There are seven turf states: Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Pennsylvania, and Utah. The only option to work with clients in a turf state is to refer them to a licensee of the turf state. Turf StateĪ turf state does not allow out-of-state agents or brokers to conduct any business in their state, either in-person or remotely. This means that an agent or broker from another state must conduct all out-of-state business remotely and may not enter the state for showings, closings, or any other reason.įor example, in a physical location state, you can send your clients to view properties, submit offers on their behalf, and negotiate transactions as long as you physically remain in the state in which you are licensed. Physical Location StateĪ physical location state allows agents and brokers to conduct business in another state but doesn’t allow them to enter the state for the purpose of conducting real estate business. You should always familiarize yourself with local requirements before committing to a client looking for property in a cooperative state. Keep in mind, however, that some cooperative states, such as Michigan, place limitations on out-of-state agents. There are cooperative states covering all geographic regions, which includes states like Alabama, Colorado, and Washington. However, for out-of-state agents to work in a cooperative state, they must have a cobrokerage agreement with a licensee of that state.
This includes property showings, closings, negotiations, and other stages of real estate transactions. Cooperative StateĬooperative states allow out-of-state real estate agents or brokers to physically enter the state to conduct real estate business. There are three major classifications of real estate license portability. Each of these classifications requires different circumstances under which an out-of-state real estate agent may work within the state. In general, there are three kinds of portability laws: cooperative, physical location, and turf states. It is different from reciprocity because it allows agents to cross the border of their home state for real estate business, but it is not intended as a long-term solution for agents relocating to a new area. Real estate license portability describes state laws allowing out-of-state real estate agents to engage in real estate transactions without having to get a real estate agent license in a neighboring location. Agents who have no intention of moving to another state but want to still be able to conduct the occasional out-of-state real estate transactions are more affected by portability laws. Reciprocity agreements offer the greatest benefit for agents who are permanently moving to another state or are in proximity to two states: for example, New York and New Jersey. We go into more detail about each state’s individual reciprocity agreements at the end of this article.
Check with your state’s licensing board for specific requirements. For example, agents might need to take a few hours of classes from an accredited online real estate school like Real Estate Express to secure a license in a new state.
Most commonly, it means that the requirements for licensing are reduced. Keep in mind that a reciprocity agreement doesn’t necessarily allow a real estate salesperson or broker to take part in real estate transactions in a reciprocal state without a license in that state. Real estate license reciprocity is an agreement between multiple states allowing licensed real estate agents to become licensed in a different state without taking additional real estate prelicensing courses or, in some cases, taking a licensing exam. To help agents understand both of these, we compiled license reciprocity and portability rules for all 50 states. Real estate portability lets out-of-state agents conduct transactions within specific states, based on local laws. Real estate license reciprocity gives licensed agents the opportunity to secure a license in a new state without completing all licensing requirements.
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