Real Estate · State License Law and Commission

What is generally required for a real estate license application regarding an applicant's background?

Correct answer

States commonly review an applicant's background and may deny a license for certain criminal convictions or prior dishonest conduct relevant to fitness to hold a license

  1. A No background check is ever required
  2. B States commonly review an applicant's background and may deny a license for certain criminal convictions or prior dishonest conduct relevant to fitness to hold a license
  3. C Only a credit score is checked
  4. D Background is irrelevant to licensing

Why this is the answer

As part of protecting the public, states commonly examine a license applicant's background — often including a criminal history check — and may deny licensure based on convictions or conduct that bear on the applicant's honesty, trustworthiness, or competence to handle other people's money and transactions. Applicants are typically required to disclose prior convictions and disciplinary actions, and failing to disclose can itself be grounds for denial. How recent or relevant a conviction must be, and the process for review, vary by state. The state portion tests the general idea that licensing involves a fitness review and that dishonesty or relevant criminal history can bar or delay a license.
Source: Real Estate State Portion, Applicant Background Review

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