License Reciprocity & License Recognition

Quick Takeaways

License Reciprocity occurs when one state chooses to honor the official real estate license of another, lessening the time effort of completing a multi-state transaction
Every state has different license reciprocity rules and regulations, and it is necessary to check the laws before engaging in even a single transaction.
There are three types of real estate license reciprocity: cooperative, physical location, and turf.

Source: Real Estate License Reciprocity & Portability (The Close, Jun. 28, 2023)

Reciprocity in real estate applies to the functionality of real estate licensure from state to state. License reciprocity can be complex because there are different types of reciprocity (full, partial, or selective) and varying rules in every state. In addition, many states do accept licensure from other states, especially neighbors.

Various organizations, including the U.S. Bureau of Labor Statistics, the National Conference on State Legislators, and the Association of Real Estate License Law Officials, regularly conduct research on reciprocity law in each of the 50 states. These reports provide current and reliable information on the reciprocity legislation for all to access.

California created a new law aiming to expedite to reciprocity process for veterans and military spouses – Bill AB 107. The law, one of the newest advances in reciprocity law, recognizes the challenges military spouses face in relocation, often having to move quickly and without enough time to receive a new license that they have already acquired in their current state. New Hampshire welcomed license reciprocity, but other states still feel it is far in the future.

See References for more information.

References

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.

What Is License Reciprocity?

Everything You Need to Know About Real Estate License Reciprocity (Kaplan Real Estate Education, 2026)

“Reciprocity exists in the real estate industry to give agents the ability to expand their businesses by working in more than one state. Reciprocity is a process that allows licensed real estate agents to meet qualifications and work in states other than the state in which they were originally licensed. Reciprocity agreements and requirements differ from state to state, so it’s important to do your research. In this guide, we break down what you need to know about real estate reciprocity, including the different types of reciprocity agreements, reciprocity versus portability, and which states offer reciprocity and portability agreements.”

The Facts Regarding Real Estate Occupational Licensing (ssociation of Real Estate License Law Officials (ARELLO))

“ARELLO has contracted research that looks at real estate licensing, specifically. The research agrees that some occupational licensing has been abused and that every action in this direction must be conscientiously undertaken. However, ARELLO's research drills down further aggregating accurate information addressing those concerns most often cited by the critics, such as: restraint, exclusion, industry protectionism, inflating costs, and failure to protect. ARELLO also recently updated its formal position statement on license portability. This document includes information about the various approaches to license portability that exist today…and why is is essential for the real estate profession.”

Occupational Licensing Legislation Database (National Conference of State Legislatures, Dec. 5, 2025)

This database tracks the state-by-state requirements, costs, training and other related details of 48 different licensed, certified or registered occupations across all 50 states. It includes all enacted legislation from 2025 to present and is updated annually or as legislation is identified by NCSL staff.

Recent Advances

4 New Occupational Licensing Laws Remove Barriers in Illinois (Illinois Policy, Sep. 5, 2024)

Senate Bill 3740 makes it easier for more real estate brokers with out-of-state licenses to practice in Illinois. Previously, out-of-state brokers needed to be licensed in one of the states with a reciprocal agreement with Illinois to be licensed in the state. Those states were Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Nebraska and Wisconsin. Now, real estate agents from any state that meets certain requirements will qualify for an Illinois license.

State Lawmakers Continue to Push for Removal Of Impediments to Work (Forbes, Jan. 19, 2024)

In addition to Florida, lawmakers and governors in a number of other states are looking to pass universal licensure in 2024. Universal licensing recognition legislation introduced in Nebraska’s unicameral legislature, LB 16, is also poised to move during the 2024 session. “Ease of mobility for workers coming (or returning) to Nebraska would increase significantly through LB16, and it also opens opportunities for those leaving military service with a military occupational specialty,” writes Laura Ebke, senior fellow at the Platte Institute, an Omaha-based think tank.

Policy Brief: 2024 Update to the Survey of Universal Licensing Reforms in the United States (West Virginia University, Jul. 2024)

This update to the first Knee Regulatory Research Center report on universal licensing recognition provides an overview of the changes to universal licensing recognition since the first edition, as well as an expanded update to the dataset. We find that 26 states have passed universal licensing recognition reforms since 2013, with eight new states passing the reform since the last edition of this report, and eight states significantly expanding the reforms over time. In this way, the legislative reform enables workers to have their occupational license recognized in much the same way that a driver’s license is.

Organizations to Contact for More Information

Association of Real Estate License Law Officials (ARELLO)
150 North Wacker Drive, Suite 920
Chicago, Illinois 60606-1682
312-300-4800
http://www.arello.org

Real Estate Educators Association
7739 E. Broadway, #337
Tuscon, Arizona 85710
(520) 609-2380
http://www.reea.org

eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

Real Estate License Exams for Dummies® (eBook)

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