Licenses and certifications are vital to a business. They outline the extent to which businesses can exercise jurisdiction. For instance, a real estate license to operate in one region may be not transferrable to another.

Real estate agents cannot practice without the requisite licenses and certifications. You need a valid license to practice real estate in a particular area. These licenses are issued to real estate agents who meet their region’s prevailing requirements. In most cases, a real estate certification is critical when applying for a license to practice.

To practice real estate in your area, you may need several types of real estate licenses. Below are seven types of real estate licenses and certifications:

1. Real Estate Brokerage License

The role of a broker is to arrange transactions between a seller and a buyer at a commission. They guide their clients when listing and advertising properties, choosing properties and conducting site visits. These individuals will use a variety of CRM marketing tools and resources for real estate agents to make sales. As a licensed real estate broker, you can work independently, start your own brokerage firm, or work for another brokerage.

To qualify for a real estate brokerage license, find out what the requirements are for your province since these vary from one region to another. The process may include undergoing rigorous training over a certain duration. You will also need several years of experience. If in doubt, check the requirements for your region and stick to them.

2. Accredited Buyer’s Representative (ABR)

These are experts at handling negotiations and closing deals. They have in-depth training and expertise representing buyers in real estate transactions. The certification demonstrates expertise in representing buyers in real estate transactions.

To qualify as an ABR, you need to close for a buyer at least five residential real estate transactions. For these types of real estate licenses, you also need to complete an online course at your pace but within 36 months.

3. Seller Representative Specialists (SRS)

Certification as an SRS means you are qualified to represent sellers. Seller representative specialists are primarily trained to increase listings, grow their business and gain in-depth knowledge of the legislation governing their position as sales representatives.

To be a sales specialist, you will need to present documentation indicating five closed transactions where you acted as the seller’s representative. For these types of real estate licenses, you should also successfully complete approximately 14 hours of coursework. An SRS certification makes you stand out as you maximize the available marketing opportunities.

4. Certified Distressed Property Expert (CDPE)

Unlike most certifications, the certified distressed property expert designation is not affiliated to the National Association of Realtors. The course equips real estate professionals with short sales and foreclosures training. In short sales, the seller does not own the stock. Instead, the broker places the sell order for them. In turn, the seller commits to buying back the stock at some point.

The equity reserve requirements for short sales transactions are stricter than that of other purchases. Though this certification offers more insights into handling distressed properties as opposed to the short sale and foreclosure resource course, it is significantly more expensive.

5. Certified Commercial Investment Member (CCIM)

If you are looking for an expert to help you evaluate a property’s income-generation potential, and maneuver around local zoning and tax laws, you need a certified commercial investment real estate professional. Those who possess these types of real estate licenses have completed advanced coursework in financial and market analysis, ethics, interest-based negotiation, investment analysis and user-decision analysis.

In addition to passing exams, they are also required to present a portfolio illustrating their commercial real estate experience. They are also expected to pay for the cost of certification (which depends on prior coursework and professional experience). This certificate is awarded by the CCIM Institute, a subsidiary of the National Association of Realtors. It is also quite instrumental in instilling knowledge and closing the skills gap that exists in commercial real estate.

6. Certified Residential Specialist (CRS)

This is regarded as the highest credential that residential real estate agents and brokers can get. The coursework consists of between 16 and 48-course credits that are based on the number of transactions and sales volume number of an agent.

Topics covered include marketing, investment properties, increasing sales, and many others. Going for the CRS specialization will definitely give you an edge over your counterparts in the industry. It will also show both your clients and future brokerages the fact that you have mastered the art.

7. Senior Real Estate Specialists (SRES)

A certified SRES has the competency and skill to deal with unique real estate complexities. With this certification, you are in a better position to show seniors how to distinguish the various housing options as well as gain useful insights into tax laws.

To be a certified SRES, you must have completed a two-day real estate certificate course. You should also be a member of the National Association of Realtors and the SRES council (whose membership is free for the first year).