How to Become a Real Estate Broker in Minnesota

For licensed real estate agents in Minnesota ready to become broker's, this guide covers everything you need to know. 

From requirements and application steps to key distinctions between brokers and agents, we’ll guide you through the entire process.

Let's get started.

Steps to Become a Real Estate Broker in Minnesota

To become a licensed real estate broker in Minnesota, you’ll need to complete a few essential steps. Here’s a quick look:

1. Meet the Eligibility Requirements
2. Complete the Required Broker Education
3. Apply for the Broker Licensing Exam
4. Pass the Broker Licensing Exam
5. Submit Your Broker License Application
6. Maintain and Renew Your Broker License

Below, we’ve broken down each step to help you navigate the broker licensing process.

Step 1: Meet the Eligibility Requirements

To meet the qualifications to become a licensed broker in Minnesota, you must have an active real estate salesperson license and at least three years of experience as a licensed agent in Minnesota.

Additionally, your record should be clear of any significant violations or disciplinary actions that may affect your ability to obtain a broker license.

Step 2: Complete the Required Broker Education

You must complete 30 hours of broker education from an approved provider.

Upon finishing the course, you’ll need to pass a final exam with a minimum score of 75% to receive your course completion certificate, which is required for the broker licensing exam.

The broker education program covers essential areas, including:

• Real Estate Law and Regulations
• Brokerage Operations and Management
• Agency Relationships and Disclosure Requirements
• Property Management
• Real Estate Contracts and Agreements
• Trust Accounts and Escrow Management
• Ethics and Fair Housing Laws

This specialized coursework will provide you with the knowledge needed to manage a successful brokerage, comply with state regulations, and uphold ethical practices in real estate.

If you want to enroll in a real estate school, we partnered with Kaplan to provide exceptional real estate courses to Minnesota students. 

Sign up through US Realty Training and get a discount.

Step 3: Apply for the Broker Licensing Exam

After completing your broker education, apply for the Minnesota broker exam within 12 months to avoid certificate expiration. Pearson VUE administers the exam for the Minnesota Department of Commerce.

Here’s a step-by-step guide to applying:

1. Register with Pearson VUE: Create an account on the Pearson VUE website to manage your exam application and schedule.
2. Submit Documentation: Upload your broker education course completion certificate and real estate experience verification. Make sure the certificate includes the course name and completion date.
3. Pay the Exam Fee: Pay the $75 Exam Fee: This is required at the time of registration.
4. Schedule Your Exam: Once your application is approved, Pearson VUE will provide instructions on how to schedule your exam at one of their testing centers. Be sure to choose a location and time that work best for you.

After your application is approved, you will be provided instructions to schedule the exam.

Step 4: Pass the Minnesota Broker Licensing Exam

The broker licensing exam tests your knowledge of both national and state-specific real estate laws. It consists of 120 multiple-choice questions split into two sections: the national portion and the state portion. 

You'll have four hours to complete the entire exam, with a minimum passing score of 75% required for each section.

Exam Preparation Tips

The best way to prepare for the Minnesota broker exam is to review your broker education materials thoroughly.

To make studying more effective, use practice exams and study guides to get comfortable with the testing format and identify areas that need more focus.

Many people find that timed practice questions help build confidence and reduce test-day nerves.

Step 5: Submit Your Broker License Application

After passing your broker exam, here’s how to apply for your license:

• Access the Application: Find the broker application on the Minnesota Department of Commerce site.
• Submit Documents: Attach your education certificate, test results, and proof of real estate experience
• Pay the $150 Application Fee.

The Minnesota Department of Commerce will review your submission. Upon approval, you’ll receive your official broker license and can start active business.

We provide a Minnesota real estate crash course and exam prep package to make studying and passing easy. This program provides 8+ hours of video content that explains concepts, vocabulary, historical events, and laws on the exam. 

You get unlimited practice exams, vocab flashcards, an eBook study guide, and 2,000+ question and answer videos.

Step 6: Maintain and Renew Your Broker License

Maintaining your broker’s license in Minnesota requires completing continuing education credits to keep up with industry changes, legal updates, and best practices. 

Since renewal requirements are periodically updated by the Department of Commerce, staying informed ensures you’re always prepared for license renewal.

FAQs About Becoming a Real Estate Broker in Minnesota

Thinking about becoming a real estate broker in Minnesota? Here are answers to some frequently asked questions to help you understand what it takes to become a licensed broker.

Should You Become a Real Estate Broker in Minnesota?

Becoming a broker offers various benefits, including the ability to run your own brokerage, manage a team of agents, and increase your earning potential.

As a broker, you’ll enjoy greater control over your business operations, along with more autonomy and decision-making power. 

If you’re ready to take on more responsibility and have a passion for real estate, becoming a broker can be a rewarding step.

How Fast Can You Get a Broker’s License?

The process to become a licensed broker in Minnesota typically takes several months and includes these steps:

• Complete 30-Hour Broker Course: 1-2 weeks
• Meet Experience Requirement: 3 years as a licensed salesperson within the past 5 years (if not already completed)
• Schedule and Pass Licensing Exam: 1-3 weeks for scheduling and preparation
• Submit Application and Review: Approximately 10 business days for processing

By planning ahead, you can complete the steps within roughly 3-4 months if you meet the experience requirement.

How Much Do Real Estate Brokers Make?

Real estate brokers in Minnesota typically earn more than agents due to their capacity to oversee transactions and collect a portion of their agents' commissions. According to Salary.com, the average annual salary for a real estate broker in Minnesota is $108,260. Income varies based on experience, brokerage size, and location:

• Experienced brokers managing larger teams or operating in high-demand markets, like Minneapolis-St. Paul, may earn above this average due to higher transaction volume and property values.
• Newer brokers or those running smaller brokerages might earn closer to $80,000 - $90,000 annually as they build their client base and reputation.

Overall, Minnesota brokers benefit from increased income potential through managing agents and handling more transactions directly.

How Much Does a Real Estate Broker’s License Cost?

The cost of obtaining a broker’s license in Minnesota includes various expenses, such as:

• Broker Education Program: $500 - $1,000
• Exam Fee: Approximately $75
• License Application Fee: Around $180
• Background Check: $30 - $50

These costs can vary, so it’s wise to confirm fees through the Minnesota Department of Commerce and your education provider.

What’s the Difference Between Real Estate Brokers and Agents?

Real estate agents and brokers serve different roles in the real estate industry. Agents work under the supervision of a broker, assisting clients with buying, selling, and renting properties.

Brokers complete additional education and licensing requirements, equipping them to handle more complex legal and management responsibilities.

Does Minnesota Have a Broker’s License Reciprocity Agreement?

Minnesota has limited reciprocity agreements with select states, allowing brokers from those states to apply for licensure in Minnesota without completing all the usual requirements. States with reciprocity or partial reciprocity agreements include:

• Iowa
• North Dakota
• South Dakota
• Oklahoma

It’s best to verify reciprocity agreements on the Minnesota Department of Commerce website, as these can change.

Final Thoughts on Becoming a Real Estate Broker in Minnesota

Becoming a real estate broker in Minnesota is both a challenging and rewarding path that can elevate your real estate career. 

By following these steps, you’ll be ready to meet licensing requirements and build a thriving broker career. 

If you’re ready to get started, enroll in our partnered Minnesota real estate licensing course today and get a discount.