Becoming a real estate broker can be a great career path. If you’re considering how to get a real estate broker license in New York, you will need to complete the prequalifications, choose a real estate school to complete mandatory courses, pass two exams, and apply for your license.
These are the seven steps to get a real estate broker license in New York.
1. Check the Pre-Qualifications
In order to be eligible for a real estate broker license in New York, you have to meet criteria like being 20 years or older with a record clean of felonies. On top of meeting the state’s legal eligibility requirements, aspiring brokers must have experience working as a licensed real estate salesperson and accumulated a minimum number of transaction points.
Aspiring brokers must have two years of experience as a licensed real estate salesperson or three years of experience in the real estate field. In addition, agents must have completed the 75-hour mandatory real estate salesperson course and passed the New York state real estate salesperson exam before they can hope to qualify to become a broker.
New York uses a weighted point system for calculating qualifying real estate experience with complicated transactions valued higher than less complicated ones. For example, residential rentals are valued at 25 points, while the sale of a multi-unit commercial condominium has a value of 400 points. Therefore, the rental agent would have needed to conduct eight times as many transactions as the commercial agent to achieve the same number of points.
A licensed real estate salesperson working in New York must accumulate 3500 points in real estate transactions before applying to become a broker. The requirement for non-New York licensed real estate salespeople claiming equivalent experience is 5250 points. You can read more information about New York broker requirements and point system on this document.
These pre-requisite requirements are designed to ensure you are knowledgeable in the industry before you are in a position to take responsibility for other people’s real estate transactions. Once you meet all of the required standards, you can begin the process of earning your real estate broker license in New York.
2. Choose a Real Estate School
Before starting your broker pre-licensing course, you need to find a real estate school that is the best fit for you. There are a few schools that offer the New York broker pre-licensing course as a live class, but you will find many more school choices online. You can look for a school that offers a variety of course formats, affordable courses, or an instructor available for questions. To choose the best real estate school, check out our guide on the six best online real estate schools.
Mbition – Learn Real Estate is a real estate school that offers a broker pre-licensing course for only $249. This course is approved by the state of New York and includes review questions for you to go through the information at your own pace. Mbition prepares students to pass the real estate broker exam and to have success in your real estate broker career. Find out more about Mbition on their website.
3. Complete the Broker Pre-Licensing Course
After you’ve selected the best real estate school for your needs, you can enroll in the 45-hour broker pre-licensing course. This is the first step toward getting your real estate broker license in New York. Unlike the broker requirements found in other states, the topics in this course are mandatory and do not include any elective topics.
These are the 11 sections of the New York real estate broker course:
- License Law
- Law of Agency
- Agency and Real Estate Brokerage
- The Broker’s Office
- Real Estate Finance
- Real Estate Investments/Math
- Business Law
- Construction and Development
- Conveyance of Real Property
- Property Management
- Taxes and Assessments/Local Concerns
The broker pre-licensing course is meant to prepare you for the broker’s exam and teach you more about these real estate concepts so you can run a successful real estate brokerage. Even though real estate agents are familiar with most of these concepts, this course will teach you much more in-depth information.
4. Obtain Your Certificate of Pre-licensing Course Completion
After you have gone through the broker pre-licensing course syllabus, you will have to take a proctored final exam in order to obtain a certification of course completion from your real estate school. To be clear, this test is not the New York broker’s exam, and a passing grade is required before you can move on to the next step.
The final exam for pre-licensing coursework is administered through your real estate school. However, because it is a proctored test, you will not be able to take it online, even if you completed the balance of your coursework independently. This means that you will have to schedule a time and location to complete a 100 question final exam.
5. Schedule to Your Official State Exam
When you are ready to schedule your official state exam, you must go into your eAccessNY account to find a date, time, and location the test is offered. When you schedule your test, you will be given a page to print and take to the exam. You also need to take a government-issued photo ID with you to the exam, but you may not bring or use cell phones, notebooks, or any other kind of aid.
6. Pass the NY Real Estate Broker Exam
After your pre-licensing course and final exam are complete, you can focus on passing the real estate broker exam administered by the New York State Division of Licensing Services (DSL). This exam consists of multiple-choice questions and you are given two and a half hours to complete it.
After you complete your exam, it will be sent to the Exam Unit and scored. Your score will either show as passed or failed, not as a numerical value. To view your score, you must go to your eAccessNY account.
7. Apply for Your NY Real Estate Broker License
Once you pass the real estate broker exam, you can officially submit your application for a real estate broker license in New York. You have two years after passing the exam to submit this application before it expires.
When you complete the application, you will choose one of these types of real estate broker licenses:
- Individual broker: For brokers conducting business as a real estate brokerage using your name only.
- Trade name: For brokers conducting business as a sole proprietorship, as a name other than your own.
- Partnership: For brokers conducting business under the partnership name only.
- Limited Liability Company or Limited partnership: For brokers conducting business as a real estate brokerage through an LLC or LP
- Corporation: For brokers conducting business as a real estate brokerage under the corporate name.
- Associate Broker: For brokers conducting business under the name and supervision of an individual broker or principal broker.
The New York Broker Application also requires you to submit all proposed business names you intend to use in writing to the Division of Licensing Services for approval. So, think ahead how you plan to market yourself and consider where you will be doing business once you have your license. Note, you will not be allowed to use a post office box as your official address.
Along with your application, you must pay the nonrefundable application fee of $155. After your application is processed, you will be able to see your New York real estate broker license in eAccessNY. If you decide to change your broker license type, you will pay an additional fee of $150.
Frequently Asked Questions (FAQs)
How long does it take to become a real estate broker in NY?
In order to upgrade your license and become a real estate broker in New York, you must take a 45 hour course, pass a final exam, and pass the New York real estate broker’s exam. It can take as little time or as much time as you choose to complete the requirements and schedule exams.
That said, the state may agree to waive the 120-hour pre-licensing course requirement for those who have a bachelor’s degree with a concentration in real estate, provided they submit an official transcript with a waiver request as part of their application.
Does NY share reciprocity with other states?
Yes, New York state shares real estate reciprocity with nine states, although the conditions differ. If you are a licensed salesperson or broker in one of these states, you may be eligible for a real estate license in New York.
The states that share reciprocity with New York are:
- West Virginia
How much do real estate brokers make?
Real estate brokers are not paid a salary. Their income depends on the real estate market in their area and how they run their business. In 2018, the median income of real estate brokers in the US was $70,400. For more details on how much real estate brokers make, check out this article.
Making the decision to become a real estate broker in New York is a big step in your professional career. It demands long hours of work, rigorous study, and more than one examination before you can even apply. There’s also no guarantee you will pass either test on your first try. However, the upside potential certainly can make it worth your time.
Although getting a real estate broker license in New York can be a long process, choosing the right real estate school can help. We suggest Mbition – Learn Real Estate because of their highly-rated real estate courses at an affordable price. Click the link below for more details about Mbition.