Broker License FAQs

Becoming a broker is an upgrade from your agent license. You’ll need experience as a licensed agent, additional education, and to pass a broker exam that’s more comprehensive than the agent exam.

Typical requirements across states:

Requirement	Common Range
Active agent experience	2-4 years
Additional education	24-90 hours (beyond agent coursework)
Broker exam	Harder than agent exam; lower pass rates
Minimum age	18-21 depending on state

The experience requirement is the biggest gatekeeper. Most states want 2-3 years of active, full-time real estate practice. Some states measure this in transactions instead of years—for example, requiring a minimum number of closed deals.

What the extra education covers:

• Brokerage management and operations
• Real estate law (deeper dive)
• Trust account handling
• Advanced contracts and negotiations
• Supervision responsibilities

The broker exam tends to be tougher than the agent exam because it covers management and liability topics on top of everything from the agent test. Pass rates are typically lower, so budget extra study time.

Check your state’s specific requirements at our broker license by state page, or read our full how to become a broker guide.

Most states require 2-3 years of active experience as a licensed real estate agent before you can apply for a broker license. But “active experience” means different things in different states.

State Examples	Experience Required
California	2 years (or equivalent education)
Texas	4 years with 3,600 points of experience
Florida	2 years within the preceding 5 years
New York	2 years or 3,750 points of experience
Illinois	No specific experience required

What counts as “active” experience:

• Completed real estate transactions (buying, selling, leasing)
• Time holding an active license under a supervising broker
• Some states use point systems where different transaction types earn different values

A few states are exceptions. Illinois, for instance, doesn’t require agent experience—you can go directly to a managing broker license with the right education. Colorado similarly has a more education-focused path.

One thing to watch: your experience must usually be recent. If you got your agent license 10 years ago but haven’t been active, those years might not count. Most states require the experience to fall within the last 5-7 years.

For your state’s exact requirements, see our broker state guides.

The short version: agents must work under a broker; brokers can work independently and supervise agents. Beyond that, the differences affect your earning potential, liability, and career options.

Aspect	Agent	Broker
Independence	Must work under a broker	Can operate independently
Supervise others	No	Yes
Own a brokerage	No	Yes
Commission	Split with broker (50-90%)	Keep 100% or earn from agents
Liability	Broker bears primary liability	Full legal responsibility
Education	Pre-licensing only	Additional broker education
Experience needed	None	2-4 years as agent

Why upgrade to broker?

• More money — You keep a larger share (or all) of your commissions
• Independence — Open your own firm, set your own rules
• Build a team — Hire and train agents, earning overrides on their production
• Credibility — The broker title carries weight with clients

Why some agents stay agents:

• Less liability and administrative burden
• No overhead costs of running an office
• Can still earn very well at a high split
• Some top-producing agents out-earn brokers

The right move depends on your career goals. If you want to build a business and manage people, the broker path makes sense. If you just want to sell houses and keep things simple, staying as an agent at a good brokerage might be the better play.

Learn more in our broker license guide or compare requirements in your state.