Who is required to have a license in real estate activities?

The rationale behind requiring a real estate license for individuals expecting compensation for third-party business is centered on consumer protection and ensuring a standard of professionalism within the real estate industry. A license indicates that the individual has met specific educational and ethical standards, undergone training, and is knowledgeable about real estate laws and practices. This requirement helps to ensure that clients receive competent and informed service, minimizing the risk of fraud or unethical practices.

In contrast, those conducting business primarily for personal gain without involving third parties generally do not need a license, as their activities might not fall within the scope of professional real estate service. Similarly, individuals working for government agencies may engage in activities that do not require a separate license since their roles may pertain to governmental duties rather than traditional real estate transactions. Lastly, while individuals working in real estate development are involved in real estate, they might not necessarily require a license unless they are also engaging in activities subject to licensure, such as selling properties to the public.