Real estate is a dynamic and rewarding career that extends to the license holder an opportunity to help people through one of the most important decisions of their lives: buying or selling a home. Arizona, with its fast-growing cities like Phoenix, Tucson, and Scottsdale, offers enormous opportunities for those who would like to become real estate agents.
But with any other profession, there are certain requirements and steps one has to fulfill in order to get his or her real estate license in Arizona. In this article, we will go through every detail related to obtaining a licensed real estate agent in Arizona-from eligibility and education to how one can apply for the same and beyond.
Step 1: Meet Arizona’s Eligibility Requirements
Before you apply for a license to practice as a real estate agent in Arizona, you must meet the minimum eligibility requirements as stipulated by the Arizona Department of Real Estate (ADRE). Such a requirement ensures that applicants exercise their profession with responsibility and professionalism within the state.
The following are the minimum qualifications an individual must meet to be licensed as a real estate agent in Arizona:
1. Age: You must be at least 18 years old.
2. U.S. Citizenship or Legal Residency: Applicant must be a U.S. citizen, a lawful permanent resident, or a person with legal status to work in the United States.
3. Criminal History: Arizona’s statute demands that applicants declare any and all criminal backgrounds. Though having a criminal conviction does not outright disqualify you from becoming a real estate agent, some might prevent you from gaining a license, such as fraud or moral turpitude-related crimes. You are required to submit a background check with your application.
4. Education: You need a high school diploma or a GED.
If you meet these basic eligibility requirements, you may proceed with the second step of your licensing process.
Step 2: Complete Required Pre-Licensing Education
Licensing in Arizona requires completion of 90 hours of pre-licensing education through an Arizona Department of Real Estate (ADRE)-approved provider. Course work should cover the general fundamentals of real estate practice, Arizona real estate laws, and your ethical responsibilities.
What You Will Learn in Pre-Licensing Education
This 90-hour pre-licensing course covers the following core topics:
– Real Estate Principles: Basic principles of real estate to include, but not limited to, property ownership, valuation, and real estate transactions.
– Arizona Real Estate Law: An overview of the specific laws and regulations that govern the transaction of real estate in Arizona to include, but not limited to, property rights, disclosure laws, and agency laws.
Contracts and Negotiations: How to prepare for the review and negotiation of real estate contracts and agreements. Finance and Mortgages: A summary of how financing in real estate works, including types of mortgage products, credit, and loan programs available for homebuyers. Ethics and Professional Conduct: The importance of professionalism, integrity, and ethical practices as it relates to real estate transactions. Property Management: Leasing, property management, and landlord-tenant laws in Arizona.
Arizona state law grants you the freedom to pursue your pre-licensing education course online, in person, or even through live virtual courses, as it may suit you or your schedule. Other schools also offer live virtual courses. Whichever education provider you use, make sure it’s approved by the Arizona Department of Real Estate for quality and state standards assurance.
Step 3: Pass the Arizona Real Estate Salesperson Exam
Once you have finished your pre-licensing education, the second step to getting licensed is to pass the Arizona Real Estate Salesperson Exam. The real estate exam is an important juncture in the roadmap to licensure; it tests your knowledge of the real estate principles, Arizona-specific laws, and ethical practices.
Examination Information
The Arizona real estate exam is provided through Pearson VUE and consists of two sections:
1. National Portion: This part of the examination shall deal with 80 multiple-choice questions concerning the national principles, practices, laws, and procedures relating to real estate.
2. State Portion: The state portion shall include 50 multiple-choice questions specific to Arizona real estate laws, rules, and practices.
Passing Score: The minimum passing score is 70% on the national and state portions. You will need to pass both portions of the exam before you can be qualified for licensure.
Exam Fee: The fee for taking the exam is usually $75 for both portions.
Exam Time: You will have 3.5 hours to complete the exam, and you must contact Pearson VUE’s website in advance to plan your exam date and time.
If you pass the exam, your results are made available to you immediately. If you fail the first time you take it, you may attempt the test more than once, but you will have to pay the registration fee each time you take the exam.
Step 4: Application for a Real Estate License
When you pass the Arizona Real Estate Salesperson Exam, you proceed to submit your Real Estate Salesperson Application to the Arizona Department of Real Estate (ADRE). The application shall constitute an official request to get your real estate license.
What You Need to Submit
1. Application Form: Fill out the online or paper application form on the website of the ADRE by providing your personal details, proof of education, and exam results.
2. Background Check: You will also be required to provide fingerprints for a criminal history review in your application process. The ADRE uses IdentoGO as their service provider to conduct background checks.
3. Proof of Education: You will need to show proof that you have completed the 90 hours of required pre-licensing education. Your education provider will send this information directly to the ADRE.
4. Application Fee: The typical application fee for an Arizona real estate salesperson license is normally $60.
After the review and approval by the ADRE, you will be issued your license as a real estate salesperson. This may take anywhere from 1-3 weeks, so it is better that you provide all the required documents and fees as soon as possible.
Step 5: Find a Sponsoring Broker
In Arizona, a real estate agent must practice under the auspices of a licensed real estate broker. A sponsoring broker will provide a source of guidance in helping you become an independent agent, a source for materials and resources, and a means to ensure that you are in compliance with Arizona real estate law.
How to Find a Sponsoring Broker
Mentorship: Look for a brokerage that will offer formal training, mentorship, or at least a support system of some sort for new agents. Most new agents would want to learn how to prospect, close, and advance their career.
Commission split: Most real estate brokers take some sort of commission split with their agents. It is relevant to understand commission structures at various brokerages, especially when one starts their career.
– Brokerage Reputation: Take account of the brokerage’s reputation. An established brokerage may easily provide you with access to leads, resources, and marketing tools that are in line with helping one become successful.
– Office Environment: Consider the culture and environment of the office. Does it support and provide an atmosphere that is helpful to your goals? Are resources provided at the office that you would need to achieve success?
You must apply to a brokerage in writing. It is only after that time you can begin working as a licensed real estate agent in Arizona.
Step 6: Complete Continuing Education Requirements
Real estate licenses in Arizona are issued for a period of two years, during which the agent has to complete 24 hours of Continuing Education to get their license renewed. Continuing education ensures that agents are cognizant of the latest laws and regulations besides the trends in the industry.
Of the 24 hours of CE, at least 3 hours must deal with Legal Issues, and the remaining 21 hours may consist of general real estate education. Arizona requires that CE be completed through an approved provider of the ADRE.
Step 7: Maintain Your License and Build Your Career
Now that you have your license and complete your continuing education, it’s time to get started in building your career as a real estate agent. Here are some tips to help you on your path:
1. Network: This is the way you find clients, whether attending industry events, being in contact with lenders, or engaging in community activities. Become involved in the local associations of real estate such as the Arizona Association of Realtors to keep yourself plugged into the industry.
2. Market Yourself: Build a professional website to establish an online presence, then build pages/accounts on Facebook, Instagram, and LinkedIn. Additional hot websites for finding prospects are Zillow, Realtor.com, and Redfin.
3. Seek Referrals: Referrals are a great way to drum up business. Always give your clients superior service, allowing happy clients to refer you to their friends and family.
4. Stay up to date: Real estate is an ever-changing industry. Keep yourself informed on market trends, interest rates, and new laws and regulations that could impact your business.
Conclusion
Becoming a real estate agent in Arizona takes some commitment to education and preparation, but it is also quite exciting. By following these steps in the process, you are going to be well on your way to an extremely successful career: completion of pre-licensing education, passing the exam, finding a sponsoring broker, and continuing your education.
With Arizona’s thriving real estate industry and its diversified housing market-from desert homes in Scottsdale to sprawling properties in Tucson-the opportunities that await motivated agents are many. Be it residential, commercial, or luxury real estate, Arizona presents a dynamic and rewarding atmosphere for aspiring professionals in the field of real estate.
