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What is Real Estate Reciprocity?
The handling of real estate transactions is highly dependent on the rules for each state. As such, states may set their own requirements for qualifying for a real estate license. In most cases, reciprocity means that someone who has an active license in one state can apply for a license in another state. With a reciprocity agreement, agents might be able to bypass at least some of the requirements to get a license in the new state. When agents are considering moving to another state while they hold an active license in their home state, they should research what they will need to do to get a license for the state that they are moving to.
The rules for reciprocity depend on the state, and there isn't a lot of commonality between them. This means that some states might offer reciprocity to other states in a pattern that doesn't make sense. Others do not offer reciprocity at all. It's not always that simple because some states with reciprocity still require applicants from another state to take some courses or pass a state-specific exam to qualify. The Association of Real Estate License Law Officials maintains a list of websites for each state, as well as other regions of the world. Agents can go to the website for the organization that oversees real estate licenses in their state to learn more about reciprocity agreements and state licensing requirements.
What is Real Estate Portability?
Real estate reciprocity and portability are two distinct concepts, and agents should be able to tell the difference before making a choice about transactions in other states. Reciprocity allows someone who holds a valid real estate license in one state to streamline some or all of the requirements to get a license in another state. By comparison, portability relates to individual transactions by a licensee who isn't planning to get a license in another state. Portability is an important tool for agents to understand, especially if they live in an area where out-of-state purchases are common.
Each state designates its portability in one of three categories: cooperative states, physical location states, and turf states. Cooperative states allow licensees in other states to enter and participate in a real estate transaction, although there may be some limitations. Physical location states permit licensees to represent a client's interests, but they must work with a current license-holder in the state to complete the transaction. Turf states do not allow any licensee outside the state to conduct business in the state. Instead, agents in other states can only refer clients to a licensee in the state.
Cooperative States
States with cooperative portability will permit licensed agents to participate in most or all parts of a real estate transaction. An agent with a license in one state could enter the state, show properties, prepare offers, and get buyers or sellers ready for closing. Almost half of U.S. states allow this type of arrangement, although the rules may not be consistent across the board. For example, an agent might be able to help a buyer purchase in another state, but that state's governing board may require the listing to come from a licensee in their own state.
Physical Location States
About four in ten states maintain portability based on physical location. These states require agents in other states to remain in their own states for all real estate-related transactions, although they can help with parts of the transaction. For example, if an agent has a client looking to buy properties in another state with physical location portability, they can help the buyer look for properties. They can encourage the clients to visit the properties and may even be able to submit offers. Agents just can't go to the other state to show properties, participate in closing, or engage in other location-specific tasks.
Turf States
Turf states do not allow agents from other states to take any role in a real estate transaction within the state. Six states maintain this portability. Agents in one state must refer clients to another agent with a current license in a turf state. For example, an agent with clients in New York who want to buy property in New Jersey cannot help them with the transaction. The most they can do is to refer to another agent. Agents who work for a brokerage with offices in multiple states might find this relatively simple.
Types of Real Estate Reciprocity
Reciprocity is broken down into three different categories: full, partial, and no reciprocity. States with full reciprocity will offer to bypass some of the requirements for anyone who maintains an active real estate license in another U.S. state. The licensee must also be in good standing with no negative records on their license, such as a disciplinary action. Agents whose licenses are about to expire in their current state may want to renew them before they move, so the license remains current through the application process in the new state.
By comparison, some states do not offer any reciprocity. As such, someone moving to one of these 17 states should plan to go through the process of meeting course requirements, taking exams, and applying for a license as if they were new to the process. It's often easier since agents with active licenses already have a significant knowledge base. Most states keep partial reciprocity, which means they will waive some licensee requirements in certain states but not others. Agents should consult the list for each state to determine which states offer reciprocity to their home state.
States determine whether or not they will offer reciprocity to states. A little less than half of states offer reciprocity to any state or no state. A majority offer partial reciprocity. With this information, agents will know which states fit in each category.
Full Reciprocity
A handful of states offer full reciprocity. This means that anyone holding a valid real estate license in good standing in another U.S. state can take a shorter path toward applying for a license:
- Alabama
- Colorado
- Maine
- Mississippi
- Virginia
Partial Reciprocity
Most states offer partial license reciprocity. Each state sets its own rules for determining which states meet their requirements for reciprocity:
- Arkansas
- Connecticut
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Louisiana
- Maryland
- Massachusetts
- Minnesota
- Nebraska
- Nevada
- New Hampshire
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Utah
- West Virginia
- Wisconsin
No Reciprocity
About one-third of states offer no license reciprocity. Agents who hold an active license in one state will need to start over if they relocate to these states:
- Alaska
- Arizona
- California
- Delaware
- Hawaii
- Kansas
- Kentucky
- Michigan
- Missouri
- Montana
- New Jersey
- New Mexico
- South Dakota
- Texas
- Vermont
- Washington
- Wyoming
Real Estate Reciprocity Exceptions
Agents need to keep in mind that reciprocity may have exceptions to the rule. Some states allow agents with a license in another state to go straight to taking an exam or applying for a license. Others might require a licensee to have a specific amount of time with a valid license, or else they must go through the regular process of qualifying to apply for a license. Several states make exceptions for military spouses with an active real estate license, allowing them to work toward meeting the terms of a reciprocity agreement regardless of the state they come from.
Real Estate Reciprocity State Guide
Since real estate reciprocity and portability depend entirely on the state, agents must know which rules apply to each state. This section outlines the type of portability maintained by each state, whether it is cooperative, physical location, or turf. Agents can also find out which states receive reciprocity from a given state. It's important not to reverse this information. For example, agents with an active license in Texas may get reciprocity in other states, but Texas does not offer the same to licensees planning to move there.
Alabama Real Estate License Reciprocity
Real Estate Portability: Cooperative
States Offered Reciprocity: All
Alaska
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Arizona
Real Estate Portability: Cooperative
States Offered Reciprocity: None
Arkansas
Real Estate Portability: Physical Location
States Offered Reciprocity: Alabama, Colorado, Florida, Georgia, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New York, Ohio, Oklahoma, Pennsylvania, South Dakota, Washington, and West Virginia
California
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Colorado
Real Estate Portability: Cooperative
States Offered Reciprocity: All
Connecticut
Real Estate Portability: Cooperative
States Offered Reciprocity: Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New York, Ohio, Oklahoma, and Rhode Island
Delaware
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Florida
Real Estate Portability: Physical Location
States Offered Reciprocity: Alabama, Arkansas, Connecticut, Georgia, Illinois, Mississippi, Nebraska, and Rhode Island
Georgia
Real Estate Portability: Cooperative
States Offered Reciprocity: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming
Hawaii
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Idaho
Real Estate Portability: Physical Location
States Offered Reciprocity: Wyoming, Oregon, and Montana
Illinois
Real Estate Portability: Physical Location
States Offered Reciprocity: Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Nebraska, South Dakota, and Wisconsin
Indiana
Real Estate Portability: Cooperative
States Offered Reciprocity: Arkansas, Colorado, Connecticut, Florida, Georgia, Illinois, Iowa, Kentucky, Massachusetts, Mississippi, Missouri, Nebraska, Oklahoma, and Wisconsin
Iowa
Real Estate Portability: Physical Location
States Offered Reciprocity: Alabama, Arkansas, Georgia, Louisiana, Massachusetts, Minnesota, Mississippi, North Carolina, North Dakota, Tennessee, and West Virginia
Kansas
Real Estate Portability: Cooperative
States Offered Reciprocity: None
Kentucky
Real Estate Portability: Cooperative
States Offered Reciprocity: None
Louisiana
Real Estate Portability: Cooperative
States Offered Reciprocity: Alabama, Arkansas, Colorado, Georgia, Mississippi, North Carolina, Oklahoma, New Mexico, Pennsylvania, and Iowa
Maine
Real Estate Portability: Physical Location
States Offered Reciprocity: All
Maryland
Real Estate Portability: Cooperative
States Offered Reciprocity: Pennsylvania and Oklahoma
Massachusetts
Real Estate Portability: Physical Location
States Offered Reciprocity: Alabama, Arizona, California, Connecticut, Louisiana, Maine, Missouri, New Hampshire, New York, Ohio, Oregon, Rhode Island, and Washington
Michigan
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Minnesota
Real Estate Portability: Physical Location
States Offered Reciprocity: Colorado, Iowa, Nebraska, North Dakota, Oklahoma, South Dakota, and Wisconsin
Mississippi
Real Estate Portability: Cooperative
States Offered Reciprocity: All
Missouri
Real Estate Portability: Cooperative
States Offered Reciprocity: None
Montana
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Nebraska
Real Estate Portability: Turf
States Offered Reciprocity: Alabama, Arkansas, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Washington, West Virginia, and Wyoming
Nevada
Real Estate Portability: Cooperative
States Offered Reciprocity: Arizona, Delaware, Idaho, Kentucky, Louisiana, Ohio, Texas, Utah, and West Virginia
New Hampshire
Real Estate Portability: Cooperative
States Offered Reciprocity: Massachusetts, Maine, Vermont, Tennessee, and Georgia
New Jersey
Real Estate Portability: Turf
States Offered Reciprocity: None
New Mexico
Real Estate Portability: Turf
States Offered Reciprocity: None
New York
Real Estate Portability: Physical Location
States Offered Reciprocity: Arkansas, Colorado, Connecticut, Georgia, Massachusetts, Mississippi, Oklahoma, Pennsylvania, and West Virginia
North Carolina
Real Estate Portability: Cooperative
States Offered Reciprocity: Arkansas, Connecticut, Georgia, Iowa, Louisiana, Mississippi, Nebraska, South Carolina, Tennessee, and West Virginia
North Dakota
Real Estate Portability: Cooperative
States Offered Reciprocity: Georgia, Iowa, Minnesota, and Tennessee
Ohio
Real Estate Portability: Cooperative
States Offered Reciprocity: Arkansas, Colorado, Connecticut, Mississippi, Nebraska, Oklahoma, West Virginia, and Wyoming
Oklahoma
Real Estate Portability: Physical Location
States Offered Reciprocity: Alabama, Arkansas, Iowa, Louisiana, Maryland, Nebraska, North Dakota, and South Dakota
Oregon
Real Estate Portability: Cooperative
States Offered Reciprocity: Alabama, Georgia, Nebraska, and South Dakota
Pennsylvania
Real Estate Portability: Turf
States Offered Reciprocity: Arkansas, Georgia, Louisiana, Oklahoma, Maryland, Massachusetts, New York, and West Virginia
Rhode Island
Real Estate Portability: Cooperative
States Offered Reciprocity: Connecticut and Massachusetts
South Carolina
Real Estate Portability: Cooperative
States Offered Reciprocity: North Carolina, Georgia, and West Virginia
South Dakota
Real Estate Portability: Cooperative
States Offered Reciprocity: None
Tennessee
Real Estate Portability: Cooperative
States Offered Reciprocity: Arkansas, Connecticut, Georgia, Iowa, Louisiana, Massachusetts, Mississippi, New Mexico, North Carolina, North Dakota, South Dakota, Virginia, and West Virginia
Texas
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Utah
Real Estate Portability: Turf
States Offered Reciprocity: Georgia and Mississippi
Vermont
Real Estate Portability: Physical Location
States Offered Reciprocity: None
Virginia
Real Estate Portability: Physical Location
States Offered Reciprocity: All
Washington
Real Estate Portability: Cooperative
States Offered Reciprocity: None
West Virginia
Real Estate Portability: Physical Location
States Offered Reciprocity: Alabama, Arkansas, Georgia, Iowa, Massachusetts, Mississippi, Nebraska, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, and Virginia
Wisconsin
Real Estate Portability: Physical Location
States Offered Reciprocity: Illinois and Indiana
Wyoming
Real Estate Portability: Cooperative
States Offered Reciprocity: None
Becoming a real estate agent with a plan to relocate or perform some parts of a real estate transaction in another state is more complicated. Like many other careers that require a professional license, agents have different rules to follow when their work concerns another state. Agents who hope to work in or move to another state must understand the reciprocity agreements for the state they live in, as well as the state they want to go to. They also have to know how portability limitations affect their ability to make interstate transactions. By researching this information, agents will be better prepared for these types of transactions throughout their careers.
