As a real estate agent or broker, making a move is usually much tougher on you than it is for your clients.
Real estate is a hyper-local business. You’ve got to know your local market inside and out. You’ve got to build up a network of people in your area. You’ve got to nurture relationships with hometown lenders, title companies and inspectors.
Oh, and you’ve got to have licensure specific to your state.
While moving to a new state isn’t easy, moving your real estate business to New York may be easier than you think thanks to reciprocity and portability.
Real Estate Reciprocity in New York
What is reciprocity? Reciprocity means that a state has agreements with other states, which recognizes the licenses of brokers and agents so that licensure can be transferred. In short, it means you don’t have to take additional pre-licensing courses to get a real estate license in New York.
The state of New York currently has reciprocity agreements with nine states:
- Arkansas (broker only)
- Colorado (broker and associate broker)
- Connecticut (broker and salesperson)
- Georgia (broker and salesperson)
- Massachusetts (broker only)
- Mississippi (broker only)
- Oklahoma (broker and salesperson)
- Pennsylvania (broker and salesperson)
- West Virginia (broker and salesperson)
If your state isn’t on that list it means you’ll have to complete the 75-hour salesperson qualifying education course as well as the 45-hour real estate broker course. Once that’s done you’ll also need to complete the state licensing exam. But you may be able to bypass the salesperson course if you’ve obtained the equivalent level of schooling at an accredited college or recognized real estate school.
Even if your state has a reciprocity agreement with New York that doesn’t mean you can move right in and start negotiating deals. First you’ll need to:
- Get certification from your current real estate agency (dated within the last six months) that shows your license is current and in good standing.
- Complete the appropriate application. (This requires an account on the eAccessNY management system.)
- Find a sponsoring broker if you’re a salesperson or associate broker.
- Provide an irrevocable consent form.
- Pay the application fee.
Also, don’t forget to keep up with continuing education so you can renew you New York real estate license in a few years.
Real Estate License Portability in New York
There’s another way to work as an agent or broker in New York with an out-of-state license. Portability is a set of laws that establish when an agent or broker can represent clients and handle transactions in a state where they don’t hold a license.
Each state decides what portability model it wants to follow. In New York the physical location model is used.
This means out-of-state agents and brokers can be a part of a real estate deal and collect a commission so long as they conduct all of their business within the state where they’re licensed. You can do everything remotely for your clients, but the second you step inside the state boundaries of New York all real estate activity must cease.