Wondering how to become a Realtor in Alberta? This is gradually becoming a common question, most especially with the news of some realtors making as much as $89,003 in commission per year in the real estate industry.
The term Realtor is a trademarked name, usually used to refer to individuals whose business is to sell landed properties.
A realtor is a licensed real estate agent, who is into selling properties and is a member of the National Association of Realtors(NAR).
Properties may include houses, buildings, and land. These individuals are often into negotiating the sale of property and writing contracts for property listing and purchase.
Some are into the management of clients’ property and dealing with tenants etc.
Are you interested in becoming a real estate agent in Alberta, but don’t know where to start? then seat tightly as I lead you through the best 10 steps on how to become a realtor in Alberta.
The Steps on How To Become a Realtor in Alberta
- Step 1: Learn The practice
- Step 2: Know the cost
- Step 3: Confirm your Eligibility
- Step 4: Confirm your Education and English Language Eligibility
- Step 5: Complete a Career Information Session
- Step 6: Set up Your myRECA Account
- Step 7: Pick a broker
- Step 8: Apply for a license
- Step 9: Become a part of a local organized real estate community
- Step 10: Grow Your Reputation
Now, let us review these steps on how to become a realtor in Alberta in detail.
Step 1: Learn The practice
This is the first step on our list of steps on how to become a realtor in Alberta.
Learning to practice here means learning about the various aspects of the real estate industry.
Learning to practice is an important step to take if you must start up a career in real estate.
It is important you learn about the different practice areas that exist in the field of real estate.
There are about four areas of practice, you can choose to concentrate on, and get licensed for at least one.
These areas are listed below.
- property management: Realtors in property management, are specifically entrusted with the duty of leasing out properties, on behalf of their owners.
They are also in charge of dealing with and handling issues, relating to tenants and those to whom their clients’ properties have been leased out.
Realtors in this sector are often in charge of handling tenants, landowner’s issues, etc.
- Residential: Realtors of this sector help clients in buying, selling, and exchange of all kinds of residential properties.
- Rural: These are local realtors in buying and selling of farms.
They help their clients in selling, buying, and leasing out farmlands as well as ranches.
- commercial: Real estate professionals in this sector are into leasing out of offices, its management, and sale.
They also give advice to clients on how best to improve their property, including advice on the best property investment approach.
Becoming a Realtor in any of the following sectors provides equal opportunity, however commercial realtors make a higher commission from the sale of property than the others.
Step 2: Know the cost
After learning to practice, and choosing from the list of sectors to focus on, the next step on our list of steps on how to become a realtor in Alberta is to find out how much it costs to join the industry.
The cost of joining the industry depends on which sector you want to belong to, as the cost varies across the individual sectors.
For instance, the total cost of becoming a realtor in the commercial sector might range from $3,350 to $40000.
This cost includes eligibility fees, as well as education courses and licensing fees.
Once this licensing fee is made with the Real Estate Council of Alberta (RECA), you will be required to renew it annually.
The renewal fee varies as well, depending on your chosen industry, license type, practice area, and whether or not you wish to join your trade union, as there may be fees associated with associations and brokerage.
However, these are not requirements to get a license to practice. Below is a breakdown list of them amounting to a total of $3350.
+ Assurance Fund Levy (one-time payment of $100)
+Exam Proctor Fees ($150)
+Education Eligibility ($100)
+Real Estate Association Program Fundamental of Real Estate course ($1250)
+Sector Courses ($800)
+Annual Licence Fee ($475)
+Certified Criminal Record Check ($90)
+Annual Errors & Omissions Insurance ($175)
Step 3: Confirm your Eligibility
It is not enough to know the cost alone, after learning the practice, you will have to check if you meet up the necessary eligibility requirement.
Real Estate Council of Alberta (RECA) has initial eligibility standards, which are listed below as follows:
- be proficient in the English language
- able to provide specific government-issued identification (ID)
- able to lawfully study and work in Canada
- at least 18 years of age
- have a minimum of Canadian high school education or equivalent
It is required of all applicants to submit proof that shows they meet all the above-listed standards.
As part of the licensing process, RECA will check for civil proceedings, criminal records, bankruptcies, and regulatory proceedings among other things, before considering you into the association.
An option of undergoing a ‘suitability review’ at the early stage of the application process, is also granted to the applicant.
The above-listed events can equally affect your chances of getting a license as a sole can be determined by RECA.
Step 4: Confirm your Education and English Language Eligibility
As categorized by the Real Estate Council of Alberta (RECA), the basic eligibility includes Education and English language requirements.
The education requirement varies for students with Canadian Education, and students with International Education.
After the educational requirement, comes the English language proficiency test.
It should be noted that the steps for Proof of English Language Proficiency for Canadian Education, are quite different from that for International Education.
If you pass the Minimum requirement set out by RECA for English language proficiency and Education, you can then proceed to the next step to complete your career information.
Step 5: Complete a Career Information Session
After passing the education and English language proficiency stage, the next step is to complete a Real Estate career Information Session by RECA.
This session comprises a 10-minute video, that gives a rundown of the career options that are available in the real estate industry, within the state of Alberta.
It also guides you through to the option that best suits you.
Step 6: Set up Your myRECA Account
Part of the process of becoming a fully licensed real estate agent involves you setting up an account with myRECA.
To do that, you will have to visit myRECA to start the eligibility application.
The application fee costs $100, and it is non-refundable once paid.
myRECA is an educational platform owned by RECA, this platform allows intending realtors to enroll for Real Estate exams in Alberta.
Setting up this account costs nothing, and typically takes a couple of minutes to set up.
Your eligibility application would start with you setting up an account with myRECA.
There are several options under Education Eligibility in case of persons who have moved in from a different location and starting a new licensing application.
It is also important to note that, if you are transferring from a different location, the application process is also quite different from the usual application step.
Step 7: Pick a broker
Prospective Realtors on getting licensed, must join a real estate brokerage at their local domain, and submit an application for licensing through RECA.
Choosing the right brokerage is very important, as this can be very instrumental to your career success or failure.
You will have to interview a number of brokerage firms to ensure you get the right mentorship.
You can consider asking these questions to a number of brokerage firms before choosing.
Step 8: Apply for a license
Once you’ve picked and been hired by a real estate brokerage, the next step on the list of steps on how to become a realtor in Alberta to consider is for you to complete your licensing process with your broker.
It is at this point, you will start attracting licensing fees.
Once your license status is active on your myRECA account, it implies that you are fully registered and ready to carry out your activity as a real estate agent in Alberta
Step 9: Become a part of a local organized real estate community
After joining a real estate firm and applying for a license, you can now be eligible to join a community of brokers such as The Calgary Real Estate Board(CREB), and The Alberta Real Estate Association(AREA).
These associations are very vital in your work as a professional real estate agent.
Joining a community of realtors could expose you to diverse opportunities in your field as a realtor.
Step 10: Grow Your Reputation
Delivering quality and exceptional services to your clients can increase your chances of being hired for future deals.
This could as well help grow your reputation within the industry, including helping grow your client retention, as well as help you build a solid client base.
Having seen the steps on how to become a realtor in Alberta, how much do you think realtors make in Alberta?
How much does a Realtor make in Alberta?
On average, a typical real estate agent earns as much as $89,003 per year in Alberta, however, these earnings vary across different sectors within the real estate industry, as some are believed to earn more than the others, for example, commercial Realtors.
Do Buyers pay Realtor’s commission in Alberta?
Commissions are only paid to realtors by sellers alone and not buyers.
Typically, commissions are shared between the seller’s realtor and the buyer’s realtor.
Transaction Fees often vary depending on the negotiation between both parties involved in the sale of the property.
Can You Become a Part-Time Realtor?
The answer is ‘yes’ however as a part-time real estate agent, you work less than 40 hours per week, buying and selling landed properties.
Of course, you know what that implies right? you won’t get to make as much money as a full-time realtor, however, you get to have a more flexible schedule allowing you to attend to other pressing issues.
What Percentage do most realtors charge?
Ideally, realtors charge about five to six percent of the property sale price.
The exact price of commission charged on property sale depends on the type of property being sold, the location of the property, and the firm involved in the sale of the property, however, the commission fee can be negotiated between both parties involved.
What is a realtor’s commission in Alberta?
Typically, the commission fee is shared on an equal basis between the buyer’s agent and the seller’s agent.
In Alberta, 7% is charged on commission for the first $100k made from the sale of property, and 3% is charged on the remaining balance above $100k.
This commission is shared equally between both realtors involved.
How long is Realtor School in Alberta?
The time duration for realtor school takes about an average of 2-5 months, both to learn and earn a certification.
This time duration can vary with respect to your application process, depending on a number of situations such as, whether you have a Canadian education, or an international education, including whether you choose an online real estate school or traditional classroom courses as the case may be.
How difficult is it to get a real estate license?
Some say it’s difficult obtaining a real estate license, however, it’s not as difficult as you think.
The part that seems difficult is Understanding the state and national real estate concepts and practices.
With a mandatory cut-off score of 70 – 75%, passing a real estate exam won’t be much of a stress, if you study hard.
Most importantly, it takes several hours and 100+ questions to get a license if you study hard, however, this could be time-consuming.
The pre-licensing course and passing the real estate exam, are the most considered hardest part of getting a license.
Conclusion on how to become a Realtor in Alberta
There are several advantages to becoming a real estate agent, above all is your unlimited earning potential. This alone should make you carefully take these steps on how to become a realtor in Alberta.
As a realtor, there is no limit to your earning potential, this is because real estate agents work based on commission.
In an ideal case, a realtor walks away with about a 7% commission on the sale of property, which is shared equally between both the buyer’s realtor and seller’s realtor.
As such, building a career in this field promises to be more profitable than every other related field, however, you must have to acquire a license in order to fully practice as a realtor.
What do you think about these steps on how to become a realtor in Alberta? or do you have questions? Please let us know.