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Real Estate · General

What is 'reciprocity' in real estate licensing?

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 When two agents split a commission evenly
  2. B 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
  3. C When a broker allows two agents to share a client
  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

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