How to Get a real estate license in Illinois
Embarking on the journey to obtain your Illinois real estate license might seem overwhelming, but with the proper guidance, it becomes a manageable process. This detailed guide will walk you through every step, ensuring you’re thoroughly prepared to launch your real estate career in Illinois. Let’s get started on your path to becoming a licensed real estate professional.
We'll walk you through 6 easy steps
Understand the Basic Requirements
Before you start the process, it’s essential to understand the basic requirements for obtaining a real estate license in Illinois. Here’s what you need to know:
Age Requirement
To apply for a real estate license in Illinois, you must be at least 21 years old. However, individuals who are 18 years old can apply if they have the sponsorship of a managing broker. This ensures applicants have the maturity and legal responsibility necessary for the profession.
Residency and Identification
You do not need to be an Illinois resident to obtain a license, but you must have a valid Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). This identification is crucial for the required background checks and compliance with state regulations.
Honesty and Integrity
Integrity is key in the real estate profession. Illinois requires all applicants to undergo a fingerprint-based criminal background check to ensure public safety. Any past legal issues could affect your application, so transparency is critical.
Step 1: Take a Real Estate Pre-Licensing Course
In Illinois, aspiring real estate brokers must complete 75 hours of pre-licensing education. This education is divided into two main courses that cover critical topics such as real estate principles, contracts, and Illinois-specific laws.
Course Breakdown (75 hours)
Real Estate Broker Pre-License Topics (60 hours):
This course provides a comprehensive foundation in real estate, covering essential concepts such as property ownership, land use controls, state regulations, and real estate transactions. Mastering these principles is crucial for anyone aiming to succeed in the Illinois real estate industry.
Applied Real Estate Principles (15 hours):
This course is interactive, often involving role-playing and case studies, to help students apply what they’ve learned in real-world scenarios. It focuses on practical skills needed to navigate real estate transactions effectively
Choosing the Right Real Estate School
Selecting the right real estate school is crucial. Look for accredited schools that offer flexibility, especially if you have a busy schedule. Online courses can provide the convenience of studying at your own pace.
Research and Reviews:
Start by researching various real estate schools and reading reviews from past students. Look for schools with high pass rates for the real estate exam and positive feedback on their teaching methods.
Online vs. In-Person:
Decide whether you prefer online or in-person classes. Online courses offer flexibility and convenience, allowing you to study at your own pace. In-person classes provide direct interaction with instructors and peers, which can enhance your learning experience.
Course Materials and Support:
Evaluate the course materials and support services provided by the school. High-quality textbooks, interactive lessons, and access to instructors for questions can significantly impact your success. Some schools also offer additional resources like exam prep courses and study groups.
Study Tips
Daily Study Schedule:
Create a daily study schedule that covers all exam topics, ensuring regular review sessions. (Asana provides a great FREE task manager)
Flashcards:
Utilize flashcards for key terms and concepts to enhance memorization. (These Quizlet Flashcards may be helpful)
Practice Tests:
Regularly take practice tests to gauge your understanding and get familiar with the exam format. (Free Illinois Real Estate Practice Exam)
Step 2: Submit Your Illinois Real Estate License Application
After completing your pre-licensing education, the next step is to submit your license application to the Illinois Department of Financial and Professional Regulation (IDFPR).
Steps to Submit Your Application
Complete the Application Form: Fill out the online application through the IDFPR website. Create an account and access the application portal directly.
Gather Required Documents: Ensure you have proof of completed pre-licensing education, identification documents, and your fingerprinting results ready for submission.
Schedule Fingerprinting: Schedule an appointment with an approved fingerprinting service provider. Illinois requires that your fingerprints be submitted as part of the background check process.
Submit Your Application: Submit your application online through the IDFPR’s online services portal. Double-check that all information is accurate and complete before submission to avoid any delay.
Application Processing Time
IDFPR typically takes several weeks to process your application. They will review your education transcripts and verify that all requirements are met. Make sure your application is complete to avoid any delays
Tracking Your Application
You can track the status of your application online through IDFPR’s website. Regularly checking the status can help you stay informed of any issues or additional requirements. If there are delays, contacting IDFPR directly can provide clarification and help expedite the process.
Step 3: Pass the Illinois Real Estate Exam
The exam is a 3.5-hour test with 100 multiple-choice questions. You need to score at least 75% to pass. Each attempt requires a new application and a fee of $37.
Salesperson Examination Content
According to PrepAgent
Real Estate Fundamentals
- Property Ownership
- Types of ownership, estates in land
- Condominiums, cooperatives, and time-sharing
- Land Use Controls and Regulations
- Public controls (zoning, codes)
- Private controls (deed restrictions)
- Environmental issues
- Property Condition and Disclosures
- Property conditions and inspections
- Disclosures related to property condition
- Transfer of Title
- Title insurance, deeds, and title transfer
- Recording and settlement procedures
Real Estate Practices and Procedures
- Real Estate Transactions and Practices
- Real estate contracts and agency
- Real estate practice
- Financing and settlement
- Leasing and Property Management
- Types of leases and leasing responsibilities
- Property management and maintenance
- Practice of Real Estate
- Trust accounts, advertising, fair housing laws
- Ethical and professional conduct
Real Estate Valuation and Analysis
- Valuation and Market Analysis
- Appraisal process and approaches to value
- Real estate market cycles and analysis
- Real Estate Calculations
- Basic math calculations (area, volume)
- Closing costs, prorations
Preparation Tips
Review Course Materials:
Go over the textbooks and notes from your pre-license courses. Revisiting these materials can reinforce your understanding of key concepts. Focus on areas where you feel less confident to ensure a well-rounded preparation.
Practice Exams:
Take as many practice exams as possible. This helps you get familiar with the exam format and identify areas where you need more study. Practice exams can also help you manage your time effectively during the actual test. (Free Illinois Real Estate Practice Exam)
Study Groups:
Join or form study groups. Discussing topics with peers can enhance understanding and retention. Study groups provide a platform to share knowledge, ask questions, and support each other.
Exam Prep Courses:
Consider enrolling in an exam prep course for additional support and structured study. These courses often include practice exams, study guides, and expert instruction. Investing in a prep course can increase your chances of passing the exam on the first attempt.
Exam Day Tips
Arrive Early:
Ensure you arrive at the exam center early to avoid any last-minute stress. Arriving early gives you time to settle in and focus before the exam begins. Check the location and travel time in advance to plan your journey.
Bring Required Identification:
You’ll need a valid photo ID to enter the exam. Make sure your ID is current and matches the name on your application. Having all necessary documents ready can prevent any issues at the exam center.
Stay Calm and Focused:
Read each question carefully and manage your time wisely. Staying calm and composed can help you think clearly and avoid mistakes. Take deep breaths and stay positive throughout the exam.
Exam Room Etiquette:
Follow all instructions given by the exam proctors. Adhering to the rules ensures a smooth and fair testing experience for everyone. If you have any questions or issues, ask the proctors for assistance.
Step 4: Complete the Fingerprinting Requirement
After passing the Illinois real estate exam, the next step is to complete the fingerprinting requirement for a background check. This step is essential to ensure that you meet the integrity and character standards required by the Illinois Department of Financial and Professional Regulation (IDFPR).
How to Get Fingerprinted
Schedule an appointment with a fingerprinting service provider that is approved by the Illinois State Police. The electronic fingerprinting process, known as Live Scan, is efficient and secure. You can locate a nearby service provider through the IDFPR’s recommended vendors.
During your appointment, your fingerprints will be captured electronically and submitted to both the Illinois State Police and the FBI for a thorough background check. Keep a copy of any receipts or confirmation forms for your records.
The cost for fingerprinting typically ranges from $50 to $75, depending on the provider. This fee covers the fingerprinting service and the background check. Ensure you verify the total cost when scheduling your appointment.
The DBPR will conduct a background check using your fingerprints. This check ensures you meet the honesty and integrity standards required for a real estate license. Any issues identified during the background check may need to be addressed before your license is granted.
Addressing Background Check Issues
If any issues arise during the background check, be prepared to provide additional documentation or explanations. Demonstrating honesty and taking responsibility for past actions can positively impact the DBPR’s decision. Seek legal advice if necessary to navigate any complex issues.
Step 5: Submit the Salesperson License Application
After passing the exam and completing the fingerprinting requirement, the next step is to submit your Broker License Application to the Illinois Department of Financial and Professional Regulation (IDFPR). This application confirms that you have met all the necessary requirements.
Application Checklist
Complete the Online Application:
Fill out the Broker License Application form available through the IDFPR online services portal. Ensure that all sections are completed accurately. You can access the form on the IDFPR website.
Attach Exam Results:
Include proof that you have successfully passed the Illinois real estate exam. This documentation is essential for IDFPR to verify your eligibility. Keep a copy of your exam results for your records.
Include Fingerprinting Proof:
Attach the receipt or confirmation form from your Live Scan service provider. This document confirms that you have completed the fingerprinting requirement. Ensure all necessary signatures and details are included.
Pay the License Fee:
As of 2024, the fee is $125. This fee must be submitted along with your application. Be sure to keep a copy of your payment receipt for future reference.
After submitting your application, you can track its status online through the DRE’s website. Regularly checking the status can help you stay informed about any updates or additional requirements. If there are delays, contacting the DRE directly can provide clarity and expedite the process.
Step 6: Find a Real Estate Broker to Sponsor You
Once you pass the exam, you need to find a sponsoring broker to activate your license. Look for a brokerage that aligns with your goals and offers the support you need.
Considerations
Find a supportive and collaborative environment. The right culture can significantly impact your job satisfaction and success.
Understand the financial arrangements. Different brokerages offer different commission splits, so choose one that suits your financial goals.
Choose a broker who provides ample training and mentorship opportunities. Early career support is crucial for your development and success.
Questions to Ask Potential Brokers
17 Brokerage Interview Questions
- What training programs do you offer for new agents?
- How does your commission split work, and are there any additional fees?
- What kind of support and resources will I have access to?
- Can you provide references from other agents in your brokerage?
Choosing the right broker is crucial as it impacts your early career significantly. Consider top-rated brokers like eXp Realty, Keller Williams, Coldwell Banker, and Compass.
Why Join Smart Agent Alliance at eXp Realty?
When you join Smart Agent Alliance, you get double the value because you’re also automatically a Wolf Pack member. Together, Smart Agent Alliance and the Wolf Pack provide the tools, support, and expertise to elevate your business to new heights.
Smart Agent Alliance Benefits:
At Smart Agent Alliance, we prioritize organization, clarity, and efficiency to help our agents succeed. We provide essential onboarding resources, customizable presentations, business automations, client checklists, business assets, social media content, YouTube support, a growth plan, quality lead generation, production know-how, website support, and top-notch organizational tools.
Wolf Pack Benefits:
The Wolf Pack team at eXp Realty offers expert-led courses like Social Agent Academy 3.0, the Wolf Pack Hub, and the Investor Army for property flipping. We provide tailored assistance for new agents, developing agents, top producers, team leaders, and broker owners. Key resources include lead generation, production know-how, social media content, and YouTube support.
eXp Realty Benefits:
eXp Realty offers a comprehensive range of benefits for agents, focusing on top pay structures, low fees, and free stock options. Agents get an 80/20 commission splits that cap at $16,000 annually, with opportunities to earn 100% commission, receive annual stock awards and gain income through Revenue Share. Additional resources include 24/7 agent support, affordable healthcare, live training, and advanced tech tools like kvCORE and customizable IDX websites.
Financial Planning
Starting a career in real estate involves some initial costs and financial planning. Understanding these costs and planning accordingly will help you manage your finances effectively.
All stated fees are subject to change.
Starting Costs
- Initial Expenses: These include licensing fees, marketing expenses, office supplies, and technology tools needed to start your career. For example, initial expenses may include:
- Pre-Licensing Course: $100-$500+
- Exam Fee: $58 per attempt
- Application Fee: $125
- Fingerprinting Fee: Roughly $50-$75
- Marketing Materials: Business cards, signage, and online advertising costs
- When you join a brokerage in Illinois, many will require you to become a member of the National, State, and Local Associations of Realtors. Additionally, you’ll need to pay fees for the Multiple Listing Service (MLS) and Supra Key services.
- National Association of Realtors (NAR):
- Membership Fees: For 2024, the NAR annual dues are $156, plus a $45 special assessment fee for the Consumer Advertising Campaign, bringing the total to $201 per year.
- Illinois Realtors (State Association):
- Membership Fees: The annual dues for Illinois Realtors in 2024 are approximately $180. This is in addition to the NAR dues.
- Local Association of Realtors:
- Membership Fees: Local association fees in Illinois vary depending on the specific association. For example:
- Chicago Association of Realtors (CAR): The annual dues are typically around $300 to $400.
- Mainstreet Organization of Realtors (MORe): The dues are generally in the range of $250 to $350 per year.
- Multiple Listing Service (MLS):
- Fees: MLS fees in Illinois also vary by region. For instance:
- Midwest Real Estate Data (MRED) MLS, which serves a large portion of Illinois including Chicago, charges about $504 annually.
- Other local MLS services in Illinois might have slightly different fee structures.
- Fees: MLS fees in Illinois also vary by region. For instance:
- Supra Key Fees:
- Fees: Supra Key services in Illinois usually include an initial setup fee, around $50, and a monthly service fee ranging from $20 to $25.
- National Association of Realtors (NAR):
These fees are approximate and can vary slightly depending on your exact location and the specific associations or MLS you join. It’s always advisable to verify the latest fees with the local associations or MLS for the most accurate and up-to-date information.
Budgeting Tips
- Create a Budget: Track your expenses and forecast your income. Plan for slower months to ensure financial stability.
- Emergency Fund: Set aside an emergency fund to cover unexpected expenses or slow periods in the market
Income Management
- Commission Structure: Real estate agents typically earn commissions from sales. Understand how your brokerage’s commission structure works and how to manage irregular income streams. Commission splits can vary widely, typically ranging from 50/50 to 70/30 or higher, depending on the brokerage.
- Tax Planning: As an independent contractor, it’s important to plan for taxes. Keep track of deductible expenses, make estimated tax payments, and maintain good record-keeping practices. Consulting with a tax professional can help ensure compliance and optimize your tax strategy.
Frequently Asked Questions
What are the requirements to get a Illinois real estate license?
To get an Illinois real estate license, you must be at least 18 years old, complete 75 hours of pre-license coursework, pass the state licensing exam, and undergo a fingerprint-based background check .
How much does it cost to get a real estate license in Ilinois?
The cost to get a real estate license in Illinois typically ranges from $350 to $760+. This includes the pre-licensing course ($100-$500+), application fee ($125), background check fee ($50-$75), and exam fee ($58).
How long does it take to get a real estate license in Illinois?
It typically takes 3 to 4 months to get a real estate license in Illinois, depending on how quickly you complete the 75 hours of pre-licensing coursework and pass the state exam. Some students may complete the process faster, while others may take longer based on their schedule and availability of exam dates .
What is the pass rate for the Illinois real estate exam?
The pass rate for the Illinois real estate exam is relatively low, with some reports indicating a pass rate of about 33.3%. To pass, candidates must score at least 75% on both the national and Illinois-specific portions of the exam.
What happens if I fail the Illinois real estate exam?
If you fail the Illinois real estate exam, you can retake the exam up to three more times, giving you a total of four attempts. If you fail only one portion of the exam (either the general or the Illinois-specific section), you only need to retake the failed portion. If you fail all four attempts, you will need to retake the pre-license coursework before attempting the exam again.
How do I renew my Illinois real estate license?
To renew your Illinois real estate license, follow these steps:
1. Complete Continuing Education: Ensure you have completed the required continuing education (CE) hours before the renewal deadline.
2. Submit Your Renewal Application: Go to the Illinois Department of Financial and Professional Regulation (IDFPR) online license renewal portal to submit your renewal application. You’ll need to confirm your completed CE and update any necessary personal information.
3. Pay the Renewal Fee: Submit the $200 renewal fee online through the IDFPR portal.
You can begin the renewal process 2-3 months before your license expiration date .