Real Estate License Reciprocity & Portability Guide 2020

Real estate license reciprocity gives licensed agents the opportunity to secure a license in a new state without completing all licensing requirements. Real estate portability lets out-of-state agents conduct transactions within specific states, based on local laws. To help agents understand both of these, we compiled license reciprocity and portability rules for all 50 states.

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 prelicensing courses or, in some cases, taking a licensing exam. 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.

Keep in mind that a reciprocity agreement doesn’t necessarily allow a real estate salesperson or broker to take part in real estate transactions in a reciprocal state without a license in that state; it most commonly means that reduced requirements are required for licensing. For example, agents might need to take classes from an online school like Real Estate Express to secure a license in a new state. Check with your state’s licensing board for specific requirements.

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 without securing a new license. 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 covering all geographic regions; this includes states like 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.

Tips for Conducting Real Estate Business in Other States

While building your businesses in other states may mean more commissions, there are also nuances to the process and best practices to keep in mind. First, protect yourself with a buyer agreement in all cases. Also, know your local laws and, if regulations and client needs are too complicated, consider referring that client to someone local.

Consider a Buyer Agreement

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 in which you’re licensed—not out-of-state.

Know the Reciprocity & Portability Laws

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.

Consider Referring Business to Local Licensees

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, offer the client as a referral to avoid these problems and frustrations.

Important note: You should consult an attorney or legal counsel through a service like RocketLawyer before becoming involved in a transaction in another state. Failure to observe the law may result in loss of commission, or worse, 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 & Portability by State

State-by-State License Reciprocity & 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:

• Alabama
• Colorado
• Florida
• Georgia
• Iowa
• Kansas
• Louisiana
• Mississippi
• Nebraska
• New York
• Ohio
• Oklahoma
• Pennsylvania
• South Dakota
• Washington
• West Virginia

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:

• Alabama
• Colorado
• Florida
• Georgia
• Illinois
• Indiana
• Massachusetts
• Mississippi
• Nebraska
• New York
• Ohio
• Oklahoma
• Rhode Island

Delaware

Real estate license portability: Physical location
Real estate license reciprocity: Delaware has reciprocity with all states after passing the Delaware state law exam or meeting minimum experience requirements.

Florida

Real estate license portability: Physical location
Real estate license reciprocity: Florida has mutual recognition (reciprocity) agreements with the following states:

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

If you have clients looking for a vacation home in Florida, consider using Real as your broker. Real is licensed in 21 states, including vacation home hotspots like Florida and Colorado, and can help you operate in multiple states to find your client the perfect home. Learn more about Real so you can operate more independently than with other brokerages.

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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:

• Montana
• Oregon
• Wyoming

Illinois

Real estate license portability: Physical location
Real estate license reciprocity: Illinois has reciprocity agreements with the following states:

• Colorado
• Connecticut
• Florida
• Georgia
• Indiana
• Iowa
• Nebraska
• Wisconsin

Indiana

Real estate license portability: Cooperative
Real estate license reciprocity: Indiana no longer holds reciprocity 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:

• Arkansas
• Georgia
• Louisiana
• Massachusetts
• Minnesota
• Mississippi
• North Dakota

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 licensing exam.

Louisiana

Real estate license portability: Cooperative
Real estate license reciprocity: Louisiana has reciprocity agreements with the following states:

• Alabama
• Arkansas
• Colorado
• Georgia
• Iowa
• Mississippi
• North Carolina
• Oklahoma
• Pennsylvania

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 licensing exam.

Maryland

Real estate license portability: Cooperative
Real estate license reciprocity: Maryland has reciprocity agreements with the following states:

• Oklahoma
• Pennsylvania

Massachusetts

Real estate license portability: Physical location
Real estate license reciprocity: Massachusetts has complete broker and salesperson reciprocity with the following states:

• Colorado
• Connecticut
• Georgia
• Iowa
• Mississippi
• Nebraska
• New Mexico
• Pennsylvania
• Rhode Island
• Tennessee
• West Virginia

Massachusetts has limited broker and salesperson reciprocity with the following states:

• Maine
• New Hampshire
• New York
• North Carolina (a provisional broker in North Carolina is equivalent to a Massachusetts salesperson)
• Oklahoma

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; call the Mississippi Real Estate Commission for current requirements.

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 licensing 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 offers 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:

• Arizona
• Colorado
• Delaware
• Idaho
• Kentucky
• Louisiana
• Minnesota
• Texas
• Utah
• West Virginia

Additionally, Nevada has broker, broker-associate, and broker-salesperson license reciprocity with the following states:

• California
• Connecticut
• Florida
• Maine
• Maryland
• Michigan
• New Jersey
• New Mexico
• New York
• Ohio
• Oregon
• Pennsylvania
• Rhode Island
• Virginia
• Washington, DC

New Hampshire

Real estate license portability: Cooperative
Real estate license reciprocity: New Hampshire has reciprocity agreements with the following states:

• Georgia
• Maine
• Massachusetts
• Vermont

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:

• Georgia
• Louisiana
• Massachusetts

New York

Real estate license portability: Physical location
Real estate license reciprocity: New York has reciprocity agreements with the following states:

• Arkansas
• Colorado
• Connecticut
• Georgia
• Massachusetts
• Mississippi
• Oklahoma
• Pennsylvania
• West Virginia

Although New York has reciprocity agreements with several states, it’s a physical location state and out-of-state agents can’t perform any functions regarding New York real estate within the state. Luckily, Real allows agents to operate and share commissions in New York while providing valuable resources like a personal website, client CRM, an IDX-integrated app, and more. Click here to learn more.

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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 prelicensing courses. They can also 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:

• Arkansas
• Colorado
• Connecticut
• Mississippi
• Nebraska
• Oklahoma
• West Virginia
• Wyoming

Oklahoma

Real estate license portability: Physical location
Real estate license reciprocity: Oklahoma has “non-residency” (reciprocity) agreements with the following states:

• Alabama
• Arkansas
• Iowa
• Louisiana
• Maryland
• Nebraska
• North Dakota
• South Dakota
• West Virginia

Oregon

Real estate license portability: Cooperative
Real estate license reciprocity: Oregon has reciprocity agreements with the following Canadian province and states:

• Alabama
• Alberta, Cananda
• Georgia
• Nebraska
• South Dakota

Pennsylvania

Real estate license portability: Turf state
Real estate license reciprocity: Pennsylvania has reciprocity agreements with the following states:

• Arkansas
• Georgia
• Louisiana
• Maryland
• Massachusetts
• New York

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:

• Georgia
• Kentucky
• North Carolina
• West Virginia

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. However, agents can complete a special reciprocal application and be given the ability to practice real estate if they are 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.

If you’re considering moving your license or taking out-of-state clients but don’t want to re-take licensing exams, check out Real. Real is a licensed broker in multiple states; it is not a franchise. For an 85% commission split and no monthly fee, you can use Real as your broker. This means that you can operate in multiple states. Learn more about Real.

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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 province:

• Alberta, Canada
• Georgia
• Mississippi

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:

• Alabama
• Arkansas
• Georgia
• Iowa
• Massachusetts
• Mississippi
• Nebraska
• New York
• Ohio
• Oklahoma
• Pennsylvania
• Puerto Rico
• South Carolina

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 a 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.