A starter’s guide to becoming a licensed real estate agent in Texas
WIth more than a thousand cities, Texas is home to some of the most popular and emerging real estate markets in the country.
Austin, San Diego, San Antonio, Houston, Dallas and Amarillo are some of the leading cities for real estate and it is estimated that agents in Texas can easily make a six-figure income thanks to the state’s growing popularity.
The Lone Star state is renowned for its stable economy, varied landscape, and strong job outlook which attracts thousands of immigrants and homebuyers.
The real estate market in Texas is not just renowned for its diversity and size, but also for the exciting and rewarding opportunities it offers to agents, brokers, and realtors.
If you are looking for a career where earning a six-figure income is easy and where you can work as your own boss, then working in Texas real estate might just be the right fit for you.
Texas offers a multitude of job opportunities for beginner and experienced real estate agents and now can be a good time to enter the industry and reap benefits.
However, to become a real estate agent, you must acquire the required knowledge, training, and skills to work with clients.
Your career prospects will be greatly influenced by how well-prepared you are and whether you understand the industry rules, regulations, and best practices.
Most importantly, you must also earn your Texas real estate license to qualify for work as an agent anywhere in the state.
Without a license, you will not be legally allowed to take part in a real estate transaction or cut any deal where consumers are involved.
If you are ready to tap into the rich and diverse real estate landscape of Texas, you should start by getting your real estate license first.
Getting a license might sound cumbersome or overwhelming, especially if you are a complete beginner and don’t know where to start.
However, to help you get started, we have put together this in-depth guide which covers all the aspects of becoming a licensed agent.
After reading this article, you will learn about all the steps involved in getting a license - from passing the eligibility requirements to completing the minimum qualifying education.
Ready to embark on a rewarding and fulfilling career journey in the world of real estate? Let’s get started with the basics first.
The importance of a real estate license
Many beginners and aspiring professionals often wonder about the need for getting a real estate license in Texas and the purpose of a license.
Put simply, a license is the proof of competency that an individual is qualified for the job and is equipped with the required knowledge to assist consumers.
Since real estate is a regulated industry, it is important to meet the state-specific licensing guidelines to practice your profession.
Whether you are a complete beginner looking for your first profession or someone switching careers, you must obtain a Texas license to work with clients anywhere in the state.
Beyond the legal requirements and regulatory reasons, there are additional benefits of why you must obtain a license. Let’s take a look at some of them below.
- Getting a license allows you to operate without any restrictions or limitations anywhere in the state. This means you can choose to work as a part-time or a full-time agent and work as much as you want.
- Many individuals want to explore real estate to make extra money on the side and finance their career, profession, or other requirements. Having a license will open new income sources for you as you will get access to more clients.
- Becoming a licensed real estate agent will open up more job opportunities for you. Since most real estate firms and brokerages prefer working with licensed agents only, if you have a license you can easily apply for the job you always desired.
- Only licensed professionals are allowed to join real estate communities, networks, and exclusive events. Being licensed means you will be able to work with industry experts, learn from them, and expand your professional network.
Having a license will open up your horizons, grow your income prospects, and significantly boost your career growth.
It is no surprise then most individuals start their career by completing the steps to obtain a state license.
Now that we have discussed the benefits of being licensed, let us walk you through the steps involved in getting there.
Qualifying for a Texas real estate license
So, you would like to apply for a real estate license and earn a living as a real estate agent in Texas?
Before you start applying for a license and completing all the formalities and steps, it is important to evaluate whether or not you are eligible for a license in Texas.
Like most states, Texas requires aspiring professionals to meet the minimum qualifying standards to prove their eligibility for a license.
The Texas Real Estate Commission (TREC) requires all applicants to pass the fitness determination requirements as per which you must:
- Be at least 18 years of age or older
- Have a minimum high school diploma in education or GED equivalent
- Have a valid social security number and proof of residency
- Have no history of a felony, criminal act, disciplinary action, or any violation
As per state law, every individual must meet the standards of honesty, integrity, and truthfulness to work as a licensed real estate salesperson or broker in Texas.
If you meet the above statutory requirements, you can proceed to complete the next set of qualifying requirements for a salesperson license.
Education requirements for a Texas salesperson license
Like any other profession, education is the foundation upon which a successful and lasting career is built.
If you are keen to work with clients and help them buy or sell real estate, you must first obtain the minimum level of qualifying education.
In Texas, you are required to complete 180 hours of real estate coursework, also known as pre-licensing education.
Completing pre-licensing education is mandatory for all applicants, irrespective of the city or location they are based.
Coursework for pre-licensing education covers the fundamental topics of real estate, including the state-specific laws, guidelines, and regulations for industry professionals.
Further, you will learn about the workings of the industry, its terms, processes, policies, and various rules.
The 180 hours of coursework is divided into 6 courses with 30 hours of credits each. These are as follows:
- Principles of Real Estate 1
- Principles of Real Estate 2
- Law of Agency
- Law of Contracts
- Promulgated Contract Forms
- Real Estate Finance
Completing these courses will equip you with the required knowledge of what your role entails and how you should work as a licensed professional in the industry.
You have the choice and flexibility to join an in-person, classroom-based environment at a real estate school near you or enroll in an online Texas real estate course which you can complete from anywhere.
Most students prefer learning in a remote, virtual environment as it gives them the ability to manage their time and learn at their own pace.
Depending on your learning needs, aptitude, and preferences, you can choose a real estate school or online course.
However, it is important that you choose a TREC-approved education provider to complete your pre-licensing education. This will ensure that you are learning from certified instructors and are following the state guidelines for qualifying education.
Many students and applicants often wonder whether completing a pre-licensing education is worth putting in the time and effort or not.
The answer is yes, it is certainly worth the effort as it will give you the knowledge and training you need to complete the next crucial step in your journey - passing the Texas salesperson licensing exam.
If you are evaluating whether you should join a classroom-based course or sign up for an online Texas real estate course, the answer depends on what works better for you.
Generally, online courses are more affordable and convenient for many students, as you can complete the coursework from anywhere and using any device.
Plus, many online pre-licensing course providers offer on-demand support for students who want to clear their doubts or get answers to their queries while preparing for the exam.
Note that you will get an entire year to complete the 180 hours of pre-licensing coursework. However, you can choose to speed up the learning and complete it sooner if desired.
Submitting your salesperson application
After completing your pre-licensing coursework and obtaining a certificate of completion, you will be eligible to submit your salesperson licensing application to the TREC for approval.
To do so, you must first register yourself on the TREC website by creating an account.
After creating your account, you can submit your salesperson license application along with which, you will need to pay a processing fee of $200.
The fee can be paid online using Texas’ MyLicense system along with your application using a credit card.
Another important requirement at this step is to fulfill the TREC guidelines for background verification and federal criminal history checks.
We had mentioned briefly in the article earlier that it is important to meet the state’s eligibility standards for getting a license.
As per Texas law, you must prove that you are a responsible citizen with a good moral character and have no criminal history, felony, or violation against you.
Even if you have a history of any unlawful activity, you must clearly mention the same or submit a certificate of clearance from your local sheriff’s station.
As part of the background verification process, you will need to submit an electronic copy of your digital fingerprints.
You can get your fingerprint scan from any of the state-approved live scan vendors in Texas. You can find a list of these vendors on the TREC website.
Passing the Texas salesperson licensing exam
So you have completed your pre-licensing education, passed the background history check, and duly submitted your licensing application.
Now comes the crucial part of getting licensed - passing the Texas salesperson exam and proving your knowledge and skills.
To obtain your license, it is mandatory that you pass the exam and to do so, you must score at least 75 percent or above.
Finding a sponsoring broker
Congratulations! After clearing the Texas salesperson licensing exam, you are just one step away from working with clients and starting an exciting career.
According to the TREC, finding a sponsoring broker is a mandatory step for all newly licensed agents.
You can easily find sponsoring brokerages or senior brokers in your local area and work with them to get your license activated.