How to Become a Real Estate Broker
Ready to take your real estate career to the next level? Here's everything you need to upgrade from agent to broker.
Agent vs. Broker: Key Differences
| Aspect | Agent | Broker |
|---|---|---|
| Independence | Must work under a broker | Can work independently |
| Commission | Split with broker (50-70%) | Keep 100% or earn from agents |
| Experience | Entry level | 1-4 years as agent |
| Education | 40-180 hours | Additional 60-360 hours |
| Liability | Broker assumes responsibility | Personally liable |
Steps to Become a Broker
Meet Experience Requirements
Work as an active licensed agent for the required number of years. Most states require 1-4 years of experience, with some requiring a minimum number of transactions.
State Examples:
- California: 2 years active
- Texas: 4 years active
- Florida: 2 years active
- New York: 2 years active
Complete Broker Pre-Licensing Education
Take additional coursework beyond your agent education. Topics include brokerage management, trust accounts, supervision, and advanced real estate law.
Common Topics:
Pass the Broker Licensing Exam
The broker exam is more comprehensive than the salesperson exam. It covers brokerage operations, supervision, and advanced real estate concepts.
Tip: The broker exam has a lower pass rate than the agent exam. Plan for 4-6 weeks of dedicated study time.
Apply for Your Broker License
Submit your application to the state real estate commission with exam scores, background check, and application fee.
Typical Requirements:
- Proof of broker education
- Passing exam score
- Background check (if expired)
- Broker application fee ($200-500)
- Proof of E&O insurance (some states)
Types of Brokers
Principal Broker
Designated Broker, Managing Broker
The main broker responsible for a brokerage. Must supervise all agents and handle trust accounts.
Key Responsibilities:
- Supervise agents
- Manage trust accounts
- Ensure compliance
- Handle disputes
Associate Broker
Broker Associate, Affiliate Broker
Holds a broker license but chooses to work under another broker rather than run their own firm.
Key Responsibilities:
- Work under principal broker
- Higher commission splits
- No supervisory duties
- Can manage own team
Managing Broker
Branch Manager
Oversees day-to-day operations of a brokerage office or branch location.
Key Responsibilities:
- Train new agents
- Resolve transaction issues
- Recruit agents
- Ensure office compliance
Benefits of Becoming a Broker
Higher Income
Keep 100% of your commission or earn splits from agents you supervise
Independence
Open your own brokerage and build a business on your terms
Team Building
Recruit, train, and mentor agents to build a successful team
Career Growth
Advanced credentials open doors to property management, development, and more
Sample State Requirements
| State | Experience | Education | Exam |
|---|---|---|---|
| California | 2 years | 8 courses | State |
| Texas | 4 years | 270 hours | State |
| Florida | 2 years | 72 hours | State |
| New York | 2 years | 75 hours | State |
| Illinois | 2 years | 120 hours | State |
| Arizona | 3 years | 90 hours | State |