All 50 states, the District of Columbia, and all Canadian provinces license and regulate the activities of real estate professionals. While the laws share a common purpose, the details vary from state to state.
Real estate license laws have been enacted to protect the public by ensuring a standard of competence and professionalism in the real estate industry. The laws achieve this goal by:
- establishing basic requirements for obtaining a real estate license and, in many cases, requiring continuing education to keep a license,
- defining which activities require licensing,
- describing the acceptable standards of conduct and practice for licensees, and
- enforcing those standards through a disciplinary system.
The purpose of these laws is not merely to regulate the real estate industry. Their main objective is to make sure that the rights of purchasers, sellers, tenants, and owners are protected from unscrupulous or sloppy practices. However, by establishing minimum levels of competency and limits of permitted behavior, laws can make the marketplace safer and more honest.
