Becoming a Licensed Real Estate Agent in Texas is Now Easier Than You Think
Do you want to be a part of a fast-moving, dynamic industry where you can be your own boss and work as per your desired schedule?
Working in Texas real estate can be an incredibly rewarding and fulfilling career move, especially if you want to break free from the monotony of a traditional nine-to-five job.
Home to some of the hottest markets in the country, like Austin, Dallas, San Antonio, and Fort Worth, Texas real estate landscape is diverse and is attracting homebuyers and investors.
With median home prices increasing by around 50 percent and the number of homes sold also growing steadily, Texas offers a lucrative opportunity for aspiring real estate agents.
In addition to the strong demand, Texas’ housing market is currently witnessing an unprecedented growth in supply due to the highest number of homes being constructed.
Texas is rated as the 9th highest state in terms of GDP, which is a testament to its strong economic outlook.
Thanks to the low interest rates, relatively affordable home prices, and growing job opportunities, Texas continues to attract more people, leading to a growing population
For real estate agents, working in a market like Texas can prove to be financially lucrative, with the potential to earn a six-figure income.
Did you know that real estate agents and brokers in TX earn a 6 percent commission that is the highest anywhere in the country?
Working in Texas’ booming real estate market could help you build a profitable career path, flexible work-life balance, and the independence of being your own boss.
To achieve this goal, you must first obtain a salesperson license, as state law requires every individual to earn a license issued by the Texas Real Estate Commission (TREC).
If you are interested in getting your Texas real estate license and starting a career, this article will help you get started in the right direction.
We will outline all the important aspects of how to become a licensed professional and set yourself on the path to a thriving career.
Benefits of getting a real estate license
Getting a license is not merely a regulatory requirement that must be fulfilled; it is the pathway to unlocking a myriad of opportunities for growth and success.
A real estate license is proof of your commitment to your career and a testament that you are a qualified professional capable of working with clients.
Many students often wonder why getting a license might be a good step in your career - to clear your doubts, let us walk you through the benefits of a Texas salesperson license.
1. Compliance with the law
Getting a real estate license is a mandatory requirement in the state of Texas, and without a license, you will not be allowed to work with clients or earn commissions.
To help clients buy and sell real estate and by the law, it is important that a licensed real estate agent represent them in a real estate transaction.
With a valid, state-issued license, you will be allowed to discuss client requirements and help clients make decisions on how to sell or purchase properties.
To ensure compliance with the TREC regulations and federal law, it is important to complete the licensing requirements and obtain a license.
2. Career growth
Without a valid real estate license in Texas, your career growth will be restricted and severely limited.
The fact is that you need a license to find jobs, work with brokerages, or get opportunities to earn commissions in a real estate deal.
If you are serious about your career and want to tap into the best job opportunities where you can grow, then getting a license is a mandatory requirement.
Without a license, you will have to rely on a licensed individual to earn your commission. This means your earning prospects will be severely restricted.
3. Better credibility
Let’s face it - nothing speaks professionalism like having a valid, state-issued real estate license, and if you want to boost your credibility, you should get yours.
Clients prefer to work with professionals who are credible and trustworthy, and if you want to attract more business and grow your network, it is important to be licensed.
Having a Texas real estate license will work as a badge of honor and a testament to your commitment to your career.
A license also gives you access to professional communities, networking groups, and members-only events, which can further improve opportunities for success.
4. Access to the MLS
MLS (Multiple Listing Services) is a platform operated by the Texas Real Estate Commission (TREC), which consists of a database of property listings in the state.
To access the MLS, you must have a valid Texas salesperson license and be a member of the state’s real estate community.
With a license, you can get access to your local MLS system, such as - Austin, San Antonio, and Houston, among others. Since most MLS providers require that you have a valid real estate license, you must obtain it first.
MLS can prove beneficial to agents who want to access a local database of houses for sale and other property listings. Having access to this data can help you tap into opportunities quickly and grow your business.
Now that you have learned about the advantages of becoming a licensed professional, the next step is to learn about the Texas licensing requirements and prerequisites.
Basic Eligibility for a real estate license in Texas
Like most states, Texas also requires individuals to meet minimum eligibility criteria to be able to apply for a real estate license.
As per the Texas Real Estate Commission (TREC), every individual must meet the basic eligibility requirements listed below:
- You must be 18 years of age or older
- You must be a legal resident of the U.S.
- You must have a high school diploma or GED equivalent in education.
To ensure your qualification, you can complete a fitness determination test and be sure of meeting the statutory requirements. If you qualify, you can proceed to the next steps.
Steps to obtain a Texas salesperson license
Step 1: Complete pre-license education
In Texas, you must complete minimum education to become eligible for taking the salesperson license exam.
The TREC requires all applicants to complete 180 hours of pre-licensing education and training consisting of mandatory and elective courses.
It is mandatory to complete education and obtain a certificate of completion from a TREC-approved education provider.
The goal of pre-license education is to provide students with an in-depth understanding of state and federal laws, real estate principles, and the frameworks of the industry.
The 180 hours of the Texas real estate course will consist of 6 courses, which are:
- Principles of Real Estate: Worth 60 course hours (mandatory)
- Law of Agency: Worth 30 course hours (mandatory)
- Real Estate Finance: Worth 30 course hours (mandatory)
- Law of Contracts: Worth 30 course hours (mandatory)
- Promulgated Contract Forms: Worth 30 course hours (mandatory)
Luckily, students have the flexibility to complete their coursework in their preferred medium of learning i.e., by joining a classroom-based, in-person real estate college or by enrolling in an online Texas real estate course.
Generally, most students choose to enroll in an online course as they can be completed from anywhere on any device, which makes it more convenient.
According to the Texas Real Estate Commission (TREC), there is no specific duration within which one must complete real estate school.
According to the TREC, you cannot complete or cover more than 12 hours of coursework in a single day. This means even with a maximum speed of listing, it will still take you at least 18 days on average to complete the entire coursework.
Note that there are some education providers in Texas that provide accelerated learning programs to students who want to speed up their learning.
The cost of completing education depends on the course provider, your preferred medium of learning, the course package, and other add-ons and services included.
Step 2: Pass the Texas licensing exam
After you have successfully completed 180 hours of pre-licensing education, the next step is to schedule your license exam at any of the Pearson Vue test centers in Texas.
As per the TREC, it is mandatory for every student to take and pass the salesperson licensing exam to obtain their license.
The licensing test is designed to test your knowledge and preparation of the courses covered during your pre-licensing education. Some common topics and questions include:
Typically, the exam questions are based on the pre-licensing courses and topics only, and you can expect to face common topics such as:
- Texas state laws
- Federal regulations
- Real estate finance
- Real estate contracts
- Types of property
- Property valuation
- Real estate contracts
- Real estate agency
- Ethics, code of conduct, and industry standards
In total, the salesperson licensing test consists of 125 multiple-choice questions, and you will get 240 minutes. To pass the test, you must score at least 75 percent or above.
Note that it will cost you $43 to take the salesperson licensing exam in TX for each attempt. If you are unable to pass the test on your first attempt, you can reschedule it again.
Step 3: Clear background verification
As per state law, it is mandatory for every individual to meet the minimum standards of honesty, integrity, and truthfulness to become eligible to work with clients.
The TREC requires you to complete mandatory federal background verification and criminal history checks to prove your code of conduct.
To get your fingerprint scan, you can visit any of the state-approved live scan vendors by scheduling an appointment on the TREC website.
You need to submit an electronic copy of your fingerprints to the authority for verification, and it will cost you $38.25 to get a scan of your fingerprints.
Step 4: Find employer sponsorship
So, you have successfully completed the Texas real estate course, passed the Texas salesperson license exam, and cleared the federal background check.
The last step in starting your career as a licensed agent is to find employer sponsorship in Texas and submit your sponsorship details to the authority.
In Texas, it is essential for every newly licensed agent to work under the supervision of a state-licensed broker or brokerage firm and gain practical experience.
Since there are thousands of licensed brokers and firms in TX, finding one should not be a challenge for you.
Before deciding on one, make sure to do your research about their experience, skills, and commission split. It will help you build a solid foundation in the early years of your career.