How to prepare for a thriving career in Texas real estate
Thanks to the thriving economy, rising job opportunities, and a diverse culture, working in real estate as an agent or broker can be an incredibly rewarding and fulfilling profession.
Texas is emerging as an attractive destination for working professionals, homebuyers, and real estate investors who want to be a part of a strong economy and growing job market.
If you are interested in working on a part-time or a full-time basis, Texas offers exciting possibilities due to the rising demand for residential and commercial real estate.
A career in Texas’ booming real estate landscape will open avenues for growth and profitability while allowing you to work independently and define your own schedule.
Did you know that the average annual salary of a real estate agent in Texas is around $120K in popular real estate markets like Austin, Dallas, and San Antonio?
If you are looking for a stable career where opportunities for growth are abundant, working in real estate might just be the right fit for your professional goals.
To get started, you will need to obtain a real estate license in Texas as it is a mandatory requirement to work with clients anywhere in the state.
Getting a license is the most important step in kickstarting your real estate profession- and if you are ready to embark on an exciting career, we are here to help you get started.
You must approach the licensing process in a structured manner to ensure you can complete all the steps successfully.
Most importantly, you must complete pre-licensing education requirements and successfully pass the licensing exam to obtain your license.
In this article, we will walk you through the exact steps and requirements you need to complete to obtain a Texas real estate license and become a licensed professional.
From choosing a real estate education provider to passing the Texas licensing exam, we have put together all the important aspects you need to know.
Let’s start with understanding the basics of pre-licensing education and how it is relevant to your profession.
What is Pre-Licensing Education in Real Estate
One of the most important requirements for a real estate license in Texas is completing 180 hours of pre-license sales associate education.
The Texas Real Estate Commission ensures that all aspiring agents and brokers must complete qualifying education from a state approved education provider.
Like most states, Texas requires individuals to complete a minimum level of education and training to acquire the required knowledge and skills to work with clients.
Since real estate is a heavily regulated industry governed by various state and federal laws, it is important for aspiring professionals to be thorough about the regulations and guidelines.
This is where pre-license education comes into the picture as the minimum level of qualifying education that must be completed to become eligible for a state license.
Pre-licensing education is a structured curriculum of a variety of courses to equip you with the fundamentals of real estate including its laws, rules, principles, and guidelines.
In Texas, you must enroll in a real estate college, school, or online course to complete 180 hours of course credits. As part of the curriculum, you will cover mandatory courses such as:
- Principles of Real Estate 1 (30 course hours): This course will give you an overview of how the real estate industry works and what are its basic principles. You will learn about the different property types, titles, conveyances, deeds, and fair housing laws.
- Principles of Real Estate 2 (30 course hours): This course will dive deeper into the principles of real estate and its underlying guidelines and regulations. You will learn about property management, real estate appraisal, and deal-closing procedures.
- Real Estate Finance (30 course hours): This course will equip you with the knowledge of finance and accounting in real estate including real estate transactions, loan programs, credit, debt, and other related topics.
- Law of Agency: This course will outline the various types of agency relationships and their specific laws and regulations. You will also learn about ethics, fair trade, deceptive practices, and consumer rights and protection.
- Law of Contracts (30 course hours): This course will give you an overview of the different types of legally binding real estate contracts, disclosure requirements, statutes of fraud, and acceptance contracts for the purpose of sale or purchase.
- Promulgated Contract Forms (30 course hours): This course will give you information about the usage of TREC promulgated forms and the various rules and regulations.
Completing the above courses is not merely one of the mandatory Texas real estate requirements that need to be fulfilled.
Completing 180 hours of education is also a commitment towards building a successful, thriving career based on knowledge and understanding.
Texas’ real estate market is competitive and to stand out from the competition and build your clientele, it is important that you invest the required time, effort and sincerity in education.
Choosing a Real Estate School in Texas
There are many colleges, schools and courses to choose from however before you decide on an education provider, make sure that they are approved by the TREC.
Education is the foundation upon which a successful career is built and if you want to thrive in Texas’ real estate, it is important that you carefully choose the right education provider.
Despite the significance of education and training, choosing an education provider is still one of the most overlooked decisions for many individuals.
One of the most important criteria for finalizing a real estate college, course or school is - are they approved and accredited by the TREC (Texas Real Estate Commission) or not.
Selecting a TREC-accredited or approved education provider is a must in order to maintain compliance with Texas real estate-qualifying education laws and requirements.
Irrespective of whether you join a physical, classroom-based real estate school or enroll in an online, self-paced real estate prep course, ensure they are approved by the TREC.
Choosing a TREC-approved education provider will ensure that you are learning from certified, trained instructors with up-to-date, accurate education curricula based on TREC guidelines.
Not only is this essential for maintaining compliance with the Texas education requirements for a salesperson license, but it will also help you get the right knowledge and training.
Once you have decided on an education provider, simply focus on getting your 180 course hours completed and completing the next set of steps for getting your license.
Secondly, you must check whether the education provider covers all the topics and courses in their packages or not.
The Texas licensing exam consists of both state and national-specific questions; hence, it is important that the curriculum is exhaustive and thorough.
Another important factor to keep in consideration before deciding is to evaluate the type of course packages and features offered by your education provider.
Many real estate education providers and courses offer advanced learning packages with additional features to help students boost their preparation.
Mock tests, simulated practice exams, mobile apps, and audio-narrated lectures are a huge help for students and allow them to learn from any device without restrictions.
Steps for getting your Texas real estate license
The first step towards earning a six-figure income in a flexible job is meeting all the state specific licensing requirements to become a real estate agent in Texas.
To enter the industry, you will need to obtain a salesperson license first. Once you have gained industry experience for a few years, you can apply for a broker’s license.
With a state issued license, you will be able to work with clients anywhere as a seller’s or a buyer’s agent and help them buy or sell properties.
Without a license, however, you will not be legally allowed to take part in real estate and you can stand the risk of violating state and federal laws.
As per the TREC, it is mandatory for all applicants to meet the eligibility, education and background verification requirements to obtain a salesperson license.
Step 1: Meeting the basic eligibility requirements
Let’s start with the basic eligibility requirements to qualify for a Texas salesperson license:
- You must be at least 18 years of age (or older)
- You must be a legal resident of the U.S. or a lawfully admitted alien
- You must have a high school diploma or a GED equivalent
- You meet the state’s guidelines for honesty, truthfulness, and good moral character
Getting a license requires commitment and a significant amount of time, effort, and cost. It is an important step that you must take only if you are certain about your career choice.
Thus, before you decide to embark on your licensing journey, make sure that you meet the minimum statutory requirements.
Thus, it is advisable to first determine your eligibility by completing and submitting a fitness determination application to the TREC.
Step 2: Complete Texas sales associate pre-licensing education
As discussed above, the TREC requires all applicants to complete a minimum of 180 hours of pre-licensing course credits.
Pre-licensing education can be taken before or after you have submitted your real estate licensing application.
However, many students start preparing for the education before submitting their licensing application to get more time for preparation for the Texas sales associate licensing test.
Step 3: Complete background and criminal history check
As per the TREC regulations for licensure, every applicant must complete a federal criminal history background verification check.
This step is mandatory to prove that you do not have a history of felony or any unlawful activity and are fit to work in a regulated industry like real estate.
You can complete this step by submitting an electronic scan of your fingerprints to the TREC for review and approval.
You can get a digital copy of your fingerprint scan at any of the TREC-approved live electronic fingerprinting centers.
In case you have a past criminal history or felony, you must obtain a certificate of clearance from the local sheriff’s station and submit it along with your fingerprints for verification.
Step 4: Pass the Texas licensing exam
After completing 180 hours of state-approved pre-licensing education and passing the federal background verification check, you will be eligible to take the Texas licensing exam,
The TREC requires all individuals to take and pass the sales associate licensing test to obtain their salesperson license.
The licensing exam is formulated to test your knowledge and preparation of the state and federal laws, industry principles, and general real estate topics.
In total, you will face 120 multiple choice questions and you will get 240 minutes to complete the licensing exam. To clear the test, you must score at least 75 percent or above.