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STATE LICENSING
WHICH STATES REQUIRE A REAL ESTATE LICENSE?
Every state requires a real estate license for the sale of real estate, or real property – or, in fact, any interest in real property. The states that don’t require licensure for the sale of a business generally take the position that the lease is incidental to the sale of the business, or that the fee is not based on the transfer of the lease. Unlicensed business brokers in these states are not supposed to be involved in the lease, even the assignment of it.

The following list can change on a moment’s notice, but as of this writing, these states are the ones that, in our opinion, require a real estate license for the sale of a business.

Alaska
Arizona
California
Colorado
Florida
Georgia
Idaho
Illinois (Illinois does not actually require a license, but registration with the state securities commission is necessary.)
Minnesota
Nebraska
Nevada
Oregon
South Dakota
Utah
Washington
Wisconsin
Wyoming
The following states don’t currently require a license, but are on our watch list:

Vincent Murphy Business Broker
Vincent Murphy Business Broker

Hawaii
Kentucky
Michigan (Michigan recently required a real estate license, but a court case nullified it and the legislature might feel that they should act and require licensing for the sale of a business.)
WHAT DOES BBP RECOMMEND REGARDING LICENSURE?
Our recommendation to people entering the profession in those states that don’t require a license? If you are successful after 90 days or so, take the requisite coursework, get your real estate license, and then work to obtain your broker’s license.

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