The Texas Real Estate Commission (TREC) is the controlling body for issuing a real estate license. There are several norms to fulfill before aspiring real estate agents get their licenses. They must complete be at least 18 years old and an American citizen or lawfully admitted alien. It is mandatory to go through 180 hours of coursework related to the real estate industry. Finally, they must pass the state real estate license exam.
This is simply an outline and not the details to get a real estate license in Texas. But the main question is whether being awarded a license is a one-time affair. The simple answer is no, as salespersons and brokers must renew their licenses once every two years to keep them valid.
Now, let us check the ways to renew a Texas real estate license and the various formalities that go with it.
- When Does a Real Estate License Expire in Texas?
- Understanding License Expiration Dates
- Consequences of an Expired Real Estate License
- Renewal Requirements and Deadlines
- Texas Real Estate License Renewal Courses
- Importance of Taking Renewal Courses
- Approved Providers for Renewal Courses
- Course Duration and Format Requirements
- What Do You Need to Renew Your License in Texas?
- Required Documents and Information
- Fees and Payment Methods
- Continuing Education Requirements
- How to Renew Your License in Texas
- Online Renewal Process
- Step-by-Step Instructions for Online Renewal
When Does A Real Estate License Expire in Texas
Understanding License Expiration Dates
The requirements to renew a Texas real estate license are not the same for a real estate agent and a broker. Later in this post, we will examine the different conditions to be met to renew a Texas real estate license.
Put simply, a real estate agent or a broker in Texas has to renew their license once every two years to keep it valid. You do not have to bother to remember the date because the Texas Real Estate Commission (TREC) will send you a renewal notice 90 days before expiration.
However, simply paying the required fees and applying for renewal will not revalidate your license. You must meet certain norms of TREC including going through continuing education (CE) coursework.
Consequences Of An Expired Real Estate License
A question that is frequently asked is when a real estate license expires in Texas.
A real estate license in Texas expires every two years but you have some leeway to renew it as established by TREC.
- Renew your license within 6 months of expiration by paying an additional late fee along with the regular license renewal fee.
- Apply for reinstatement of your license between 6 months and two years after the original expiration date is over. To reinstate your license, you must submit a Salesperson Activate or Transfer application either online or in person along with the requisite fees. Go through the continuation coursework before applying for reinstatement of the license.
- The worst-case scenario is not having renewed your license two years passed the expiration date. Not only do you have to go through the pre-licensing hours of coursework but you will also have to appear for and pass the state exam again.
Given all the problems that you might face if you miss the renewal date even after a reminder from TREC, you should renew your license well in time.
License Renewal Requirements and Deadlines
Renewing A Real Estate Agent License
There are two parts to the question of how to renew my license in Texas if you are a real estate agent in the state.
Let us check each of the license renewal requirements in Texas separately.
- First license renewal: The terms for the first license renewal after two years of obtaining a license are different from subsequent renewals. Here you must complete 98 hours of state-approved Sales Agent Apprentice Education (SAE) courses. The topics are Legal Update 1 & 2 (4 hours each) and three 30-hour SAE Electives.
Ensure that all your SAE credits have been posted to your online TREC profile before applying for a renewal. This will save you from paying a CE Deferral Fee of $200.
- Second license renewal and after: Complete 18 hours of continuing education coursework before applying for the second-time license renewal and after.
The courses must consist of 4 hours each of Legal Update 1 & 2, Contract-Related Coursework (3 hours), and Elective CE (7 hours).
Broker-appointed Supervisors must additionally complete a 6-hour Broker Responsibility Course toward Elective CE.
As with first-time renewal, make sure that all credits of CE are posted to your TREC profile to avoid paying a $200 CE Deferral Fee.
The license renewal requirements for Brokers are slightly different from real estate agents.
Renewing A Broker License
For renewing a broker’s license, 18 hours of coursework is mandatory. It includes 4 hours each of Legal Update 1 & 2, Broker Responsibility 6-hour course, and 4 hours of Elective CE courses.
The 6-hour Broker Responsibility Course in Elective CE must be taken if you fall under any one of the following categories.
- If one or more sales agents have been sponsored by you
- You have been a designated broker for a brokerage firm that sponsors sales agents, or
- You supervise the work of other license holders.
As in all cases, ensure that your credits for CE have been updated in your online TREC profile to avoid paying the $200 CE Deferral Fee.
Texas Real Estate License Renewal Courses
Importance of Taking Renewal Courses
Remember your pre-licensing coursework necessary to get your real estate license? Subjects that you had to wade through were contracts, negotiations, mortgage basics, 1031 Exchanges, and more. While their basics do not change, major parts do, mainly those sections related to state and Federal regulations.
Hence, what you learned to get your license may not necessarily be the same, accurate, and current anymore. However, you must ensure that you have all the updated info with you year after year in your real estate career.
For this to happen, you must complete specific hours of renewal courses, better known as continuing education between one renewal date and another. It will help you stay aware of all the latest changes and trends in the real estate sector.
Approved Providers for Renewal Courses
The importance of continuing education (CE) for real estate license renewal can be understood if you look at the type of courses that carry credit. The Texas Real Estate Commission has designated course providers who are only allowed to impart training to license-renewing aspirants.
This regulation makes sure that the quality of the courses is of the highest order. RealEstateU offers CE courses that are aligned with the guidelines issued by the regulatory bodies of various states in the USA. Our 98 hours of SAE courses before the first license renewal and 18 hours for every subsequent renewal are all designed and created by experienced professionals in the field.
All our courses are online, adding to the convenience factor and allowing you to study on the go.
Course Duration and Format Requirements
There are two parts to Texas real estate license renewal courses for real estate agents.
One is your first license renewal which falls two years after you have been issued a license. It is known as the Sales Agent Apprentice Education (SAE) course of 98 hours duration. The format requirements are 4 hours each of Legal Update 1 & 2 and 3 SAE Electives each of 30 hours.
The next is when you renew your license from the second term onwards. The Texas Real Estate Commission mandates 18 hours of continuing education coursework.
Instead of the 90 hours of 3 Electives as in SAE, you have to complete Electives of 7 hours and Contract-related coursework for 3 hours. The duration of the Legal Updates remains the same.
An additional 6-hour Broker Responsibility Elective course must be gone through by real estate agents who have been appointed Supervisors by their Brokers.
What Do You Need To Renew Your License in Texas
Required Documents and Information
What does it take to renew a Texas real estate license? Given here are the steps to follow to make the renewal process a smooth and seamless affair.
- Go through the required number of hours of coursework as stipulated by TREC. It is 98 hours of CE for the first renewal and 18 hours for the second and after. A Texas license falls due every two years.
- Submit documents to TREC to prove that you have completed the mandated number of hours of coursework. Most often, like us at RealEstateU, the course providers give this information to TREC, and your profile is directly updated by the controlling body.
- After completing your Texas real estate license renewal courses, wait at least 10 days for your profile to be updated at TREC.
- Apply to TREC for renewal of your license along with the required fee and documents showing that the coursework has been completed.
Since you must wait 10 days after completing the courses before applying for a license, complete CE at least 10 days before the license expiration date.
License Renewal Fees and Payment Methods in Texas
For online renewal of a Texas real estate license, the fee is $110. However, for applications sent by mail, the fee is the standard $110 plus another $20 as the paper filing fee. These fees are payable with applications that are submitted on time.
There are several fees payable if you do not apply in time within the expiration date.
The fee goes up to $143 if you are less than 90 days late in your renewal. For being late between 90 days and six months, the renewal fee shoots up to $176. Lastly, if you miss renewing your license by more than 6 months of the expiration date, you must pay $190.
Further, you must pay a deferment fee of $200 if you have not completed the mandated number of hours of coursework while applying for renewal. This amount will buy you another 6 months to complete the required number of hours of renewal courses.
Online Renewal Process of Your Real Estate icense
If you are renewing your license online for the first time, you must register your profile first. You can now check how many credit hours of your coursework have been updated in TREC. Once the required number is fulfilled, apply for renewal online after paying the required fees.
The renewal fee must be paid within the date of expiry of your current license.