What are the responsibilities of a Real Estate Broker?
Whether you are an aspiring real estate professional or an already licensed real estate agent, here’s what you need to know.
Want to level up in your real estate career? Becoming a broker is one of the ways to advance your career and grow your earning potential.
This post will guide you through the intricacies of getting a Texas real estate broker license if you are a real estate agent in the state.
So, who exactly is a real estate broker and how are they different from a real estate agent?
First, let us check the similarities between the two. Both agents and brokers are in the real estate industry, assisting buyers and sellers in closing real estate deals.
Technically, there is no difference between real estate agents and brokers helpinghomebuyers and sellers to selling, buy, and rent real estate. However, a broker has a few additional responsibilities as part of their role.
These include - completing paperwork for the transaction, ensuring the transaction is lawful and meets the guidelines, and also ensuring that the financials are in order.
Hence, the responsibilities of a real estate broker are two-fold, one is to guide real estate agents and the other is to put in more course hours and stay updated with the latest market trends.
Because of all these positives, a real estate broker earns more as compared to a real estate agent. A broker earns direct commissions on the deals they execute themselves plus they also earn indirect commissions on deals they supervise.
Should You Get A Real Estate Broker’s License in Texas
Typically, a non-licensed broker can engage in the sale, purchase, rent, or leasing of real estate. They can operate on their own and are not required to report to a brokerage firm.
However, only a licensed real estate broker is responsible for supervising agents. As per Texas state law, only a licensed real estate broker is legally allowed to train, supervise, and manage supporting staff in a brokerage firm.
A licensed real estate broker manages the brokerage and ensures every financial transaction is following state-established laws and regulations.
Only licensed brokers can do things like - hire, train, and manage real estate agents, control the movement of money in and out of an account, and mediate legal disputes and conflicts in a transaction.
This is why getting a real estate broker license is important as it opens your ability to do more, earn more, and expand your network.
Texas Real Estate Commission (TREC) Requirements for A Real Estate Broker
Are you on the fence about starting a real estate career? Are you thinking of how to get a broker’s license in Texas this year? Let us start with understanding the licensing requirements first.
To get your Texas state broker license, you will need to fulfill the prerequisites first. These include basic eligibility requirements, education requirements, and background verification checks.
Once you meet the above requirements, then the next step is to fulfill the licensing exam requirements.
As per TERC requirements, every applicant must meet the following checklist of requirements:
- Should be a minimum of 18 years old
- Be a citizen of the USA and a resident of Texas
- Meet the standard code of ethics for honesty, trustworthiness, and integrity
- Completing the pre-licensing education from a state-approved course provider
- Pass a background check by submitting your fingerprints for verification
- Taking and successfully passing the final exam
- Paying the application and other fees
- Finding a state-accredited brokerage for sponsorship
After meeting all these Texas real estate broker requirements successfully, you will be awarded a license in the state.
An Overview of the Pre-License Course for Real Estate Brokers
Your first step to becoming a real estate in Texas is to enroll for a real estate broker pre-license course. Before doing so, ensure that you choose a state-approved course provider.
A pre-licensing course will expose you to the industry’s fundamentals, its operations, principles, and workings.
Only after you have successfully taken and passed the licensing exam, will you receive your broker’s license.
In total, the pre-licensing coursework training will require 270 hours of time investment from you. The courses consist of three parts –the first two parts comprise 60 hours of education covering real estate principles and topics. The third part covers applied principles of the real estate industry.
Curious to know whether completing pre-licensing education is worth it or not? Let’s find out.
Benefits of Completing a Pre-License Course
If you are on the fence about deciding whether investing in pre-licensing education is worth it or not, here’s the short answer - it certainly is.
The Texas Real Estate Commission (TERC) mandates that prospective brokers must complete their pre-licensing course to be eligible for appearing for their licensing exam.
To perform successfully as a real estate broker, you must gain the required skills and knowledge. This is why investing in your pre-licensing education is critical.
Moreover, a pre-licensing course is the only way to obtain a Texas real estate broker license. Without a license, your career will not grow as much as you’d want, and your earning potential will be limited as well.
So, if you are ready to enroll yourself in a pre-licensing course, let’s understand what exactly can you expect to learn.
Topics Covered in a Real Estate Broker Pre-License Course
Any state-approved and accredited education provider will help you complete the required 270 hours of coursework as part of your pre-licensing education.
This includes the following mandatory courses:
- Real Estate Principles (60 hours)
- Real Estate Brokerage (30 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Contract Forms (30 hours)
- Real Estate Finance (30 hours)
Next, you must choose an elective course from one of the following:
- Real Estate Marketing
- Real Estate Appraisal
- Real Estate Law
- Real Estate Math
- Real Estate Management
- Real Estate Investments
- Residential Inspections for Real Estate
After completing the required pre-licensing courses, you will have to appear for and successfully pass the final exam.
Approved Providers of Pre-License Education in Texas
Texas is home to many real estate broker pre-licensing education providers, and it is easy to choose the most suitable among them all.
Don’t worry if you are wondering how to manage the hundreds of hours of coursework with your schedule.
Thankfully, in addition to in-person classes, you can also take online courses and complete your pre-licensing education from anywhere.
Note that the Texas Real Estate Commission strongly recommends that applicants should only enroll in a state-approved college or course provider for their education.
Only state-accredited colleges, universities, and online course providers are allowed to provide qualifying education to aspirants.
Stepwise Guide to Obtain A Texas Real Estate Broker’s License
Once you know, the Texas real estate broker requirements are straightforward to follow. Just make sure to follow the below-listed steps and you will be all set:
Step 1: Fulfill the basic state and federal requirements for joining the real estate industry
Step 2: Go through the required coursework as part of pre-licensing education
Step 3: Take and complete the final exam successfully
Step 4: Submit your license application and verification documents
Step 5: Seek sponsorship from a licensed real estate broker or a brokerage firm
Getting A Real Estate Broker License – The Education Requirements
Ready to start your career by getting a broker’s license in Texas? You must complete the minimum education requirements established by the TERC.
To do so, you will need to enroll yourself in a state-approved and accredited college, university, or online course provider.
Select a reputed course provider and enroll in a 270-hour pre-licensing education coursework.
As part of your coursework, you will learn about foundational and fundamental topics such asPrinciples of Real Estate, Laws of Real Estate, Law of Agency, Law of Contracts, Real Estate Promulgated Contract Forms, and Real Estate Finance.
Completing 270 hours of real estate broker pre-licensing education is just the first step. Further, it is essential to go through 630 hours of elective coursework to meet educational requirements to get the license of a broker in Texas.
Note that if you already have a bachelor’s degree in real estate or a related field, then it will be counted as part of the 630 hours of accredited training.
Exam and Application Process
Once you complete the necessary education and training, the next step is to prepare for the final exam.
Before appearing for the final exam, you must submit proofs and documents for background check and verification. To do so, simply apply with the TREC online and attach the required documents.
Pay a one-time fee of $235 along with the application for a real estate broker license.
Please note that your application must include a copy of your fingerprints, along with your education proof. Once you have all of the required documents ready, simply file your application using TREC’s online application service.
Post submission of your application and the required documents and proofs, you will receive the confirmation of approval from TERC within a few weeks.
Now that you have applied, completed your pre-licensing education, fulfilled the basic state requirements, and passed your background check, the next step is to appear for the final broker exam.
You can schedule the exam at your convenience but you are required to confirmat least 24 hours before the selected exam date.
To take and complete the licensing exam, you must choose a state-approved and accredited test center in Texas.
Obtaining a Texas Real Estate Broker License
What are some Benefits of Working as a Licensed Real Estate Broker
A licensed real estate broker is considered a knowledgeable, skilled, and educated professional.
Having a license sets you apart from non-licensed agents and brokers. It adds trustworthiness and competence to your profile.
Since real estate is a game of networking and trust-building, it is important for aspiring brokers to obtain a license.
If you want to turn your real estate career into a rewarding one, earning a broker’s license in Texas is the first step to a successful journey.