Here is The Step-By-Step Process on How to Become a Licensed Real Estate Agent in Texas
Thanks to the strong economy and growing employment outlook, Texas is witnessing net positive migration and is currently placed as the third-highest most populous state.
Home to popular cities like Houston, Austin, Georgetown, San Antonio, Dallas-Fort Worth, and New Braunfels, there is sustained demand for residential and commercial real estate.
As one of the largest states in the country by land, Texas’ real estate landscape is unlike any other state in the country.
Texas offers a diverse mix of natural beauty, a pleasant climate, no income tax, and world-class amenities among numerous exciting benefits which make it an attractive destination.
With rising median home prices and a growing demand for housing, Texas offers something for everyone and is witnessing interest from migrant workers, homebuyers, and investors.
For most people, working in real estate is a way to escape the conventional nine-to-five job and achieve financial independence.
If you are someone who wants to earn a six-figure income while being your own boss, Texas real estate can offer rewarding growth and earning opportunities.
Did you know that you can make anywhere between $100K to $140K annually in real estate only after a few years of real estate experience?
The demand for skilled real estate agents in Texas is growing and so are the job opportunities if you are considering a career, now is a good time to start preparing.
If you want to work as a part-time agent or start a full-time career on your own terms, it’s time to start progressing on the journey to apply for a Texas salesperson license.
In the state of Texas, the Texas Real Estate Commission (TREC) is the regulatory and licensing authority responsible for issuing and renewing licenses to individuals and firms.
The key to becoming a licensed real estate professional is to fulfill the various state-specific licensing requirements and obtain a state-approved license.
With a valid license, you can work anywhere in TX, assist clients, and earn commissions through real estate deals without any restrictions or limitations.
We have put together all the information you need, including how much to get real estate license in Texas and other steps for getting licensed.
As getting your real estate license is the key to unlocking a successful career path, this step-by-step guide will help you prepare to achieve your career goals in real estate.
Choosing a career in Texas real estate
Becoming a real estate agent or broker in Texas is a dream come true, especially if you are seeking a non-traditional career where you can earn a six-figure income.
According to industry statistics, Texas’ real estate landscape has been flourishing since the last decade and has grown by around 200 percent.
Thanks to the large land area, strong economic outlook, and relatively affordable housing options, the Texas real estate market is attracting interest and investment from buyers.
A career in real estate offers numerous growth opportunities and data from employment sites show that there are not enough real estate professionals to cater to the demand.
Whether you plan to start your own real estate firm or agency in the future or work independently as a professional, Texas can be an ideal market for you.
On top of it, you can achieve a stable work-life balance as real estate offers a high degree of autonomy and independence, allowing you to define your working hours.
Moreover, if you like helping people buy and sell properties and want the satisfaction of helping others achieve their goals, working as a real estate agent can be an ideal career.
Texas’ real estate market is mature and it continues to attract first-time as well as experienced professionals who want to work in a dynamic, fast-moving industry.
Irrespective of whether you want to start a part-time side income stream or pursue a full-time career, getting a Texas real estate license is the first and foremost step of the journey.
Like most states, Texas also requires all individuals to meet the state and federal requirements to become licensed professionals.
Real estate is a highly regulated industry that works on a pre-established set of laws and regulations, it is mandatory to fulfill the qualifying requirements to work with clients.
As per the Texas Real Estate Commission (TREC), aspiring real estate agents must meet the state license regulations and fulfill the qualifying requirements to obtain a license.
We understand that for many aspiring professionals, earning a real estate license may seem overwhelming at first, especially if it is going to be your first professional career.
However, if you follow all the steps to get real estate license in Texas discussed in this blog, you will find the process easy and straightforward.
Primarily, there are two types of licenses you can apply for - a salesperson’s license and a broker’s license for working in Texas real estate.
To enter the industry, you must obtain a salesperson license in TX, and after gaining real-world experience and relevant skills, you can apply for a broker’s license in a few years.
Note that without a Texas salesperson or broker’s license, you will not be legally able to work with clients or earn commissions through real estate deals.
How to Obtain a Real Estate License in Texas
With a state-approved salesperson license, you can work anywhere in TX and grow in your career.
Ready to start an exciting and rewarding career journey in Texas’ real estate market as a real estate agent? Here are the steps you need to follow to achieve your goal.
Step 1: Meet the basic eligibility requirements
Like most states, Texas requires aspiring professionals to meet the minimum qualifying education and licensing requirements to earn their license. These are:
- Be at least 18 years of age (or older)
- Be a legal U.S. citizen or a lawfully admitted alien
- Have a high school diploma or GED equivalent
- Have a clean record with no history of felony or criminal activity
To determine your eligibility by completing a background check via a fitness determination test before proceeding to complete the next set of steps.
Step 2: Complete Texas pre-license education
Education is the foundation for building a thriving career, whether as a part-time or as a full-time real estate professional.
As per the state law, aspiring real estate professionals in Texas are required to complete qualifying courses as part of the education requirements.
The Texas Real Estate License Commission (TREC) requires you to complete 180 hours of pre-licensing education and training to obtain a state-approved license.
The most crucial aspect of getting your license is completing the mandatory pre licensing coursework and meeting the qualifying education guidelines of the state of Texas.
The coursework consists of foundational topics of real estate including the state and federal laws, contracts, deeds, finance, consumer rights, and other key principles of real estate.
Here’s a list of the courses you will cover during your 180 hours of pre-license education:
- Principles of Real Estate: 60 hours
- Law of Agency: 30 hours
- Law of Contracts: 30 hours
- Real Estate Finance: 30 hours
- Promulgated Contract Forms: 30 hours
The purpose of pre-licensing education is to give you the knowledge and training required to work with clients and help them achieve their goals.
During your coursework, you will learn about the state and federal laws as well as the industry guidelines and regulations required to work as a licensed professional.
If you have been searching for an answer to the question of how to get a Texas real estate license online - luckily, you can choose to enroll in an online pre-license course.
As per the TREC, you are free to complete the course as per your preferred medium of learning and convenience.
However, in the pursuit to complete 180 hours of coursework, many students often overlook the importance of choosing the right education provider.
Although there are a number of real estate colleges, schools, and providers in Texas, not all of them are equal.
To ensure that you are learning from accurate, up-to-date, and relevant coursework, you must choose a state-approved and accredited education provider.
Step 3: Passing the Texas Licensing Exam
After you have successfully completed 180 hours of TREC-approved pre-licensing course credits, the next step is passing the state salesperson licensing test.
The TREC requires you to take the test and pass the exam by scoring at least 75 percent or above.
The purpose of the real estate license exam is to test your knowledge and preparation, and it consists of 120 multiple-choice questions covering both state and national-specific portions, and the questions are based on the pre-license course curriculum.
You can schedule your exam at any of the Pearson VUE centers in Texas based on your preferred date and time.
To take the Texas real estate license exam, you will have to pay an exam fee of $43 for an attempt and if you are unable to pass the test on your first attempt, you can retake it.
Many applicants find passing the Texas state licensing exam difficult and challenging to clear in their first attempt.
Since the odds of getting a license depend on your ability to pass the test, it is important to invest time, effort, and attention towards boosting your exam preparation.
As passing the state real estate license test is one of the mandatory steps to become a real estate agent in Texas, you must prepare for it with sincerity and determination.
One of the best ways to improve your odds of success is to enroll in specialized exam prep courses and training material.
With the help of mock tests and sample questions, you will be able to assess your level of preparation and identify your strengths and weaknesses.
Plus, taking practice tests will also help you manage your time better and prepare to tackle 125 questions in a limited time duration.
Step 4: Complete background verification
Like other states, Texas also follows a pre-established set of laws and regulations to assess aspiring professionals on the values of honesty, integrity, and truthfulness.
One of the key purposes of the TREC is to safeguard the rights and interests of consumers and enforce the highest standards of professionalism and ethics.
As part of the Texas qualifying requirements, the TREC requires applicants to complete mandatory background verification and clear the federal criminal history check.
This step is to ensure that only honest, trustworthy individuals with good moral conduct are allowed to apply for a license and join the industry.
To complete this step, you must submit an electronic copy of your fingerprints by getting your fingerprints scanned at a TREC-approved live scan vendor.
If you have any history of felony or unlawful criminal activity, you must submit a background clearance application which can be obtained from the local sheriff station.
Additionally, you might be required to submit any documents, legal proofs, and jurisdiction paperwork along with your fingerprint scan for verification.
Note that you must complete and submit the required documents for the background check and verification process within 60 days of submitting your salesperson licensing application.
Step 5: Find employer sponsorship
If you have successfully completed all the steps listed above, you will receive your Texas salesperson license within a few weeks.
However, to activate your license, you must find a sponsoring broker with an active Texas real estate license and send your sponsorship details to the TREC for review and approval.
Like most states, Texas also requires newly licensed agents to work under the supervision of senior, more experienced brokers and gain real-world industry experience.
Finding a sponsoring broker or brokerage firm licensed in Texas is an important step, as it is going to shape your early career journey and hence, you must make an informed choice.
How much does it cost to obtain your Texas real estate license?
By now, you might be wondering how long to get real estate license in Texas and how much it will cost to complete the licensing process.
Many aspiring real estate agents, especially first-time applicants, often wonder whether investing the time and cost to get a license is worth it.
Yes, there are many different steps with their associated cost and expenses, and that is why you must consider it as an investment for your career.
When it comes to the cost of getting a Texas salesperson license, it helps to have a clear understanding of the various expenses.
To help you with budgeting and finances and calculate an estimate of the total cost of obtaining a salesperson license, let us cover them in detail:
Pre-license education fees
By now, you would have learned that completing pre-licensing education is a mandatory requirement by the TREC for aspiring real estate agents and brokers.
Since education is the foundation of a successful career, it is one of the most important aspects of your license journey, and requires careful planning and budgeting.
If you are wondering about the cost of Texas pre-licensing education, it largely depends on the course provider, pass rate, type of course package, and the medium of learning.
For instance, - in-person, physical classroom-based real estate colleges in Texas are more expensive as compared to online real estate prep courses.
Generally, you can expect to spend anywhere between $200 to $700 to get your course credits completed from a state-approved education provider.
Thus, if you are interested in saving expenses without compromising on quality education, it is recommended to choose an online pre-license course approved by the TREC.
Another advantage of enrolling in an online pre-license course is the fact that you will not have to commute to a physical location, which will save significant cost and time.
Remember that your education will determine how well-prepared you are, hence it is recommended to opt for an experienced education provider to boost your preparation.
Exam fees
After your education comes the licensing exam which is another mandatory and essential requirement in getting licensed.
If you are applying for a salesperson license in Texas, it will cost you $43 for every attempt you take.
Note that if you are unable to pass the test in three attempts, you might have to complete 180 hours of pre-license coursework again, which could severely impact your budget.
Background verification fee
As per the TREC license guidelines, all applicants must clear the federal background and criminal history check to qualify for a license.
To complete this step, you must submit an electronic scan of your fingerprints. It will cost you around $38.
Application fees
To become a licensed real estate agent, you need to submit your salesperson license application to the TREC for review and approval.
You will be charged a one-time application processing fee of $185 for issuing your license.