Real estate agents in the United States are licensed by the state, not nationally. There is no federal real estate license and no single credential that lets someone sell property across state lines. Each state runs its own real estate commission, writes its own rules, and issues its own licenses. So when people ask whether Realtors are licensed by state or nationally, the answer has two parts: the license itself is always a state license, and the word “Realtor” is a private trademark that sits on top of that license rather than replacing it.
Why Licensing Is a State Function
Every state has a real estate commission or regulatory board that decides who can legally help people buy and sell property for compensation. These agencies set the education requirements, write the exam, run background checks, and handle discipline. The structure looks similar from state to state, but the specifics do not line up.1National Association of REALTORS®. Licensing for Real Estate Professionals
Pre-licensing coursework is a good illustration. Florida requires 63 hours for a sales associate and 72 hours for a broker. California and Nevada sit in the 120 to 135 hour range. Some states ask for as little as 40 hours; others push past 150. The content covers property law, contracts, agency, financing, and ethics, but the hour counts and the state-law portions are written locally.
After the coursework, candidates sit for a proctored exam with a general section and a state-specific section. Fingerprinting and a criminal background check are standard. A record does not automatically disqualify an applicant, but the commission reviews convictions case by case. Application fees for a salesperson license range from roughly $31 to nearly $500 depending on the state, separate from course and exam costs.
Because each state writes its own rules, a license issued in one state has no legal effect in another on its own. A Texas license does not authorize practice in Oklahoma, and a California license does not travel to Arizona. The credential is tied to the state that issued it.
Salesperson and Broker Licenses
Most states issue two tiers of license, and both are state credentials. A salesperson license is the entry level. A salesperson can represent buyers and sellers but has to work under a licensed broker and cannot run an independent firm.
A broker license is the senior credential. Brokers can do everything a salesperson does, plus open a brokerage, hire agents, and hold client funds in trust. The broker license requires more coursework, usually two to three years of active experience as a salesperson, and a tougher exam that adds brokerage management and business operations. Some states recognize an associate broker, a person who holds the broker credential but chooses to work under another broker instead of running their own shop.
“Realtor” Is a Trademark, Not a License
This is where the national-versus-state question gets its second half. A state license and the title “Realtor” are not the same thing. Every Realtor holds a state license, but most licensed agents are not Realtors. “Realtor” is a federally registered collective membership mark owned by the National Association of Realtors.2National Association of REALTORS®. Membership Marks Manual Only dues-paying members can legally use it.
Membership comes with obligations the state does not impose. New members complete a Code of Ethics orientation, and all members repeat ethics training every three-year cycle.3National Association of REALTORS®. Code of Ethics Training For New Members The Code sets standards for advertising, client communication, and professional conduct that go beyond the legal minimums of a state license.
It also costs money. The national portion of NAR dues is $156 per member for 2026, plus a $45 special assessment.4National Association of REALTORS®. REALTORS Membership Dues Information State and local association dues add more, with total annual costs commonly landing between $400 and $800 depending on the market. Members typically get MLS access in many markets, advocacy, and marketing tools. From a strictly legal standpoint, a licensed agent who never joins NAR can perform every function a Realtor performs. They just cannot use the trademarked word.
So if you are checking whether someone can legally represent you in a home purchase, the question is whether they hold a current state license, not whether they call themselves a Realtor.
Working Across State Lines
Because each state issues its own license, practicing in more than one state takes extra work. Many states have reciprocity or portability agreements that make it easier for an out-of-state licensee to get credentialed locally, but easier is not automatic. NAR groups these arrangements into three types.5National Association of REALTORS®. License Reciprocity and License Recognition
- Cooperative states let an out-of-state agent do business locally, but the transaction has to be co-brokered with a locally licensed agent.
- Physical-location states let an out-of-state agent represent a client remotely, but the agent cannot be physically present in the state during the transaction.
- Turf states do not allow anyone with an outside license to work there at all. A full local license is the only option.
Even in states that offer partial reciprocity, applicants almost always have to pass the state-specific portion of the exam, submit a formal application, show good standing in their home state, and pay an administrative fee. Practicing without clearing those steps is treated as unlicensed activity and can trigger cease-and-desist orders, fines, and in some states criminal prosecution. Agents who end up holding licenses in several states have to track each state’s renewal cycle and continuing education separately.
Federal Laws Still Apply
The federal government does not license real estate agents, but it does regulate how they behave. Two federal laws apply to every licensee regardless of which state issued the credential.
The Fair Housing Act prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability.6U.S. Department of Housing and Urban Development (HUD). Housing Discrimination Under the Fair Housing Act It covers every interaction an agent has with buyers, sellers, and renters. Steering clients toward or away from neighborhoods based on a protected characteristic, or making listings selectively available, violates federal law. Many states fold Fair Housing training into pre-licensing and continuing education for that reason.
The Real Estate Settlement Procedures Act (RESPA) regulates closings on federally related mortgage loans. Its best-known rule bars kickbacks: no one involved in a real estate settlement can give or receive anything of value in exchange for referring business to a specific settlement service provider. Violations carry fines of up to $10,000, up to one year in prison, or both, and anyone harmed by a kickback can sue for three times the improper charge.7Office of the Law Revision Counsel. 12 US Code 2607 – Prohibition Against Kickbacks and Unearned Fees RESPA still allows bona fide salaries, cooperative brokerage arrangements, and returns on ownership interests in affiliated businesses when proper disclosures are made.
How to Verify a License
Since licenses are issued by states, verification happens at the state level. Every state regulatory body runs a public search tool where you can look up a licensee by name or license number. The record shows whether the license is active, the issue and expiration dates, the brokerage the agent is affiliated with, and in most cases any disciplinary history. Checking takes about two minutes.
For a faster cross-state check, the Association of Real Estate License Law Officials (ARELLO) maintains a centralized verification database covering more than 40 U.S. jurisdictions.8ARELLO. License Verification Participating states submit licensee data on a regular basis, and ARELLO aggregates it into one searchable tool covering active, inactive, and expired licenses for salespersons and brokers. It is not a replacement for the state commission site, especially for disciplinary records, but it is a useful first step when you are not sure which state issued the license or you are dealing with an agent who claims to hold licenses in several.