licensee.   The following courses should be completed in the order below:
Due to lack of enrollment, Mt. SAC is not currently offering BUSR 83 - Residential Appraisal and
BUSR 84 - Residential Appraisal: Case Studies ; a student wishing to complete their appraisal education requirements will probably have to take these two courses at a private trade school.  Students are cautioned make sure that any class they take outside of Mt. SAC is approved by the OREA.  Upon completion of the educational requirements (a total of 150 hours of classroom education is required); a student may then apply to the OREA to be a Trainee Licensee.  As such, the Trainee Licensee must work under the supervision of a Certified Appraiser for 2,000 hours over a minimum of 12 months and complete an additional 150 hours of education.

Because there is limited demand for Trainee Licensees (most appraisers work independently), students are cautioned not to embark on this field unless they have a prospective employer.  Good prospects for employment are large financial institutions (Banks and Credit Unions), Insurance Companies and county assessor's offices.
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