The real estate industry is one of the most lucrative and stable industries in the United States. In almost every stage of the economy, people need homes to live in, and there are plenty of investors looking to create, buy, and sell housing to turn a profit.
However, getting a license as a real estate agent can be difficult if you have a felony or misdemeanor on your record. Although some states allow felons to obtain their real estate license, there are other steps you must take before applying for one.
Before you can get a real estate license or become a full-fledged real estate agent, you are probably going to have to disclose any felony on your record to ensure you have the moral turpitude to demonstrate your criminal activity is in the past.
So, is it possible to become a real estate agent with a felony conviction?
Real Estate Licenses Depend on the State
The decision to allow felons to become real estate agents is entirely up to each state. Each state has its own requirements and regulations regarding licensing, so you will need to contact your individual state board to give you a definitive answer about whether or not you can get a real estate license if you have a felony on your record.
Some states require more vetting and training than others. Most states will require applicants with criminal records to wait longer before applying for their license. It is worth the effort because the average income for first-year agents is over $80,000.
This could mean you have to wait a certain number of years after you are off paper (completely finished with your criminal record or sentence) before you can obtain your real estate license.
You May Need More Vetting or Training
If you’re a felon interested in becoming a real estate agent, the first thing to do is check with the state where you want to work.
Each state has its own requirements for licensing and other aspects of doing business. Some states prohibit felons from getting real estate licenses altogether, while others allow them as long as they’ve paid their debt to society.
Other states require more vetting and training for felons who want to become real estate agents. These states may require that offenders who have been convicted of certain crimes take additional classes or pass tests before being granted a license, but they still allow these individuals to pursue this career path if they so choose.
Most of these extra classes will have to do with your moral character. The state is making sure you have the ethics to handle the buying/selling process without letting your past criminal activities affect your client relationships or integrity.
How Do You Get a Real Estate License with a Felony or Misdemeanor?
The process of getting a real estate license with a felony or misdemeanor varies from state to state. Although they all require some vetting and training, some states are more stringent than others in their requirements.
If you’re interested in obtaining your real estate license with a felony or misdemeanor, it is important to know the laws and regulations that apply to your particular situation before you begin the application process.
The basic steps for getting your real estate license with a felony conviction include:
- Research your state’s real estate license application process.
- Completion of any real estate license education requirements.
- Apply and take the real estate license exam.
- Pass the exam and any extra requirements for your criminal background.
- Apply for your real estate license.
- Find a real estate brokerage to join or work under.
- Join the National Association of Realtors.
- Keep your real estate license up to date and renewed.
There are over 105,000 real estate agents in the US, so if you think it is too hard, you are wrong. You can do this!
What Shows Up on a Background Check?
If you or a loved one has run into legal trouble in the past and you’re wondering whether a background check will show up on your criminal record, the answer is yes. Background checks dig deep into your past to uncover anything that might be relevant to your ability to get hired or licensed.
The information included in a background check can vary depending on what kind of job or license you’re applying for and who’s doing the checking.
For example, some employers might include social media profiles in their checks, while others don’t. Some may look at driving records, while others won’t (though many do). A career in real estate is likely to uncover any criminal acts for an applicant.
Your personal background check includes more than just criminal records: it also includes civil judgments (like unpaid bills), driving records, professional licenses (such as real estate agents), employment history, and social media accounts like Facebook and LinkedIn profiles.
How Far Back Does a Real Estate Background Check Go?
This is a question that comes up often. A background check goes back 7 years, but felonies may be included in the search results beyond that 7 years.
Misdemeanor convictions may be included, but these can usually be defended as old offenses that have been paid for and should not affect your ability to get a real estate license today.
Employers may ask for more information than what is available on a background check—for example, they might want to know whether you were found innocent or guilty of an offense during this time period—and it’s important that you answer truthfully whatever questions they ask about your past.
This is different than getting your rights restored to own a gun, vote, or travel to another country. This involves telling your side of the story in an honest way.
Should You Disclose Things That Won’t Show Up on Your Background Check?
You should disclose anything that could impact your ability to do your job.
You don’t need to disclose if it’s not on a background check. That said, if there is any chance that something might come up during the background check and prevent you from getting the job or license (even if it’s unlikely), then you should disclose it anyway.
If they find out later that they could have found out earlier by asking about this thing and don’t hire you because of it, then they can be held liable for breaking their contract with you.
The Hardest States to Get a Real Estate License With a Felony
Colorado and Texas are considered the most challenging to develop a career in real estate. They require many steps in their license application process. They will look closely at any criminal record you may have during the pre licensing phase.
They also have longer than average education requirements for your real estate license with a felony conviction.
Real Estate License Disqualifications
As part of the process, you must disclose any felony convictions within the last 10 years. If you have a misdemeanor conviction within the last 5 years, it will also be considered disqualifying. The same goes for a crime involving moral turpitude or fraud or misrepresentation.
Moral turpitude includes theft and fraud, as well as some sex crimes (including those committed against minors).
If you have been convicted of any crime related to real estate, such as money laundering or conspiracy to commit fraud in connection with a government agency, you may find it harder to work with agents using programs like FHA loans or VA mortgages.
Again, no state will immediately disqualify you based on a felony criminal background, but there will most likely be extra steps to prove you plan to act with honesty and upstanding character.
Felony Reviews for Real Estate License Applications
The state licensing board may ask for a felony review to determine if you have been rehabilitated. A felony review is done by a third party, like the state’s department of criminal justice or a private company. It’s designed to find out about any past crimes, including felonies and misdemeanors, that might still be affecting your application.
Make Sure You’re Qualified Before You Start
Your first step is to make sure that you meet the state’s requirements for licensure. If you don’t, then your application could be rejected before it even gets started.
The next thing to do is check if your felony is on the list of disqualifying offenses in your state. These include crimes such as murder and rape, but they also include a host of other felonies that may not be immediately obvious as being serious enough to prevent someone from entering this industry.
After you have confirmed you are eligible, complete the education and real estate license application process, and you should be good to enjoy a long career in real estate.
Alternate Paths for Felons Working in Real Estate
If you’re a felon, there are plenty of alternate paths to becoming a real estate agent. These may include:
Property Manager:
A property manager is responsible for the day-to-day operation of an apartment building, condo, or townhome association. They manage the property and oversee maintenance, repairs, and leasing.
Administrative Assistant:
A real estate administrative assistant is responsible for keeping the office running smoothly. Administrative assistants often have to handle many duties, such as answering phones, greeting clients, and filing documents.
Homeowners Association Manager:
Someone who manages the rules and regulations of a homeowner’s association (HOA). These organizations are common in condos or apartment buildings. They act as property managers who enforce all the rules that pertain to the building.
For example, what color you can paint your door or whether pets are allowed in certain areas. Association managers make sure those rules are being followed by everyone within their jurisdiction.
Virtual Tour Creator:
With the right knowledge and skills, you can create virtual tours of homes for sale. A virtual tour is a video or slideshow of images (often 360-degree) that allows buyers to see inside a home without actually visiting it.
This career requires business acumen and creativity. You’ll need to know how to write scripts, edit videos, use special effects software, and more. You may also need to have a background check done on yourself before you start working in this field.
Home Staging Planner:
A home stager is someone who helps homeowners to sell their property by making it more appealing to potential buyers. Staging can be done by a professional or by the homeowner themselves, and can increase the value of a property by up to 10%.
A good home stager will spend time determining what kind of look you want for your space, and bring in furniture that matches your tastes. They’ll also consider how much time you’re willing to put into staging—some people prefer quick fixes that give their home an immediate boost, while others may be looking for something more extensive (and expensive).
Get Started Today!
Each state has its own requirements for getting a real estate license, but some felons are able to get the license they need to become a real estate agent sooner than later. The decision is up to each state, so you should contact your local and state government agencies if you want more information about whether or not you can get licensed in your area.
If you’re interested in real estate and have a felony on your record, you may be able to get the license you need. The most important thing is to do your research and make sure that you qualify before applying for any licenses.
Whatever you do, never give up. A real estate career can be a highly profitable way to help your family thrive. With a little dedication and honesty, you should be able to move past your convictions and build a brand around a strong character history that encourages more sales. Good luck!
If you would like to learn more about changing your life after a felony conviction, check out the guide Getting Out: success after incarceration, available on Amazon.
