Real Estate License Reciprocity and Portability Guide 2019

Real estate license reciprocity represents the ability of an agent to get licensed in a new state based on their existing home state license. Real estate portability lets out-of-state agents conduct transactions within specific states, based on local laws. To help, we compiled license reciprocity and portability rules for all 50 states.

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What Is Real Estate License 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.

For example, if you have a New York State real estate salesperson’s license, you can apply for and get a Connecticut real estate salesperson license without taking the coursework required for licensure in Connecticut. You would, however, still need to take the Connecticut state portion of the exam. Keep in mind, however, that specific requirements vary from state to state.

What Is Real Estate License Portability?

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: cooperative, physical location, and 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

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

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

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.

Things to Keep in Mind When Operating in Other States

Conducting business for clients who are looking for property in another state can be tricky because local agents may try to poach their business. Unless you have a great relationship with your clients, consider requesting an exclusive buyer’s agreement. Just remember that most exclusive buyer’s representation contracts are only valid in the state you’re licensed in—not out-of-state.

In addition, assisting clients with out-of-state properties can be difficult unless you’re extremely experienced, have a great lawyer, or are being supervised by a broker experienced in out-of-state transactions. Transactions are complicated by convoluted reciprocity and portability laws, varying document formats, inconsistent recording requirements, and more. If you’re unsure of yourself, offer the client as a referral to avoid these problems and frustrations.

Out-of-state real estate practices can be complex, but you can look into state-specific license reciprocity and portability laws to determine whether you need to refer a client. Some states offer reciprocity with all states, while others have reciprocity agreements but require state-specific real estate courses. On the other hand, some states have agreements with a limited number of states or none at all.

Important note: You should consult an attorney or legal counsel before becoming involved in a transaction in another state. Failure to observe the law may result in loss of commission, or worse, even jeopardize your license. The following guide is for informational purposes only and is not meant to be taken as legal advice.

Real Estate License Reciprocity and Portability by State

Real estate reciprocity and portability vary by state, so it’s important to understand licensing requirements if you live near a state border or if travel is a substantial part of your business. To jump directly to your state, use the state-by-state table or browse through the 50 states below.

State by State Real Estate License Reciprocity and Portability

State by State License Reciprocity and Portability

Alabama

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Alabama has reciprocity agreements with most states but requires coursework.

Alaska

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Alaska has reciprocity with any other state if the license has been held for a year or more and the person passes the Alaska state portion of the real estate exam.

Arizona

Real Estate License Portability: Cooperative, with limitations
Real Estate License Reciprocity: Arizona does not have reciprocity agreements with any other state.

Arkansas

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Arkansas has reciprocity agreements with the following states:

California

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: California does not have reciprocity agreements with any other state.

Colorado

Real Estate License Portability: Cooperative, with limitations
Real Estate License Reciprocity: Colorado has reciprocity agreements with all states with limited exam requirements.

Connecticut

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Connecticut has reciprocity agreements with the following states:

Delaware

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Delaware has reciprocity with all states after passing Delaware state law exam or some verifiable minimum production/experience requirements.

Florida

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Florida has mutual recognition agreements with the following states:

• Alabama
• Arkansas
• Connecticut
• Georgia
• Illinois
• Mississippi
• Nebraska
• Rhode Island

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Georgia

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Georgia has reciprocity agreements with all states, assuming the agent passes necessary background and real estate license history checks.

Hawaii

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Hawaii does not have reciprocity agreements with any other state.

Idaho

Real Estate License Portability: Physical Location, with special circumstances
Real Estate License Reciprocity: Idaho has reciprocity agreements with the following states:

• Wyoming
• Oregon
• Montana

Illinois

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Illinois has reciprocity agreements with the following states:

Indiana

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Indiana no longer holds reciprocal agreements with any state. However, agents may still qualify if their original state of licensure has licensing requirements that are substantially similar to those in Indiana.

Iowa

Real Estate License Portability: Physical Location, with special circumstances
Real Estate License Reciprocity: Iowa has reciprocity agreements with the following states:

Kansas

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Kansas has reciprocity with other states after a waiver is successfully processed.

Kentucky

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Kentucky has reciprocity with all other states after passing the Kentucky law portion of the state exam.

Louisiana

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Louisiana has reciprocity agreements with the following states:

Maine

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Maine has reciprocity agreements with all states upon passing the Maine law portion of the state exam

Maryland

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Maryland has reciprocity agreements with the following states:

• Pennsylvania
• Oklahoma

Massachusetts

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Massachusetts has complete Broker and Salesperson reciprocity with the following states:

Massachusetts has limited Broker and Salesperson reciprocity with the following states:

Michigan

Real Estate License Portability: Physical Location, with limitations
Real Estate License Reciprocity: Michigan does not have reciprocity agreements with any other state. However, individuals licensed in another state may qualify for a Michigan real estate license if their experience and training are substantially equal to that required in Michigan.

Minnesota

Real Estate License Portability: Physical Location, with special circumstances
Real Estate License Reciprocity: Minnesota has reciprocity agreements with the following states:

• Colorado
• Iowa
• Nebraska
• North Dakota
• Oklahoma
• South Dakota
• Wisconsin

Mississippi

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Mississippi reciprocity rules vary and require a call to the Mississippi Real Estate Commission for the current standing.

Missouri

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Missouri has reciprocity with other states after passing the Missouri portion of the real estate exam.

Montana

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Montana has reciprocity agreements with the following Canadian Province:

• Alberta, Canada

Nebraska

Real Estate License Portability: Turf State, with special circumstances
Real Estate License Reciprocity: Nebraska has License by Recognition, rather than Reciprocal Licensing. This means that out-of-state agents who are in good standing may be issued an equivalent real estate license in Nebraska.

Nevada

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Nevada has Salesperson and Broker license reciprocity agreements with the following states:

Nevada has Broker, Broker-Associate, and Broker-Salesperson license reciprocity in addition to the salesperson reciprocity list with the following states:

New Hampshire

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: New Hampshire has reciprocity agreements with the following states:

• Massachusetts
• Maine
• Vermont
• Georgia

New Jersey

Real Estate License Portability: Turf State
Real Estate License Reciprocity: New Jersey does not have reciprocity agreements with any other state.

New Mexico

Real Estate License Portability: Turf State
Real Estate License Reciprocity: New Mexico has reciprocity agreements with the following states:

• Massachusetts
• Louisiana
• Georgia

New York

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: New York has reciprocity agreements with the following states:

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North Carolina

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Applicants who have an out-of-state real estate license that has been active within the last three years and that is equivalent to North Carolina’s Provisional or “Full” Broker license may waive the state’s pre-licensing course and engage in real estate by passing the state exam or waive the exam and be granted a North Carolina license on provisional status.

North Dakota

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: North Dakota has reciprocity agreements with the following states:

• Georgia
• Iowa
• Minnesota

Ohio

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Ohio has reciprocity agreements with the following states:

Oklahoma

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Oklahoma has “non-residency” agreements with the following states:

Oregon

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Oregon has reciprocity agreements with the following states:

• Alabama
• Alberta
• Georgia
• Nebraska
• South Dakota

Pennsylvania

Real Estate License Portability: Turf State
Real Estate License Reciprocity: Pennsylvania has reciprocity agreements with the following states:

Rhode Island

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Rhode Island has reciprocity agreements with the following states:

• Connecticut
• Massachusetts

South Carolina

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: South Carolina has reciprocity agreements with the following states:

• North Carolina
• Georgia
• West Virginia
• Kentucky

South Dakota

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: South Dakota does not have reciprocity agreements with any other state.

Tennessee

Real Estate License Portability: Cooperative, with limitations
Real Estate License Reciprocity: Tennessee does not have reciprocity agreements with any other state. Agents must complete a Reciprocal application and be in good standing in their home state.

Texas

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Texas does not have reciprocity agreements with any other state.

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Utah

Real Estate License Portability: Turf State
Real Estate License Reciprocity: Utah has reciprocity agreements with the following states and Canadian Provinces:

• Georgia
• Mississippi
• Alberta, Canada

Vermont

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Vermont does not have reciprocity agreements with any other state.

Virginia

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Virginia has reciprocity with other states provided applicant has been active in the real estate business during 24 of the previous 36 months.

Washington

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Washington has reciprocity with other states based on recent license activity and submission of the proper forms.

West Virginia

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: West Virginia has Salesperson license reciprocity agreements with the following states and territories:

Wisconsin

Real Estate License Portability: Physical Location
Real Estate License Reciprocity: Wisconsin has reciprocity agreements with the following states:

• Illinois
• Indiana

Wyoming

Real Estate License Portability: Cooperative
Real Estate License Reciprocity: Wyoming does not have reciprocity agreements with any other state.

Bottom Line – Real Estate Reciprocity

Real estate license reciprocity and portability dictate how agents engage in out-of-state property transactions. If you have clients looking at property out-of-state, it’s important to fully understand local license requirements. Once you’re familiar with applicable state law, decide whether it’s best to complete the transaction yourself or refer the client to another agent.

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