License Law Basics — Who Needs One

A real estate license is required to perform licensed activities FOR ANOTHER and FOR COMPENSATION: listing, selling, buying, leasing, negotiating, or auctioning real estate. Exemptions typically include owners handling their own property, attorneys acting within their law practice, trustees and personal representatives under court authority, and resident managers leasing units where they work. Unlicensed assistants may do clerical work — but not show property, discuss terms, or negotiate. Paying a commission or referral fee to an unlicensed person is prohibited; splitting fees is broker-to-broker business. One truth across states: compensation flows through the employing broker.