Real Estate License Reciprocity & Portability: A State-by-State Guide

Comments

1. I am a real estate broker in Louisiana, I have identified several short-term opportunities in several states (some we have reciprocity agreements, others we don’t). My first question is: should I use an LOI to get the purchase process started and let the agent(s) from those states use their purchase agreements? My second question is: When I decide to sell the properties, can I market the properties with an agent/brokerage from those states with the understanding that I am co-opting with them as a Louisiana Owner/Agent acting as principle and therefore collect part of my profits in the form a commission to the my Louisiana brokerage? My reasoning for asking the second question is that once I come into ownership on the first-leg of the transaction, the property is owned by me (my entity). But, the area of concern for me is when I decide to sell the property, how might my intents be viewed from a legal standpoint.

   Reply

   • Hi Lee –

     Thanks for the questions. There’s a lot going on here, but unfortunately, my response is going to be pretty much the same for each of your questions; it depends on the state and local regulations of the areas you’re considering buying / owning / selling in. From a legal perspective, there is no national unifying regulation that will govern all of what you’re asking about, so there is no silver-bullet response.

     Generally speaking, you’re going to have smoother transactions using local paperwork, working with local individuals, regardless of where you’re at in the life-cycle of ownership. As far as the sell-specific questions you’ve got, I would start by speaking to your attorney. The sort of interstate commerce you’re describing moves out of my realm of expertise.

     Good luck!

     Chris

     Reply

2. Hi, I’m licensed in DC/MD/VA/NC as a Real Estate Broker. I’m tired of taking tests! haha… I would like to know what tests I can avoid taking to obtain reciprocity for real estate licenses. Can you help me understand this for any states on the east coast, Texas, California and New York? I pretty much just want to fill out the paperwork to move forward. On the other side, I’m in commercial real estate (my agents are residential), so I would like to know which of the east coast or states that I mentioned, can I do commercial real estate without having to obtain a license via pre-licensing education and tests?

   Reply

   • Thanks for the comment. Unfortunately, every state that I’m aware of that offers real estate license reciprocity does so with the requirement that you still take your licensing exam for each individual state. You may not have to take the classes, but you’ll still need to take the tests.

     If you’re interested in doing commercial deals in other states, check out the portability section of this article, that will tell you what the rules are for conducting one-off transactions in states other than the ones you’re licensed in. If you plan on doing multiple, regular deals there, you should probably get licensed.

     Good luck!

     Chris

     Reply

3. Hi Chris,
   I have a Maryland Real Estate License and I’m taking the law course for Delaware right now. We have an opportunity to move to Florida. Is it best for me to finish the Delaware course, take the test and then move to Florida and get my Florida License? I’m guessing I only have to take the state law for Florida and not the full course or test. Can you please tell me what is the best way to get my Florida Real Estate License if we do this move please.
   Thanks
   Anna

   Reply

   • Hi Anna –

     So, unfortunately, neither Delaware or Maryland offer any sort of reciprocity with Florida, so if you make the move to the sunshine state, you’ll need to go through the pre-licensing process just like a new agent would. That being said, the classes are going to be a breeze since you’ve already been through them, and a little bit of prep for the test should be all you’ll need to be successful there.

     Good Luck!

     Chris

     Reply

4. Hello! First of all thank you so much for answering all the questions!
   My husband currently holds a MO real estate license and we recently moved to FL. The FL/AL line to be exact. I am wondering can he sell in both states if he transfers his MO license to Alabama because it is a reciprocating state and he obtains a FL license? Will he need to hold a license at 2 different brokerages to be able to sell over that state line or will he be able to sell in both states and only be under one brokerage?
   Also, I am going to be obtaining my real estate license and we are planning on working as a team. If he transfers his MO license to Alabama would it make sense for him to get a FL License if I obtain one?

   Reply

   • Hi Ashley –

     Thanks for the question. Lots to go over here, let me see if I can break this down piece-by-piece.

     In terms of your husband’s path to licensure, here’s what I would do. Since MO has a reciprocity agreement with Alabama, I would suggest transferring his license to Alabama. Then, after getting legal in Alabama, I would suggest picking up the additional license in Florida (since Alabama has a reciprocity agreement with Alabama). I’d do it in that order, because MO doesn’t have a reciprocity agreement with Florida directly, but using this path, you can achieve the desired result.

     As far as the brokerage your husband works for, yes, he’ll need coverage in both states. I would imagine there are companies that service both states in the area you’re moving to, so I would consider investigating that before you make a decision. Having a single company that is able to service both states will certainly be more convenient, and, theoretically, it will be less expensive for your family, since you won’t have to hit cap in two states.

     Congrats on your decision to get a license, that’s great. I would definitely still suggest he get a Florida license. Florida is a Physical Location state, meaning out-of-state agents can do business there, but they would have to physically remain in their licensed state to do so. Since you’re right on the line, it would be pretty inconvenient to have to drive across state lines every time he wants to work with a Florida client. Given that you’ll be new to the industry, you’re going to want to work closely as a team, and having that extra licensure is the best way to do that.

     Good luck, can’t wait to hear about all your success!

     Chris

     Reply

5. Hello, I lives in California but i spent few months in Indiana and as i have a good contact relation in Indiana-so i am willing to obtain a Real Estate Agent for indiana. Can i become a Real State Agent for Indiana while living in Californa. ( Currently i dont have any licence)

   Reply

   • Hi Mike –

     Thanks for the question. Yes, you absolutely can get a real estate license in Indiana (or any other state, for that matter) while living in another state. There’s no statute that requires you to actually be a resident of the state you have your license in; many Realtors in places like Washington DC, Florida, or the Carolinas have licenses in multiple states so they can service clients across the region. As long as you pass the required tests and fulfill the necessary pre-license education, you’re good to go.

     Chris

     Reply

6. Hi Chris,
   I am a licensed Real Estate Agent in GA. I have a friend that has distressed property in Nashville, TN that they want me to help sale. I posted it to FaceBook and got a ton of cash buyers interested. I also have an offer from a builder that has completed construction on the same street as the property for sale. I want to act as an investor in this transaction and use my business entity instead of acting as an agent. How do I go about completing this transaction without breaking any laws? Can I still use GA real estate contracts in this transaction? Thank you in advance!

   Reply

   • Hi Laquisha –

     Sounds like you’ve got a lot of moving parts here. I don’t think I have all the answers, but here are a few of them.

     1) I can’t imagine that you would want to use Georgia based contracts for this transaction since it will be happening in Tennessee.
     2) If you are acting as an investor here, does that mean that you are buying (or a party to the purchase) or the property? If so, then it sounds like you’ve got all the ingredients for a private sale; one that wouldn’t need to be listed on an MLS.
     3) I’m a little concerned that by listing the property for sale on these private sites (like FB Marketplace) an agency relationship could be construed. If that is the case, you’re going to want to clarify that on paper ASAP. If you don’t have a TN license, you don’t have the right to officially negotiate on behalf of a client in that state. You need to make it clear that you are a “friend helping a friend for no commissions”.

     Honestly, I know this isn’t what you want to hear, but if I were you, I would bite the bullet and find a recommended real estate attorney in the Nashville area, pay for an hour of their time to talk through the situation and get some advice on how to proceed.

     Good Luck!

     Chris

     Reply

7. If I have a license in CA and want to buy a house for myself in FL can I represent myself and get back the commission?

   If yes. How would i present the offer since CA contracts are different than FL contracts? Would I just present the LOI and have listing agent write of actual purchase contact?

   I appreciate The help

   Reply

   • Hi Joubin –

     Thanks for the comment. I want to go on record as saying the rules for representing yourself in a transaction might be different than the rules for representing a client, so take what I’m about to say as my best guess, and make sure you verify this with the Florida Real Estate Commission.

     Florida is a Physical Location state, which means an out-of-state licensee can conduct a transaction, but they have to physically be in their own state when doing business. This gets a little sticky, because this means that when you actually view the property, you can’t be there as a Realtor, only as a buyer. When writing the contracts, negotiating, and doing real estate business, you have to physically be in California the entire time.

     Long story short, there are certainly ways to do this, but it might be a little complicated.

     Good luck!

     Chris

     Reply

8. Hi Chris,
   I am licensed in Arizona and considering moving to Kentucky at the end of the year. When I reviewed this list and information a few months ago, it helped me consider a few states that we may consider. However, now, it appears that Kentucky is renegotiating reciprocity agreements between states (in which Arizona licensees may not proceed). Is that correct? Do you have any information on this or know where to follow up? Thanks in advance!

   Reply

   • Hi Shelley –

     Thanks for the question. Yes, I read the same thing about the renegotiations. How frustrating! If I were you, I would speak to the local board for the market in KY you’re considering a move to, then also the Kentucky Real Estate Commission. Explain your situation, see what course of action they’d recommend.

     Good luck!

     Chris

     Reply

     • Thank you Chris.

       Reply

9. I Chris

   I am a CA Broker. What requirements there are for me to sell in CO. If I have a buyer and a seller and the property, can I broker the transaction in CO without having a CO license and get paid. I plan on using an attorney for the paperwork. not sure of the rules.

   I appreciate your advice.

   Regards
   Roberta

   Reply

   • Hi Roberta –

     The license portability rules in CO give out-of-state brokers the opportunity to conduct business and get paid, the only caveat is that they have to work with an in-state broker on at least one side of the transaction. So, there’s no space for you to list and sell a property in CO without a license. My suggestion would be to reach out to a CO broker, explain the situation, offer the $500 (or something close) to act as a “transaction coordinator”, that way their name and license are involved, they get some easy money, some extra volume, and you get the lion’s share of the commission.

     Good luck!

     Chris

     Reply

10. In CA the two levels of r.e. licenses are “Agent” and “Broker”.
    In WA these two levels are called “Broker” and “Managing Broker”.

    Question:
    if I have a CA (managing) broker license and a WA broker (agent) license do I need to work with/under a WA managing broker for commercial or residential deals I do in WA?

    Reply

    • Hi Tim – Great question. Sometimes the terminology makes these situations a little tricky. My understanding is, yes, you’d need to have a WA managing broker. Unless you’ve obtained the graduated license (broker in Washington, managing broker in CA), you need to have someone above you.

      Chris

      Reply

11. Hi, thank you for all the help!!!!
    I’m a new licensed real estate associate broker in Colorado, wondering how hard it would be to also have my license in Arkansas. I am a military spouse and my husband will be retiring soon so moving might be in our near future but I’m wondering if I can hold a license in both states meaning I can be, listing agent, buyer agent and show properties physicals, etc.

    Reply

    • Hi Brenda –

      Thanks for the question. You absolutely can be licensed in both states. Colorado is a great state for reciprocity – meaning, a CO license will allow you to skip the pre-license education requirements in Arkansas – all you’ll have to do is take the licensing test again. And, there actually might be a special waiver for military spouses that would make the process even more streamlined. I would check with Arkansas Real Estate Commission to see what programs might be available for you.

      Good luck!

      Chris

      Reply

12. Hi!

    I have a license in Illinois that is currently with a holding company since I moved to Texas recently. I plan to go through the whole process again to get my license here in Texas (since Texas doesn’t have reciprocity with anyone) but I am wondering even though the two states don’t have reciprocity with each other, can I still keep my Illinois license in a holding company and utilize it when I need it to conduct transactions there while still keeping my Texas license active as well with a brokerage?

    Reply

    • Hi Latrise –

      Great question. Absolutely, you can keep your Illinois broker’s license in holding for as long as the state will allow you to – just maintain any sort of continuing education requirements and pay your fees. Technically speaking, you can maintain active (or shelved) licenses in as many states as you want (for instance, it isn’t uncommon for agents in the Washington DC area to have a DC, Maryland, and Virginia license), it’s just up to you whether or not that is worth the time and effort.

      Good Luck!

      Chris

      Reply

13. Chris,

    I am licensed in Utah, and have a family member wanting to list a home in Hawaii with me. Am I correct in my understanding that I must refer my family member to a Realtor there, and negotiate the commission under Physicality clause? The home is also apart of the Family Trust?
    Does this make it more difficult, or no difference at all?

    Thanks

    Reply

    • Hi Cody –

      You are partially correct. You actually can be a co-listing agent on the property, but you have to co-list with a licensed HA agent, and because of Hawaii’s status as a ‘physical location’ state, you have to be physically in Utah in order to conduct any sort of real estate business (contract work, negotiations, etc.).

      Because of the complications of co-listing with an ocean between you, I would definitely suggest making a referral rather than trying to list it yourself, especially if the home is in a trust. It is pretty common for Hawaiian homes to be held in trust; if I were in your shoes, I would want someone who knows that system in and out to be taking the lead.

      Chris

      Reply

14. Once you pass your national exam in one state do you have to pass a national in the other states even the ones that offer reciprocity? Or is it just the state exam that they require? Thank you

    Reply

    • Hi Jody –

      Thanks for the question. You’ll have to pass the entire thing. The tests don’t come packaged separately, they are just segmented during the testing session.

      Chris

      Reply

15. Thank you for having so much useful information!
    I am trying to rationalize/justify my decision to keep one of my licenses and I’m not sure there is value in it.
    I am a Broker Associate in Oklahoma and under reciprocity I recently became a Qualifying Broker of a firm in Alabama. A Qualifying Broker is equivalent to a Managing Broker in Oklahoma.

    Since I still do some work in Oklahoma (long distance) — I’m wondering if I should convert my Oklahoma Broker Associate license to a non-resident managing broker license. That way any commissions that I earn for work done in the state could be paid directly to me.

    Does this make sense to do?

    Reply

    • Hi Marie –

      Thanks for the question. Yes, this does make sense, and if I were in your shoes, that’s what I would do too. If you’re doing enough business in Oklahoma to justify this conversation, the right move would appear to be shortening the chain to as many steps as possible in order to get paid on that work.

      Chris

      Reply

      • Thanks Chris!
        That’s exactly what I will do.

        Reply

16. Happy Holidays Chris.
    Simply put, I have a KS and MO real estate license and I am relocating to Texas next summer. Do you know if Texas is now accepting reciprocity from either state? I have done the research but unable to find anything concrete on where they stand. I will call the Texas Commission but right now they are closed for the Thanksgiving.

    Thanks,
    Des

    Reply

    • Hi Des –

      Thanks for the question. As far as I know, Texas is one of those tough states that doesn’t accept a lot of agents from other states. I don’t believe a KS or MO license will waive your education requirements in Texas, sorry about that!

      Chris

      Reply

17. Hi Chris,

    I have my salespersons license in CA and NJ. I have had my license in CA for over two years and just recently obtained my NJ license.

    I am interested in learning about any other states in which I would be able to get my brokers license as fast as possible, given the salespersons license. I would then use the reciprocity for CA and NJ.

    Best,

    Chris

    Reply

    • Hi Chris –

      I don’t have that information right at my fingertips – sometimes the process for getting a broker’s license via reciprocity is a little different than the one for getting a standard sales license. I would suggest starting with the states that CA and NJ have reciprocity agreements with and investigating them individually to find out what the broker’s license process looks like, then prioritizing from there.

      Good luck!

      Chris

      Reply

18. Hi Chris,

    Thanks for posting this! I am a commercial agent licensed in Ohio. I have a client wanting me to list his commercial property in WV. How can I list this property? I appreciate your help and insight.

    Best,
    Tyler

    Reply

    • Hi Tyler –

      West Virginia is a Physical Location state, which means you you have to physically remain in Ohio while conducting any of this transaction. This makes it a little trickier when you’re listing a property for sale (rather than representing a buyer).

      My suggestion would be to find someone locally to partner with on this and draw up what I call a reverse referral agreement. Rather than giving them the bulk of the commission, give them 20% (or whatever is appropriate) to list the property locally, handle all the paperwork, get the property the exposure it deserves on the local MLS, then you can conduct all the business ends of things remotely.

      Good luck!

      Chris

      Reply

19. Hi Chris,

    I’m currently a licensed NY Broker. I plan to invest in a property in Los Angeles, CA. I may also move there to . I would like to represent myself and wife as the buyer. Do I need to get a CA brokers license?

    Thanks

    Reply

    • Hi James. My name is Greg and I am with Rodeo Realty. What kind of property are you looking to invest in and in what areas of Los Angeles?

      It would be my pleasure to help you in any way I can.

      Best,

      Greg

      Reply

    • Hi James –

      Thanks for the question. New York is a physical location state, which means that if you are conducting business as a real estate agent or broker, you have to actually be in New York. This is going to make it tricky for you representing yourself as the buyer, because it means you can’t actually go view the property as an agent; you’d need to get another licensed cali agent to do that for you. Also, it means that the property you’re buying has to be listed publicly for sale by a licensed agent or broker; you aren’t allowed to act as an agent in a private sale.

      If I were you, I would consider finding someone local to represent you and just ask for a referral fee. You’re still getting a chunk of the commission, you won’t have the hoops to jump through, and there will be a clear path to close.

      Good luck!

      Chris

      Reply

20. Hi! I currently obtained a Georgia real estate license through reciprocity. Still have my Illinois license. Do I need to maintain my Illinois license active in order to my Georgia license to be active?Currently live in Georgia and thinking to cancel my Illinois license because off the cost to maintain the license.Thank you

    Reply

    • Hi Nika –

      Thanks for the question. No, once you’ve got your Georgia license up and running, there’s no need to maintain your Illinois Broker License unless you want to. Realtors who do take advantage of reciprocity will sometimes keep both licenses active so they can continue to collect referrals from their previous market, but if that isn’t something you’re pursuing, there’s no reason to keep paying on it (especially in a state like Illinois where the regular maintenance for a license is pretty steep).

      Chris

      Reply

21. I am a licensed broker in Ontario, Canada. Do the same rules apply to out-of-country agents as well – specifically Canada? If not, what are the rules?

    Reply

    • Hi AJ –

      Thanks so much for the question. Unfortunately, I am not the right person to ask. The only start that I know has specifically spelled out rules regarding Canadian reciprocity and portability is Utah, and that is pretty restrictive.

      If I were in your shoes, my first step would be to contact the Ontario Real Estate Association with my question, and then to also contact the specific state’s professional organization where you plan to do business. Hope that gets you started in the right direction!

      Chris

      Reply

22. I have a California brokers license but recently moved to Washington State. I would like to retain my California license but also obtain a Washington State license. Does the reciprocity rules allow me to keep my old license?

    Reply

    • Hi Sheryl –

      Great question. YES! You can keep your CA broker’s license, but you have to maintain it as if you were still living there, meaning, you still have to do all your continuing education, you still have to pay your renewal fees, etc. Basically, the reciprocity agreement with WA gives you a shortcut to getting your WA license, but you can still keep you CA license for whatever you’d like.

      Chris

      Reply

23. Hi,
    If a real estate agent licensed in CA wants to make an offer on an Idaho property for a CA client is that allowed with license portability? If so what form would be used to write an offer since purchase contracts differ?
    Thank you!

    Reply

    • Hi Amy –

      Yes, it appears that Idaho offers portability, which means you could represent a California buyer in the purchase of property there. However, since Idaho is a “physical location” state, you would have to physically be in California when all exchanges on the transaction take place.

      There isn’t a standard form for making offers like this, but I would suggest speaking to the listing agent of the property for this; you’ll run into less bumps in the road if you use the forms the locals use!

      Let me know how it goes!

      Chris

      Reply

24. Hello Chris!
    I have enjoyed reading the comments and replies and now I have a question of my own. I am a licensed REALTOR®️ in Mississippi and am assisting an out of state REALTOR®️ who is licensed with the same Real Estate Company. They purchased an investment property here to remodel and sell (no contracts signed at this point) and said that they would have me list it. As they are not really familiar with the area, my role so far has been to get quotes from contractors and service providers to assist them with their project. No commissions have been discussed yet and I’m wondering if I should expect my normal commission rate when I do list and close on their property, as I would when not working with another licensee. Not sure what is customary for this type of scenario but I want to be fair and this is a ’fellow Agent’. Going to talk to my broker but would appreciate your input. Thank you!!

    Reply

    • Hi Greg –

      Great question. When working with other licensees, especially from your same firm, there is a certain amount of professional courtesy that gets you a long way, but that isn’t free.

      The other agent knows how much work you’re doing, I would be shocked if they weren’t expecting you to get paid.

      If I were you, I would take the tact of initiating the conversation now rather than after the fact. Maybe broach the subject by saying something like, “My broker and I were reviewing paperwork for my current clients and I wanted to get our arrangement squared up so we’re all on the same page.” These arrangements are always more awkward after the work is done, so figure things out early.

      As Jerry Seinfeld says, “Before the meal, everyone is ordering off the menu without a care in the world. But when the bill comes everyone says, “Why did we order all this food, no one’s even hungry!”” Best to get things figured out before you’re all done eating 🙂

      Chris

      Reply

25. I am trying to find any clarification on the “Physical Location” state between Washington, DC and Maryland.

    I am licensed in DC and a client is looking homes right over the border in Maryland.

    from what I gather of this article, I can help them as long as I stay in DC and do not go with the clients to MD.

    I am having trouble finding legal clarification online and my Broker is looking into it as well but seems to understand that I would still need to be licensed in MD.

    Reply

    • Hi Drew –

      Yes, you’re understanding that correctly. If you’re licensed in DC, you physically have to remain there. You are not permitted to practice while physically in the state of Maryland. I would definitely suggest getting your broker’s blessing on this before going forward though, since they are ultimately the arbiters of your Errors and Omissions insurance, and will cover your back if there are any disputes. But, I think you’re on the right track!

      Chris

      Reply

26. Hey there! i am taking on real estate as a new venture, currently in Texas through DEC 31st, we will be moving to FL afterwords; per your description FL and TX are not full reciprocity states, What would you suggest to do? take class work for FL or TX? we will not be selling our home in TX for a year or so once we try out FL and ensure its the right place for us, we plan to purchase a home in FL as well.

    Reply

    • Hi Ally –

      Thanks for the question. If you plan on moving to Florida in just a few months, I would suggest working on getting your Florida real estate license (you can do just about all of it remotely!) between now and then. Since a Texas license is a bit of a process to obtain, it doesn’t seem like that would be a great use of your time. Take your Florida pre-license classes, find a brokerage you’re excited about, make plans for a roadtrip to Florida to take your test. That way, when you move, you can hit the ground running!

      Chris

      Reply

27. I just rec’d my FL license and live on the FL/GA state line. I’d like to practice RE in both states on a consistent basis. I am going to sign a LoI with a local FL Independent brokerage, but trying to figure out the best way to get licensed in GA. I understand that GA has reciprocity with FL, but I’d like to find information before moving forward. Would it be best to find a brokerage in GA to work under there? Are there brokerages out there that might cover both states; eXp? Any thoughts would be greatly appreciated.

    Reply

    • Hi Ron –

      Great questions. Honestly, all of these are good options and will work for what you want to do. If it were me, I would be looking for a broker that services both states, just for simplicity’s sake. With two brokers, you’re going to have two caps, two split agreements, etc. Having a single broker may save you big money (and headaches) in the long run.

      Chris

      Reply

28. if both Florida and New York have Reciprocity with Georgia is it possible to transfer the license for Florida to Georgia to New York?

    Reply

    • Hi Linka –

      While technically this is possible, I don’t think this would be the best use of your time and money, since you’re still going to need to take the test. I would look for the simplest route possible.

      Chris

      Reply

29. I am a licensed SC Realtor. I have a friend that wants me to list her house in Georgia. I know that Georgia has a reciprocity agreement with SC. I applied for a Georgia license and got it. They placed it as inactive until my SC broker finishes registering as a firm in Georgia and then I would be affiliated with him. However, that is taking longer than necessary. Instead of making my current inactive Georgia license active by filling out a change form and affiliating with a totally different broker (one that is already licensed in GA), what is the fastest way to be able to list my friend’s home in GA? Should I just use the cooperative portability agreement and find an already licensed GA real estate licensee to co-list it with me? I just learned about the cooperative portability idea. I would have probably gone that route from the start. Will the inactive license I have in GA matter if I use the cooperative portability agreement? I need to list it ASAP and need to know the quickest way possible.

    Reply

    • Hi Martha –

      Good questions. If speed is the most important thing for you, utilizing the portability agreement is going to be your best bet. Yes, you’re going to lose some of the commission by sharing it with a co-listing agent, but honestly, you’ll have to pay to maintain a GA license too, so in the end this is probably a bit of a wash in terms of cost. I am just guessing here, but is your current firm an independent shop? If that is the case, I would suggest looking for another independent shop in Georgia to co-list with. They are typically a little more flexible in terms of the co-listing agreement and split.

      Good luck!

      Chris

      Reply

30. Hi Chris,

    Thank you so much for this information about license portability. I was wondering if you had the code section for the Wisconsin law that allows out-of-state brokers to conduct business in Wisconsin from their home state as long as they physically stay in their home state. It would be helpful in negotiating a commission in a deal I am starting in Wisconsin.

    Reply

    • Hi Peter –

      I believe it is Wis. Stat. § 452.19. Definitely verify to make sure though!

      Chris

      Reply

31. Can you list the states that have reciprocity on continued education courses…. Thanks!

    Reply

    • Hi Lily –

      I’d have to look into that. So I am clear, what you’re looking for are continuing ed courses that you can take in one state that will apply to another state’s licensing requirements? If so, I am not sure such a thing exists, but I could investigate. Is this what you’re after?

      Chris

      Reply

32. I have a license in California and am planning on moving to AZ. Is your list up-to-date showing that I can’t get an AZ license by reciprocity? I wanted a license to represent myself when I make a purchase in AZ.

    Reply

    • Hi Larry –

      As best I know, the list is up to date, but you should definitely check with the Arizona Real Estate Commission to make sure!

      Chris

      Reply

33. Hi Chris,

    I have received conflicting information from Texas regarding reciprocity of real estate license. Currently, I am licensed in Florida, Military Spouse. I reached out to Texas to investigate if it was a state that recognized reciprocity. This was in Nov/Dec of this year. The person whom I spoke to said that yes, Texas had just began accepting reciprocity but it was so new, they had no forms and I was the first to ask. And, since the courses in Texas or so much more extensive none of the other 49 states qualified for reciprocity, somewhat of a Misnomer to me. Recently I came across the portability clause and as a Realtor in Florida, moving to Texas, am I able to conduct the Buyer side of my transaction and if so, is that written on a Florida Contract or Texas Contract? Thanks in advance for your reply, greatly appreciate it!!

    Reply

    • Hi Kat –

      Thanks for the question! So, you should be able to represent yourself on the buy side of the transaction, but here’s the tricky part: If you want to get paid the commission on the buy side, you need to maintain your relationship with your Florida brokerage at least until the transaction is complete and your commission check has cleared. Remember, commissions are paid through brokerages, not direct to agents, so there needs to be a place that the Texas closing company (or whoever is conducting the closing) can send the check.

      What you might want to investigate is whether or not the seller (and seller’s agent) can reduce the purchase price by what the commission would be, rather than trying to go through the commission process. This will streamline the process for you, remove the need to loop a broker in on the Florida end of things (though you’ll still need to maintain a licensure at a Florida brokerage in order to be considered an active agent), and this way you won’t have any taxes to pay (I am not up to snuff on my Florida tax knowledge – I know there’s no personal income tax, but don’t know if there are taxes on a real estate commission due?).

      Good luck!

      Chris

      Reply

34. Hi Chris,
    I have a private listing in CA and I’m licensed in CT. What do I have to do to list this on MLS?
    Thanks,
    Lori

    Reply

    • Hi Lori –

      Thanks for the question. California has actually tightened regulations on this recently, so you’ll need to check with the California department of regulatory affairs and with the local MLS you want to list on. It used to be that you could pay a guest listing fee and as long as the Realtor who is representing the buyer is licensed in California, you would be in good shape. Now, I believe you’ll need to partner with a locally licensed agent (and essentially pay them a referral fee for listing the property for you) in order to list. But, definitely check with the local board first!

      Chris

      Reply

35. I am currently licensed in Pennsylvania and am planning on buying a home in Delaware and possibly North Carolina. I see that my license is reciprocal in both states. What exactly does that mean and what do I have to do if I move?

    Reply

    • Hi Trish –

      Congrats on the upcoming moves! Since you have reciprocity agreements with both states, that means that if you want to continue to practice real estate, all you’ll need to do is take the licensing exams again, you won’t be required to complete any of the pre-license education.

      Good luck, let us know how it all works out!

      Chris

      Reply

36. Chris:
    Your soonest response would be greatly appreciated as my husband and I will be touring homes tomorrow. Our situation is that we currently live in CT and my husband holds a NY real estate salesperson’s license. Is my husband entitled to get shared commission from the CT listing agent if we buy the home on the basis of referral or some other arrangement? What are the steps involved and at what point do we tell the CT listing agent that my husband has NY license? Can the CT listing agent refuse to go forward on the transaction with an out of state licensed realtor? You’re soonest reply would be awesome 😉 Thanks so much.

    Reply

    • Hi Lisa –

      OK, a lot to unpack here, but let me try and tackle this bit by bit:

      – OK, first thing’s first…is your husband acting as the agent-of-record in potential purchase of the property? If so, there is definitely a case to be made for buyer’s agent commission. However, there is no scenario in which you would get a chunk of the listing agent’s side of the commission.

      – If you are not acting as your own agent here (working with a buyer’s representative), things get a little trickier. Since you aren’t actually making a referral, it’s harder to get arms around the fact that you would be paying a referral fee. If you are working with a buyer’s agent, they should be aware of your status as a licensed agent and this should be a conversation you have ASAP.

      – You should definitely not wait any longer to let this cat out of the bag. Some states require immediate disclosure of the buyer or seller parties are licensed agents (I don’t know if CT or NY is one of those), and there is no advantage to holding that information close to the vest, so get it out there ASAP.

      – Remember, all commissions, referrals, ANY money that is made through a real estate transaction is done so through your broker. I would suggest starting there; talk to your husband’s broker to see how a potential commission or referral could come about.

      – As for whether a CT listing agent could refuse to do business with you…I suppose they could, but that would be a direct violation of their fiduciary responsibility to their client, so that seems unlikely.

      My best advice here: Be as transparent as possible, as quickly as possible.

      Good Luck!

      Chris

      Reply

      • Thanks so much for the valuable information, Chris. Your points are clear and make perfect sense. There’s always some “gray area” in real estate and we just wanted to get another perspective. Thanks again for your prompt, courteous and elaborate response :-).
        Stay safe and healthy!

        Reply

37. Hello. I am a licensed Agent in PA but will be moving to GA. I would also like to get my broker’s license here before I make that move. Would I still have to take GA tests? What is the process? Thanks

    Reply

    • Hi Althea –

      You will definitely have to take the tests. Reciprocity doesn’t excuse you from taking your state licensing exams, just from completing the pre-test education and training requirements. Unless there is a reason you want to retain a broker’s license in PA, I would not take the test there.

      Chris

      Reply

38. I am a real estate broker in California. What is the easiest way to also obtain a principal brokers license in Oregon and a brokers license in Nevada?

    Reply

    • Why wouldn’t you just join a US and Canada wide brokerage so that you don’t have to get a brokers license or take on the liability? You can hold multiple licenses and pay only 16K in commissions for the year. I have 5 licenses

      Reply

    • Hi Jim –

      Obtaining broker status is a little trickier than agent status using reciprocity rules. The best course of action is going to be to reach out to the licensing and regulatory affairs commissions for each state and address those questions with them.

      Chris

      Reply

39. I,m a broker in Georgia and recently started working in Louisiana under the GA/LA reciprocal agreement. I recently met a Louisiana agent who wanted to work with me under my brokerage here is Louisiana. Is that possible?

    Reply

    • Oops… meant “here in Louisiana. Is that possible?”

      Reply

      • Hi Stan –

        Great question. As far as I know, as long as you’re licensed to operate in LA as a broker, you can take on agents too. But, each state is a little different on that, so I would check with the LA board of licensing and regulatory affairs to make sure before you get too deep into the planning process.

        Chris

        Reply

40. Hello Chris,
    My daughter is relocating to New York. I’m a realtor in Colorado.
    You stated in an earlier post that I can only conduct professionally related activities from my home state.

    Can I attend the inspection in my non-professional capacity as her mother and advisor?

    Thank you for your help!

    Reply

    • Hi Viki –

      Great question. Yes, you can absolutely attend the inspection in a non-professional capacity.

      If I have friends or family from out of state or just out of my service area, inevitably real estate will come up in conversation, and I usually end up getting questions.

      I always start those conversations by saying, “I know you’re working with a Realtor, so to be clear, we’re chatting as friends / family. Any advice or suggestions you get from me is friendly, not professional. You should consult with your local agent before making any real estate decisions.”

      I know is sounds a little formal, but it just clears the air a little bit. You are under no legal obligation to disclose your professional status to those in New York, so as long as you’re offering personal advice to your daughter and not representing her legally, you’re in the clear!

      Is your daughter moving to NYC? Is she is real estate too?

      Chris

      Reply

41. I have been a licensed real estate broker in Colorado for 30 years. I am moving to Connecticut. I understand that there is reciprocity with a reciprocity agreement. Where do I obtain that agreement?
    Thank you! Joan

    Reply

    • Hi Joan –

      Your first step will be to visit the Connecticut Department of Consumer Protection website, they’ll have the forms to get the process started for you!

      https://portal.ct.gov/DCP/License-Services-Division/All-License-Applications/Real-Estate—Reciprocal

      Chris

      Reply

42. Your information on Arizona is not correct:
    Arizona does not offer real estate license reciprocity with any other State. Arizona requires 90 hours of in-classroom salesperson pre-license education.
    https://www.azre.gov/Lic/LicForms.aspx

    Reply

    • Conrad –

      Thanks for the head’s up! This article is due for an update soon, we’ll make sure to make that change.

      Chris

      Reply

43. Are we sure this is right?? I am in TN and want my KY license but was informed as of jan 2020, KY is not honoring reciprocity.

    Reply

    • Hi Raquel –

      Thanks for the comment. Yes, I just saw this too. As of late December 2019, Kentucky is no longer honoring any sort of reciprocity, which is a total bummer. Here’s the info I found about it: https://krec.ky.gov/licensing/Pages/Recip%20License.aspx

      We will need to get in and update the article ASAP!

      Chris

      Reply

44. Why is the District of Columbia and Puerto Rico not on your list?

    Reply

    • Hi Robert –

      That’s a great question, and an oversight on my part. We’ll make sure to include them when we update this article!

      Thanks!

      Chris

      Reply

      • Any update on DC?

        Reply

        • Hi Joseph –

          Thanks again for your comment. We haven’t done an update on this article yet, but when we do we’ll make sure to include DC. Here is a good place to get started though: https://dcra.dc.gov/real-estate

          Chris

          Reply

45. Hi Chris,

    I’m a California’s active agent.
    I have clients who want to purchase a commercial property $20M.+ in Manhattan, NY.
    We found a property they like (NOT on the market/ unlisted) through out the conversation with a property manager.
    How do we get this process goes on legally without violate New York’s Laws ?
    Do I need to take a New York’s real estate license since it’s not listed? Do I have to fly over to do the inspections and all?

    Thank you so much for your help!

    Reply

    • Hi Winnie –

      First off all, this sounds like it could be a great transaction, nice work!

      OK, down to business. New York is a Physical Location state when it comes to portability. This means that you can represent the buyer on the property as long as the seller is represented by a licensed agent / broker from the state of New York. In a deal this size, that would be a pretty hefty commission going to the seller’s agent, so if this truly is an off-market deal and the seller has no representation, if the parties are willing to wait, I would get my NY license just for this deal.

      If you don’t end up getting your New York license, you can still represent the buyer, but following Physical Location rules, which means you can’t actually do any business in the state of New York physically, you have to be in California while brokering this deal. So, you can’t be present for inspections, you can’t actually be on site and acting in a professional role.

      Sounds intriguing, I’d love to hear how it all comes together. Keep me posted!

      Chris

      Reply

46. Thank you for this info. It was very helpful. I am still a bit confused about CA portability.

    Can an out-of-state agent list a property located in CA if they never step foot in the state based on physical location portability?

    Also, per the excerpt below it states you still need to co-list with a CA licensee, wouldn’t that mean CA is more a Cooperative State rather than Physical Location?

    California
    Category: Physical Location

    An out-of-state real estate agent can perform no real estate acts while physically in California. An out-of-state real estate agent can receive a referral fee or share a commission if they are in a co-brokerage agreement with a California licensee.

    Reply

    • Hi Steven –

      Thanks for the question. I’ll admit, this is a bit of a confusing topic, in part because there is no standard that states have to follow, they can pick and choose what they want for their own policies which is what California does. You are correct in your assessment, their portability policy is a combo of the two: you can list a property in the state of California if you’re partnering with a state licensed agent, but, you can’t come in to the state to do it.

      A simpler system, I wish it was, but we’ll work with what we’ve got!

      Thanks!

      Chris

      Reply

47. I think you are wrong about California.

    They don’t allow any reciprocity according to this website:

    http://www.dre.ca.gov/Examinees/OutOfState.html

    Reply

    • Hi Adam –

      You are correct, California doesn’t allow any sort of inbound reciprocity. However, reciprocity isn’t a two-way street. All the states listed in the California section are the places that you could go to with a Cali license.

      Chris

      Reply

48. Hi, I am in the process of relocating to South Carolina from Georgia. Understanding that South Carolina is full RECIPROCITY state for Georgia. What exactly does that mean? Why does the SC application ask me for Georgia resident information? I am so confused.

    Reply

    • Hi Frieda –

      Congrats on the move, I hope it’s a good one! As for your license stuff, you are right on track. Yes, moving from Georgia to South Carolina means you have full license reciprocity, meaning that you will be exempt from the pre-licensure requirements native South Carolinians would be subject to. You’ll still need to take the state licensing test, but once you pass that, you’re good to go!

      As far as the Georgia residency questions, I haven’t seen the forms specifically, so I can’t speak to exactly why, but my guess is it has to do with the verification of your existing license.

      Do you have a broker all picked out in South Carolina? If so, I would suggest linking up with them, they will have state specific resources that might be helpful too!

      Chris

      Reply

49. THANK YOU FOR YOUR INFO. i JUST WANT TO KNOW IF MY THOUGHTS AND BELIEFS ARE ACCURATE.

    I am a Broker in South Carolina and have been for 50 Years. I have a client that wants to Buy a large tract of land in Florida and has given me the assignment. I located the land on the Internet, but I have not Physically inspected it nor will I go with the client when he inspects it. All my involvement will be by way of Telephone and emails to Listing Broker. It appears that the client wants to make an offer on the property, so I called Listing Broker in Florida and he informed me that the Law Prohibits him paying me a commission because I do not have a Florida License. I have sold and closed many properties in Florida under the same guidelines as above and this has never come up before, and I was paid a commission. I was always of belief that as long as I personally never set foot in Florida with the client and all showings were conducted by the Listing agent that I could be paid a commission by the Listing Broker under the Physical Location Heading, since there is no Reciprocity Agreement (Cooperative State) between Florida and South Carolina and also since Florida is not classified as a TURF State. Am I correct with my belief that I can collect a commission under The Physical Location State definition? Thank You for any direction that you can Provide –
    Ken Butler 843.593.3325 ekbutler3@comcast.net
    Florida
    What Is Real Estate License Reciprocity?
    My State of SC is not included in Florida list as one that has Reciprocity
    Real estate license reciprocity is an agreement between multiple states allowing real estate agents licensed in one state to be licensed in reciprocal states without taking local real estate pre-licensing courses. Reciprocity is state-specific, with some states requiring full re-examination, some requiring limited examination, and others flatly denying reciprocity to out-of-state licensees.
    This means that a reciprocity agreement doesn’t necessarily allow a real estate salesperson or broker can take part in real estate transactions in a reciprocal state without getting a license in that state. For that, you need to understand the state laws for real estate license portability.
    What Is Real Estate License Portability?
    #2 below pertains to me
    Real estate license portability describes state laws allowing out-of-state real estate agents to engage in real estate transactions in their state. In general, there are three kinds of portability laws: 1) cooperative, 2) physical location, and 3) turf states. Each of these classifications requires different circumstances under which an out-of-state real estate agent may work within the state.
    There are three major classifications of real estate license portability:
    1. Cooperative State – NO
    Cooperative states allow out-of-state real estate agents or brokers to physically enter the state to conduct real estate business. This includes property showings, closings, negotiations, and other stages of real estate transactions. However, in order for out-of-state agents to work in a cooperative state, they must have a co-brokerage agreement with a licensee of that state.
    There are 24 cooperative states, including Alabama, Colorado, and Washington. Keep in mind, however, that some cooperative states, like Michigan, place limitations on out-of-state agents. So, you should always familiarize yourself with local requirements before committing to a client looking for property in a cooperative state.
    2. Physical Location State YES
    A physical location state allows agents and brokers to conduct business in another state but doesn’t allow them to enter the state for the purpose of conducting real estate business. This means that an agent or broker from another state must conduct all out-of-state business remotely and may not enter the state for showings, closings, or any other reason.
    For example, in a physical location state, you can send your clients to view properties, submit offers on their behalf, and negotiate transactions as long as you physically remain in the state in which you are licensed. There are 21 physical location states, including Florida, Illinois, and Massachusetts, plus the District of Columbia.
    3. Turf State NO
    A turf state does not allow out-of-state agents or brokers to conduct any business in their state, either in-person or remotely. The only option to work with clients in a turf state is to refer them to a licensee of the turf state. There are six turf states: Kentucky, Missouri, Nebraska, New Jersey, Pennsylvania, and Utah.
    If you have a lead who wants to buy or sell property in a turf state, your options are limited. If you work with a brokerage that has offices in multiple states, simply refer your client to someone in the appropriate turf state office.

    Reply

    • Hi Ken –

      Thanks for the questions. Sorry for the frustration you’re feeling, let’s see if we can sort some of this out.

      You’re correct, Florida is classified as a Physical Location Portability state, meaning agents licensed in other states are allowed to conduct business on a one-time basis in the state of Florida as long as they remain in their home state.

      That being said, there are a number of conflicting statutes in the Florida state regulations that make this issue a little less cut and dry.

      If the listing broker is refusing to pay based on your out-of-state status, I would appeal to the Florida MLS where the property is listed. While you may not have any direct representation here, my guess is they could help get the wheels turning for you.

      In my experience, there are a couple of reasons why a broker wouldn’t want to pay an out of state commission. The most likely is fear of violating rules, and support and validation from a local MLS board could help quell those fears.

      The less likely reason is that the broker is trying to avoid paying a commission because they are trying to double-side the deal. If that is the case, and they’re holding back the presentation and movement of a legitimate offer (obviously a no-no), a little attention from the local board might help cure that ailment too.

      Long story short, you’ve got your facts straight, but the Florida rules aren’t going to be the explicit support you need, so it is time to get a little more local with your appeals.

      Good luck, let me know how it goes!

      Chris

      Reply

      • Just because a property is listed in MLS is not an obligation to pay commission to any brokerage not a member of that MLS. Listing in MLS is an agreement to cooperate with other agents. It is NOT an agreement to compensate. The FL brokerage is not obligated to pay commission to the other agent.

        Reply

        • If the commission section of the MLS offers a coop fee, then payment satisfaction is expected by the Association rules. Refusing to pay as advertised in the MLS could be a potential violation of the Code of Ethics. An Arbitration request would likely be ruled in favor of the coop agent.

          Reply

          • This is true, but different associations have different rules. For instance, there are some associations that only offer this coop fee to other association members, so if you’re from outside the association, they may not be legally obligated to pay without a formal contract.

            Chris

        • Hi Sally –

          That is true, however, most boilerplate purchase agreements include a commission percentage now, regardless of whether or not you’re a member of that specific MLS. Of course, this is different case-by-case, but that contract would supersede any option of an MLS member.

          Chris

          Reply
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