Can You get a Real Estate License with a Criminal History?

It’s a tale as old as time. You meet someone when you’re just getting out of high school or college, and you fall hard for them. So hard you decide you will do a lot of things to impress them, too many things. Maybe you decide to steal a mailbox or drive over 100 mph on the highway just to get their attention. Some of us are lucky enough to not have gotten caught, others not so much. The point is we have all made mistakes in our past and we were not thinking about the future consequences. But now it’s the future and you’re wondering if that misdemeanor or felony will stop you from getting your real estate license. 

This blog will explore your options and hopefully not discourage you from applying for a license because, it is a great career and you deserve something that will make you happy. It’s never too late to start a new career, whether that is as an agent representing buyers and sellers, or it could be flipping houses, looking to work for themselves, and selling their own properties.

The Short Answer: 

Having a felony or misdemeanor most likely will not automatically or initially disqualify you from getting a real estate license. That does not mean that it won’t stop them from denying you a real estate license.  Not only does each state have its own real estate commission/board that regulates issuing licenses, but they also have their own criminal laws to evaluate. Your state will examine each background on a case-by-case basis, so there is no hardline  answer to what does and does not disqualify you if you have a criminal history.

The Application:

In every state, you have to submit to a criminal background check as part of your application. Further, you cannot fail to disclose any criminal conviction. Each state has differing rules on how far back you have to report a conviction. Some states like Kentucky only require reporting convictions within the last 10 years for a felony or within the last 5 years for a misdemeanor. Failure to disclose a conviction based on each state’s rules will lead to the real estate commission denying the application.

Factors to Consider:

The Real Estate Commissions are not without hearts. They understand when someone has served their time and taken steps to rehabilitate themselves to ensure the crime won’t be committed again.  Here are some factors that will be considered when determining if a conviction will disqualify an applicant.

(Information courtesy of the Kansas Real Estate Commission).

Additional Considerations.

Think of it as a sliding scale. On one side of the scale, you’re more likely to be approved for a license, and on the other side, you're less likely. A person who was convicted within the last 2 years of credit card fraud, who has not paid restitution is less likely to get approved than someone who had a misdemeanor marijuana conviction from 6 years ago. You won’t know until you apply.

What Happens When You Apply?

Three things can happen when you apply to get your real estate license in every state: you are approved, you are denied, or the Commission asks for more information about your history. As long as you disclose everything you’re required to, they will at least consider the facts

Some states like South Carolina will require a hearing to evaluate the facts before deciding. Other states will deny first and then you will have to appeal before you can get a hearing to explain the circumstances. Then again, some states will just approve if the applicant has demonstrated enough in the application that they are honest and trustworthy. 

A criminal conviction can be a tough hurdle to overcome but it is possible and it definitely does not automatically disqualify you from becoming a real estate agent. If you have questions about the appeal or hearing process, you should contact your state’s real estate commission/board for more information. 

If you have other questions about getting a real estate license or the real estate business in general, do not hesitate to reach out to me or any of our wonderful support staff.