The real estate industry can be a lucrative one and a healthy career path for someone who enjoys the idea of working independently and frequently embracing new challenges. And, with an estimated salary of nearly $75,000 a year, becoming a realtor is an enticing opportunity for many. But what about those individuals who have a criminal record – can previous criminal convictions negatively affect your ability to become a real estate agent?

As with so many questions when it comes to criminal convictions, the answer is: it depends. However, to dig into this a little bit deeper, it’s important to first understand the difference between a real estate agent, a broker, and a realtor. These terms are often used interchangeably in casual conversation but are actually defined quite differently (with different requirements) when it comes to the law.

A real estate agent is licensed to assist others in buying and selling property. In order to become a real estate agent, an individual must take educational courses and pass a qualifying exam. Real estate license regulations can differ from state to state, but most states also require license holders to re-qualify every couple of years.

A broker, or “real estate broker,” follows a similar path. However, in this case, an individual would need to take a broker license exam (rather than an agent exam) as well as covering additional coursework that is specific to brokers, such as laws and legal issues pertaining to real estate. To become a broker, an individual will already need to possess quite a bit of experience in the world of real estate.

Finally, a realtor is a licensed agent who is registered with the National Association of Realtors. The title of “realtor” can only be given to an agent who is registered and meets the standards set by the association – this includes regulations and a code of ethics.

Obtaining a Real Estate Agent License in Arizona

To qualify for a real estate agent license in the state of Arizona, you must be at least 18 years of age, be honest and trustworthy (show good moral character), and not have had a real estate license denied in the past year or revoked in the past two years.

Education and examinations are also essential in order to submit for a license. 90 hours of “pre-licensing education” – often offered at higher education institutions like colleges and universities – must be completed, and the user must pass the agent’s license exam in order to qualify. Once a license is obtained, it must be renewed every two years with an additional 24 hours of Arizona Department of Real Estate-approved education (classes).

Upon submitting for a license, the interested party must submit for a background check; a process that includes fingerprinting (it is Arizona law that real estate agents, brokers, and realtors must have fingerprints on file).

If you are found to have a criminal conviction in your past, it will flagged at this stage of the process. If your application is rejected, you do have the opportunity to submit a written request to speak in front of an advisory board. At this time, you can explain your particular situation – your changed lifestyle, integrity, etc. – and why you should be allowed to receive your real estate license. However, doing so does not guarantee that you will walk away with a license; the advisory board can still choose to deny your application depending upon the circumstances.

That being said, it’s also important to keep in mind that disclosing information about your criminal history does not mean you will be automatically disqualified. Real estate boards put quite an emphasis on good character, moral aptitude, and reliability – if you can show that you have changed as a person and have all three qualities, your chances go up significantly. It is far better to be open about your criminal history up front than to have it be uncovered during the background check process. You will look untruthful and unreliable, which will almost certainly result in the dismissal of your application.

The Financial Cost of an Arizona Real Estate Agent License

Something that not a lot of people consider when planning to become a real estate agent in Arizona is the cost. In addition to the time investment, there is also a pretty steep initial cost when it comes to getting your agent or broker license. For an agent or “salesperson,” this list may break down as follows:

• Exam + application fees: $125
• License fees: $125
• Fingerprinting fee: $24
• Recovery Fund Fee: $10
• One-time renewal: $150
• Late renewal: $200

This is not necessarily a full list of all costs and fees that you may incur, and the costs themselves may differ depending on where you take your exam or go to get fingerprinted, etc. However, this does provide a solid basis for what you can expect to pay.

For those applying for a broker’s license, the costs are even steeper.

• Exam + application fees: $225
• License fees: $250
• Fingerprinting fee: $24
• Recovery Fund Fee: $10
• One-time renewal: $200
• Late renewal: $400

For individuals with a criminal history, your time investment is likely to be significantly more due to possible hearings. Add this to the cost – as the age-old adage says, “time is money” – and it is certainly worth keeping in mind.

Tips for Individuals with Criminal Records Applying for a Real Estate License

We’ve stated this previously, but it’s worth re-emphasizing: be fully honest and transparent about your past. Do not attempt to conceal any previous convictions or legal infractions. It is far better to be upfront and honest given how much credibility the real estate industry places on trustworthiness. If you are discovered to be lying or covering up a past record, this will just about guarantee a license denial.

During the review process, divulge all information requested of you; whether that’s during your felony review or your background check. The more forthcoming and honest you are, the better.

Not sure what you should or shouldn’t disclose? Uncertain about what will appear on your criminal record during a background check? Reach out to a criminal lawyer to find out. Ask your lawyer about your conviction and whether or not it would be worth applying for a set aside.

While the state of Arizona does not allow convictions to be expunged, you can apply for your conviction to be set aside, which indicates to the person viewing your record that you have fully complied with the courts and have completed your sentence to the fullest. (This includes all jail time, paying all fines, and completing all hours of community service and/or addiction counseling, etc.)

In the case of a real estate advisory board, the board would still be able to see the conviction on your record, but a set aside helps to indicate that you made active strides to fulfill all requirements and did so without issue.

Need a criminal lawyer to talk to? Our team of highly-experienced criminal law experts are here to help. Schedule a consultation to talk about your options with a qualified attorney and discover how we can help you achieve future success – even with a previous criminal conviction.