References
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
What Is License Reciprocity?
See "Broker and Salesperson License Reciprocity and Portability" from the State Issues Tracker* (National Association of REALTORS®, November 2019) *Requires nar.realtor username/password.
Surveys on License Reciprocity
50 State Comparison Report: A Comparison of State Licensure Requirements and Processes (Pennsylvania Department of State, Aug. 17, 2021)
“Over the past several decades, the share of U.S. workers holding an occupational license has grown sharply. In the 1950s, just five percent of U.S. workers were required to hold an occupational license – meaning they completed additional schooling or training and passed an exam to be licensed to practice their trade or profession in a certain state. Today, the U.S. Bureau of Labor Statistics estimates that nearly a quarter of full-time workers (43 million people) hold an occupational license. This uptick in licensed workers is directly correlated to the growth of occupational licensing laws. In the early 1990s, 800 occupations required licenses in at least one state. According to the National Conference of State Legislatures, that number is currently over 1,100 occupations.”
Real Estate License Reciprocity & Portability Guide 2021 (Fit Small Business, Jul. 20, 2021)
“Keep in mind that a reciprocity agreement doesn’t necessarily allow a real estate salesperson or broker to take part in real estate transactions in a reciprocal state without a license in that state. Most commonly, it means that the requirements for licensing are reduced. For example, agents might need to take a few hours of classes from an accredited online real estate school like Real Estate Express to secure a license in a new state. Check with your state’s licensing board for specific requirements.”
Real Estate License Reciprocity Guide — 2021 Updated — All 50 States (Agent Advice, 2021)
“The portability of a real estate license is just a breakdown of the basic rules that each state has when it comes to agents who don’t have a license there but may have clients who are interested in buying or selling in that state. There are 3 classifications that apply in these situations: Cooperative, Physical Location, and Turf.”
Occupational Licensing Legislation Database (National Conference of State Legislatures, Jun. 19, 2020)
The National Conference of State Legislation (NCSL) and the U.S. Department of Labor have collaborated to create the Occupational licensing Legislation Database. The database features legislation from 50 states and over 34 occupations, and also features state specific legislation as it relates to license reciprocity.
Recent Advances
California Lawmakers Pass Bill for License Reciprocity for Military Spouses (Travis Air Force Base, Oct. 18, 2021)
California passed a new law regarding easing license reciprocity requirements and restrictions for military spouses on October 8, 2021. Bill AB 107, which was signed into law by Governor Gavin Newsom, grants veterans and spouses of active-duty military an “expedited, temporary authorization to practice while meeting state-specific requirements for a period of at least one year.”
Mutual Recognition vs. Reciprocity (One Blue Real Estate School, Oct. 4, 2020)
Mutual Recognition and Reciprocity can both be of help to REALTORS® who are looking to move or expand their business, but there are important differences between the two. Reciprocity refers to the acceptance of the actual license, while Mutual Recognition occurs in a situation when a state chooses to recognize the education and experience that a licensee has obtained in another state. In a Mutual Recognition situation, an educational certificate might be honored, not the license.
Is Occupational Licensing a Barrier to Interstate Migration? (American Economic Journal: Economic Policy, Aug. 2020) E
“Occupational licensure may limit the interstate movement of workers because it adds to the cost of moving between states. We analyze the interstate migration of 22 licensed occupations, proxying for the difficulty of the regulations by comparing state-specific licensed occupations to those with national licensing exams. Our empirical strategy also uses individuals who move a long distance, removing the influence of occupation characteristics and self-selection of migration-averse individuals into licensed occupations. Our estimates show that occupational licensing reduces interstate migration, but the magnitude of the effect can only account for a small part of the overall decline in recent decades.”
Organizations to Contact for More Information
Association of Real Estate License Law Officials (ARELLO)
150 North Wacker Drive, Suite 920
Chicago, Illinois 60606-1682
312-300-4800
http://www.arello.org
Real Estate Educators Association
7739 E. Broadway, #337
Tuscon, Arizona 85710
(520) 609-2380
http://www.reea.org
eBooks & Other Resources
eBooks.realtor.org
The following eBooks and digital audiobooks are available to NAR members:
Real Estate License Exams for Dummies® (eBook)
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