How to Get a Real Estate License in Minnesota: Your Comprehensive Guide

So, you’re thinking about joining the ranks of Minnesota’s real estate professionals? Excellent choice! The North Star State offers a dynamic market with opportunities for those who are dedicated and knowledgeable. But before you start showing properties and closing deals, you need that all-important real estate license. This article breaks down the process, ensuring you’re well-equipped to navigate the requirements and launch your career.

How to get a real estate license in Minnesota? The journey involves fulfilling specific educational prerequisites, passing a state-administered exam, and affiliating with a licensed brokerage. Let’s delve into the detailed steps.

Step-by-Step: Obtaining Your Minnesota Real Estate License

1. Meeting the Basic Requirements

First and foremost, ensure you meet the fundamental criteria. You must be:

• At least 18 years old.
• Possess a high school diploma or its equivalent (GED).
• Be able to provide proof of legal presence in the United States.
• Be of honest, truthful, and reputable character. A criminal background check will be conducted, and past transgressions don’t necessarily disqualify you, but they will be considered.
• Not have had a real estate license revoked in another state within the past two years.

2. Completing the Required Education

This is where the real work begins. Minnesota requires you to complete 90 hours of approved pre-licensing education. This is broken down into three 30-hour courses:

• Course 1: Real Estate Principles: This covers the foundational concepts, laws, and regulations governing real estate transactions.
• Course 2: Real Estate Practices: This focuses on the practical aspects of the business, including listing agreements, purchase agreements, agency relationships, and ethical considerations.
• Course 3: Real Estate Finance: This dives into the complexities of financing real estate transactions, including mortgages, appraisals, and government-backed loan programs.

You can complete these courses through various providers – accredited real estate schools, online platforms, and even some community colleges. Choose a provider that is approved by the Minnesota Department of Commerce to ensure your coursework is valid. Upon completion of each course, you’ll receive a certificate of completion, which you’ll need later.

3. Passing the Minnesota Real Estate Exam

Once you’ve conquered the educational hurdle, it’s time to face the Minnesota Real Estate Exam. This exam is administered by PSI Services LLC and consists of two parts: a national section and a state-specific section.

• National Section: This part covers general real estate principles applicable across the country.
• State Section: This part focuses on Minnesota-specific laws, rules, and regulations.

You’ll need to pass both sections to be eligible for licensure. Schedule your exam directly with PSI Services LLC after completing your pre-licensing education. There is a fee associated with the exam, and you have a limited number of attempts to pass. Thorough preparation is key! Consider using practice exams, study guides, and review courses to maximize your chances of success.

4. Applying for Your Real Estate License

After successfully passing the exam, it’s time to apply for your license. You’ll need to submit your application to the Minnesota Department of Commerce. The application requires:

• Your personal information.
• Proof of completing the required pre-licensing education (certificates of completion).
• Your passing exam score reports.
• A criminal background check.
• Payment of the required license fee.

Ensure your application is complete and accurate to avoid any delays in processing.

5. Finding a Sponsoring Broker

In Minnesota, you cannot hold an independent real estate license immediately. You must affiliate with a licensed real estate broker. This broker will act as your sponsor and oversee your activities.

Research different brokerages and find one that aligns with your career goals, values, and work style. Consider factors such as:

• Commission splits: How the broker shares commissions with their agents.
• Training and support: What kind of training and mentoring the brokerage provides.
• Marketing resources: What marketing tools and resources are available.
• Company culture: The overall atmosphere and values of the brokerage.

Once you’ve found a sponsoring broker, they will need to submit an Affiliation Form to the Department of Commerce on your behalf.

6. Receiving Your Real Estate License

Once the Department of Commerce approves your application and receives the Affiliation Form from your sponsoring broker, you’ll be issued your Minnesota Real Estate License. Congratulations! You are now authorized to practice real estate in the state.

Frequently Asked Questions (FAQs)

1. How long does it take to get a real estate license in Minnesota?

The time it takes to get your license varies depending on how quickly you complete the pre-licensing education and pass the exam. Generally, it takes between 2 and 6 months. The process also depends on how quickly you can find a sponsoring broker.

2. How much does it cost to get a real estate license in Minnesota?

The total cost varies, but you can expect to pay around $800 to $1,500. This includes the cost of pre-licensing education, exam fees, application fees, and background check fees.

3. Do I need to have a college degree to get a real estate license in Minnesota?

No, a college degree is not required. You only need a high school diploma or its equivalent (GED).

4. What score do I need to pass the Minnesota Real Estate Exam?

You need a score of 75% or higher on both the national and state portions of the exam to pass.

5. How many times can I take the Minnesota Real Estate Exam?

You can take the exam as many times as needed within one year of completing your pre-licensing education. However, there are fees associated with each attempt, and exceeding the allowed attempts may necessitate retaking the pre-licensing courses.

6. How long is a Minnesota Real Estate License valid for?

A Minnesota Real Estate License is valid for two years.

7. What are the continuing education requirements to renew my real estate license in Minnesota?

To renew your license, you must complete 30 hours of approved continuing education during each two-year licensing period. At least 15 of those hours must be completed via synchronous learning.

8. Can I get a real estate license in Minnesota if I have a criminal record?

Having a criminal record does not automatically disqualify you from getting a license. The Department of Commerce will review your record and consider the nature of the offense, the time elapsed since the offense, and any evidence of rehabilitation.

9. Can I get a real estate license if I am not a resident of Minnesota?

Yes, you can get a real estate license in Minnesota even if you are not a resident. However, you will need to comply with all the same requirements as a resident applicant.

10. What is the difference between a real estate salesperson and a real estate broker in Minnesota?

A real estate salesperson works under the supervision of a licensed real estate broker. A real estate broker has more experience and education and can operate independently or manage other agents. To become a broker, you must meet specific experience and educational requirements and pass a broker’s exam.

11. Can I take the pre-licensing courses online?

Yes, you can take the pre-licensing courses online, as long as the provider is approved by the Minnesota Department of Commerce.

12. What types of real estate can I sell with a real estate license in Minnesota?

With a real estate license, you can sell residential, commercial, and land properties. You can also represent buyers and sellers in real estate transactions.

Getting your Minnesota Real Estate License is a significant step towards a rewarding and challenging career. By understanding the requirements and following these steps, you can confidently embark on your journey in the dynamic world of Minnesota real estate. Good luck!