Real Estate License In Texas: Your Gateway To A Rewarding Career
Real estate agents in Texas never had it so good. The property market in the Lone Star State is on a high with increased inventory when compared to 2024. Buyers have a lot of choice and are zeroing in on purchases that have been put off for long. With increased market activity, now is the time to take the plunge by getting a real estate license in Texas and kickstarting a lucrative career.
This post will take you through the various aspects of getting a license, from going through the Texas real estate course to fulfilling other eligibility norms. We will also explore the quantum of investment required to fulfill your goal of getting a Texas real estate license.
Before exploring the path to earn a real estate license in Texas, a few points should be clarified to give you a better understanding of the Texas real estate industry.
Earnings Of A Real Estate Agent in Texas
The mode of earnings of a real estate agent in Texas deserves special mention, as it is not like the salary of most conventional jobs. Real estate agents earn commission on the sale price of a property after a deal is closed. This is typically 6% with the seller’s and the buyer’s agent splitting the commission equally.
Now, suppose the sale price of a property is $350,000, which is the median cost of a house in Texas. Once the deal is sealed, each agent earns around $10,500. This is the commission from one deal only; just 10 deals in a year will get you past the magic six figures in earnings. When you get a real estate license in Texas, the sky is the limit for your income level.
Texas Real Estate Commission (TREC)
The Texas Real Estate Commission (TREC) is the controlling body for the real estate sector in the state. Its primary responsibilities include issuing and renewing real estate licenses. TREC also oversees the entire process of getting a real estate license in Texas, including setting the curriculum for the Texas real estate license course and enforcing the rules and regulations of this sector.
TREC mandates that you must have a Texas real estate license to practice in the state. As per the rules, if you want to sell, buy, lease, or rent any real estate property for a third party against commission, you must have a real estate license in Texas to do so.
Steps To Obtain A Real Estate License In Texas
Step 1: Meeting preliminary requirements
While a part of the process to get a real estate license in Texas, certain requirements must be met to get down to the actual process, as given from Step 2 onwards.
On the educational front, you must have a high school diploma at least to apply for a Texas real estate license. An equivalent, such as a GED, will also be counted as a qualification.
On the age front, you must be at least 18 years old on the date you apply for a license. To save time, you can go through a Texas real estate license course and complete other formalities before that.
You must also be a citizen of the USA with a Social Security number to apply for a license in Texas. However, some leeway is given to legally admitted migrants, who can also apply for a license if they have been granted working rights in the country by federal authorities.
Once these basic requirements are met, you can get down to fulfilling other eligibility norms to apply for a real estate license in Texas.
Step 2: Completing the Texas real estate course
This is probably the most important step to obtain a real estate license in Texas. Let us evaluate it from two perspectives: one is stipulated by the TREC, and the other is your personal skill development aspect.
TREC has stipulated that all aspiring real estate agents in Texas must go through the 180-hour pre-licensing coursework to appear for the licensing exam.
On the personal front, this course offers the knowledge required to offer excellent and error-free services to clients in the future. Additionally, understanding the complexities of the real estate industry is no mean task. Continually changing rules and regulations must be tracked for good client service.
Since real estate deals involve huge sums of money, any slight mistake can get agents into deep financial and legal tangles. Building a complete knowledge and skills bank through a Texas real estate license course will help prevent these dire possibilities in your career.
Course curriculum
The content of a 180-hour Texas real estate course consists of two sections. One is the national part that has topics that are common to all the states in the USA. The other is the state-specific part that deals with the real estate rules and regulations exclusive to Texas. The licensing exam has questions from both sections, though any precise weightage is not laid out.
The 180-hour pre-licensing course has 6 modules of 30 hours each as follows:
- Principles of Real Estate 1 (30 hours)
- Principles of Real Estate 2 (30hours)
- Law of Contracts (30 hours)
- Promulgated Contract Forms (30 hours)
- Law of Agency (30 hours)
- Real Estate Finance (30 hours)
There is no fixed order to go through the coursework, and you can select any subject to finish first.
What makes the best pre-licensing course provider
To do well in the licensing exam and pass it on the first try, you must select a top course provider to push you along. Check the following tips on how to choose a course provider to get the most out of your investment.
Course packages: When you scan the real estate education market, you will be spoilt for choice. You get basic packages that allow you to complete the 180-hour pre-licensing course at your own pace. These are at the lowest in the scale and thus the most cheaply-priced too. At the higher end are packages that offer live instructions for online Texas real estate courses as well as e-textbooks for more detailed studying.
However, always choose a package that contains mock tests and practice questions. These are critical aspects that prepare you better for the licensing exam. Mock tests have questions that mirror the type and structure of questions in the real test. Hence, you become aware of the format of the test questions, giving you an extra dose of confidence to face the challenging licensing exam.
One of the leading online Texas real estate course providers is RealEstateU. Their courses are designed by seasoned real estate professionals and instructors with great experience in this niche. RealEstateU provides basic packages as well as advanced ones with e-textbooks, mock tests, and practice questions. What makes their Texas real estate license course online especially appealing is the price of their study materials, which is the lowest in this niche.
Online or physical courses: The option to choose between a physical course in a real estate school or a Texas real estate license course online rests entirely on your preferred learning medium. Check your comfort zone, is it face-to-face interaction with instructors and hard copies of textbooks, or virtual online courses with e-textbooks? However, here is a comparison of the two that will help you make up your mind.
When it comes to convenience and flexibility, an online Texas real estate course is slightly ahead. While you must physically commute to a real estate school, online courses can be downloaded onto any Internet-enabled device and studied at any time and from any location. You do not have to spend substantial amounts of money and time commuting to classes, time that can be better utilized going through a Texas real estate license course.
Finally, always choose a TREC-approved course provider. This is essential as only going through approved courses is considered as having met the eligibility norms to appear for the licensing exam. Visit the TREC portal to check the list of approved course providers before investing in one of them.
Step 3: Background verification
Why is background verification done before a real estate license in Texas is awarded to an aspiring real estate agent? It is because agents must have high moral standards and financial integrity to protect the interests of their clients.
An agent with a dubious background will destroy the trust reposed in them by clients. It is more so as huge sums of money are involved in every real estate deal, and the sanctity of the agent-client relationship must be maintained.
All these aspects make background verification critical before a real estate license in Texas is awarded. It is only through this check that any past criminal record or act of felony can be verified. Once the background is done, the result is valid throughout your career as a real estate professional.
For fingerprint check, get your unique ID from the TREC portal and visit the IndentoGO portal to schedule a fingerprint scan appointment. (The agency provides fingerprint verification services to TREC). On the appointed date, submit your fingerprints physically at the IndentoGO center, which will then present them to TREC for checking by federal agencies.
It is the discretion of TREC to issue a real estate license in Texas to applicants in case of an adverse fingerprint clearance report.
Step 4: Scheduling and passing the licensing exam
After going through the Texas real estate course and fingerprint verification, visit the Pearson VUE portal to schedule a licensing exam. Pearson VUE is the third-party proctor authorized by TREC to conduct the licensing exam. Check the designated centers of Pearson VUE and select one for your licensing exam. You must physically attend the center to take the online exam.
The licensing exam has 110 multiple-choice questions to be completed in 240 minutes. Since the exam is held online, the result is declared soon after the exam is completed. The pass grade for the exam is 75%.
Step 5: Apply for a license
After passing the licensing exam, visit the TREC portal, pay a fee of $150, and apply for a Texas real estate license. Upload proof of completing the Texas real estate course and the fingerprint clearance certificate. After verification of your documents, a provisional real estate certificate will be issued. However, you cannot start your real estate practice before completing the next step, after which your license will be activated.
Step 6: Sponsoring broker
Find a licensed broker in Texas to sponsor you. This is mandated by TREC, and you can only launch your career under the supervision of a brokerage firm. As a newly-licensed real estate agent, you will pick up the ropes faster when an expert is on hand to guide you. Inform your employment status now to TREC to activate your license and begin your journey as a real estate professional.
These are the steps to get a real estate license in Texas.
What Is The Cost Of Obtaining A Texas Real Estate License
The cost of obtaining a real estate license in Texas can be split into variable and fixed costs.
Variable cost
This is the cost of a Texas real estate license course and differs a lot between course providers. Typically, an online Texas real estate course will cost substantially less than a classroom-based one. The cheapest online course is from RealEstateU with the base package starting at $249, going up to $377 with e-textbooks and study guides. Courses in real estate schools vary between $620 to $1200, depending on the content offered in the packages.
Fixed cost
The fixed cost of obtaining a Texas real estate license is as follows:
- License Application fees: $220
- Exam fees: $40 per attempt
- Fingerprinting: $38.25
Total fixed cost: 298.25
Overall, then, the cost of obtaining a real estate license in Texas varies between $900 to $1500.
Summing Up
Getting a real estate license in Texas is challenging and not easy, but with hard work and dedication, it is not beyond anybody looking to make a career in this field. The key is to invest in a quality Texas real estate license course and lay the foundation of a rewarding professional life from there.