Navigating Real Estate Licensing With a Felony and Understanding Executed Contracts

By Samantha CollinsLast Updated May 8, 2025

Introduction

Pursuing a career in real estate can be rewarding, but for individuals with a felony conviction, the path to licensure requires extra diligence and preparation. Understanding the process, potential challenges, and legal nuances is essential. Additionally, grasping foundational concepts like what constitutes an executed contract in real estate transactions is crucial for both aspiring agents and clients. This comprehensive guide provides current, actionable information for those with a felony background considering a real estate license, and explains executed contracts with practical examples and tips.

Can You Get a Real Estate License With a Felony?

Whether you can obtain a real estate license with a felony depends heavily on the state where you wish to be licensed. Most states do not automatically disqualify applicants with felony convictions, but instead assess each application on a case-by-case basis. Here are the key steps and considerations:

1. Disclosure and Honesty Are Essential

All states require you to fully disclose any criminal convictions when applying for a real estate license. Failing to disclose a felony-or providing false information-will almost always result in denial or revocation of your license if discovered later. Background checks are standard, and all information will be verified against official records. Documentation, such as court records and proof of completed sentences, will likely be required. [3] [2]

2. State-Specific Review Processes

Each state has its own real estate commission or regulatory board that determines if an applicant with a felony is eligible for licensure. The review typically considers:

The nature and seriousness of the offense
How much time has passed since the conviction
Rehabilitation efforts and present character
Whether the crime relates to duties of a real estate agent
Compliance with court-ordered terms

For example, Louisiana allows applicants with felonies to submit a “Felony Applicant Form” and may require an appearance at a hearing. The Louisiana Real Estate Commission (LREC) considers the above factors and provides a written determination within 45 days of receiving all required documentation. Applicants may request a pre-application eligibility review before investing in coursework or application fees. [5] [1]

In Texas , the “Fitness Determination” process allows you to find out if your background will be a barrier before you start the full application, helping you avoid unnecessary expenses. [3]

3. Rehabilitation and Evidence of Good Character

Providing proof of rehabilitation is often critical. This could include certificates of completed treatment programs, letters of recommendation, proof of employment, community service, or other evidence showing positive change since the conviction. Many commissions want to see that you have reformed and are trustworthy to clients and the public. [3]

4. Types of Felonies and Waiting Periods

Some states specify waiting periods after the completion of a sentence before you can apply. For example, Maine requires three years, while Hawaii may require five years for certain offenses. [4] Felonies involving fraud, theft, violence, or “moral turpitude” are more likely to result in denial. Sexual offenses or felonies directly related to real estate activities almost always result in denial. [2]

5. Application Steps and Practical Guidance

The following steps apply in most states:

Contact your state real estate commission or licensing board to request a pre-application review if available. Search for “[Your State] Real Estate Commission felony licensure” to find official procedures.
Gather all court documents, sentencing records, and evidence of rehabilitation.
Complete required pre-licensing education courses.
Submit your license application, including the required criminal history disclosures and supporting documentation.
Participate in any hearings or interviews as required.
Await the commission’s determination. This may take several weeks.

If denied, many states allow you to reapply after a set period, especially if you can show further evidence of rehabilitation or time elapsed since the conviction.

6. Real-World Example

Consider a candidate in Louisiana with a prior felony for non-violent theft. After serving their sentence and completing a rehabilitation program, they submit a Felony Applicant Form, attend a commission hearing, and provide letters from former employers attesting to their character. The LREC reviews the case and, if satisfied with the evidence of rehabilitation, may grant the license. [5]

7. Alternative Career Paths

If your application is denied or you are not yet eligible, you can consider related careers that may have fewer restrictions, such as real estate assistant, property management, administrative roles, or pursuing additional education to strengthen your next application.

What Is an Executed Contract in Real Estate?

An executed contract in real estate refers to a contract where all parties have signed the document and agreed to its terms, making it legally binding. In practical terms, this means the buyer and seller (or their agents) have both accepted the terms, and the contract is now in force. Execution does not necessarily mean all obligations have been fulfilled, only that the agreement is now binding and effective.

Key Characteristics of an Executed Contract

Executed contracts typically include:

All parties’ signatures and dates
Clearly defined terms, such as purchase price, contingencies, and closing dates
Legally enforceable obligations for all signatories

The executed contract serves as the framework for the transaction-it is the point after which both parties are legally required to proceed, and remedies are available if either fails to perform.

Example Scenario

Imagine a homebuyer and seller negotiate price and terms through their agents. Once both sign the purchase agreement, the contract is executed. The next steps-such as inspections, appraisals, and financing-are performed according to the terms laid out in the contract. If either party fails to meet their obligations (such as the buyer not providing earnest money or the seller refusing to make agreed repairs), the other party can seek remedies as specified in the contract or through legal channels.

Distinction: Executed vs. Executory Contracts

In real estate, a distinction is made between an executed contract (signed and binding) and an executory contract (where some obligations remain unfulfilled). For example, after a purchase agreement is signed but before closing, the contract is executory because not all duties (like transferring title or making payment) have been completed. Once all terms are fulfilled and the transaction is closed, the contract is considered fully executed.

Practical Application and Importance

Understanding executed contracts is vital for both real estate professionals and clients. It ensures that everyone involved knows when they are legally bound and what their rights and responsibilities are. Misunderstandings about when a contract is executed can result in costly delays, disputes, or failed transactions. Agents should educate clients about this concept and review contracts carefully before signing.

Accessing Real Estate Licensing and Legal Resources

If you have a felony and are considering a real estate career, follow these actionable steps:

Contact your state real estate commission for guidance on licensure with a criminal record. Use official state government websites-search for “real estate commission” plus your state name.
Gather all necessary documentation and seek a pre-application determination if available.
Complete pre-licensing education through accredited providers. Verify state-approved lists on your commission’s official site.
Consult with a legal professional or local legal aid for help preparing your application or navigating hearings.
For questions about executed contracts, consult with a licensed real estate agent or attorney. Many state real estate commission websites offer guides and FAQs on contract law.

If you need more information, you may also consider reaching out to local real estate associations, such as the National Association of Realtors, or contacting legal aid organizations for free or low-cost consultations regarding licensure and contract issues.

Key Takeaways

Obtaining a real estate license with a felony is possible in many states, but requires honesty, full disclosure, and evidence of rehabilitation. The process is state-specific, so proactive research and direct contact with your commission is crucial. An executed contract in real estate is a legally binding agreement signed by all parties, providing the foundation for all subsequent steps in the transaction. Understanding both topics is essential for anyone pursuing a real estate career or engaging in property transactions.