Getting licensed as a real estate agent requires passing a background check. This shouldn’t come as a surprise. As a real estate professional, you’ll have access to people’s homes when they’re not there and access to 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.
Understanding the background check process is a key step in your journey to becoming a licensed real estate agent. This guide will walk you through what to expect, how to prepare, and what could potentially stand in your way of getting licensed.
Key Takeaways
- Background Check Requirements Vary By State: Each state has its own real estate licensing board with unique standards, procedures, and disqualifiers for background checks.
- Criminal History Matters: Felony convictions (especially fraud or financial crimes), sexual offenses, and violations of Fair Housing laws can prevent licensure in many states.
- Preparation Is Essential: Gather required documents early, including state-issued ID, fingerprints, and accurate employment history, to avoid delays or red flags.
- Appeal Options Exist: If you fail a background check, many states offer an appeal process or require written statements explaining past convictions.
What Is A Real Estate Background Check?
A real estate background check is a comprehensive review process that verifies an individual’s identity and examines their criminal history to assess their suitability for licensure as a real estate agent. This process is designed to protect consumers, ensure industry integrity, and maintain public trust in real estate professionals.
Background checks for real estate professionals are necessary because agents have unique access and responsibilities. You’ll often be alone with clients, have keys to properties when owners are absent, and handle sensitive personal and financial information. This level of access and trust makes thorough vetting essential.
While each state and licensing board has different requirements, most states require licensees to complete an application, provide a state-issued ID, and get fingerprinted. Fingerprints are typically submitted to both state law enforcement agencies (such as the Florida Department of Law Enforcement) and the FBI for a comprehensive criminal history records check.
State-specific regulations and variations
Background check protocols differ significantly across states. Some states conduct their reviews early in the licensing process, allowing applicants to know quickly whether they qualify. Other states only conduct background checks after you’ve completed pre-licensing coursework or passed the licensing exam. Also, some states allow applicants to pay for a pre-licensure background check to determine whether there are any issues before they begin pre-licensing courses.
For example, California has specific disqualifiers, including convictions for murder, fraud, forgery, grand theft, tax evasion, embezzlement, and drug-related offenses. Meanwhile, Colorado and Connecticut review convictions on a case-by-case basis, considering factors such as rehabilitation programs and the time elapsed since the conviction.
Kentucky requires applicants with felony convictions to wait ten years before applying for a license, and even then, approval isn’t guaranteed. Some states require written statements and supporting court records from applicants with prior convictions to help the licensing board make informed decisions.
Understanding your state’s specific requirements is crucial. Contact your state’s real estate licensing board early in the process to learn exactly what’s required and whether any aspects of your background might require additional documentation or explanation.
Get more state-specific information by reading Can a Felon Be a Real Estate Agent?
The Importance of Real Estate Background Checks
Background checks serve as a critical safeguard in the real estate industry. They protect consumers who invite agents into their homes, share financial information, and trust professionals with one of their most significant assets. These checks also protect the integrity of the real estate profession by ensuring that only qualified, trustworthy individuals represent buyers and sellers.
Real estate agents often work independently, even at the entry-level license, where supervision by a broker is required. This autonomy, combined with access to properties, personal information, and vulnerable clients, makes identity verification and criminal history screening essential.
Companies that employ real estate agents need assurance that their team members won’t abuse their position or damage the brokerage’s reputation. Clients deserve to know that the professionals they’re working with have been thoroughly vetted. Background checks provide this peace of mind and help maintain the high standards expected in the industry.
What Do Background Checks Include?
Real estate background checks are comprehensive, searching county, state, and federal databases to build a complete picture of an applicant’s history. Additionally, real estate brokerages often conduct their own background checks before hiring agents, even after state licensure has been granted.
1. Identity verification
Your identity must be verified before you can earn a real estate license. This is typically done with a state-issued photo ID such as a driver’s license or passport. At least one piece of identification is also required to take the real estate license exam.
2. Social Security verification
Most states require licensees to have a Social Security number, though some also accept an individual taxpayer ID number. States vary on citizenship requirements for real estate agents, with some requiring U.S. citizenship and others accepting legal residency with proper documentation.
3. Past residences and aliases
Alias and address history checks are standard parts of background checks. You’ll need to provide accurate information about previous addresses and any names you’ve used. Discrepancies between what you report and what appears in official records can raise red flags.
4. Criminal history records
This is often the most scrutinized aspect of the background check. States have different standards for what criminal history is acceptable for licensure.
Several legal issues can prevent a person from obtaining a real estate license:
- Felony convictions, particularly those related to fraud, embezzlement, or other financial crimes
- Misdemeanor convictions involving moral turpitude, such as theft or assault
- Drug or alcohol-related offenses, especially 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 include pending criminal charges or failure to disclose criminal history. Many state license applications ask questions such as:
- 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?
5. Sex offender registry
Whether someone on a sex offender registry can earn a real estate license depends on state-specific regulations. In California, for example, the Department of Real Estate doesn’t have a blanket prohibition but must assess whether crimes involving sexual misconduct are “substantially related” to the responsibilities of holding a real estate license. Crimes requiring registration under sex offender laws are generally considered substantially related and can be grounds for denying licensure.
6. Employment history
No real estate brokerage wants to hire someone they can’t trust to represent their agency. Even if you’ve passed a state background check for licensure, many brokerages perform their own background checks on potential hires. Your employment history may be verified, and any discrepancies between what you report and what the background check reveals could damage your chances of being hired. Being truthful about your previous jobs is essential to establish trust and demonstrate integrity.
7. Credit history
Your credit history may be checked during the licensing or employment process. Credit reports provide a snapshot of how well you handle financial responsibilities. Financial distress revealed through credit history may raise concerns about the potential for embezzlement or theft.
8. Driving records
Real estate agents frequently drive clients to view properties. Therefore, your driving history may be part of the licensing or brokerage background check. A clean driving record demonstrates responsibility and reduces liability concerns for brokerages.
9. Character references
Some states require character references as part of the licensing application. These references should come from individuals who can speak to your integrity, work ethic, and trustworthiness. Choose references who know you well professionally or personally and can provide meaningful insights into your character.
Common Disqualifiers in Real Estate Background Checks
Understanding what can disqualify you from obtaining a real estate license helps you prepare for the background check process. While requirements vary by state, certain issues commonly prevent licensure:
Financial Crimes: Convictions for fraud, embezzlement, money laundering, tax evasion, forgery, or bribery are serious red flags. These crimes directly relate to the trustworthiness required in real estate transactions.
Crimes of Moral Turpitude: Theft, assault, perjury, and similar offenses demonstrate a lack of integrity that’s incompatible with real estate practice.
Drug Offenses: Convictions for possession with intent to sell or transport drugs typically prevent licensure. Some states also consider personal drug use convictions, especially if recent.
Sexual Offenses: Most states view sexual crimes as substantially related to real estate practice and will deny licenses to registered sex offenders or those convicted of sexual misconduct.
Property Crimes: Burglary, grand theft, petty theft, and similar offenses raise obvious concerns about allowing someone access to properties and clients’ belongings.
License Violations: Having a professional license revoked or suspended in another field or state demonstrates a pattern of unprofessional conduct.
Fair Housing Violations: Any history of discrimination in housing is taken extremely seriously and typically results in license denial.
Failure to Disclose: Not reporting criminal history, pending charges, or other required information on your application can result in automatic disqualification, even if the underlying issue might have been overlooked.
Some states take a more nuanced approach, considering factors such as:
- Time elapsed since the conviction
- Evidence of rehabilitation, including completion of rehabilitation programs
- The nature and severity of the crime
- Your age at the time of the offense
- Whether the crime is substantially related to real estate practice
If you have concerns about your background, consider consulting with your state’s real estate licensing board before investing time and money in pre-licensing education.
Background Check Requirements For Real Estate License Applications
The specific requirements for real estate background checks vary by state, but most include similar elements. Understanding what you’ll need helps you prepare and avoid delays in the licensing process.
Typical requirements include:
- Completed application submitted with the required background check fee
- Proof of identification (state-issued photo ID)
- Proof of U.S. citizenship or legal residency
- Proof of state residency (if required)
- Character references
- Written consent to have the background check performed (required under the Fingerprint Privacy Act Statement)
- Fingerprints from a state-approved Livescan service provider
- Social Security card or individual taxpayer ID number
- Written statements explaining any past convictions (if applicable)
- Court records or supporting documentation for past offenses (if applicable)
Some states require brokerage sponsorship before issuing a license, meaning you’ll need to have a job lined up before you can complete the licensing process. Other states allow you to obtain your license first and then affiliate with a brokerage.
The background check fee typically ranges from $30 to $100, though costs vary by state and provider. Budget for these expenses as you plan your path to licensure.
How to Prepare for a Real Estate Background Check
Preparation is key to navigating the background check process smoothly. Taking proactive steps can help you avoid surprises and demonstrate your commitment to transparency.
Gather necessary documents
Start by collecting all required documentation well before you need to submit it. This includes:
- State-issued photo identification
- Social Security card or taxpayer ID
- Proof of residency (utility bills, lease agreements, etc.)
- Previous addresses for the past 7-10 years
- Employment history with dates and contact information
- Court records for any past convictions
- Documentation of completed rehabilitation programs (if applicable)
Understand your state’s requirements
Visit your state’s real estate licensing board website or contact them directly to understand specific requirements. Key questions to ask include:
- When in the licensing process is the background check conducted?
- What criminal history will disqualify me from licensure?
- Are there appeal processes if I’m initially denied?
- Do I need to provide written explanations for past convictions?
- How far back does the criminal history check extend?
Be completely honest
Transparency is crucial. Failing to disclose required information is often worse than the underlying issue itself. If you have a criminal history, be upfront about it on your application. Provide context, demonstrate rehabilitation, and explain how you’ve changed since the incident.
Many states view honesty and accountability favorably, especially if significant time has passed and you’ve shown consistent positive behavior since the conviction.
Consider timing
If you have a recent conviction or are currently on probation, you might want to wait before applying for a real estate license. Some states require waiting periods after certain convictions. Using this time to complete rehabilitation programs, maintain steady employment, and build a record of positive behavior can strengthen your case when you do apply.
Choose character references who can speak knowledgeably about your integrity and trustworthiness. Ideal references include:
- Former employers or supervisors
- Colleagues or business associates
- Community leaders or volunteer coordinators
- Professors or teachers
- Religious or spiritual advisors
Avoid using family members as references, as they may be viewed as biased. Brief your references in advance about what they might be asked and ensure they’re comfortable vouching for your character.
Cost of Real Estate Background Checks
Understanding the costs associated with background checks helps you budget for the licensing process. While fees vary by state and service provider, you can expect several types of charges:
Fingerprinting Fees: Fingerprinting fees typically range from $30 to $75. Many states require fingerprinting through approved Livescan service providers. Some real estate schools can help coordinate fingerprinting appointments.
Background Check Processing Fees: In addition to fingerprinting, the background check itself may cost between $20 and $50. This fee covers the search of criminal history records through state and federal databases.
Application Fees: Your overall license application will include fees beyond just the background check, often totaling $200 to $400, depending on your state.
Brokerage Background Checks: If your future brokerage conducts its own background check (beyond the state requirement), they may charge an additional fee or include it as part of their onboarding costs.
Some states allow you to bundle background check costs with other licensing fees, while others require separate payments. Check with your state’s real estate licensing board for a complete fee schedule.
Real Estate Background Check for Employment
Passing the state background check for licensure doesn’t always end your vetting process. Many real estate brokerages conduct their own background checks before hiring agents. These employment background checks often include:
Identity Verification: Confirming that you are who you claim to be through official documents.
Criminal Background Checks: Reviewing criminal history beyond what the state requires, sometimes including more recent or comprehensive searches.
Professional License Verification: Confirming that your real estate license is active and in good standing with no disciplinary actions.
Professional Reference Checks: Contacting previous employers or supervisors to verify your work history and performance.
Drug Screenings: Some brokerages require drug tests as part of their hiring process.
Motor Vehicle Record Checks: Reviewing your driving history to assess risk, especially since agents frequently drive clients.
Some brokerages conduct annual background checks to ensure ongoing compliance and maintain their standards. This ongoing vetting protects both the brokerage and its clients.
Be prepared to authorize these additional checks and provide any necessary documentation. Transparency and cooperation during the employment background check process demonstrate professionalism and build trust with your future brokerage.
How Far Back Do Background Checks Go?
The timeframe for real estate background checks varies by state and the type of record being reviewed. Understanding these timelines helps you know what to expect.
Criminal and Court Records: Generally, background checks cover seven years of criminal and court records. However, they may extend further depending on state and local laws. In some states, felonies may be reported indefinitely, while others limit reporting to seven years.
Driving Records: Motor vehicle records typically span three to 10 years, depending on the state.
Fair-Hiring and Ban-the-Box Laws: Some state and local laws limit how far back employers can look into criminal histories. Ban-the-box laws prohibit initial job applications from asking about criminal history, though background checks can still be conducted later in the hiring process.
Contact your state’s real estate licensing commission for specific information about how far back background checks extend in your jurisdiction. This information can help you determine whether older convictions will appear on your check or if they’ve aged out of the reporting window.
Who Conducts Real Estate Background Checks?
Real estate background checks are typically conducted through a multi-step process involving several parties:
State-Approved Vendors: Most states contract with approved vendors to process background checks. Livescan service providers are commonly used for fingerprinting and submitting prints to law enforcement databases.
State Law Enforcement Agencies: Your fingerprints are submitted to state agencies such as the Florida Department of Law Enforcement for criminal history searches within the state.
FBI: For federal criminal history, fingerprints are also submitted to the FBI, which searches national databases.
Real Estate Schools: Some real estate schools help coordinate the fingerprinting process and can guide you to approved providers. You’ll typically pay fingerprinting fees directly to the service provider.
Brokerages: Individual real estate brokerages may hire third-party background check companies to conduct additional screenings beyond state requirements.
The background check process is designed to be thorough and multi-layered, ensuring that all relevant information is uncovered and reviewed before licensure is granted.
Real Estate Background Check Submission
The timing and process for submitting your background check materials vary by state. Understanding your state’s specific procedures helps you stay on track.
Early-Process States: Some states allow or require you to complete the background check early in the licensing process. This approach benefits those concerned about passing, as you’ll know quickly whether to continue pre-licensing coursework or explore other career paths.
Post-Education States: Other states only conduct background checks after you’ve completed real estate pre-licensing education or passed the licensing exam. While this delays the vetting process, it allows you to gain knowledge and prepare for your career while your background is being reviewed.
How to conduct your background check:
- Follow the instructions provided by your state’s real estate licensing department
- Complete any required forms asking about your legal background
- Locate an approved fingerprinting provider in your area
- Schedule and attend your fingerprinting appointment
- Pay all the necessary fees (fingerprinting and background check processing)
- Submit any additional documentation (court records, written statements, etc.)
- Monitor your application status through your state’s licensing board website
Some states provide online portals where you can track your application progress and background check status. Take advantage of these tools to stay informed and address any issues promptly.
Appealing a Failed Background Check
If you fail a real estate background check, all is not lost. Many states offer appeal processes or opportunities to provide additional context about your background.
Understand the Reason for Denial: Request a detailed explanation of why your background check was unsuccessful. This helps you understand exactly what issues need to be addressed.
Review Your State’s Appeal Process: Each state has its own procedures for appealing background check denials. Common steps include:
- Filing a formal appeal within a specified timeframe
- Providing written statements explaining the circumstances of past convictions
- Submitting documentation of rehabilitation programs you’ve completed
- Gathering letters of recommendation or character references
- Requesting a hearing before the licensing board
Demonstrate Rehabilitation: Show that you’ve changed since any past incidents. Evidence of rehabilitation might include:
- Completion of court-ordered programs or voluntary rehabilitation programs
- Steady employment history
- Community service or volunteer work
- Educational achievements
- Letters from employers, counselors, or community leaders
- Time elapsed since the conviction
Consider Legal Assistance: If your case is complex or you’re having difficulty navigating the appeal process, consider consulting with an attorney who specializes in professional licensing issues.
Explore Alternative Paths: If your appeal is unsuccessful, ask about alternative licensing options or whether you might qualify after a waiting period. Some states allow reapplication after a certain number of years.
Remember, the licensing board’s primary concern is protecting consumers. Demonstrating that you’re trustworthy and committed to professional conduct can help overcome past mistakes.
Take the Next Step in Your Real Estate Career
Understanding the background check process is essential as you pursue your real estate license. While the requirements can seem complex, thorough preparation and honesty will serve you well.
As you move forward, remember that Colibri Real Estate is here to support your journey. For over 25 years, we’ve helped hundreds of thousands of students successfully earn their real estate licenses. Our state-specific pre-licensing courses are designed to prepare you not just for the licensing exam, but for a thriving career in real estate.
Visit the Colibri Real Estate website to explore your state’s specific requirements. Our comprehensive programs include support from state-approved instructors who understand the unique challenges and opportunities in your market.
Your real estate career is within reach. With proper preparation, transparency about your background, and quality education from Colibri Real Estate, you’ll be well-positioned to succeed in this rewarding industry.
Enroll in your state-specific pre-licensing courses today and take the first step toward your real estate success.
