Getting licensed as a real estate agent requires a background check. This shouldn’t be a surprise. As a real estate professional, you will have access to people’s homes when they aren’t there and knowledge of their personal information. However, it’s important to note that each state has its own licensing process, which means each state has different standards and procedures for background checks. Here’s general information about the real estate background check in most states. For specific info about your state’s real estate licensing process, visit this page.
What Is A Real Estate Background Check?
A real estate background check verifies an individual’s identity and checks their criminal history to assess their suitability to become licensed as a real estate agent.
It’s important to note that each state has its own laws on background checks. Additionally, each state’s real estate licensing board has its own background check process and criteria to pass.
While each state and licensing board has different requirements, most states require the licensee to complete an application, provide a state-issued ID, and get fingerprinted.
Several legal issues can prevent a person from obtaining a real estate sales license. Here are some of the most common:
- Felony convictions, particularly those related to fraud, embezzlement, or other financial crime
- Misdemeanor convictions involving moral turpitude, such as theft or assault
- Drug or alcohol-related offenses, if recent or severe
- Sexual offenses
- License revocation or suspension in another profession (or from another state’s real estate licensing commission)
- Violations of Fair Housing laws or any history of discriminatory practices in housing
Other issues that may disrupt licensing are pending criminal charges or failure to disclose one’s criminal history. In addition, many state license applications ask the following types of questions:
- Have you ever had a real estate license revoked or canceled in this or another state?
- Are there any unpaid judgments against you?
- Have you ever acted or attempted to act as a real estate agent without being licensed?
Some states allow licensees to complete the background check process early in the licensing process to let applicants know as early as possible that they are (or are not) qualified to become licensed. However, in some states, applicants may only know whether they passed the background check after they complete real estate pre-licensing coursework or pass the licensing exam.
The Importance of Real Estate Background Checks
Background checks for real estate licensees are necessary because agents have access to properties for sale when owners are absent. Additionally, they sometimes have access to a buyer’s or seller’s personal or financial information. And let’s not forget that real estate agents are occasionally alone with individuals as they show properties for sale or rent.
While those with the first license level in every state must have their work reviewed by a person with a higher level license (“brokers” in most states), real estate agents often work independently. This autonomy and access to information and clients make background checks necessary.
In addition, companies that employ real estate agents and clients who work with them must know that these individuals will not abuse their position.
What Do Background Checks Include?
Again, each state has its own licensing requirements for real estate agents. Most state agencies complete in-depth criminal background checks that search county, state, and federal databases. Additionally, a real estate brokerage will verify an applicant’s license status and may conduct its own background check before hiring an agent. Here are some of the standard reviews that state agencies and brokerages conduct:
1. Identity
A person’s identity must be verified before earning a real estate license. This is typically done with a state-issued photo ID. At least one piece of identification is also required to take the real estate license exam.
2. Social Security verification
Most (but not every) states require licensees to have a Social Security number, but some states also accept an individual taxpayer ID number. States also vary on citizenship requirements for real estate agents, with some requiring U.S. citizenship and state residency requirements to get certified.
3. Past residences
Alias and address history checks are standard parts of background checks. Licensees must provide all the appropriate information on their applications.
4. Criminal record
States have different ideas of what background is acceptable for a real estate agent.
For example, convictions of murder, perjury, fraud, forgery, grand theft, tax evasion, embezzlement, extortion, rape, bribery, burglary, petty theft, and possession of drugs for sale or transport will prevent you from getting a California real estate license. However, Colorado and Connecticut review convictions on a case-by-case basis.
Some states, like Kentucky, require you to wait ten years after you were convicted of a felony before applying for a real estate license. And even then, there is no guarantee that you will pass the background check. Still, some states require those with prior convictions to provide written statements and supporting documents along with their applications, and these documents are used to decide whether the individual is qualified to become licensed.
5. Sex offender registry
Can a person on a sex offender registry earn a real estate license? Again, this is a state-specific decision. For example, in California, there isn’t a specific law preventing the Department of Real Estate (DRE) from licensing a person who is a registered sex offender. The DRE must consider whether the individual’s conviction, especially if it involves sexual conduct, warrants denying, suspending, or revoking their real estate license. The DRE will assess whether the crime is “substantially related” to the responsibilities of holding a real estate license. According to DRE regulations, crimes involving sexual misconduct, particularly those requiring registration under Section 290 of the Penal Code, are considered “substantially related” and can be grounds for denying a license.
6. Employment history
No real estate brokerage wants to hire an untrustworthy person to represent their agency. Even if an applicant has already passed a background check to be licensed, many real estate brokerages perform background checks on their potential candidates. A background check may include an employment history, and any discrepancies between the work history you provide and what the background check uncovers could raise red flags with a brokerage. Being truthful about your previous jobs is essential to avoid doubts about your honesty and integrity.
7. Credit history
Your credit history may be checked for licensure or employment as it is a snapshot of how well you handle responsibilities. A credit history will help reveal if an applicant has financial distress, which may increase the likelihood of embezzlement or theft.
8. Driving records
Real estate agents often drive buyer clients around when showing properties. Therefore, an applicant’s driving history may be part of the licensing or brokerage background check.
Background Check Requirements For Real Estate License Applications
What do you need to get started with your real estate background check? The answer depends on your state’s requirements. Here’s a list of what some states require.
- Completed application submitted with the required fee
- Proof of identification
- Proof of U.S. citizenship or legal residency
- Proof of state residency
- Character reference
- Applicant’s written consent to have the background check performed
- Fingerprints from a state-approved provider
- Background check fee
- Social Security card or individual taxpayer ID
Some states require that the applicant have the sponsorship of a brokerage before issuing a license.
Real Estate Background Check for Employment (Hiring Process Requirements)
No real estate brokerage wants to hire an untrustworthy person to represent their agency. Here are some of the checks many real estate brokerages perform on their potential candidates:
- Identity verification
- Criminal background checks
- Professional license verification
- Professional reference checks
- Drug screenings
- Motor vehicle record checks
Some agencies do background checks every year.
How Far Back Do Background Checks Go?
Generally, real estate background checks cover seven years of criminal and court records, but they may go back further depending on state and local laws.
For example, in some states, felonies may be reported indefinitely. But, in other states, felony reports are restricted to seven years. Driving records may go back three to 10 years, depending on the state.
Some state and local fair-hiring and ban-the-box laws may also limit how far back a real estate criminal background check can extend. (Ban-the-box laws prohibit initial job applications from asking about criminal histories.)
Contact your state’s real estate licensing commission for more information about how far back background checks go in your state.
Who Conducts Real Estate Background Checks?
Real estate background checks are often completed by state-approved vendors, such as LiveScan. Some real estate schools can help applicants with the fingerprinting process, and applicants typically pay the fingerprinting fees.
Real Estate Background Check Submission
Some states require you to fill out an application for licensing early in the process. This benefits those who are worried about passing a background check. They’ll know quickly whether they should continue their pre-licensing coursework for their real estate license or choose another career path.
How to Conduct Real Estate Background Checks
Follow the instructions provided by your state’s real estate licensing department to complete your background check. This process will probably include a form that asks about your legal background and instructions on where /how to submit your fingerprints. There’s typically a fee to complete a background check, which the licensee must pay.
As you can tell, it’s essential that you understand your state’s real estate background check requirements. The Colibri Real Estate website outlines each state’s requirements, including real estate background check information.
Colibri Real Estate School (formerly Real Estate Express) provides state-specific pre-licensing courses and real estate exam prep. Even our most basic package includes support from a state-improved instructor.
But what makes Colibri Real Estate stand out from other real estate schools? Our program has a fantastic success rate! Colibri Real Estate has helped hundreds of thousands of students earn their real estate licenses. Will you be our next success story?
Enroll in your state-specific pre-licensing courses to get started in your real estate career today.
Key Takeaways
- Background check requirements for real estate licenses vary by state, with each having its own standards and procedures.
- Felony convictions, sexual offenses, license revocations, and violations of Fair Housing laws are common legal issues that may prevent someone from obtaining a real estate license.
- Real estate background checks typically include identity verification, criminal record checks, employment history, credit history, and driving records, with some states requiring additional documentation or statements.
- Applicants must disclose all relevant information truthfully, as discrepancies or omissions can lead to disqualification from licensure or employment.
