Becoming a real estate agent can be an exciting, rewarding career path in North Carolina. Whether it’s the vibrating cities, the mountain views, or the coastal properties, North Carolina has something to offer for each agent level. Similar to any professional field, becoming a licensed real estate agent requires careful preparation and a comprehension of how the process works.
In this article, we will walk you through everything you need to know about becoming a licensed real estate agent in North Carolina, from checking whether you are eligible all the way to finding a broker and launching your career.
Step 1: Check Your Eligibility
Before attempting to get a license as a real estate agent, you first need to ensure that you meet the eligibility requirements set by the state:
– Age: Be at least 18 years old.
– Legal Status: Be legally working in the United States and be a U.S. citizen or have the right to work in the country.
– Criminal Background: A criminal record, particularly felony convictions of fraud or dishonesty, should be reported to North Carolina. You may be eligible for a real estate license even if you have a criminal history; you may simply be subject to additional scrutiny and approval. You will need to have a valid Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
If you meet these minimum requirements, then you are good to go for the next step in licensing!
Step 2: Pre-Licensing Education Requirement
The State of North Carolina requires that all aspiring real estate agents go through pre-licensing education consisting of a minimum of 75 hours. The education will equip you with the information and skills you need to pass the state examination and embark on your career.
Courses in the pre-licensing education will include many subjects such as:
Real Estate Law: Understand a variety of laws and regulations related to North Carolina real estate, including property rights, deeds, contracts, and agency.
Principles of Real Estate: Learn about the basic components of the real estate industry, from the type of properties to how a real estate transaction works.
Ethics and Professionalism: Learn about standards of ethics in real estate such as duties owed to clients, truthfulness in actions, and professionalism.
Property Management: Become knowledgeable on the fundamentals of managing investment properties, including landlord-tenant laws, preparation of leases, and property maintenance.
Finance and Closing Procedures: Understand how real estate transactions are financed, including mortgage banking, appraisals, and closing procedures.
A variety of education providers in North Carolina offer the necessary 75-hour course, and you have your choice of online courses or in-person classes depending on your schedule and how you learn best. Just ensure the course provider is accredited by the North Carolina Real Estate Commission, or NCREC, the state agency charged with regulating the real estate industry in North Carolina.
Step 3: File Your Application with the North Carolina Real Estate Commission (NCREC)
After taking the pre-licensing education, you have to apply to the NCREC. The application process will require you to furnish a number of your personal credentials, such as:
Your name, current address, and contact number.
Any details with respect to criminal records, if any.
Proof of completion of 75 hours of pre-licensing education.
Payment towards the application fee: normally $100 or so.
You can download and submit your application to the NCREC through their portal. Ensure that all of the information you fill out on your application is appropriate and fully truthful, as any misalignment, inability, or lie could hold up or nullify your application. The NCREC will, therefore, process your application and contact you when you are eligible to take the licensing exam.
Step 4: Schedule and Pass the North Carolina Real Estate Licensing Exam
Once you have been approved, you will have to take and pass the North Carolina real estate licensing exam. The exam will be prepared and administered by an independent testing service, Pearson VUE. It is divided into two portions: a national portion and a state-specific portion.
Exam Information:
-National Portion: This portion of the exam consists of questions concerning general real estate principles, including property ownership, contracts, financing, and underlying real estate laws for the United States.
-State Portion: The state portion of the exam deals with North Carolina’s specific statutes and rules concerning agency law, closing procedures, and real estate practice in this state.
Passing Scores:
– The national part has scores ranging from 0-80, and for passing, one should get at least 57 out of 80.
– The state part has scores that range between 0-40, and for passing, one must receive at least 29 out of 40.
In general, the whole examination is 2 hours, 120 minutes long, with a total of 120 multiple-choice questions, including 80 national and 40 state-specific. The overall fee for such an exam amounts to approximately $64.
Failure on the exam on your first attempt should not impress you much because North Carolina will give you that opportunity again, but you must wait at least a period of 45 days before retesting. Go over the areas one did poorly in to assist you when retaking the test.
Step 5: Application for a License and Background Check
Congratulations-you are just a single step from a licensed real estate agent! A formal application for licensure must be made to the North Carolina Real Estate Commission by providing the following:
Proof of passing the licensing exam: exam score report
Proof of completion of the 75-hour pre-licensing course
Both are addressed below.
– Criminal Background Check: To become licensed in North Carolina, you will need to undergo a criminal background check. You will need to fingerprint for a criminal background check through the North Carolina State Bureau of Investigation (SBI).
– Application Fee: To become licensed in North Carolina, the cost is around $100.
After your application is processed and approved, you are issued with an official real estate license that will no doubt grant you permission to practice legally as a North Carolina real estate agent.
Step 6: Find a Sponsoring Broker
The real estate agents in North Carolina work in subordination to the instructions of a licensed real estate broker. Without acquiring more training and experience to become a licensed broker yourself, you cannot work as an independent agent.
To commence work as a real estate agent, you actually need to have a sponsoring broker. The sponsoring broker trains the agent through the beginning stages of their work, supportive of learning through one’s first few deals. While searching for a broker, here are some of the perks to look for in one, including:
– Training and Mentorship: Look for a broker that offers training programs, mentorship, and resources which will help the new agents be successful.
– Company Culture: Identify a brokerage you’d like to work for and one with a good reputation in your local real estate market.
– Commission Split: Find out what kind of commission split you will have and how much money you will make per transaction. All new agents come in at lower splits but can negotiate a higher percentage as they build experience.
Some large and established real estate companies in North Carolina, including Keller Williams, RE/MAX, and Coldwell Banker, have good training programs and resources for new agents.
Step 7: Post-Licensing Education
After licensure, you have to finish 90 hours of post-licensing education in your first three-year licensure period. This could be done with three 30-hour courses concerning specified subjects to give you furthered basis to continue building your real estate practices and the law. Since an active license in North Carolina is requiring post-licensing education,
In addition to post-licensing education, you will have to also take 8 hours of CE every two years during relicensing. Continuing education is designed to keep you updated regarding any changes in real estate law, ethics, and best practices within the industry.
You will also need to renew your license every two years and pay a fee for license renewal. As long as you stay current with the continuing education requirements and send in your renewal application in time, you will remain licensed.
Step 9: Start Your Career as a Real Estate Agent
Having completed all the steps now will stand you in a better position to begin your professional practice as a real estate agent in North Carolina: start building your clientele, close deals, and advertise your services. Some of the critical keys to success in real estate are:
– Networking: Relationships with other agents, brokers, lenders, and contractors often pay dividend in referrals and insight.
– Marketing: Create a presence online using social media and real estate websites, along with more traditional methods like business cards and flyers.
– Customer Service: The best way to build up trust with more people, and to make your pool of prospective clients larger, is by offering a second-to-none level of service and adhering to high standards for ethics.
Conclusion
Becoming a real estate agent in North Carolina requires clear commitments to education, ethics, and ongoing professional development. This guide has demonstrated how one can successfully launch his or her real estate career into one of the most exciting and dynamic real estate markets in the United States by following through on pre-licensing education, passing an exam, finding a sponsoring broker, and fulfilling post-licensing and continuing education requirements.
Build a successful real estate career in this exciting North Carolina industry through hard work and determination with enjoyment in helping others. Good luck, and best wishes on your journey!
