One of the challenges of working in a profession requiring licensure (such as real estate brokers) is that licenses are not always easily transferable between states. However, many states offer real estate license reciprocity, which streamlines the real estate licensing process.
This article outlines real estate license reciprocity, which states offer reciprocity, and the steps needed to get your license recognized in another state.
Key Takeaways
- Reciprocity allows licensed real estate brokers to obtain licenses in other states more easily, though it often requires meeting additional state-specific requirements.
- States may offer full reciprocity (valid in all states), partial reciprocity (valid in some states with additional requirements), no reciprocity, or case-by-case reciprocity.
- Real estate license portability options include physical portability (remote work only) and cooperative portability (co-brokering with a local broker). Some states, known as turf states, do not allow portability at all.
- To obtain a reciprocal license, understand the target state’s requirements, complete any additional steps, apply for reciprocity, and prepare for the new market by conducting research, updating marketing materials, and networking.
Understanding Real Estate License Reciprocity
Real estate license reciprocity enables those already licensed in one state to have an easier time getting licensed in another. However, it’s not as simple as simply “transferring” your license to another state. Additional requirements, such as passing a background test, taking a state exam, or completing licensing education specific to that state, may be needed to practice in that state legally. As such, it’s essential to check your desired state’s licensing department for the most up-to-date reciprocity status and requirements.
Moreover, not all states have reciprocal relationships with other states, and reciprocity can be one-sided. For instance, Nevada offers license reciprocity for agents from Texas, but Texas does not offer reciprocity to Nevada real estate licenses (or any state for that matter).
States with full reciprocity
The following states have reciprocity with all 50 states.
- Alabama
- Alaska
- Arizona
- Colorado
- Delaware
- Georgia
- Maine
- Missouri
- New Hampshire
- South Carolina
- Virginia
- Washington
- Wyoming
States with partial reciprocity
The following states have reciprocity with one or more states. Additional requirements may apply.
| State | Offers reciprocity to: |
| Arkansas | Alabama, Colorado, Florida, Georgia, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Dakota, Washington, West Virginia |
| Connecticut | Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New York, Ohio, Oklahoma, Rhode Island |
| Florida | Alabama, Arkansas, Connecticut, Georgia, Illinois, Kentucky, Mississippi, Nebraska, Rhode Island, West Virginia |
| Illinois | Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Nebraska, Wisconsin |
| Iowa | Arkansas, Georgia, Louisiana, Massachusetts, Minnesota, Mississippi, North Dakota |
| Kentucky | Florida, Illinois, Ohio, Tennessee, West Virginia |
| Louisiana | Alabama, Arkansas, Colorado, Georgia, Iowa, Mississippi, New Mexico, Oklahoma, Pennsylvania |
| Maryland | Oklahoma, Pennsylvania |
| Massachusetts | Connecticut, Rhode Island, West Virginia, Nebraska, Iowa, Tennessee, Mississippi, Colorado, Georgia, Pennsylvania, New Mexico |
| Minnesota | Colorado, Iowa, Nebraska, North Dakota, Oklahoma, South Dakota |
| Nevada | Arizona, Delaware, Illinois, Iowa, Louisiana, Oklahoma, Texas, Washington, Colorado, Idaho, Indiana, Kentucky, Minnesota, South Carolina, Utah, West Virginia |
| New Mexico | Georgia, Louisiana, Massachusetts |
| North Dakota | Georgia, Iowa, Minnesota |
| Ohio | Arkansas, Connecticut, Kentucky, Mississippi, Nebraska, Oklahoma, West Virginia, Wyoming |
| Pennsylvania | Arkansas, Georgia, Louisiana, Maryland, Massachusetts |
| Rhode Island | Connecticut, Massachusetts |
| Utah | Georgia, Mississippi |
| West Virginia | Florida, Kentucky, Ohio |
| Wisconsin | Illinois, Indiana |
States with no reciprocity
The following states do not offer reciprocity with any states.
- California
- Hawaii
- Michigan
- New Jersey
- New York
- Texas
States with case-by-case reciprocity
The following states offer reciprocity, but only on an individual case-by-case basis.
- Idaho
- Indiana
- Kansas
- Mississippi
- Montana
- Nebraska
- North Carolina
- Oklahoma
- South Dakota
- Tennessee
- Oregon
- Vermont
Real Estate License Portability
There may be instances in which you need to occasionally conduct business in another state, for example, if you have a client who lives out of state or is looking to buy real estate out of state. This type of relationship is known as physical portability, which allows you to assist in an out-of-state real estate transaction without having to go through the process of getting a license. However, you can only work remotely, not in person, which can present some challenges.
If physical portability is too limiting, cooperative portability allows you to conduct real estate business in another state by co-brokering the transaction with a licensed broker in that state. However, some states, known as turf states, do not allow real estate license portability at all, so a broker with an active license in that state must handle real estate transactions. Turf states include Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Pennsylvania, and Utah.
Steps to Moving States as a Real Estate Broker
If you are moving to a different state or live near a state border and want to conduct business in both states, you must follow the following steps to get approved for reciprocity.
1. Understand your destination state’s licensing requirements.
Your desired state’s licensing department will have the complete requirements you need to apply for reciprocity. Be sure to check for conditions or limitations. For example, some states require applicants to have a license for a certain amount of time before applying for reciprocity.
2. Complete any additional requirements.
If your desired state mandates additional requirements (such as state-specific real estate education, passing the state portion of the real estate exam, and submitting your fingerprints to a background test), you’ll need to complete these requirements before you apply for reciprocity.
3. Apply for reciprocity.
Lastly, you need to apply to your desired state’s licensing department. Be sure to include any required paperwork or fees.
Tips for a Smooth Transition
Finally, applying for reciprocity can take some time. Use this time to prepare yourself to work in your new state so that your transition is as seamless as possible.
- Conduct market research. Before you apply for reciprocity, you’ll want to research your new market’s dynamics and scope out the local competition. What is the median home sale price? What is the median number of days a home spends on the market? How much inventory is on the market? Who are your market’s top brokers, and how do they market themselves? These are just some questions to ask yourself as you begin your search.
- Research brokerages to join. Where you hang your hat can significantly impact your career satisfaction and success. Does your current brokerage have an office you can transfer to? If not, or if you’re looking for a change, what type of brokerage do you see yourself at? What benefits are on your wishlist? Also, be aware that some states require that you have a sponsoring brokerage before you apply for reciprocity, so it is a good idea to research brokerages ahead of time.
- Seek guidance from experienced brokers. As a licensed real estate broker, you already understand real estate best practices well. However, every market is different. To hit the ground running, once you receive your reciprocal license, interview experienced brokers or managing brokers in your new market to get a handle on what you can expect as a new broker in the area.
- Update your marketing materials. Update your website, business cards, or other marketing materials to reflect your new location. You’ll also want to update your past clients about your upcoming move. They might have a friend or relative in your new location who could be on the lookout for a trusted real estate broker.
- Establish a presence in your new market. Establish a presence in your new market by networking with real estate associations or groups. If you belong to any associations in your current city or state, see if they have a chapter in your new state.
Navigating the real estate licensing process can be complex, but you don’t have to go it alone. At Rockwell Institute, we’re dedicated to your success in every phase of your real estate career, no matter where it takes you. Get started today!
