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Real Estate · State License Law and Commission

What is 'reciprocity' in real estate licensing?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

An agreement between states allowing licencees from one state to obtain a licence in another state without repeating all licensing requirements — typically requiring passing the new state's state-specific exam portion only

  1. A An agreement between states allowing licencees from one state to obtain a licence in another state without repeating all licensing requirements — typically requiring passing the new state's state-specific exam portion only
  2. B When a broker allows two agents to share a client
  3. C When two agents split a commission evenly
  4. D The requirement to share commission with the listing broker

Why this is the answer

RECIPROCITY (or portability) allows real estate licencees to obtain a licence in another state without repeating the entire process. Different states have different reciprocity arrangements:

Full reciprocity: If you hold a licence in State A, State B grants a licence without any additional exam.

Partial reciprocity: Only the state-specific exam portion is required.

No reciprocity: Full requirements must be met regardless of existing licence. Important: a licencee must practise real estate only in states where they hold an active licence. Working in a state without a licence is illegal. With increasing agent mobility and internet-based referrals, reciprocal licensing has become an important practical tool. Check the specific reciprocity agreement between your home state and any state where you want to work.

Source: Real Estate State Exam, Reciprocity

Practice more questions

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About this topic: State License Law and Commission

State license law and commission questions cover who must be licensed, exemptions, license types and renewal, continuing education, the real estate commission's powers and the grounds for discipline. This is one of 34 Salesperson (State Law) questions on state license law and commission, each with a full explanation on a single study page.

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

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State-specific guides

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